Tennessee Life Insurance Law – Rules and Regulations

Whether you’re just beginning your search for life insurance or have been on the hunt for a while, rules and regulations can be confusing. That’s why our Guides are here – to make this process easier and more enjoyable for you. Here is a crash course in Tennessee life insurance law.

How Do TN Insurance Laws Protect Me?

Tennessee law protects consumers in a number of ways when it comes to life insurance. Here are a few key points that may affect you:

• Timely Payment – Typically, your insurance provider must pay out your life insurance claim within a month from the date it was filed. Once a death claim has been filed and a certificate submitted, the average timeframe for the payout of the death benefit is 7-10 days.
• Grace Period – Your policy cannot be canceled due to a payment that is late by 30 days or less. This is known as the “grace period.”
• Backup Plan – While it is a very rare occurrence, if your life insurance company goes out of business, don’t worry – your benefits are backed by the Tennessee Life and Health Insurance Guaranty Association. The state insurance department will find another company to purchase the failed company’s book of business and your policy will go on as though nothing happened.

Who Oversees Life Insurance in the State?

The Tennessee Department of Commerce and Insurance is responsible for enforcing the state’s insurance laws and supervising insurance companies and other licensed entities in the state. Some tasks overseen by this department include agent licensing, compliance with state laws, and fraud investigation. The Commissioner of Insurance is appointed by the governor and “shall not be financially interested, directly or indirectly, in any insurance corporation subject to the supervision of the department,” as per Tennessee Code Annotated 56-1-203.

Where Can I Learn More?

If you are interested in learning more about state insurance, check out Title 56 of Tennessee Code Annotated. A new edition is published once a year, and is available online or at your local library.  Ready to get started? Click here to get a free quote. Still have questions? Give us a call: 1-800-356-4282.

*Last updated October 2019