Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-04 - Credit Life Insurance and Credit Accident and Health Insurance
Section 0780-01-04-.01 - DEFINITIONS

(a) "Credit insurance" means credit life insurance and/or credit accident and health insurance;

(b) "Credit life insurance" means insurance on the life of a debtor in connection with a specific loan or other credit transaction of five years' duration or less to provide payment to a creditor in the event of the death of a debtor;

(c) "Credit accident and health insurance" means insurance on a debtor in connection with a specific loan or other credit transaction of five years' duration or less to provide indemnity to the creditor for installment payments on the indebtedness becoming due while the debtor is disabled as defined in the policy, or to provide for extinguishment of the indebtedness upon the debtor's becoming disabled as provided in the policy;

(d) "Creditor" means the lender of money or vendor or lessor of goods, services, or property, rights, or privileges, for which payment is arranged through a credit transaction, or any successor to the right, title, or interest of any such lender, vendor, or lessor, or an affiliate, associates or subsidiary of any of them, or any director, officer or employee of any of them, or any other person in any way associated with them;

(e) "Debtor" means a borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction;

(f) "Indebtedness" means the total amount payable by a debtor to a creditor in connection with a loan or other credit transaction;

(g) "Commissioner" means the Commissioner of Insurance and Banking;

(g) "Insurer" means an insurance company licensed to write credit insurance;

(g) "Identifiable charge" means the amount a creditor charges a debtor or collects from him for credit insurance in addition to any other stated charges, including interest or discount, permitted by law. A differential in interest rates between insured and uninsured loans is an identifiable charge.

(g) "Joint life coverage" means credit life insurance covering two or more lives the entire sum insured being payable upon the death of the first insured debtor to die while the insurance is in force.

(g) "Joint accident and health coverage" means credit accident and health insurance covering two or more debtors' lives, the benefits being payable while any covered debtor is disabled as defined in the policy or upon any debtor becoming disabled as defined in the policy.

(a) "Claims" means benefits payable on death or disability, excluding loss adjustment expense, claims settlement costs, or other additions of any kind;

(a) "Claims incurred" means claims actually paid during the reporting year plus the estimated reserves at the end of the year for reported claims in the process of settlement and for unreported claims, less the corresponding estimated reserves at the end of the preceding year. All reserves are to be determined in a consistent manner from year to year;

(a) "Premiums earned" means the total gross premiums which become due the insurer, without reduction of any kind, except the premiums refunded or adjusted on account of termination of coverage, appropriately adjusted for changes in gross unearned premiums in force upon a pro-rata basis or a "Sum of the Digits" basis, where applicable. Where premiums are payable monthly on the basis of outstanding insured balances, "premiums using the reporting year plus premiums due the insurer but unpaid at the end of that year, less premiums due the insurer but unpaid at the end of the previous year. As defined under either system, premiums are without reduction of any kind except for those refunded or adjusted because of termination of coverage. This definition does not relate to the preparation of financial statements, but shall be used when this regulation or the experience reporting forms specifically refer to "premium earned";

(a) "Credibility period" means as of any point of time the period of at least one (1), but not more than three (3) years, immediately prior thereto.