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-.13 - UNFAIR SALES PRACTICES DEFINED
Current through September 24, 2024
(1) Section 56-1204, Tennessee Code Annotated, reads in part as follows: "Unfair methods of competition - Unfair or deceptive acts or practices - Definitions. - The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance:...(4) BOYCOTT, COERCION AND INTIMIDATION.
In order to prevent a monopoly from developing in the credit insurance field, this Department declares the use of compensating balances or special deposits when associated with the insurance of credit insurance policies (either directly or indirectly) as an "Unfair Sales Practice" and such practices shall neither be permitted in Tennessee nor involve the policies and/or certificates issued covering financial transactions entered into in Tennessee.
(2) The extension to the creditor of credit for the remittance of premiums beyond the grace period of a group policy or for more than forty-five days from the effective date of an individual policy is likewise declared to be an "Unfair Sales Practice".
Authority: T.C.A. §§ 45-5-403, 56-7-901 and 56-8-110.
