Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-43 - Relating to the "Small Insurance Policy Law of 1979"
Section 0780-01-43-.04 - CONTENT OF POLICIES

(a) Except as noted herein, all industrial life insurance policies issued or delivered in this State issued on or after April 1, 1980, must contain the provisions set forth in T.C.A. §§56-7-702(a), 56-7-303(b), and 56-7-401(1)(b) and (d), or provisions which in the opinion of the Commissioner are as favorable to the policyholder. The loan provision required by T.C.A. §56-7-702(a), shall be contained in all industrial policies issued or delivered in this State after July 1, 1980; however, upon request by an insurer, the Commissioner of Insurance shall hold a hearing to determine if good cause exists to extend the time for compliance with the policy loan requirement, such extension not be exceed twelve (12) months.

(b) In connection with the provisions required by T.C.A. §56-7-702(a), for discount or refund in the event of premiums paid in advance at least 26 weeks and at least 52 weeks, the policy must provide either the discount or the refund at the end of the stipulated period. In the alternative, the policy may provide for both the discount or refund, with the insured given the opportunity to elect either option.

(c) No industrial life insurance policy shall be issued or delivered in this State after April 1, 1980, if such policy contains any of the provisions prohibited by T.C.A. §56-7-302. In addition, no such policy shall be issued if it contains a provision reducing or excluding liability for the face amount or natural death benefit, because the insured's death occurred as the result of the act of another.

(d) No industrial life insurance policy shall be issued or delivered in this State after April 1, 1980, unless such policy is designed so that the premiums for optional benefits, if any, are displayed in the policy in a clear, conspicuous, understandable manner, thereby enabling the policyholder to determine the actual cost of optional benefits. The term "optional benefits" as used herein means policy benefits which can be purchased or not purchased or which can be added to or deleted from such policy at the election of the applicant or policyowner.

(e) In addition to the provisions required and prohibited as described above, an industrial life insurance policy issued or delivered in this State after April 1, 1980, may, at the option of the insurer, contain a provision for refund of a portion of the premium if payments are made directly to the insurer's home office or other designated office for a period of one year.

(f) This subsection shall not preclude the reissue of policies which were approved for issue and originally issued prior to April 1, 1980, nor shall it preclude the issue of policies pursuant to contractual provisions of policies which were approved for issue and originally issued prior to April 1, 1980.