Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-71 - Life Settlements
Section 0780-01-71-.05 - STANDARDS FOR EVALUATION OF REASONABLE PAYMENTS

Universal Citation: TN Comp Rules and Regs 0780-01-71-.05

Current through September 24, 2024

(1) In order to assure that owners receive a reasonable return for settling an insurance policy, the following shall be the minimum discounted value that the owner must receive:

Insured's Life Expectancy Minimum Percentage of Face Value Less Outstanding Loans Received by Owner
(a) Less than 6 months [80%]
(b) At least 6 but less than 12 months [70%]
(c) At least 12 but less than 18 months [65%]
(d) At least 18 but less than 24 months [60%]
(e) At least 24 but less than 30 months [55%]
(f) At least 30 but less than 42 months [50%]
(e) Forty-two months or more Owner must receive at least Cash Surrender Value of Policy

(2) The percentage may be reduced by [5%] for settling a policy written by an insurer rated less than the highest [4] categories by A.M. Best, or a comparable rating by another rating agency.

Authority: T.C.A. §§ 56-50-105 and 56-50-110.

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