Tennessee Life Insurance (TN)
The state of Tennessee has instigated laws to provide protection for both life insurance consumers and insurers.
Tennessee Life Insurance Laws Protecting COnsumers (TN)
The insurance laws of Tennessee are regulated under Chapter 56 of the Tennessee Insurance Code. It is under these laws that policy requirements and claims procedures are overseen by the state in order to protect life insurance consumers of the state.
The 30-day grace period for late payments is one such protection. This allows a life insurance policyholder one month to catch up on a premium payment without worry of their policy being terminated by the insurer. As long as the proper payment is made, there shall be no lapse in coverage.
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Tennessee life insurance companies are legally obligated to settle a claim within 60-days of receiving the adequate proof of death. After this two month period, benefit proceeds will begin to accrue interest.
Tennessee Life Insurance Regulations Protecting Insurers (TN)
In addition, Chapter 56 allows some protections for insurers as well. Any misstatements made or fraudulent findings on a life insurance policy or application for coverage found during the first two years of a policy’s life can result in cancellation of said policy. Therefore, no policy claims will be honored.
On a side note, any findings regarding inaccurate age will result in a simple recalculation of death benefits, reflecting the correct age of the insured.
Suicide as the cause of death will not be eligible for claim on a life insurance policy within the first two years of a policy’s life.
Additional Tennessee Life Insurance Regulations (TN)
If your life insurance company is licensed in the state of Tennessee and becomes bankrupt, you will be compensated with the help of the Tennessee Life & Health Insurance Guaranty Association, as long as your premiums are current. The Guaranty Association has been put in place to assist life insurance consumers by collecting fees from all licensed insurers in the state, solely for this purpose.
Restrictions are set at the following limits:
- $300,000 lost death benefit per insured individual.
- $100,000 lost cash surrender per insured individual.
These limits apply no matter the number of policies held or their total value.
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Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.
Last Updated: June 16, 2009
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