Tenn. Comp. R. & Regs. 0780-01-71-.05

Current through June 26, 2024

Section 0780-01-71-.05 - STANDARDS FOR EVALUATION OF REASONABLE PAYMENTS

(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.

Tenn. Comp. R. & Regs. 0780-01-71-.05

Original rule filed February 7, 2003; effective April 23, 2003.

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