Tenn. Comp. R. & Regs. 0780-01-71-.11

Current through June 26, 2024

Section 0780-01-71-.11 - INSURANCE COMPANY PRACTICES

(1) Life insurance companies authorized to do business in this state shall respond to a request for verification of coverage from a life settlement provider or a life settlement broker within thirty (30) calendar days of the date a request is received, subject to the following conditions:

(a) A current authorization consistent with applicable law, signed by the policy owner or certificateholder, accompanies the request;

(b) In the case of an individual policy, submission of a form substantially similar to Appendix A, which has been completed by the life settlement provider or life settlement broker in accordance with the instructions on the form, and

(c) In the case of group insurance coverage:

1. Submission of a form substantially similar to Appendix B, which has been completed by the life settlement provider or life settlement broker in accordance with the instructions on the form, and

2. Which has previously been referred to the group policyholder and completed to the extent the information is available to the group policyholder.

(2) Nothing in this section shall prohibit a life insurance company and a life settlement provider or a life settlement broker from using another verification of coverage form that has been mutually agreed upon in writing in advance of submission of the request.

(3) A life insurance company may not charge a fee for responding to a request for information from a life settlement provider or life settlement broker in compliance with this section in excess of any usual and customary charges to policy owners, certificateholders or insureds for similar services.

(4) The life insurance company may send an acknowledgment of receipt of the request for verification of coverage to the policy owner or certificateholder and, where the policy owner or certificate owner is other than the insured, to the insured. The acknowledgment may contain a general description of any accelerated death benefit that is available under a provision of or rider to the life insurance contract.

Tenn. Comp. R. & Regs. 0780-01-71-.11

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

Authority: T.C.A. § 56-50-110.