Tennessee: Department of Insurance Works on 2008 Legislative Package

The Tennessee Department of Insurance is pursuing an aggressive legislative package for the 2008 session. Proposals include language regarding unfair trade practices, unfair claims settlement practices, agent licensing, and the NAIC Insurer Receivership Model Act.

NAMIC state affairs managers Tami Stanton and Liz Reynolds have attended meetings held by the department to solicit feedback from the industry on the various proposals. NAMIC is particularly concerned about the effort to implement IRMA and has submitted written comments pointing out problems with it. “In particular, we are concerned about treatment in the insolvency process of assets from what are known as ‘large deductible policies,’” wrote Reynolds. In addition, the letter noted that NAMIC staff spoke strongly against IRMA during deliberations at the NAIC.

In closing, Reynolds stressed “our companies want efficient, reasonably timely resolution of legitimate claims made on failed insurers…[i]mplementing IRMA in Tennessee would do more harm than good. NAMIC prefers to address specific areas of concern that you have and not ‘throw out the baby with the bathwater’ by making wholesale changes that may or may not be necessary.”

Commissioner of Commerce and Insurance Leslie Newman, who was appointed in January 2007 by Gov. Phil Bredesen, provided proposal “concepts” to the governor last month. Tennessee’s 2008 legislative session begins in January. NAMIC staff will continue to provide feedback and participate in discussions with the department and industry representatives on these issues.

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, September 11, 2007 12:00:00 AM. Modified: Tuesday, September 11, 2007 1:08:03 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.