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NAMIC 2006 Survey of New State Insurance Laws Summary and Analysis

2006 SUMMARY OF NEW STATE LAWS - TENNESSEE

Tennessee State Legislative Website

BILL #

CHAPTER #

ISSUE

BILL DESCRIPTION

HB 720

7

Workers' compensation - benefits, claims or treatments

Extends deadline for commissioner of labor and workforce development to file proposed rules with clerks and designated standing committees regarding comprehensive medical fee schedule, from February 15, 2005, to April 1, 2005. Effective: March 21, 2006.

HB 1275

8

State regulation

Repeals law separating financial services providers, including banks, insurance companies, and securities brokers and dealers, to permit cross ownership and sales of financial products by all providers. Effective: March 21, 2006.

HB 2447

805

Property insurance

Requires that every insurer authorized to transact property insurance makes coverage available for structural damage caused by sinkholes and provides minimum investigation criteria for such sinkhole claims. Effective: Jan. 1, 2007.

HB 2595

880

Motor vehicle insurance -- miscellaneous

Provides that persons convicted of drunk driving, as a condition of probation, shall be required to remove litter from highways; relates to court-ordered outpatient alcohol or drug treatment programs and scheduled interlock monitoring appointments; provides for confinement in the county jail or workhouse and litter removal for convictions of persons under the age of 21; provides reimbursement to the sheriff for costs of supervision. Effective: June 15, 2006.

HB 2814

679

Workers' compensation - fund management

Revises the information to be included in the annual report of the advisory council to include a summary of significant supreme court decisions relating to workers' compensation, including an explanation of their impact on existing policy. Effective: July 1, 2006.

HB 3154

726

Motor vehicle insurance - miscellaneous

Allows a Tennessee driver, who is ticketed by the highway patrol for speeding, to enter a guilty plea in the appropriate court of the driver's home county and, subject to approval of the court, to attend traffic school in the driver's home county rather than in the county in which the ticket was issued. (Similar to HB 3539). Effective: July 1, 2006.

HB 3671

778

Workers' compensation - disputes and settlements

Revises provisions which entitle the payor of benefits to a refund from the second injury fund if a specialist has ordered the payment of benefits and a court subsequently finds that the employee was not entitled to the ordered benefit. Effective: May 24, 20006.

HB 3676

997

Producer licensure -- adjusters

Enacts the Public Adjuster Licensing Act of 2006; relates to insurance companies, agents, brokers, fees, licensing and policies, first party claims for real and personal property and a catastrophic disaster that severely affects state, local and private sector capabilities and damages to 25 or more residential dwellings; provides for a business entity acting as a public adjuster and persons who settle subrogation claims; requires a notification letter to an insured; prohibits certain solicitations. Effective: July 1, 2006.

HB 4047

1018

Fees

Authorizes the commissioner of commerce and insurance to promulgate rules regarding the filing of annual statements and payment of annual filing fees; such rules may allow electronic filing; revises fees under the Insurance Producer Licensing Act. - TCA Sections 56-1-501, Effective: June 27, 2006.

SB 2117

536

Workers' compensation - disputes and settlements

Provides that after notice and hearing, the Insurance Commissioner may impose a civil penalty of up to a specified amount per occurrence upon finding that a workers' compensation insurer, without any lawful basis, has assessed an employer premium for individual who are not employees and on the basis of improper classification of employees. Effective: April 24, 20006.

SB 2663

517

Motor vehicle insurance - auto body shops

Requires owner of motor vehicle to submit a declaration of what damage a transferred vehicle has incurred, what replacement parts were used and that no stolen parts were used in repair; changes when insurance company required to obtain dismantlers license; increases penalty for offenses involving the sale of rebuilt cars. Effective: July 1, 2006.

SB 2957

902

Workers' compensation - fund management

Requires the commissioner of labor and workforce development to hold a rulemaking hearing on proposed changes to the workers compensation medical fee schedule; requires the commissioner's annual review of the fee schedule to include a report on the adequacy of health care provider networks. Effective: June 20, 2006.

SB 3068

905

Catastrophe related legislation

Creates west Tennessee seismic safety commission to study ways to mitigate earthquake damage in west Tennessee. Effective: June 20, 2006.

SB 3201

529

Motor vehicle insurance - traffic offenses

Amends provisions relating to a blood alcohol content necessary to constitute the offense of boating under influence. Effective: July 1, 2006.

SB 3226

910

Motor vehicle insurance -- miscellaneous

Removes prohibition on antique motor vehicles being used for general transportation by authorizing such use on Saturdays and Sundays only; provides penalties for violation by forfeiture of vehicle registration, vehicle registration fee liability and restriction from applying for or holding an antique motor vehicle registration for a specified number of years. Effective: June 20, 20006.

SB 3261

687

Workers' compensation - disputes and settlements

Authorizes commissioner of labor and workforce development to impose fines on providers who refuse to make repayment to a payor that exceeds the medical fee schedule. Effective: May 18, 2006.

SB 3268

518

Motor vehicle insurance - traffic safety

Allows private organizations that contract with the Department of Safety to conduct motorcycle rider education courses to charge a tuition fee, but requires the department to determine the maximum tuition fees for organizations that receive a start-up grant subsidy for such course. Effective: April 4, 2006.

SB 3504

689

Farm mutuals

Enacts the Tennessee County Mutual Insurance Company Act of 2006; provides that it is unlawful for any person to enter into a contract of insurance as a county mutual insurance company or transact insurance business in this state as a county mutual insurance company without a certificate of authority provided by the commissioner. Effective: varies.

SB 3628

645

Workers' compensation -- miscellaneous

Revises the information to be included in the annual report of the advisory council to include a summary of significant supreme court decisions relating to workers' compensation, including an explanation of their impact on existing policy. Effective: May 12, 2006.

SB 3631

772

Workers' compensation - disputes and settlements

Gives the party against whom a specialist has issued an order the right to submit a request for reconsideration; makes conforming changes to present law concerning penalties for failure to comply with an order issued by a specialist. Effective: May 26, 2006.

SB 3702

853

Motor vehicle insurance -- miscellaneous

Creates Class C misdemeanor offense of possessing or selling a radar jamming device or of knowingly operating a motor vehicle with such a device in the vehicle and the Class B misdemeanor of using a jamming device to interfere with the radar signals of law enforcement. Effective: July 1, 2006.

The information contained in this summary is not intended as a portrayal of every property/casualty-related law enacted in each state. Rather, it represents recently enacted legislation specifically identified by NAMIC State and Regulatory Affairs Staff as bearing direct relevance to those issues that represent NAMIC's National State Legislative Agenda or otherwise deemed pertinent to the interests of the majority of NAMIC members.

This summary is for use as a convenient tool for our members, and is not intended, and should not be considered to be, legal advice. Please consult your legal representatives.