Summary of 2015 Tennessee Insurance Legislation
Below is a summary of Tennessee legislation that pertains to insurance enacted in 2015.
Public Chapter 152 – Enacts the “Protection of Volunteer-Insured Drivers of the Elderly (PROVIDE) Act.” Grants immunity from civil liability to volunteers that provide transportation services to senior citizens through a charitable organization or human services agency if the volunteer was acting in good faith and within the scope of his/her official actions. Effective July 1, 2015.
Public Chapter 155 – Revises various provisions relative to taxes, reporting and payment for insurance companies. Effective April 16, 2015 for purposes of rulemaking, March 1, 2016 related to surplus lines, and Jan. 1, 2016 for all remaining sections.
Public Chapter 156 – Makes revisions regarding captive insurance companies, including allowing the creation of workers’ compensation captives and allowing for captive insurance companies to use any type of limited liability company structure, including series LLCs. Also gives captive insurance companies greater flexibility in managing their investments. Effective Jan. 1, 2016 related to protected cell premium taxes, April 16, 2015 for all remaining sections.
Public Chapter 162 – Broadens the definition of a covered building for purposes of sinkhole insurance coverage to include the residential structure and the contents of the personal property contained within the structure. Effective July 1, 2015.
Public Chapter 188 – Prohibits an insurance company from charging a workers’ compensation premium for individuals determined to be an independent contractor; requires additional defense costs and loss adjustment costs be reported to the commissioner of commerce and insurance as supplementary rate and loss costs information. Effective April 22, 2015.
Public Chapter 192 – Requires counties participating in the national flood insurance program to regulate buildings and development within the one hundred-year floodplain, but only to the minimum extent necessary to comply with the national flood insurance program. Effective April 22, 2015.
Public Chapter 227 – Clarifies that no person loaning money that is secured by real property may require insurance that exceeds the replacement cost of the structures or the expected replacement value of the structures on the real property. Effective April 21, 2015.
Public Chapter 345 – Includes workers’ compensation policy cancellation date and the policy reinstatement date as information open to the public. Effective May 4, 2015.
Public Chapter 460 – Enacts the “Travel Insurance Producer Limited License Act.” Establishes license procedures for a limited lines travel insurance license to sell, solicit, or negotiate travel insurance through a licensed insurer. Effective Jan. 1, 2016.
Public Chapter 520 – Enacts the “Transportation Network Company Services Act.” Distinguishes a TNC from any other private passenger transportation services that are regulated pursuant to present law. Requires TNC’s operating in the state to comply with specified automobile liability insurance requirements, including recognizing that the driver is a TNC driver or otherwise uses a vehicle to transport passengers for compensation, and covers the driver while they are logged onto the TNC’s digital network or while the driver is engaged in a prearranged ride. Effective May 20, 2015.