Tennessee Reports More Than $5.1M in Restitution Paid to Consumers in 2016

The Tennessee Department of Commerce & Insurance’s (TDCI) Consumer Insurance Services Section announces that more than $5.1 million was returned to Tennessee consumers in 2016 as a result of restitution–a process in which TDCI insurance investigators mediate between insurance companies and policyholders to get denied claims overturned and paid for policyholders.

From January through December of 2016, TDCI-assisted consumers received $5,121,759.84 in restitution, including $848,728.89 received in the month of December alone. By comparison, TDCI repaid consumers over $2.8 million in restitution during 2015.

“The Department proudly serves as an advocate on behalf of all Tennessee consumers in order to help ensure a viable insurance marketplace in the state,” said TDCI Assistant Commissioner Michael Humphreys. “These amounts that we are announcing today were returned to the pockets of Tennessee insurance consumers to help them pay for bills incurred as a result of their insured loss. They were owed these monies and should not have had to worry about paying bills without it. We encourage Tennesseans to reach out to us with questions or concerns regarding insurance products and services.”

In addition to restitution efforts, TDCI staff processed over 4,600 complaints and levied over $250,000 in civil penalties through disciplinary actions taken on behalf of Tennessee consumers against licensees found violating the state’s insurance laws.

To further assist Tennesseans, the Department launched a lost policy service in March 2016 which enables beneficiaries to easily track down the life insurance policies or annuity contracts of deceased family members. Last year, the Department connected 10 Tennesseans to $129,007 in life insurance benefits.