Tennessee Life Insurance Policy Requirements

Tennessee law imposes specific requirements on life insurance policies sold in the state under Title 56 of the Tennessee Code Annotated. The Tennessee Department of Commerce and Insurance (TDCI) oversees insurance regulation.

Free Look Period

Tennessee provides a free look period for life insurance:

During the free look period, the policyholder can:

• Review the policy thoroughly
• Return it for a full refund of premiums paid
• No questions asked, no penalty

Exam Tip: Tennessee's 10-day free look for life insurance follows the standard period used in most states.

Incontestability Clause

Tennessee requires a 2-year incontestability clause in all life insurance policies:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements
• Exceptions: Fraud, non-payment of premiums
• If policy is reinstated, a new contestability period may apply
• Protects beneficiaries from denied claims due to application errors

Suicide Clause

Tennessee limits the suicide exclusion:

• Suicide exclusion cannot exceed 2 years from policy issue
• After 2 years, death by suicide is covered
• If policy is reinstated, new period may apply

Grace Period Requirements

Tennessee mandates grace periods for premium payments:

During the grace period:

• Policy remains in full force
• Death benefits are payable (minus unpaid premium)
• Policy lapses at end of grace period if premium not paid

Beneficiary Protections

Tennessee has specific beneficiary protection laws:

Creditor Protection

Under Tennessee law:

• Life insurance proceeds payable to a named beneficiary may be protected from the insured's creditors
• Cash surrender values have limited protection
• Proceeds payable to the estate are subject to creditor claims

Beneficiary Designation

• Policyowner has the right to change beneficiary unless irrevocably designated
• Changes must be made in writing
• Change is effective when received by the insurer

Policy Delivery Requirements

Tennessee requires:

• Policy delivered within reasonable time of issue
• Delivery must include policy and required disclosures
• Receipt should be obtained

Required Policy Provisions

Under Tennessee law, life insurance policies must include: