Key Takeaways
- The Tennessee Department of Commerce & Insurance (TDCI) regulates insurance under the Commissioner of Commerce & Insurance
- The Commissioner is appointed by the Governor and confirmed by the General Assembly
- Tennessee uses a file-and-use rate regulation system for most P&C insurance
- The TDCI handles licensing, rate review, market conduct, and consumer protection
- Tennessee insurance regulation is codified in Tennessee Code Annotated Title 56
Tennessee Department of Commerce & Insurance (TDCI)
The Tennessee Department of Commerce & Insurance (TDCI) regulates the Property & Casualty insurance industry in Tennessee.
The Commissioner of Commerce & Insurance
Selection Process:
- Appointed by the Governor
- Confirmed by the Tennessee General Assembly
- Serves at the pleasure of the Governor
Powers and Duties:
- Enforce Tennessee insurance laws (Title 56)
- Issue and revoke producer licenses
- Review insurance rates and forms
- Conduct market conduct examinations
- Investigate consumer complaints
- Adopt regulations
Tennessee Rate Regulation
Tennessee uses a file-and-use system for most P&C insurance:
File-and-Use Process
| Step | Description |
|---|---|
| 1. File | Insurer files rates and forms with TDCI |
| 2. Use | Insurer can immediately use filed rates |
| 3. Review | TDCI reviews filing for compliance |
| 4. Disapprove | TDCI can disapprove if rates excessive, inadequate, or unfairly discriminatory |
Key Features:
- More flexible than prior approval
- Allows faster rate implementation
- TDCI retains disapproval authority
- Insurers responsible for actuarial soundness
Rate Standards
Rates must NOT be:
- Excessive - unreasonably high for coverage provided
- Inadequate - too low to sustain insurer solvency
- Unfairly Discriminatory - treating similar risks differently without actuarial justification
Exam Tip: Tennessee uses file-and-use rate regulation. Insurers can implement rates immediately upon filing but TDCI can disapprove if rates violate standards.
TDCI Consumer Protection
Consumer Insurance Services Division
Functions:
- Handle consumer complaints
- Provide consumer education
- Investigate unfair practices
- Mediate disputes
- Assist with claim issues
Consumer Hotline: (800) 342-4029
Tennessee Insurance Laws
Tennessee insurance regulation is codified in Tennessee Code Annotated Title 56:
Key Areas:
- Producer licensing (Chapter 6)
- Policy provisions (Chapter 7)
- Unfair trade practices (Chapter 8)
- Workers' compensation (Chapter 53)
- Auto insurance (Chapter 7)
How is the Tennessee Commissioner of Commerce & Insurance selected?
What type of rate regulation does Tennessee use for most P&C insurance?
Under Tennessee's file-and-use system, rates can be disapproved if they are all of the following EXCEPT: