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Tennessee insurance laws

Insurance regulations, rate filing requirements, department info, and recent bulletins for Tennessee. Updated Apr 1, 2026.

Department of Insurance

DepartmentTennessee Department of Commerce and Insurance
CommissionerCarter Lawrence
Rate Filing SystemFile & Use
Regulatory CodeTenn. Code Ann. Title 56 §§ 56-1-101 to 56-61-125 (Insurance Code)
Overview

Tennessee operates under a File & Use rate system, allowing insurers to implement rates upon filing with the Department. The state emphasizes consumer protection through robust unfair claims practices regulations and bad faith statutes. Tennessee has not expanded Medicaid and uses the federal marketplace for health insurance. The regulatory environment balances market competition with strong consumer protections, particularly in property and casualty lines.

Auto Insurance

Min Pd$25,000
Pip MinNot applicable
StatuteTenn. Code Ann. § 56-7-1201 et seq. (Uninsured Motorist Coverage); § 55-12-107 (Financial Responsibility)
Fault SystemTort (at-fault)
Min Bi Per Person$25,000
Uninsured Penalty$300 fine, license suspension until proof of insurance provided for 45 days, $65 restoration fee
Min Bi Per Accident$50,000
Sr22 Duration Years3-5 years
Noncompliance PenaltyInsurers failing to comply with coverage requirements face fines up to $500 per violation under Tenn. Code Ann. § 56-5-117; license suspension or revocation for repeated violations
Rate Filing RequirementFile & Use - insurers may implement rates upon filing with no prior approval required; rates must not be excessive, inadequate, or unfairly discriminatory per Tenn. Code Ann. § 56-5-107
Avg Full Coverage Premium$1,993

Notable Laws

  • Tenn. Code Ann. § 55-12-107 - Establishes minimum financial responsibility limits of $25,000/$50,000/$25,000
  • Tenn. Code Ann. § 56-7-1201 - Requires uninsured/underinsured motorist coverage equal to liability limits unless rejected in writing
  • Tenn. Code Ann. § 56-7-1206 - Prohibits insurers from raising rates based solely on uninsured motorist claims
  • Tenn. Code Ann. § 55-12-139 - Financial Responsibility Law requiring proof of insurance at traffic stops and accidents
  • Tenn. Code Ann. § 56-7-1201(e) - Requires actual physical contact or clear and convincing evidence of unknown uninsured motorist for coverage

Homeowners Insurance

StatuteTenn. Code Ann. Title 56, Chapter 7, Part 13 (Property Insurance Cancellation and Non-Renewal)
Wind PoolNot applicable
Fair Plan NameNot applicable
Noncompliance PenaltyInsurers violating cancellation/non-renewal notice requirements face civil penalties up to $500 per violation; bad faith refusal to pay claims results in 25% penalty plus attorney fees up to 12.5% under § 56-7-105
Rate Filing RequirementFile & Use - rates implemented upon filing; commissioner may disapprove rates found to be excessive, inadequate, or unfairly discriminatory within 90 days

Notable Laws

  • Tenn. Code Ann. § 56-7-1303 - Requires minimum 10 days' notice for policy cancellation
  • Tenn. Code Ann. § 56-7-1304 - Requires 60 days' notice of non-renewal for homeowners policies
  • Tenn. Code Ann. § 56-5-202 - Regulates use of credit-based insurance scores in underwriting and rating
  • Tenn. Code Ann. § 56-7-105 - Bad faith statute allowing 25% penalty for refusal to pay loss within 60 days
  • Tenn. Code Ann. § 56-8-105 - Unfair claims practices prohibitions for property insurance claims

Recent Bulletins

Use of Aerial Imagery by Insurers

#Bulletin 25-032025-10-14

Provides guidance on insurers' use of aerial imagery and drone technology in underwriting and claims handling for property insurance. Addresses consumer privacy concerns and requires insurers to provide transparency about data collection methods.

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Attorney Opinion Letters

#Bulletin 25-022025-03-27

Clarifies requirements for attorney opinion letters submitted by captive insurance companies as part of licensing and annual reporting. Specifies acceptable formats and minimum content requirements.

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Reconciliation of Premium on Surplus Lines Policies Issued in Tennessee

#Bulletin 25-012025-02-05

Outlines new reporting requirements for non-admitted insurers doing business in Tennessee regarding reconciliation of premiums on surplus lines policies. Requires quarterly reporting to the Tennessee Insurance Producer Association.

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Notice of Catastrophe Claims Data Call related to Hurricane Helene Insurance Claims

#Bulletin 24-042024-10-17

Requires all property and casualty insurers writing homeowners, commercial property, or auto physical damage coverage in affected Tennessee counties to submit detailed claims data related to Hurricane Helene damage.

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Flood Recovery

#Bulletin 24-032024-09-30

Reminds insurers of their obligations to policyholders affected by recent flooding in Tennessee, including prompt claims handling, fair settlement practices, and prohibition against policy cancellation or non-renewal based solely on flood-related claims.

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Recent Law Changes

SB 1270 / HB 13042025Health / Life

Insurance Claims and Policy Requirements

Requires health benefit plan issuers to provide claims experience reports within 30 days of written request; updates reinsurance and risk insurance regulations; defines farm property classifications for insurance purposes; adjusts readability standards for life and health insurance policies.

Health insurers must provide more transparency to policyholders through mandatory claims reporting; farm and agricultural property insurance classifications updated for better coverage.

Effective: 2025-07-01

SB 4402025Health

Excepted Benefits Exemptions

Clarifies that excepted benefits (limited dental, vision, specific disease coverage) are not part of requirements to provide coverage for specific persons, providers, treatments, services, conditions, or diseases unless expressly required by law.

Insurers have clearer guidance on coverage mandate exemptions; consumers understand that excepted benefits are not subject to all mandates.

Effective: 2025-07-01

HB 1877 / SB 18272024Health

Electronic Insurance Cards

Requires hospitals and physicians to accept electronic insurance cards as valid proof of an insurance policy, plan, or contract. Defines specifications for electronic insurance card formats and required information.

Consumers can use digital insurance cards instead of physical copies; healthcare providers must accept electronic proof of coverage, modernizing insurance verification.

Effective: 2026-01-01

SB 2094 / HB 16942024Workers Compensation

Enhanced Injury Reporting Requirements

Requires employers to report to the Bureau of Workers' Compensation each accident that results in a work-related death or personal injury requiring medical treatment beyond first aid. Imposes penalties equal to 1.5 times workers' comp costs for non-compliance.

Employers must report more workplace injuries to state authorities; improved data collection on workplace safety; significant penalties for employers who fail to report.

Effective: 2025-01-01

HB 355 / SB 3142023Health

Breast Examination Coverage

Requires health benefit plans that provide coverage for screening mammograms to also provide coverage for diagnostic imaging and supplemental breast screening without imposing cost-sharing requirements on the patient.

Women have expanded access to comprehensive breast cancer screening without out-of-pocket costs; health insurers must cover diagnostic imaging in addition to routine screening mammograms.

Effective: 2023-08-09

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