WHB/7/5
Sponsored by Brady Lewis, Noah Grant, Maddox Williams of Chattanooga School for the Arts and Sciences
This legislation was filed in the Commerce and Insurance category
Presented as part of the YIG Volunteer 2024 conference
| 1 | BE IT ENACTED BY THE TENNESSEE YMCA YOUTH LEGISLATURE |
| 2 | |
| 3 | Section 1: Terms in this act, unless the context requires otherwise, shall be defined as follows: |
| 4 | A) No-Fault Car Insurance Claim: A claim made by a policyholder for damages or losses covered |
| 5 | under their full coverage car insurance policy, where the policyholder is not at fault for the incident |
| 6 | or event leading to the claim on your vehicle. |
| 7 | B) Insurance Company: Any entity licensed to provide insurance coverage in the state of |
| 8 | Tennessee, including but not limited to auto, home, health, and life insurance providers,this bill |
| 9 | specifically regulates auto insurance. |
| 10 | C) Fair Compensation: Payment to the policyholder equivalent to at least 25% of the total |
| 11 | insurance premiums paid by the policyholder during the extent of the companies coverage. |
| 12 | |
| 13 | Section 2: Fair Compensation Requirement |
| 14 | This act, mandates fair compensation for full coverage car insurance policyholders in Tennessee |
| 15 | who are unjustly dropped from insurance coverage solely due to no-fault insurance claims. The |
| 16 | purpose of this requirement is to provide financial relief to policyholders who have faithfully paid |
| 17 | their insurance premiums but are unfairly penalized for making legitimate claims. This bill defines |
| 18 | fair compensation as 25% of the insurance premiums paid over the full extent of the company's |
| 19 | coverage. This bill only covers individuals that have full coverage of their own vehicle because |
| 20 | liability insurance is mandated. The fine will cover 25% of all money paid to the insurance |
| 21 | company, no matter what kind of insurance it is paying for. |
| 22 | |
| 23 | Section 3: Implementation and Enforcement |
| 24 | The Tennessee Department of Commerce and Insurance shall oversee the implementation and |
| 25 | enforcement of this Act, ensuring compliance by insurance companies operating within the state. |
| 26 | Insurance companies found in violation of the fair compensation requirement shall be subject to |
| 27 | penalties, including fines, license suspension, or other appropriate sanctions as determined by the |
| 28 | Tennessee Department of Commerce and Insurance. |
| 29 | |
| 30 | Section 4: Cost Considerations |
| 31 | This Act may generate revenue through fines imposed on insurance companies found to be in |
| 32 | violation of the fair compensation requirement. Any funds collected through fines shall be directed |
| 33 | to the Tennessee Department of Commerce and Insurance for administration and enforcement |
| 34 | purposes. |
| 35 | Section 5: Repeal of Conflicting Laws |
| 36 | All laws or parts of laws in conflict with this act are hereby repealed. |
| 37 | Section 6: Effective Date |
| 38 | This act will go into effect immediately upon becoming a law. |
| 39 |