Why Does the Haslam Administration and The Dept of Commerce & Insurance Support a Bill That Will Erode Consumer Protections

Tennessee State CapitolYesterday, the sponsor of a bill that would further erode consumer protection in Tennessee stated that the Department of Commerce and Insurance was aware of, and supported, the bill. The bill, SB2271 (HB2454) by Rep. Charles Sargent and Sen. Jim Tracy, states that a consumer or small business is bound to a change in their insurance policy by the simple act of paying their premium – either by check or by automatic bill payment. In other words, a consumer’s cashed check or automatic bill payment is enough to allow an insurance company to completely change their policy.

“The sponsor of HB2454/SB2271 said that the Department of Commerce and Insurance reviewed his bill ‘and they are very fine with this legislation…’” said Mary Mancini, Executive Director of Tennessee Citizen Action, “Since the mission of the Department is to protect “the interests of consumers while providing fair, efficient oversight” and this bill would create an unfair financial advantage for insurance companies over consumers and small businesses, we would like to know why they are “very fine” with it.

A vote on SB2271/HB2454 was rolled in the House until Monday, 4/23.

Amendment Summary: (b)  The payment of premium for an insurance contract, or amendment thereto,  by an insured shall create a rebuttable presumption that the coverage provided has been accepted by all insureds under the contract.

Watch the debate below (statement about the Dept. of Commerce and Insurance comes at around the 17:40 mark):

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2 Responses to “Why Does the Haslam Administration and The Dept of Commerce & Insurance Support a Bill That Will Erode Consumer Protections”
  1. Frank Long says:

    Funny how your organization left out section “a” from the summary stating that once a consumer has signed an application etc… shall create a rebuttable presumption that the statements provided by the person bind all insureds under the contract and that the person signing such document has read, understands and accepts the contents of such document.
    Your post is very misleading.

  2. Mary mancini says:

    Hi Frank, Thanks for stopping by. We didn’t leave it out. We don’t have a problem with section a. The problem is section b.

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