Public Chapter 442

HOUSE BILL NO. 550

By Representative Wood

Substituted for: Senate Bill No. 622

By Senator Fowler

AN ACT to amend Tennessee Code Annotated, Title 56, relative to prohibited practices of insurance agents.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Title 56, Chapter 6, Part 1, is amended by adding the following language as a new, appropriately designated section:

Section ___. (a) If an insurance agent knowingly directs any person to submit an application for health care benefits through the TennCare program at a time when such person is covered by a group policy or when such policy is being renewed, then it is unlawful for such agent, thereafter to quote a rate for a group health insurance policy if such agent knows such person would otherwise have been eligible to participate or continue participation in such group policy.

(b) Each act in violation of this act is a separate violation.

(c) The commissioner may suspend, revoke, or refuse to issue or renew any license for an agent violating this act, and in addition to or in lieu of any denial, suspension or revocation of such license, the commissioner may assess a civil penalty against such agent in an amount not to exceed two thousand five hundred dollars ($2,500) for each violation.

SECTION 2. This act shall take effect July 1, 1997, the public welfare requiring it.