Tenn. Comp. R. & Regs. 0780-01-04-.13 - UNFAIR SALES PRACTICES DEFINED

(1) Section 56-1204, Tennessee Code Annotated, reads in part as follows: "Unfair methods of competition - Unfair or deceptive acts or practices - Definitions. - The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance:...(4) BOYCOTT, COERCION AND INTIMIDATION.

(a) Entering into any agreement to commit, or by any concerted action committing, any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of the business of insurance, or

(b) by any act of boycott, coercion or intimidation monopolizing or attempting to monopolize any part of the business of insurance..."

In order to prevent a monopoly from developing in the credit insurance field, this Department declares the use of compensating balances or special deposits when associated with the insurance of credit insurance policies (either directly or indirectly) as an "Unfair Sales Practice" and such practices shall neither be permitted in Tennessee nor involve the policies and/or certificates issued covering financial transactions entered into in Tennessee.

(2) The extension to the creditor of credit for the remittance of premiums beyond the grace period of a group policy or for more than forty-five days from the effective date of an individual policy is likewise declared to be an "Unfair Sales Practice".

Notes

Tenn. Comp. R. & Regs. 0780-01-04-.13

Original rule certified June 10, 1974.

Authority: T.C.A. §§ 45-5-403, 56-7-901 and 56-8-110.