Tenn. Comp. R. & Regs. 0780-01-18-.03 - PROPERTY INSURANCE ON DUAL COLLATERAL

(1) When an automobile and household goods are both used as collateral on loans, insurance may be written only on the actual cash value of the automobile according to its current market value, and then either single or dual interest insurance on the household goods on the difference between the value of the automobile and the amount of the loan.

(2) Single interest auto insurance shall insure only the interest of the creditor loss payee or assignee against loss caused by fire, theft, and collision.

(3) A licensee shall not divide the amount of insurance written on collateral in such a manner as to penalize a borrower in the amount of insurance premium he is required to pay.

(4) No insurance may be written which is not in compliance with all requirements of Section 45-2007(k), Tennessee Code Annotated, especially as regards the relationship of the insurance and the property to the existing hazards and risk of loss.

(5) Cancellation of policies on Dual coverage shall be pro-rata, and on Single interest by

Rule of 78's.

Notes

Tenn. Comp. R. & Regs. 0780-01-18-.03

Original rule certified June 10, 1974. Amended: Filed August 5, 1974; Effective September 4, 1974.

Authority: T.C.A. §45-2011.