2010 Tennessee Code
Title 56 - Insurance
Chapter 5 - Rates and Rating Organizations
Part 3 - General Provisions
56-5-309 - Information for insureds Review for aggrieved persons Civil penalty Rule-making authority.

56-5-309. Information for insureds Review for aggrieved persons Civil penalty Rule-making authority.

(a)  Information to Be Furnished Insureds.  Every insurer or rate service organization shall, within a reasonable time after receipt of a written request and upon payment of a reasonable charge, furnish to any insured affected by a rate published by it, all pertinent information as to the rate.

(b)  Aggrieved Persons.  Every insurer and rate service organization shall provide within this state reasonable means whereby any person aggrieved by the application of its rating system may be heard on written request to review the manner in which the rating system has been applied in connection with the insurance afforded. If the insurer fails to grant or reject the request within thirty (30) days, the applicant may proceed in the same manner as if the application had been rejected. Any party affected by the action of the insurer on the request may, within thirty (30) days after written notice of the action, appeal to the commissioner who, after a hearing held upon not less than ten (10) days' written notice to the appellant and to the insurer, may affirm, modify, or reverse the action.

(c)  After notice and hearing in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, the commissioner may impose a civil penalty of up to ten thousand dollars ($10,000) per occurrence, upon a finding that a workers' compensation insurer, without any lawful basis, has assessed an employer premium:

     (1)  For individuals who are not employees; or

     (2)  On the basis of improper classification of employees.

(d)  The commissioner shall have the authority to promulgate rules, including public necessity rules, to effectuate this section. The rules may provide the commissioner with the authority to assess the charges of the administrative procedures division of the office of the secretary of state for any administrative hearing conducted under this section.

[Acts 1983, ch. 66, § 10; 2006, ch. 536, § 1.]