Insurance Companies, Agents, Brokers, Policies

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Insurance Companies, Agents, Brokers, Policies

ON APRIL 21, 2026, THE HOUSE ADOPTED AMENDMENTS # 1 AND 2 AND PASSED HOUSE BILL 705, AS AMENDED.

What This Bill Does

• ON APRIL 21, 2026, THE HOUSE ADOPTED AMENDMENTS # 1 AND 2 AND PASSED HOUSE BILL 705, AS AMENDED.
• AMENDMENT #1 rewrites the bill to, instead, generally require a group policy delivered or issued for delivery in this state that provides hospital, surgical, or major medical expense insurance, or any combination of these coverages, on an expense incurre d basis, to provide that an employee or member whose insurance under the group policy that has been terminated for any reason, and who has been continuously insured under the group policy, and under any group policy providing similar benefits that it repl ac es, for at least three months immediately prior to termination, is entitled to have the coverage nonetheless continued under the group policy for the remainder of the month in which the policy is terminated, plus the next three subsequent months upon paym ent in advance to the employer of the full group policy premium for this continuation of coverage, including any portion customarily paid by the employer.
• However, an employee or member is not entitled to have coverage continued pursuant to this amendmen t if either of the following applies:  T he group policy was terminated in its entirety or was terminated with respect to an insured class of which the employee was a member .
•  The termination of the employee's insurance under the group policy occurred because (i) the employee failed to pay any required contribution; (ii) the employee is eligible for medicare; or (iii) the discontinued group coverage was replaced by similar group coverage within 31 days.

Limits and Unknowns

• This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Official Summary Text

ON APRIL 21, 2026, THE HOUSE ADOPTED AMENDMENTS # 1 AND 2 AND PASSED HOUSE BILL 705, AS AMENDED.

AMENDMENT #1 rewrites the bill to, instead, generally require a group policy delivered or issued for delivery in this state that provides hospital, surgical, or major medical expense insurance, or any combination of these coverages, on an expense incurre
d basis, to provide that an employee or member whose insurance under the group policy that has been terminated for any reason, and who has been continuously insured under the group policy, and under any group policy providing similar benefits that it repl
ac
es, for at least three months immediately prior to termination, is entitled to have the coverage nonetheless continued under the group policy for the remainder of the month in which the policy is terminated, plus the next three subsequent months upon paym
ent in advance to the employer of the full group policy premium for this continuation of coverage, including any portion customarily paid by the employer. However, an employee or member is not entitled to have coverage continued pursuant to this amendmen
t
if either of the following applies:



T
he group policy was terminated in its entirety or was terminated with respect to an insured class of which the employee was a member
.


The termination of the employee's insurance under the group policy occurred because (i) the employee failed to pay any required contribution; (ii) the employee is eligible for medicare; or (iii) the discontinued group coverage was replaced by similar group coverage within 31 days.

APPLICABILITY

This amendment applies to group policies issued, renewed, or amended on or after this bill becomes a law.

AMENDMENT #2 provides requirements for optical products insurance that are the same as the requirements for portable electronics insurance. An officer, director, employee, or authorized representative of a business entity engaged in the sale, solicitati
on, or negotiation of optical products insurance is not required to obtain a license as an insurance producer. However, such person or entity must obtain a license as a limited lines producer. As used in this amendment, "optical products" mean smart gla
ss
es and non-electronic eyewear, and includes prescription and non-prescription eyeglasses and sunglasses.

This amendment requires brochures or other written materials be made available to customers at every location where optical products insurance is offered to customers. Such written materials must (i) disclose that portable electronics insurance may prov
ide a duplication of coverage already provided by a customer's other source of coverage; (ii) state that enrollment is not required in order to purchase or lease the optical products; (iii) summarize the material terms of the coverage; (iv) summarize the
pr
ocess for filing a claim; and (v) state that the enrolled customer may cancel enrollment for coverage under an optical products insurance policy at any time. The charges for optical products insurance coverage may be billed and collected by the vendor of
such optical products. However, any charge for such coverage must be clearly itemized on the customer's bill. Funds received by a vendor from an enrolled customer for the sale of optical products must be considered funds held in trust by the vendor in
a
fiduciary capacity for the benefit of the optical products insurer.

This amendment authorizes the commissioner of commerce and insurance ("commissioner") to enforce this amendment against a vendor of optical products. The commissioner may impose civil penalties and other penalties the commissioner deems necessary and re
asonable to carry out the purposes of this amendment.

This amendment authorizes an insurer of optical products insurance to terminate or otherwise change the terms and conditions of a policy of optical products insurance only after providing the policyholder and all enrolled customers with at least 30 days'
notice. However, an insurer may terminate a policy upon 15 days' notice for discovery of fraud or material misrepresentation in obtaining coverage or in the presentation of a claim. Coverage may be immediately terminated for nonpayment of premiums; if
th
e customer ceases to have active service with the vendor of optical products; or if an enrolled customer exhausts the aggregate limit of liability.

RULEMAKING

This amendment authorizes the commissioner to promulgate rules to effectuate this bill.

Current Bill Text

SENATE BILL 865
By Stevens

HOUSE BILL 705
By Gant

HB0705
002579
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 56,
relative to insurance.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 56-2-904(a), is amended by deleting
the language "no later than June 1" wherever it appears and substituting "no later than July 1".
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.