Tenn. Code Ann. tit. 56, ch. 7: Policies and Policyholders

What this document is

Tenn. Code Ann. tit. 56, ch. 7 - Policies and Policyholders is a state statute published by Justia (law.justia.com), 2025 Tennessee Code. It is one of the Tennessee documents that insurance license exam questions are written from, including tennessee property & casualty practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Tenn. Code Ann. § 56-7-125(b)(2) (Written statement of rights)

  “Have the repairs made by a contractor of the policyholders' choice, understanding that the contractor is hired by the policyholder and that this contractor does not work for or at the direction of the insurance company;”

• Tenn. Code Ann. § 56-7-129 (Subrogation of claims for damage caused by explosives)

  “Any company holding a certificate of authority pursuant to § 56-2-105 to provide property insurance as defined in § 56-2-201, may subrogate a claim for damage caused by a blasting operation as defined in § 68-105-102, to the person as defined in § 68-105-102 causing the blast.”

• Tenn. Code Ann. § 56-7-130(b) (Sinkhole losses; coverage availability)

  “Nothing in this section mandates that sinkhole loss coverage be included in any homeowner property insurance policy, but only that insurers offering homeowner property insurance make such coverage available for optional purchase on request by policyholders.”

• Tenn. Code Ann. § 56-7-130(a)(12) (Sinkhole loss; exclusions)

  “(A) Means structural damage to a covered structure caused by the sudden collapse of the earth supporting the covered structure as the result of sinkhole activity; and (B) Does not include: (i) Land stabilization or costs associated with land stabilization; or”

• Tenn. Code Ann. § 56-7-130(e)(5) (Sinkhole losses; payment of repairs)

  “The insurer may not require the policyholder to advance payment for covered repairs.”

• Tenn. Code Ann. § 56-7-130(f) (Sinkhole losses; cancellation and nonrenewal)

  “an insurer may cancel, decline to renew, or decline to issue any homeowner property insurance on a structure that has been the subject of a sinkhole loss claim if the structure: (1) Has not been repaired in accordance with the plan of repair approved by the insurer and within the time constraints...”

• Tenn. Code Ann. § 56-7-113(b) (Inquiry not grounds for premium increase or cancellation)

  “No insurance company shall increase a premium or cancel a homeowner's insurance policy solely on the basis of an inquiry or inquiries by an insured regarding the insured's homeowner's insurance policy or a loss under the policy.”

• Tenn. Code Ann. § 56-7-1804(e) (Contents of notices of cancellation)

  “All notices of cancellation shall state which of the grounds set forth in § 56-7-1803 are relied upon, and that upon written request of the named insured, the insurer shall furnish the facts on which the cancellation is based.”

• Tenn. Code Ann. § 56-7-1805(b) (When notice of nonrenewal not required)

  “Notice of nonrenewal is not required if: (1) The insurer has offered to issue a renewal policy; or (2) Where the named insured has obtained replacement coverage or has agreed in writing to obtain replacement coverage.”

• Tenn. Code Ann. § 56-7-1806(b) (Revision of rates)

  “Unless notice is provided as described in subsection (a), the insurer is required to extend the existing policy sixty (60) days from the date the notice is provided.”

• Tenn. Code Ann. § 56-7-101(a) (Contract of insurance defined)

  “A contract of insurance is an agreement by which one party, for a consideration, promises to pay money or its equivalent, or to do some act of value to the assured, upon the destruction or injury, loss or damage of something in which the other party has an insurable interest;”

• Tenn. Code Ann. § 56-7-104 (Hostilities shall not invalidate policy)

  “No policy of insurance issued to a citizen of this state by an authorized company organized under the laws of a foreign country shall be invalidated by the occurrence of hostilities between the foreign country and the United States.”

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More Tennessee sources

• Tenn. Code Ann. s. 56-8-104: Unfair trade practices definedState statute
• Tenn. Code Ann. tit. 56, ch. 6 - Insurance Producers (Tennessee Insurance Producer Licensing Act of 2002)State statute
• Tenn. Code Ann. tit. 56, ch. 7 - Policies and Policyholders (life, accident and health, and group provisions)State statute
• Tenn. Code Ann. tit. 56, ch. 12 - Insurance Guaranty Association Act (Part 1) and Tennessee Life and Health Insurance Guaranty Association Act (Part 2, 56-12-201 et seq.)State statute
• Tenn. Code Ann. tit. 56, ch. 32 - Health Maintenance Organization Act of 1986State statute
• Tennessee Insurance Content OutlinesCandidate handbook or exam outline
• Tennessee Insurance Licensing Candidate HandbookCandidate handbook or exam outline
• 2025 Tenn. Pub. Ch. 150 (HB 1045): Tenn. Code Ann. Section 56-7-203, life insurance and annuity proceeds exempt from creditors' claimsState statute