TN Insurance Bulletin (1990-03-28): Medicare Supplement Insurance Unconditional Refund

r"'\ ., STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE LEGAL SERVICES NED McWHERTER GOVERNOR 500 JAMES ROBERTSON PARKWAY VOLUNTEER PLAZA BUILDING, FIFTH FLOOR NASHVILLE, TENNESSEE 37219 ELAINE A. McREYNOLDS COMMISSIONER .... TO: FROM: BULLETIN All Health Insurers Doing Business in Tennessee Elaine A. McReynolds, Commissioner ~A~ Tennessee Department of Commerce and Insuiance RE: Medicare Supplement Insurance Unconditional Refund DATE: March 28, 1990 Tennessee Code Annotated Section 56-7-1404 (e) provides that an applicant for a medicare supplement insurance policy shall have an unconditional right to return the policy within thirty (30) days of its delivery and have the premium refunded if, after examination of the policy, the applicant is not satisfied for any reason. This section further provides that, upon the return of such policy by the policyholder, the company shall mail the refund directly to the policyholder and shall not require the policyholder to meet with an agent to receive the refund. It has come to the attention of the Department there may be some insurers who are not in compliance this section of the Tennessee Insurance Laws. that with Any insurer found to be mailing such refunds to agents for disbursement to consumers will be subject to disciplinary action under the Unfair Trade Practices Act. ' -. /