TN Insurance Bulletin (1990-07-17): Claims Payment Practices

/ STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE 500 JAMES ROBERTSON PARKWAY NASHVILLE, TENNESSEE 37243 NED McWHERTER GOVERNOR ELAINE A. McREYNOLDS COMMISSIONER ~- ·:,·-.- ~ B U L L E T I N TO: All Life and Health Insurers Doing Business in Tennessee FR: E 1 a in e A • M c R e yn o 1 d s J .4 •II A Commissioner 1./ 1}./YY{ RE: Claims Payment Practices DA: July 17, 1990 Members of the General Assembly of the State of Tennessee have expressed concern to me recently about claims payment practices of life and health insurers doing business in Tennessee. They have the impression that companies are denying claims knowing that the "little guy" will in most cases not take the insurer to court. There is also concern that at this time of rising health care costs, insurers are delaying payment of claims in order to hold onto monies as long as possible prior to paying claims that are rightfully owed to insureds. Such practices are clearly prohibited by the unfair claim settlement practices portion of the Unfair Trade Practices Act, T.C.A. Section 56-8-101 et seq. You are reminded of your obligations under contract and under the law. I urge you to review your claims payment and policyholders service ope rat ion s to in sure that Ten n e s see p o 1 i c y h o 1 de r s are be in g treated fairly in all cases. EAM/cmf