TN Insurance Bulletin (1991-08-26): Refund of Premium

NED McWHERTER GOVERNOR TO: FROM: RE: DATE: STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE LEGAL SERVICES 500 JAMES ROBERTSON PARKWAY VOLUNTEER PLAZA BUILDING, FIFTH FLOOR NASHVILLE, TENNESSEE 37243 B U L L E T I N All Insurers Elaine A. McReynolds EltM Commissioner Refund of Premium August 26, 1991 ELAINE A. McREYNOLDS COMMISSIONER It has recently come to our attent ion that some insurers may be issuing refund of premium checks jointly to the i nsured and to the agent. Some agents may be then attempting to deposit the refund into the agency account to offset balances owed by that insured on other policies which may o r may not be with the same insurer. This Department regards the issuance of refund checks jointly to the insured and the agent as an unfair trade pract ice. Furthermore, the Department regards the offsetting among policy balances by an agent, whether or not such balances a re with the same insurer, as a misappropriat ion of the f unds of an insured. Accordingly, insurers and agents should immediately cease these practices. EAM:MC