TN Insurance Bulletin (1988-09-01): Fictitious Groupings - Mailings to Bank Customers

NED McWHERTER GOVERNOR STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE 500 JAMES ROBERTSON PARKWAY NASHVILLE, TENNESSEE 37219 B U L L E T I N TO: Al l Companies Doing Business i n Tennessee FR: Elain e A. McReynolds, Commissioner~~"" De par tment of Commerce & Insurance ELAINE A. McREYNOLDS COMMISSIONER RE: Fi cti tious Groupings - Mailings to Bank Customers DA: Se pte mber 1, 1988 Du e t o a recent program of an insurer doing business in Tenness ee involving mailings to customers of a bank, the Department feels that it is appropriate to i ssue this bulleti n advising insurers doing business in Tennessee of the Dep art ment's posit i on with regard to such prog rams. Te nne ssee Code Annotated Section 56-8-116, Tennessee's "fictit iou s grouping" statute prohibits an ins urer from making, of fering to make, or permitting any pref erence or distinc tio n in property, marine, casualty, o r surety insuran ce based upon membership or nonmembershi p in any particu lar group, association, corporation or organization. Accordi ngl y, no insurer may offer a particular policy only to a part icular group. In order to comply wi th T.C.A. Section 56-8-116, any insurance product marketed to custome rs of a bank must not only be made availa ble to any purchas er, whether or not a customer of the bank , but any mailing s by the insurer regarding such a product must include a prominent affirmative statement of this fact. EAM/cmf -..... ------~