# Tenn. Code Ann. § 56-49-105: Premium rates > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-105 ## Section - **Citation:** Tenn. Code Ann. § 56-49-105 - **Heading:** Premium rates - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 56 / Chapter 49 / Section 56-49-105 ## Text (a) Premiums for creditor-placed insurance coverage may be calculated based on: (1) An amount not exceeding the net debt even though the coverage may limit the insurer's liability to the net debt, actual cash value or cost of repair; or (2) Other premium calculation methods that more closely reflect the exposure of each item insured and approximate the premium calculation method of the coverage required by the credit agreement. (b) An insurer shall not write creditor-placed insurance for which the premium rate differs from that determined by the schedules of the insurer on file with the commissioner. The premium or amount charged to the debtor for creditor-placed insurance shall not exceed the premiums charged by the insurer, computed at the time the charge to the debtor is determined. (c) A method of billing insurance charges to the debtor on closed-end credit transactions that creates a balloon payment at the end of the credit transaction or extends the credit transaction's maturity date is prohibited, unless specifically disclosed at the time of the origination of the credit agreement and specifically agreed to by the debtor at the time the charge is added to the outstanding credit balance. Acts 1999, ch. 144, § 5. (a) Premiums for creditor-placed insurance coverage may be calculated based on: (1) An amount not exceeding the net debt even though the coverage may limit the insurer's liability to the net debt, actual cash value or cost of repair; or (2) Other premium calculation methods that more closely reflect the exposure of each item insured and approximate the premium calculation method of the coverage required by the credit agreement. (1) An amount not exceeding the net debt even though the coverage may limit the insurer's liability to the net debt, actual cash value or cost of repair; or (2) Other premium calculation methods that more closely reflect the exposure of each item insured and approximate the premium calculation method of the coverage required by the credit agreement. (b) An insurer shall not write creditor-placed insurance for which the premium rate differs from that determined by the schedules of the insurer on file with the commissioner. The premium or amount charged to the debtor for creditor-placed insurance shall not exceed the premiums charged by the insurer, computed at the time the charge to the debtor is determined. (c) A method of billing insurance charges to the debtor on closed-end credit transactions that creates a balloon payment at the end of the credit transaction or extends the credit transaction's maturity date is prohibited, unless specifically disclosed at the time of the origination of the credit agreement and specifically agreed to by the debtor at the time the charge is added to the outstanding credit balance. Acts 1999, ch. 144, § 5. ## Nearby sections - [Tenn. Code Ann. § 56-49-101 Short title - Purpose](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-101.md) - [Tenn. Code Ann. § 56-49-102 Applicability - Enforcement](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-102.md) - [Tenn. Code Ann. § 56-49-103 Chapter definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-103.md) - [Tenn. Code Ann. § 56-49-104 Effective dates of insurance - Insurance charges](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-104.md) - [Tenn. Code Ann. § 56-49-105 Premium rates](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-105.md) - [Tenn. Code Ann. § 56-49-106 Exclusion from coverage](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-106.md) - [Tenn. Code Ann. § 56-49-107 Policy delivery to debtor](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-107.md) - [Tenn. Code Ann. § 56-49-108 Commissioner approval of forms and rates](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-108.md) - [Tenn. Code Ann. § 56-49-109 Refund of unearned premiums and charges](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-109.md) - [Tenn. Code Ann. § 56-49-110 Payment in event of loss](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-110.md) - [Tenn. Code Ann. § 56-49-111 Creditor right to require insurance](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-111.md) - [Tenn. Code Ann. § 56-49-112 Premium remittance - Commissions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-112.md) - [Tenn. Code Ann. § 56-49-113 Disclosure of insurance requirement](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-113.md) - [Tenn. Code Ann. § 56-49-114 Investigations - Hearings and proceedings - Penalties for violations](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-114.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C49_S56-49-105. Check the current official text before relying on it. Not legal advice.