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

-.....

------~