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HB 772

Banks and Financial Institutions - As enacted, authorizes a premium finance company to impose and collect a convenience fee from an insured for use of certain payment methods; authorizes a premium finance company to charge and collect a handling charge for certain payment instruments when the payment instrument is not paid by the financial institution from which the instrument is drawn. - Amends TCA Title 56, Chapter 37.

114th Regular Session (2025-2026)

Tennessee law now permits premium finance companies to charge convenience fees for alternative payment methods and handling fees for bounced payments, increasing costs for consumers financing insurance.

Comp. became Pub. Ch. 258
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Bill Summary · HB 772

Legislative bill overview

HB 772 allows premium finance companies in Tennessee to charge convenience fees when customers use certain payment methods (like credit cards) and to collect handling charges when payment instruments bounce or fail to clear. The bill amends Tennessee's premium finance regulations to explicitly authorize these additional fees beyond standard financing charges.

Why is this important

This bill affects consumers who finance insurance premiums—a common practice for those unable to pay upfront. By legalizing convenience and handling fees, it increases the true cost of premium financing, potentially making insurance less affordable for financially vulnerable populations. The distinction matters because these fees are separate from interest charges and can accumulate quickly on declined payments.

Potential points of contention

  • Consumer cost impact: The bill expands fees that borrowers must pay, increasing the effective cost of insurance premium financing without necessarily improving services or reducing lender risk
  • Regressive effect: Low-income consumers relying on premium financing are most likely to use alternative payment methods or experience payment failures, making them disproportionately affected by new fees
  • Regulatory clarity vs. expansion: The bill frames this as clarifying existing authority, but codifying convenience fees in statute effectively authorizes practices that may not have been previously permitted, potentially weakening consumer protections

Compiled from official sources — confirm details with the bill’s official record.

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