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SB 1694

Commerce and Insurance, Dept. of - As introduced, extends from 30 days to 30 business days the period of time within which an insurer must respond to the department's request for information in regard to a complaint filed against the insurer. - Amends TCA Title 33; Title 39; Title 52; Title 56; Title 58; Title 68 and Title 71.

114th Regular Session (2025-2026) Introduced by Raumesh Akbari

Tennessee requires publicly disclosing substantiated claims-handling violations by insurers, with annual reports and quarterly updates, while protecting sensitive data.

Failed in Senate Commerce and Labor Committee (no second)
#commerceandinsurance #dept.of
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WeVote Research Nonpartisan
Bill Summary · SB 1694

Summary of SB 1694 / HB 1477 (Tennessee, 114th Legislature)

Note: This summary reflects the amended version as introduced in Senate Bill 1694 / House Bill 1477 and related fiscal notes.

1) Purpose and Intent

  • The bill aims to increase transparency in how insurance claims are handled by insurers and regulated by the Tennessee Department of Commerce and Insurance (DCI).
  • It seeks to publicly disclose substantiated violations of insurance claims-handling laws (with appropriate redactions) and to publish annual reports detailing claims and enforcement actions.
  • The underlying rationale emphasizes that claims handling affects health, safety, and financial security, especially for elderly and vulnerable residents, and that transparency can promote accountability.

2) Key Provisions and Changes

New Section: 56-1-111 (as added by the bill)

  • Public disclosure of substantiated violations (non-privileged info):
    • DCI must not treat as confidential information certain substantiated claims-handling violations, including:
    • Failure to timely investigate, adjust, or pay claims
    • Misrepresentation of policy provisions
    • Pattern or practice of unfair claims settlement practices
    • Effects on vulnerable populations (65 years or older; residents of long-term care facilities; other vulnerable adults)
  • Disclosable information (examples):
    • Final market conduct examination findings related to claims handling
    • Final administrative orders, consent orders, or settlements
    • Aggregated data on substantiated consumer complaints (number and type)
    • Corrective action plans required after substantiated violations
    • Administrative penalties or sanctions for claims-handling misconduct
  • Exclusions (what must not be disclosed):
    • Personally identifying information of claimants or insured
    • Medical records or protected health information
    • Trade secrets, actuarial formulas, or proprietary pricing methodologies
    • Information related to ongoing investigations prior to a final determination
  • Public reporting timeline:
    • Starting October 1, 2026, DCI must publish the identified information in a publicly accessible, searchable format on its website, updated at least quarterly (every three months).
    • By January 15, 2027, and each January 15 thereafter, DCI must publish an annual report that:
    • Summarizes the number of claims involving policyholders aged 65 or older
    • Summarizes the number of substantiated complaints alleging failure to adjust or pay such claims
    • Identifies the insurers against whom substantiated complaints were filed
    • Describes enforcement actions taken as a result
    • The annual report must not disclose personally identifying information and must identify insurers by name.

Effect on Confidentiality and Public Records

  • The bill clarifies that certain information related to substantiated claims-handling violations will be public, while preserving protections for:
    • Attorney-client privilege
    • Trade secrets or proprietary pricing methodologies
    • Ongoing investigations prior to a final determination
    • Personal health information and other sensitive data

3) Who/What Is Affected

  • Regulated Entity: Insurance companies and other insurers regulated by the Tennessee DCI.
  • Regulatory Body: Tennessee Department of Commerce and Insurance (DCI).
  • Public/Stakeholders: Consumers, particularly elderly and vulnerable adults, advocates, researchers, and journalists who seek transparency on claims-handling practices.
  • Data Publishable: Final market conduct findings, orders/settlements, aggregated complaint data, corrective actions, penalties.

4) Procedural and Timeline Aspects

  • Effective Date: July 1, 2026.
  • Public Disclosure Start: October 1, 2026 (publication of substantiated violations and related data).
  • Annual Reporting: First annual report due by January 15, 2027, covering the prior year, with subsequent reports each January 15.
  • Ongoing Updates: Disclosures must be updated no less than quarterly.

5) Fiscal and Commerce Impact

  • Fiscal Impact: Not significant; modeled as not increasing state expenditures. The Department is expected to manage disclosures using existing resources.
  • Impact on Commerce: Not significant; no major anticipated effects on business operations beyond increased transparency.

6) Additional Context

  • The bill was amended to replace prior language, focusing on transparency while safeguarding sensitive information.
  • It includes co-sponsor: Raumesh Akbari.

If you’d like, I can also provide a compare-and-contrast with current law, or a plain-language briefing for affected insurers and consumer groups.

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

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