WeVote
Log In

Bill

Bill

SB 998

Insurance Companies, Agents, Brokers, Policies - As introduced, increases, from 30 to 35 days, the time that an insurance company has to remove a person as an officer or director of the company after receipt of an order from the commissioner of commerce and insurance to do so. - Amends TCA Title 4; Title 56 and Title 71.

114th Regular Session (2025-2026) Introduced by Paul Bailey

Tennessee extends the deadline for removing insurance company officers/directors following commissioner orders from 30 to 35 days, potentially slowing regulatory enforcement.

Passed on Second Consideration, refer to Senate Commerce and Labor Committee
#agents #brokers #insurancecompanies #policies
0
WeVote Research Nonpartisan
Bill Summary · SB 998

Legislative bill overview

SB 998 extends the deadline for insurance companies to remove officers or directors following a removal order from Tennessee's Commissioner of Commerce and Insurance, from 30 days to 35 days. The bill amends Tennessee's insurance regulatory statutes across three titles of law to implement this extension uniformly.

Why is this important

This change affects the speed of regulatory enforcement in the insurance industry. Insurance commissioners use removal orders when officers or directors pose risks to policyholders or company solvency, so the timeline directly impacts how quickly problematic individuals can be removed from positions of authority over consumer funds and policies.

Potential points of contention

  • Regulatory effectiveness: Critics may argue that extending the deadline weakens regulatory oversight by giving companies more time to delay compliance or for problematic officers to remain in control of company operations.
  • Industry burden vs. public protection: The insurance industry may view this as providing necessary operational flexibility, while consumer advocates might contend that five additional days prioritizes company convenience over policyholder protection.
  • Lack of stated justification: The bill contains no apparent explanation for why 35 days is more appropriate than 30, leaving unclear whether this addresses a documented problem or represents a blanket industry request.

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

Sign in to ask a question.