(a) Creditor-placed insurance coverage shall not include:

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Terms Used In Tennessee Code 56-49-106

  • Credit agreement: means the written document that sets forth the terms of the credit transaction and includes the security agreement. See Tennessee Code 56-49-103
  • Creditor-placed insurance: means insurance that is purchased unilaterally by the creditor, who is the named insured, subsequent to the date of the credit transaction, providing coverage against loss, expense or damage to collateralized personal property as a result of fire, theft, collision or other risks of loss that would either impair a creditor's interest or adversely affect the value of collateral covered by limited dual interest insurance. See Tennessee Code 56-49-103
  • Debtor: means the borrower of money or a purchaser or lessee of goods, services, property, rights or privileges, for which payment is arranged through a credit transaction. See Tennessee Code 56-49-103
(1) Coverage for the cost of repossession;
(2) Skip, confiscation and conversion coverage;
(3) Coverage for payment of mechanics’ or other liens that do not arise from a covered loss occurrence;
(4) Coverage that requires a debtor‘s insurance deductible to be less than two hundred dollars ($200); or
(5) Coverage that is broader than the insurance coverages that meets the minimum insurance requirements of the credit agreement.
(b) Nothing in this section shall be deemed to prohibit the issuance of a separate policy or endorsement providing the coverages listed in subsection (a). However, no charge shall be passed along to the debtor for the coverages.
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