Bill > HB2231

This bill, titled the "Tennessee Vehicle Value Protection Product Act," establishes new regulations for agreements that protect the value of a vehicle. A "vehicle value protection agreement" is defined as a contract between a provider and a contract holder that offers benefits towards the vehicle's value in cases of adverse events like damage that decreases its worth, total loss, unrecovered theft, or when the contract holder trades in the vehicle for a replacement. These agreements can also cover the finance agreement or secure bill of sale for a replacement vehicle and include provisions for trade-in, diminished value, cash down payment protection, or depreciation benefits, but they do not include debt waivers or service contracts. Providers must ensure these agreements are guaranteed by an insurance policy from a licensed insurer, which will cover the contract holder if the provider fails to meet its obligations. The bill also outlines requirements for offering these agreements, including prohibiting them from being a condition for credit or vehicle purchase, and specifies procedures for cancellation by the provider, including notice requirements and refunds. The Commissioner of Commerce and Insurance is tasked with creating rules to implement this chapter, covering disclosures, record-keeping, fees, penalties, and complaint procedures.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=HB2231&ga=114