Bill > SB2342

This bill enacts the "Tennessee Vehicle Value Protection Product Act," establishing new regulations for agreements that offer benefits related to a vehicle's value. These agreements, referred to as "vehicle value protection agreements," are distinct from traditional insurance and are designed to provide financial benefits to the contract holder in specific situations, such as a decrease in the vehicle's value due to damage, a total loss, or unrecovered theft. The act defines key terms like "Administrator," who manages the agreement's operations, and "Provider," the entity obligated to provide the benefits. A crucial requirement is that providers must guarantee their obligations through an insurance policy from a licensed insurer, ensuring contract holders are protected if the provider fails to fulfill its promises. The bill also outlines specific requirements for these agreements, including clear disclosure of terms, cancellation procedures, and the fact that purchasing such an agreement cannot be a condition for obtaining credit or a vehicle. The Commissioner of Commerce and Insurance is empowered to create rules to implement and enforce this chapter, covering aspects like additional disclosures, record-keeping, and penalties for violations. This legislation aims to provide clarity and consumer protection for these financial products related to vehicle ownership.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=SB2342&ga=114