State RegulationsTN specificDifficulty 1/5
An insurer issues an individual accident and health policy in Tennessee and reserves the option to renew it. An insured asks where the renewal terms are disclosed. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
T.C.A. § 56-26-126 requires the insurer's renewal option to be stated on the face of the policy, just as T.C.A. § 56-26-125 requires the cancellation right to appear there. The insured can therefore read both the insurer's cancellation rights and its renewal commitments in one place before and after purchase.
Why the other options are wrong
- A) A brochure or producer handout does not satisfy T.C.A. § 56-26-126; the renewal option must be stated on the face of the policy.
- C) Disclosure in the application is not a substitute; T.C.A. § 56-26-126 requires the renewal option on the face of the policy.
- D) Renewal terms are a policy-level disclosure governed by T.C.A. § 56-26-126; they cannot be established orally and left to the claims file.
Memory hook
Renewal rights live on the face — same page as cancellation.