TCA § 56-7-113 — Inquiry by homeowner's insurance policyholder not grounds for premium increase or cancellation of policy — Communications necessitating investigation — Violation constitutes unfair trade practice

For purposes of this section: “Cancel” means to terminate a homeowner's insurance policy prior to the expiration of the policy period; “Claim”: Means an oral, written, or electronic submission for payment filed by an insured, on behalf of the insured, or by a third party whereby an insurance company accepts the submission for payment in accordance with the insurance company's reasonable submission standards; and Does not mean an inquiry by an insured or by an insurance producer on behalf of an insured; “Inquiry” means any communication to an insurance company by an insured, or by an insurance producer on behalf of an insured, regarding general terms and conditions of a homeowner's insurance policy, including a communication concerning whether a homeowner's insurance policy provides coverage for a type of event or the process for filing a claim; and “Insurance company” has the same meaning as defined in § 56-1-102. No insurance company shall increase a premium or cancel a homeowner's insurance policy solely on the basis of an inquiry or inquiries by an insured regarding the insured's homeowner's insurance policy or a loss under the policy. Notwithstanding the foregoing, if a communication by an insured to an insurance company necessitates an investigation by the insurance company which results in a written finding that there has been a change in a known condition or use of the premises or a fraudulent act by the consumer, then the insurance company may consider the communication to be either a claim or an inquiry. A violation of this section shall be considered an unfair trade practice under the Tennessee Unfair Trade Practices and Unfair Claims Settlement Act of 2009, compiled in chapter 8, part 1 of this title.