1. (1) In order to assure that owners receive a reasonable return for settling an insurance policy, the following shall be the minimum discounted value that the owner must receive: Minimum Percentage of Face Value Less Outstanding Loans Insured’s Life Expectancy Received by Owner

   1. (a) Less than 6 months [80%]
   2. (b) At least 6 but less than 12 months [70%]
   3. (c) At least 12 but less than 18 months [65%]
   4. (d) At least 18 but less than 24 months [60%]
   5. (e) At least 24 but less than 30 months [55%]
   6. (f) At least 30 but less than 42 months [50%]
   7. (e) Forty-two months or more Owner must receive at least Cash Surrender Value of Policy
2. (2) The percentage may be reduced by [5%] for settling a policy written by an insurer rated less than the highest [4] categories by A.M. Best, or a comparable rating by another rating agency.

Authority: T.C.A. §§56-50-105 and 56-50-110. Administrative History: Original rule filed February 7, 2003; effective April 23, 2003.