1. (1) An insurer is responsible for compliance with this Chapter. If a violation occurs, either because of the action or inaction of the insurer or its producer, the commissioner may order, pursuant to statutory authority granting power for such order:

   1. (a) An insurer to take reasonably appropriate corrective action for any consumer harmed by a failure to comply with this Chapter by the insurer, by its producer, or an entity contracted to perform the insurer's supervisory duties;
   2. (b) A general agency, independent agency, or the producer to take reasonably appropriate corrective action for any consumer harmed by the producer's violation of this Chapter; and
   3. (c) Appropriate penalties and sanctions.
2. (2) Any applicable penalty under T.C.A. §§ 56-1-411, 56-2-305, 56-6-112, or 56-8-101, et seq. for a violation of this Chapter may be reduced or eliminated if corrective action for the consumer was taken promptly after a violation was discovered or the violation was not part of a pattern or practice.
3. (3) The authority to enforce compliance with this Chapter is vested exclusively with the commissioner.

Authority: T.C.A. §§ 56-1-408, 56-1-409, 56-1-411, 56-1-416, 56-2-301, 56-2-305, 56-3-508, 56-6-112, 56-6-124, and 56-8-101, et seq. Administrative History: Original rule filed April 22, 2008; effective July 6, 2008. Repeal and new rule filed August 3, 2015; effective November 1, 2015. Amendments filed January 17, 2023; effective April 17, 2023.