Tennessee Department of Insurance
National Association of Insurance Commisioner’s
Home Insurance Rates News Release: 1/17/2005
Category: Home Insurance Rate Enforcement
Washington, DC – A federal judge today ruled in favor of the
National Association of Insurance Commisioners and its efforts to recoup more than $100 million for home insurance consumers nationwide, an amount which the agency contends that a select few insurance companies may have overcharged home insurance consumers by inflating
Tennessee home insurance prices and
Tennessee home insurance
quotes.
The federal judicial panel and courts actions allows the NAIC to help reduce
Tennessee home insurance
rates. The objective of NAIC staff throughout this action has been to provide home insurance rate relief for home insurance consumer policyholders who have been charged excessive home insurance rates.
NAIC staff, using authority granted by the federal judicial panel’s decision, ordered home insurance companies to reduce its home owners rates by 12 percent in September 2004.
Tennessee home insurance companies appealed the reduction in district court, claiming that the they had been denied due process in ordering the rate reduction.
“NAIC staff’s latest action, based on a different law was designed to address the court’s concerns regarding due process,” said NAIC’s Deputy Commissioner for Policy. “Despite the insurance companies objections, the courts have allowed the debate based on the facts to move forward. In the end we believe the facts will show that their rates can be reduced.”
NAIC staff contends that home insurance companies have been overcharging its policyholders since June 11, 2003, the effective date of Senate Bill 14. NAIC is seeking a refund of the excessive premium plus 10 percent interest. The total amount will be calculated from June 11, 2003, to present.
More Tennessee Facts
- Captain Juan Pardo, the Spanish explorer, passed through a Native American village named "Tanasqui" after leaving South Carolina in the 1500s, near the river now known as Tanase, the "Little Tennessee". The origin of the name Tennessee is usually attributed to the Cherokee word Tanase, a word with no certain meaning (It has been said to mean "meeting place", "winding river" or "River of the great bend"). The word Tanase itself is said to be a Cherokee modification of a Yuchi/Creek word. It was also the name of an Overhill tribal town in what is currently Monroe County, TN. The earliest known use of the modern spelling was in 1754. In 1788 North Carolina named the third County to be established in what now is middle Tennessee "Tennessee County". The name was officially applied to the region of transmontane North Carolina formerly known as The Territory of the United States of America South of the River Ohio in 1793 .
The capital is Nashville. Memphis has the largest population of any city proper in the state, but Nashville has a slightly larger metropolitan area, comprising over 20% of the state's population. Chattanooga and Knoxville, both in the eastern part of the state near the Great Smoky Mountains, have approximately a third of Memphis or Nashville's population.
The three towns of Bristol, Kingsport, and Johnson City make up a fifth significant population center, often called the "Tri-Cities", in the far northeast of the state. As of 2000, the population is 5,689,283.
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