State RegulationsTN specificDifficulty 2/5
An insurer writing school insurance in Tennessee proposes to reduce the benefits under existing school insurance coverage mid-term. What does Tennessee law provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
T.C.A. § 56-7-2323 restricts insurers' ability to reduce benefits under existing school insurance coverage. The protection is targeted at the school insurance market — coverage sold in connection with schools — so students covered under such policies do not see their benefits scaled back arbitrarily while the coverage is in place.
Why the other options are wrong
- A) 5 days is the nonrenewal-notice window in T.C.A. § 56-26-108(3); T.C.A. § 56-7-2323 restricts school insurance benefit reductions rather than permitting them on notice.
- B) T.C.A. § 56-7-2323 restricts benefit reductions in school insurance, so they are not freely permitted at renewal without restriction.
- C) T.C.A. § 56-7-2323 is directed at school insurance coverage; it does not prohibit benefit changes in every individual health policy statewide.
Memory hook
School benefits don't shrink — 2323 says no cutting.