State RegulationsTN specificDifficulty 3/5
A Tennessee school district buys a single accident contract covering all enrolled students and later asks whether the insurer may freely scale back the benefits mid-term. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Tennessee addresses blanket and franchise school insurance and student accident coverage through T.C.A. §§ 56-7-2323, 56-7-2324, and 56-7-2325. Section 56-7-2323 restricts benefit reductions under school insurance, so the insurer cannot freely scale back benefits mid-term merely because the contracting school consents.
Why the other options are wrong
- A) School insurance is not exempt; T.C.A. §§ 56-7-2323, 56-7-2324, and 56-7-2325 specifically regulate it.
- B) Tennessee does not prohibit private blanket student coverage; the statutory framework expressly contemplates and regulates it.
- D) School approval does not lift the benefit-reduction restriction imposed by T.C.A. § 56-7-2323.
Memory hook
Statutes watch the school blanket — benefits stay put.