Tenn. Code Ann. § 56-7-2308 (2026)

No policy of life insurance in a form other than as prescribed in § 56-7-2307 shall be issued or delivered in this state, or be issued by a life insurance company organized under the laws of this state, if it contains any of the following:

• (1)Forfeiture of Policy for Failure to Repay Loans; Proposed Benefits Not Strictly Insurance. A provision for forfeiture of the policy for failure to repay any loan on the policy or to pay interest on the loan while the total indebtedness on the policy is less than the loan value of the policy, or any provisions for forfeiture for failure to repay the loan or to pay interest on the loan, unless the provision contains a stipulation that no forfeiture shall occur until at least one (1) month after notice has been mailed by the company to the last known address of the insured and of the assignee, if any, or a provision contemplating any proposed benefit not essentially a part of the insurance contract or any connection of the assured with the company other than that of policyholder;

• (2)Limitation of Time of Commencement of Action to Less Than Five (5) Years. A provision limiting the time within which any action at law or in equity may be commenced to less than five (5) years after the cause of action accrues;

• (3)Policy Taking Effect Before Application Made. A provision by which the policy purports to be issued or to take effect as of a date more than six (6) months before the application for the policy was made, if thereby the premium on the policy or contract is reduced below the premium that would be payable on the policy as determined by the nearest birthday or the last birthday of the insured at the time when the application was made; provided, that nothing contained in this subdivision (3) shall invalidate any contract made in violation of this subdivision (3). This subdivision (3) shall not apply to any policy issued under a plan or trust having qualified status under subchapter D, part I, subtitle A of the Internal Revenue Code of 1954 (26 U.S.C. § 401 et seq.), nor under § 501(a) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(a)). This subdivision (3) shall not be construed to prohibit the exchange, alteration or conversion of policies of life insurance as of the original date of the policies, if the amount of insurance provided under the new policy does not exceed the amount of insurance under the original policy, or the amount of insurance that the premium paid for the original policy would have purchased if the new policy had been originally applied for, whichever is greater; nor to prohibit the exercise of any conversion privilege contained in any policy or contract;

• (4)Settlement at Maturity of Less Than Value of Policy. A provision for any mode of settlement at maturity of less value than the amount insured by the policy, plus dividend additions, if any, less any indebtedness to the company on the policy and less any premium that may by the terms of the policy be deducted, payments to be made in accordance with the terms of the policy; or

• (5)Limitations or Exceptions of Risks.
  • (A) A provision that certain named causes of death are excepted from the policy and are not assumed by the insurer; provided, that the following causes of death may be excepted by a provision in the policy:
    • (i) Suicide committed, while sane or insane, within two (2) years from the date of issue of the policy;
    • (ii) Death as a direct result of service in the military, naval or air forces, in time of war, including any ambulance, medical, hospital or civilian noncombatant unit serving actively with the military, naval or air forces;
    • (iii) Death resulting from injuries received while engaging in any aerial flight, except as a fare-paying passenger on a regularly scheduled flight of a duly licensed airline on an established air route; or
    • (iv) Death within two (2) years from date of issue of the policy as a result of a specified perilous or extra hazardous occupation or occupations;
  • (B) Nothing in this subdivision (5) shall apply to any provision in a life insurance policy for additional benefits in the event of death by accident or accidental means;
  • (C) Nothing in this subdivision (5) shall be construed to prohibit a provision in a policy that, in the event of death within two (2) years of the date of issue, would place a limitation or condition upon the coverage or liability in the policy because of a condition that exists, or has existed, or any event that has occurred, prior to or at the time of the delivery of the policy; and provided, further, that the condition or event was material to the risk to be assumed under the terms of the policy; provided, that the policy shall not be affected because of any condition or event that was disclosed in a written application for the policy;
  • (D) This subdivision (5) shall apply only to policies issued for delivery in this state; and
  • (E) Instead of any provision permitted under subdivisions (5)(A)(i)-(iv) or (5)(C), a policy may contain any provision or provisions that, in the opinion of the commissioner, are substantially the same or more favorable to the policyholder. This subdivision (5) shall apply to all life insurance policies, including industrial policies.

Acts 1907, ch. 457, § 2; Shan., § 3348a9; Code 1932, § 6180; Acts 1947, ch. 151, § 1; C. Supp. 1950, § 6180; Acts 1976, ch. 417, § 4; T.C.A. (orig. ed.), § 56-1112; Acts 1992, ch. 984, § 1; T.C.A., § 56-7-302.