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Employee Health Benefits in Tennessee

Tennessee Code § 56-7-2312 provides short-term continuation after covered employment ends: an employee with three months of prior coverage can continue through the remainder of that policy month plus three additional policy months, paying the full group premium in advance. Separate rules cover certain divorced or widowed dependents. 1,2

What Is Employee Health And Benefits?

Employer health benefits give eligible staff access to medical care through a group plan or another employer arrangement. When setting a budget or renewing, compare eligibility, provider networks, employee contributions and total cost. Read the national Employee health and benefits guide.

What to Watch for in Tennessee

  • Confirm that the whole policy is not being discontinued

    Tennessee’s short continuation applies to an employee whose coverage ends for a reason other than termination of the entire policy or insured class. If the employer is ending the plan, ask about conversion and replacement coverage instead. 1

  • Use policy months and the three-month lookback

    The employee needs at least three months of continuous coverage, and the extra period is measured by policy months, not necessarily calendar months. Ask the carrier for the exact final coverage date and payment schedule. 1

  • Check dependent rights after death or divorce separately

    Tennessee has separate continuation provisions for qualifying divorced or widowed spouses and dependent children. Ask the administrator whether the dependent can remain covered independently of the former employee’s continuation. 2

Who Regulates Insurance in Tennessee

Tennessee Department of Commerce and Insurance

TDCI regulates and licenses insurance companies, agents, brokers, surplus-lines agents, and public adjusters. Its complaint process accepts complaints about agents or companies when the policy was written in Tennessee, and its property/casualty unit reviews filed policy rates, rules, and forms. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 5% of gross premium plus 0.175% SLAS transaction fee For Tennessee-home-state surplus-lines policies, TDCI lists a 5% tax on gross premium and a 0.175% SLAS transaction fee on gross premium; the agent receives an invoice and pays both through SLIP. The sources reviewed do not establish that the fee is always separately charged to the policyholder or resolve guaranty-association treatment, so ask your broker to itemize charges and review the policy notice. 6,7

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Tennessee

  1. Which Tennessee group-plan rules apply to this employer and funding arrangement?
  2. What dates, notices, premiums, and benefits does the carrier require for a continuation election?
  3. Which employees and dependents are eligible, and how does the plan document confirm that?

Employee Health And Benefits in Tennessee: FAQ

What state-specific coverage issue should a buyer check first? 1,2

Tennessee Code § 56-7-2312 provides short-term continuation after covered employment ends: an employee with three months of prior coverage can continue through the remainder of that policy month plus three additional policy months, paying the full group premium in advance. Separate rules cover certain divorced or widowed dependents. 1,2

What should the buyer request from the carrier? 2

Tennessee has separate continuation provisions for qualifying divorced or widowed spouses and dependent children. Ask the administrator whether the dependent can remain covered independently of the former employee’s continuation. 2

Employee Health And Benefits in Other States

Other Coverage in Tennessee

Sources

  1. Tennessee Code § 56-7-2312 — Continuation of Terminated Group Coverage. Tennessee General Assembly; State mandate report summarizes continuation: three months prior coverage; remaining policy month plus three policy months; full group premium paid in advance. Accessed 2026-09-29.
  2. Tennessee General Assembly, SB 2841 — Dependent Continuation. Tennessee General Assembly; Legislative history and statutory continuation for divorced or widowed spouses and dependent children. Accessed 2026-09-29.
  3. tennessee insurance regulator. State insurance regulator; TDCI official insurance-division and consumer pages describe department scope, review units and complaint role. Accessed 2026-09-28.
  4. TDCI Agent/Producer Resources. State insurance regulator; Agent Licensing Section licenses producers, business entities, surplus-lines agents, brokers, and public adjusters; page links to Verify License. Accessed 2026-09-28.
  5. File an Insurance Complaint. State insurance regulator; TDCI accepts online complaints about insurers and agents only for policies written in Tennessee; third-party claimants are directed to call. Accessed 2026-09-28.
  6. Surplus Lines Filing Procedures. Tennessee Department of Commerce and Insurance; Tax Payments section: 5% gross premium plus .175% of gross premium SLAS transaction fee; agents receive quarterly invoices and pay via ACH in SLIP. Accessed 2026-09-28.
  7. Tennessee Public Chapter 446 (2011), T.C.A. §56-14-113. Tennessee Secretary of State; Current tax framework enacted in §56-14-113: 5% applies when Tennessee is the insured’s home state; tax collected from insured in addition to premium. Read with current TDCI filing-procedure page for current fee and SLIP handling. Accessed 2026-09-28.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  10. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  11. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  12. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  13. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  14. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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