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~tate of \leennessee
PUBLIC CHAPTER NO. 931
HOUSE BILL NO. 705
By Representatives Gant, Atchley, Marsh
Substituted for: Senate Bill No. 865
By Senator Stevens
AN ACT to amend Tennessee Code Annotated, Title 56, relative to insurance.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 56, Chapter 7, Part 23, is amended by
adding the following as a new section:
(a) Except as provided in subsection (b), a group policy delivered or issued for
delivery in this state that provides hospital, surgical, or major medical expense
insurance, or any combination of these coverages, on an expense incurred basis, but
not a policy that provides benefits for specific diseases or for accidental injuries only,
must provide that an employee or member whose insurance under the group policy has
been terminated for any reason, except discontinuance of the group policy in its entirety
or with respect to an insured class, and who has been continuously insured under the
group policy, and under any group policy providing similar benefits that it replaces, for at
least three (3) months immediately prior to termination, is entitled to have the coverage
nonetheless continued under the group policy for the remainder of the month in which
the policy is terminated, plus the next three (3) subsequent months upon payment in
advance to the employer of the full group policy premium for this continuation of
coverage, including any portion of the premium customarily paid by the employer on or
before the beginning of each month's coverage.
(b) An employee or member is not entitled to have coverage continued pursuant
to subsection (a) if:
(1) The group policy was terminated in its entirety or was terminated with
respect to an insured class of which the employee was a member; or
(2) Termination of the employeejs insurance under the group policy
occurred because of any of the following reasons:
(A) The employee failed to pay any required contribution;
(8) The employee is eligible for medicare under Title XVIII of the
federal Social Security Act (42 U.S.C. § 1395 et seq.); or
(C) The discontinued group coverage was replaced by similar
group coverage within thirty-one (31) days.
(c) This section applies to group policies issued, renewed, or amended on or
after the effective date of this act.
SECTION 2. Tennessee Code Annotated, Section 56-6-104(b)(10), is amended by
deleting "portable electronics .insurance" and substituting "portable electronics or optical
products insurance".
SECTION 3. Tennessee Code Annotated, Section 56-6-110(8), is amended by deleting
the subdivision and substituting:
(8) Portable electronics or optical products insurance; or
HB705
SECTION 4. Tennessee Code Annotated, Section 56-6-1101 (2), is amended by deleting
"purchases portable electronics or services" and substituting "purchases portable electronics,
optical products, or services".
SECTION 5. Tennessee Code Annotated, Section 56-6-1101(4), is amended by deleting
"portable electronics" wherever it appears and substituting "portable electronics or optical
products".
SECTION 6. Tennessee Code Annotated, Section 56-6-1101 (6), is amended by deleting
the subdivision and substituting:
(6) "Portable electronics":
(A) Means equipment that is portable in nature, has electrical, digital,
magnetic, wireless, optical, electromagnetic, or similar capabilities, which operate
using batteries, rechargeable power sources, or other energy sources; and
(8) Includes:
(i) Equipment that:
(a) Is used for communication, data processing, viewing,
listening, recording, gaming, computing, navigation, household,
health or activity monitoring, or similar uses; and
(b) May incorporate features responsive to user input or
environmental conditions; and
(ii) Accessories and services related to the use of the equipment;
SECTION 7. Tennessee Code Annotated, Section 56-6-1101(7), is amended by deleting
"Portable electronics insurance" wherever it appears and substituting "Portable electronics or
optical products insurance"; and deleting "portable electronics" wherever it appears and
substituting "portable electronics or optical products".
SECTION 8. Tennessee Code Annotated, Section 56-6-1101 (8), is amended by deleting
"Portable electronics transaction" and substituting "Portable electronics or optical products
transaction"; and by deleting "portable electronics" wherever it appears and substituting
"portable electronics or optical products".
SECTION 9. Tennessee Code Annotated, Section 56-6-1101(10), is amended by
deleting "portable electronics transactions" and substituting "portable electronics or optical
products transactions".
SECTION 10. Tennessee Code Annotated, Section 56-6-1101, is amended by adding
the following as a new subdivision:
( ) "Optical products" means smart glasses and non-electronic eyewear, and
includes prescription and non-prescription eyeglasses and sunglasses;
SECTION 11. Tennessee Code Annotated, Section 56-6-1102, is amended by deleting
"portable electronics" wherever it appears in subsections (a) and (b) and substituting "portable
electronics or optical products".
SECTION 12. Tennessee Code Annotated, Section 56-6-1103, is amended by deleting
"purchase or lease portable electronics or services" from subdivision (a)(2) and substituting
"purchase or lease portable electronics, optical devices, or services"; and by deleting "portable
electronics" wherever it appears and substituting "portable electronics or optical products".
SECTION 13. Tennessee Code Annotated, Section 56-6-1104(a), is amended by
deleting "portable electronics" wherever it appears and substituting "portable electronics or
optical products".
SECTION 14. Tennessee Code Annotated, Section 56-6-1104(b)(1), is amended by
deleting the subdivision and substituting:
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HB705
(1) The charges for portable electronics or optical products insurance coverage
may be billed and collected by the vendor of portable electronics or optical products. Any
charge to the customer for coverage that is not included in the cost associated with the
purchase or lease of portable electronics, optical products, or related services must be
separately itemized on the enrolled customer's bill. If the portable electronics or optical
products insurance coverage is included with the purchase or lease of portable
electronics, optical products, or related services, then the vendor shall clearly and
conspicuously disclose to the enrolled customer that the coverage is included with the
purchase or lease of the portable electronics, optical products, or related services.
SECTION 15. Tennessee Code Annotated, Section 56-6-1104(b)(3), is amended by
deleting "portable electronics" and substituting "portable electronics or optical products".
SECTION 16. Tennessee Code Annotated, Section 56-6-1105, is amended by deleting
"portable electronics" wherever it appears and substituting "portable electronics or optical
products".
SECTION 17. Tennessee Code Annotated, Section 56-6-1106, is amended by deleting
"portable electronics" wherever it appears and substituting "portable electronics or optical
products".
SECTION 18. Tennessee Code Annotated, Section 56-6-1107(d), is amended by
deleting "portable electronics" wherever it appears and substituting "portable electronics or
optical products".
SECTION 19. The commIssIoner of commerce and insurance is authorized to
promulgate rules to effectuate this act. The rules must be promulgated in accordance with the
Uniform Administrative Procedures Act, compiled in Tennessee Code Annotated, Title 4,
Chapter 5.
SECTION 20.
(a) For the purpose of rule promulgation, this act takes effect upon becoming a
law, the public welfare requiring it.
(b) For all other purposes:
(1) Sections 2-18 of this act take effect July 1, 2026, the public welfare
requiring it; and
(2) The remaining sections of this act take effect upon becoming a law,
the public welfare requiring it.
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HOUSE BILL NO. 705
PASSED: April 22, 2026
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CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
RANDY MCNA\LY
SPEAKER OF THE SENATE
APPROVED this :i_tt dayof ~ 2026
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