TN HB2231

Establishes the "Tennessee Vehicle Value Protection Product Act" to regulate agreements that protect consumers against vehicle depreciation from adverse events, total loss, unrecovered theft, or trade-in value loss

Requires providers to back all vehicle value protection agreements with contractual liability insurance policies from licensed insurers, allowing consumers to file directly with the insurer if the provider fails to pay within 60 days

Mandates contract disclosures including cancellation procedures, refund methodology, eligibility requirements, and a statement that purchasing the agreement cannot be a condition of credit or vehicle sale terms

Providers must give at least 5 days written notice before cancellation (immediate cancellation permitted for nonpayment, misrepresentation, or breach) and refund unearned fees pro rata, minus up to $75 administrative fee

Takes effect July 1, 2026, for agreements entered into, renewed, or amended on or after that date; Commissioner of Commerce and Insurance will promulgate rules for registration fees, penalties, and complaint procedures