Amends TCA Title 56 and Title 67.

Present law generally requires that a person obtain a certificate of authority from the commissioner of commerce and insurance in order to transact the business of legal insurance in Tennessee. Present law defines "legal insurance" as the assumption of a contractual obligation to provide specified legal services or reimbursement for legal expenses in consideration of a specified payment for an interval of time, regardless of whether the payment is made by the beneficiaries individually or by a third person for them, in such a manner that the total cost incurred by assuming the obligation is to be spread directly or indirectly among a group of persons.<br /> <br /> Present law specifies that the following are not considered legal insurance under the state's insurance laws:<br /> <br /> (1) Retainer contracts and contingent fee contracts made with individual clients, or groups of clients involved in the same or closely related legal matters;<br /> <br /> (2) Legal services provided by unions or employee associations to their members in matters relating to employment or occupation;<br /> <br /> (3) Legal services provided by a governmental agency to its employees; or<br /> <br /> (4) Services of a lawyer referral service operated, sponsored or approved by a bar association representative of the general bar of the geographical area in which the association exists.<br /> <br /> This bill adds that a plan is not legal insurance under the state's insurance laws if the plan is entered into by a person and an intermediary organization, as defined by and that is registered in compliance with the Tennessee Supreme Court, whereby:<br /> <br /> (1) The person pays a fee and is eligible to receive legal services specified in the plan;<br /> <br /> (2) The intermediary organization contracts with a licensed attorney or a law firm that includes one or more attorneys licensed to practice law in Tennessee, where the attorney or law firm agrees to provide, or facilitate arrangements with other licensed attorneys to provide, the legal services specified in the plan; and<br /> <br /> (3) The intermediary organization does not assume any risk or obligation to pay or reimburse for the cost of the legal services specified in the plan, and the payment of a fixed administrative fee from the intermediary organization to the attorney or law firm is not considered payment or reimbursement for the legal services specified in the plan.<br />