Tennessee Code Title 56. Insurance § 56-37-108

(a) A premium finance company shall not charge, or contract for an interest charge, other than as permitted by this chapter.

(b) The interest is to be computed on the balance of the premiums due, after subtracting the down payment made by the insured in accordance with the premium finance agreement, from the effective date of the insurance contract, for which the premiums are being advanced, to and including the date when the final installment of the premium finance agreement is payable.

(c) The maximum effective rate of interest under this chapter shall:

(d) The maximum effective rate of interest per annum under this chapter shall not exceed twenty-four percent (24%) per annum.

(e) The term of a loan for the purposes of this section commences on the effective date of the insurance contract for which the premium is being advanced. Differences in the lengths of months are disregarded and, for any period less than a month, each day may be counted as one thirtieth ( 1/30 ) of a month.

(f) Notwithstanding any premium finance agreement, any insured may prepay the obligation in full at any time. In this event, the insured shall receive a refund credit, which refund credit shall represent at least as great a proportion of the interest as the sum of the periodic balances after the month in which prepayment is made bears to the sum of all periodic balances under the schedules of installments in the agreement. Where the amount of the refund credit is less than one dollar ($1.00), no refund need be made.