Tennessee Code Title 56. Insurance § 56-37-111

(a) Whenever a financed insurance contract is cancelled, the insurer shall return whatever gross unearned premiums are due under the insurance contract directly to the premium finance company for the account of the insured or insureds as soon as reasonably possible, but in no event shall the period for payment exceed thirty (30) days after the effective date of cancellation. In the event that the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the premium finance company shall refund the excess to the insured within thirty (30) days; provided, that no refund shall be required if it amounts to less than one dollar ($1.00). Failure by the insurer to remit the unearned premium to the finance company, as required by this subsection (a), shall make the insurer liable for any interest or finance fees that are assessed against the policyholder as a result of the failure to timely remit unearned premiums after the required period to remit the refund.

(b) When cancellation of a financed insurance contract is requested by the premium finance company, the insurance company shall base the refund of the unearned premiums on a pro rata basis.