House Bill 2231, also known as the "Tennessee Vehicle Value Protection Product Act," amends Tennessee Code Annotated by replacing the existing Chapter 55 of Title 56 with new provisions governing vehicle value protection agreements. The bill defines key terms such as "administrator," "contract holder," "covered vehicle," and "provider," and outlines the requirements for offering such agreements. Notably, it mandates that providers must guarantee their obligations through an insurance policy and specifies that these agreements are not classified as insurance, thus exempting them from insurance regulations.

The bill also establishes requirements for the cancellation of vehicle value protection agreements, including the necessity for providers to notify contract holders of cancellation reasons and refund any unearned fees. Additionally, it empowers the commissioner of commerce and insurance to create rules to enforce the chapter, which will include disclosures, record-keeping requirements, and penalties for violations. The act is set to take effect on July 1, 2026, and will apply to agreements entered into, renewed, or amended after that date.