WPC zeL?&Ɯ8)t5on̓H4p,lIs_#lQd4UՑ+~ ;pc,4&XE9sͯm GO TNB~g\),t!eg D-i*Ic =^'eׁ֣":ƴe:$Œ3Ӓ(2)(.u?&T4oS(]`^ *z5f]nqbpF{Fd.ᄒ3MW&i:K0%c"=$1-QTQ/XN3>ie  j"MsK8V?KhǷ~ %_Axm]=PF$&PmeλڼPȪ%4P289l"m'a,xkU<Yˢ3<)?OT]R1G"BURqN*%YC&um45uVo4LDMFvwY#  % 0 w 4  N  U(F 0z ^  m  0DUF P*U:UFU F-U"Fs AQ  0D  0Dd 0D D/ B D388888888888888888888888888888888888888888888888 BkHP LaserJet 4SiHPPCL5MS,,,,,,0nLhX   $  XXM XXX @   @ `   4    Subsequenttothefilingofthisaction,_thissectionwas   amendedtoaddsubsection(b)regardingrefundonaproratabasis.Thewordingquotedaboveremainsunchangedassubsection(a).(3$   X X XXX    7 XXdXXd7(PPDEEDDDUaaUUUD eEeӀօ#%P 3|x<4 9Z+.Courier New Regular(*(2$ 3!   X XmXXX    7mXXdd7       `   0  le2%U   $  X XmXXX @   @ `   2    _TheCourtofAppealssopinionatfootnote7statesthatthe   plaintiffconcededonappealthatanyactionagainstthegeneralinsuranceagent,Crump,mustbepursuedunderthecommonlaw.Thus,wewilladdresstheappealastothedefendantinsurancecompaniesonly.(#$  0  <4 9Z+.Courier New RegularLevel 1Level 2Level 3Level 4Level 5   $  X XM XXX @   @ `   3    _TennesseeCodeAnnotated5637110provides_the_Ԁprocedure   forcancellationoffinancedcontractsbypremiumfinancecompanies.   $  X XM XXX @   @ `   4    Subsequenttothefilingofthisaction,_thissectionwas   amendedtoaddsubsection(b)regardingrefundonaproratabasis.Thewordingquotedaboveremainsunchangedassubsection(a).   $  X XmXXX @   @ `   1    _Thetrialcourtdeniedthemotionsastotheplaintiffs   commonlawclaimsoffraudandunjustenrichmentandstayedtheseclaimsduringthependencyoftheappeal. insuredsPursellNatlcancelledlicensure S.W. ""  X_!XXXXX_!   Ad FILEDX_!X  October26,1998CecilW.CrowsonAppellateCourtClerkdAh ,cAZ"Arial Regular4.Courier New Regular<4 9Z .Courier New Regular<4 9Z .Courier New Regular"#$&C<< C   (3$ !  (3$ !  ($$   1  ((' dxdP PdXXXX'dxd d 3!   X XmXXX    7mXXdd7  ` _TR[A' Legal3'A' Legal3'T$XX XX$  XmXX Xm7mXXdXXd7!__=mXXdd=XXmr )<,(j 8` `@E f ` 8ttxPX`  rt )>.*jxG` `@E< ` 8ttxPt` G tߛ@DINTHESUPREMECOURTOFTENNESSEE@PP*DATJACKSONPREMIUMFINANCECORPORATIONOFAMERICA p )       h      p )# ޼# ԀFORPUBLICATION# # #XmXk#XXm 0 $ XXXX X$ ` PlaintiffAppellee     p )# X# #XmXޚ#XXm   `     h      p )v. `     h      p )# a# ԀFILED:OCTOBER26,1998# ޭ# #XmXޣ#XXmԀ#  ## XmX K # X Xm ԛ @   `     h      p )#  ## XmX ޲ # X Xm ԛ   #XmXާ #CXXmCRUMPINSURANCESERVICESOFMEMPHIS,INC., p #XmXC #XXm) @  МCRUMPE&SOFMEMPHIS,INC.,     p )#  # ԀSHELBYCOUNTY# 7 ## XmX ޗ # X Xm ԛ P  МNORTHLANDINSURANCECOMPANY,     p )#  # #XmXެ #XXmԛ   NATIONALINDEMNITYCOMPANY,     p )# i # #XmXޫ #XXmԛ P  CANALINSURANCECOMPANY,     p )# D# ԀHON.KAYS.ROBILIO,# ## XmX ކ# X Xm ԛ `  THOMASJEFFERSONINSURANCECOMPANY,   p )# ޷#   JUDGE# N## XmX ޘ# X Xm ԛ   SCOTTSDALEINSURANCECOMPANY,     p )# # #XmX#XXmԛ `  STRATFORDINSURANCECOMPANY,     p ) p  NATIONALCASUALTYCOMPANY,     p )# ށ# ԀNO.02S019711CV00095# ޳## XmX # X Xm ԛ    NATIONALFIRE&CASUALTYCOMPANY,   p ) p #XmX4#CXXmNATIONALLIABILITY&FIREINSURANCECOMPANY, p #XmXC#XXm)   NATIONALFIR&MARINEINSURANCE,   p ) 0 CONTINENTALINSURANCECOMPANY,   p )  LLOYDSOFLONDON,and h      p ) 0 GLENSFALLSINSURANCECOMPANY     p ) @ Ѐ     p )# S# ԛ  ЀDefendantsAppellants     p ) @  ` ̜ForAppellee:   h     ForAppellants: `   `     h     CrumpInsuranceServicesofMemphis,  ! J.ALLANHANOVER   h       Inc.,f/k/aCrumpE&SofMemphis,Inc.  `" BARBARAB.LAPIDES h     J.RICHARDBUCHIGNANI p!# JEFFERYS.ROSENBLUM h     ROSSHIGMAN  "$ Memphis,TN h     Memphis,TN "p%  `     h     NorthlandInsuranceCompany 0$'  `     h     RICHARDGLASSMAN `     h     Memphis,TN `     h     NationalIndemnityCompany &+  `     h     NationalLiability&FireInsuranceCo.MPmpany `     h     NationalFire&MarineInsuranceCompany P(-  `     h     JOHND.RICHARDSON `     h     Memphis,TǸ `     h     CanalInsuranceCompany +!1  `     h     ThomasJeffersonInsuranceCompany +`"2  `     h     ScottsdaleInsuranceCompany p,#3  `     h     NationalCasualtyCompany `     h     NationalFireandCasualtyCompany `     h     HENRYT.V.MILLER . %6  `     h     WILLIAMA.LUCCHESI `     h     Memphis,TN `     h     StratfordInsuranceCompany @1':  `     h     JAMESR.GARTS,JR. `     h     Memphis,TN `     h     ContinentalInsuranceCompany 4*>  `     h     GlensFallsInsuranceCompany 4P+?  `     h     SAMB.BLAIR,JR. `     h     Memphis,TN̜̜!__  @,DOPINION 8p/E М!__  !__   : 0F !__  !__  JUDGMENTOFTHECOURTOFAPPEALS   p      x BIRCH,J. ;02I !__  !__  !__  REVERSEDINPARTANDAFFIRMEDINPART#XmXw#&I&&XXm  @<2JG !__  !__  # &I&&&&I&## XmX& &I&*&#ԛ ` $XX XXX$ Inthecurrentcase,theplaintiff,apremiumfinance   company,allegeddamageasaresultofthedefendantinsurancecompaniesfailuretoreturnunearnedpremiumstotheplaintiffaftercancellationoftheunderlyinginsurancecontracts.Thedefendantsfiledmotionstodismissforfailuretostateaclaimuponwhichreliefcanbegranted,whichthetrialcourtgrantedastotheplaintiffsclaimunderthePremiumFinanceCompanyAct,Tenn.CodeAnn.5637101etseq.(1994)(hereinafter the @  Act). #  1      כThetrialcourtcertifieditsorderasfinalinaccordance `  withTenn.R.Civ.P.54.02,andtheplaintiffappealed.TheCourtofAppealsreversedthetrialcourt,holdingthattheplaintiffhadstatedacauseofactionunderTenn.CodeAnn.5637111(1994). #  2      ׀ d  WegrantedthedefendantsapplicationforappealunderTenn.R.App.P.11todeterminewhetherTenn.CodeAnn.5637111createsacauseofactionforapremiumfinancecompanyagainstaninsurancecompanyforfailuretoreturnanunearnedpremiumtothefinancecompanyaftercancellationoftheunderlyinginsurancecontract.Afterathoroughexaminationofthestatuteanditslegislativehistory,weconcludethatTenn.CodeAnn.5637111doesnotimpliedlygrantastatutoryrightofactiontoapremiumfinancecompany.Consequently,theplaintiffhasfailedtostate T/$, aclaimuponwhichreliefcanbegranted.ThejudgmentoftheCourtofAppealsis,forthereasonsappearingbelow,reversed.  I52 TheplaintiffisaTennesseecorporationlicensedin1989,anditsprimarybusinessisthefinancingofinsurancepremiumsforpersonsorentitieswhodonotpaythepremiuminfullattheinceptionofcoverage.Inthetypicaltransaction,theborrowerexecutesafinancingagreementwhichprovidesforrepaymentoftheamountofthepremiumadvancedwithinterest.Thisagreementcontainsauthorizationfortheplaintifftocanceltheinsurancecontractand directthereturnofunearnedpremiumsiftheborrowerfailstorepayaspromised. Accordingtoitscomplaint,thetransactionsweretypicallygeneratedbya producingagentwhowouldlocateprospectiveborrowersandwritethefinancingagreements.Ifaccepted,theplaintiffissuedachecktotheagentfortheamountofthepremium;theagentthenwoulddeliverthepremiumtothedefendants generalagent.The generalagentwouldthenissuethecontractofinsurance.Iftheinsureddefaultedontheagreement,theplaintiffcanceledtheinsurancecontractaspermittedbyTenn.CodeAnn.5637110(1994). #  3      ׀ 1t&.   2 (0  TfFrom1989to1992,theplaintiffallegesthatfrom1989to1992the general agentreturnedallunearnedpremiumstotheplaintiffuponcancellationoffinancedinsurancecontracts.Inlate1992,however,theagentstoppedreturningunearnedpremiums.Asaresult,theplaintiffeventuallydefaultedonitsownobligationsandsubsequentlyabandonedthepremiumfinanceindustry.  II[9 Thismattercomestousbywayofamotiontodismissforfailuretostateaclaimuponwhichreliefcanbegranted.Suchmotiontestsonlythelegalsufficiencyofthecomplaint.Itadmitsthetruthofallrelevantandmaterialallegations butassertsthatsuchfactsdonotconstituteacauseofactionasamatteroflaw.Pursellv.FirstAm.NatlBank,937S.W.2d838, !h 840(Tenn.1996).Thus,courtsrulingonsuchamotionmustacceptthetruthofallfactualallegations.Theinferencestobedrawnfromthefactsorthelegalconclusionssetforthinthecomplaint,however,arenotrequiredtobetakenastrue.Riggsv.Burton, ($ 941S.W.2d44,47(Tenn.1997).Inconsideringthisappeal,wereviewthelowercourtslegalconclusionsdenovowithno +p!( presumptionofcorrectness.Tenn.R.App.P.13(d);Steinv. -(#* DavidsonHotelCo.,945S.W.2d714,716(Tenn.1997). `/$,  TheplaintiffsstatutoryclaimisbasedonaportionoftheActwhereintheGeneralAssemblyestablishedthestandardsforreturnofunearnedpremiumsfollowingcancellationofafinancedinsurancecontract.TennesseeCodeAnnotated5637111states,inrelevantpart,asfollows: h9.8 8 8 Wheneverafinancedinsurancecontractiscancelled,theinsurershallreturnwhatevergrossunearnedpremiumsaredueundertheinsurancecontractdirectlytothepremiumfinancecompanyfortheaccountoftheinsuredorinsuredsassoonasreasonablypossible,butinnoeventshalltheperiodforpaymentexceedthirty(30)daysaftertheeffectivedateofcancellation. #  4      כ\ xx > TheplaintiffclaimsthattheGeneralAssemblyintendedthissectionoftheActtograntpremiumfinancecompaniesastatutorycauseofactionagainstinsurerswhofailtoreturnunearnedpremiums.Incontrast,thedefendantsinsistthattheGeneralAssemblydidnotintendtograntsuchacauseofactiontopremiumfinancecompaniesbecausethosecompanieshaveotheravenuesofreliefavailabletothem. Inconsideringthisissue,theCourtofAppealslookedtoseveralotherstateswhichhavedecidedcontestsbetweeninsurersandpremiumfinanciersonstatutessimilartoourown.Althoughthedecisionsofoursisterstatesarepersuasive,theydonotϜsubstituteforpplantadherencetoourownstatedprinciplesfordeterminingwhetherastatutecreatesacauseofaction.Wearemindfulthatouressentialdutyinconstruingastatuteistoascertainandcarryoutthelegislaturesintentwithoutundulyrestrictingorexpandingastatute'scoveragebeyonditsintendedscope.Hawksv. *0%- Cityof_Westmoreland_,960S.W.2d10,16(Tenn.1997);_Britton_Ԁv. 1J'/ ClaiborneCounty,898S.W.2d220,22223(Tenn.Ct.App.1994). 3(1  .5*3  Wherearightofactionisdependentupontheprovisionsofastatute,ourcourtsarenotprivilegedtocreatesucharightundertheguiseofliberalinterpretationofthestatute.Hoganv.  X _McDaniel_,204Tenn.235,239,319S.W.2d221,223(Tenn.1958).  Onlythelegislaturehasauthoritytocreatelegalrightsandinterests.Thus,theburdenofestablishingtheexistenceofastatutoryrightofactionlieswiththeplaintiff._Ergon_,Inc.v.   AmocoOilCo.,966F.Supp.577,585(W.D.Tenn.1997). L   Indeterminingwhetherthelegislatureintendedtograntastatutoryrightofaction,webeginbyexaminingthelanguageofthestatute.Ifnocauseofactionisexpresslygrantedtherein,thenwemustdeterminewhethersuchactionwasintendedbythelegislatureandthusisimpliedinthestatute.Todothis,weconsiderwhetherthepersonassertingthecauseofactioniswithintheprotectionofthestatuteandisanintendedbeneficiary.Carterv.Redmond,142Tenn.258,263,218S.W.217,218(1920); X%  ChattanoogaRy.&Lt.Co.v._Bettis_,139Tenn.332,337,202S.W. 'x" 70,71(1918).Thestatutesstructureandlegislativehistoryarehelpfulinmakingthisdetermination.  IIIZLӜ̛ Theplaintiffconcedes,asitmust,thatthelanguageofTenn.CodeAnn.5637111doesnotexpresslygrantacauseofactiontoapremiumfinancecompanyagainstaninsurerwhofailstoreturnanunearnedpremium.TheplaintiffalsoacknowledgesthattheAct mandatesadutyonthepartoftheinsurancecompanies,butitdoesnotprovideanenforcementmechanismforthatduty. h9.8 Nevertheless,plaintiffstillurgesthatweshouldimplyacauseofactionunderthestatutebecause thereisnoindicationthattheintentoftheActistodenyaprivaterightofaction,andthereissubstantialsuggestionfromthelanguageandstructureoftheactandlegislativehistorythatthelegislativepurposewastofacilitate,ratherthaninterrupt,thecommerceofpremiumfinancing. WeagreethattheActwasnotintendedto interruptthebusinessofpremiumfinancing.AccordingtoRepresentativeBobDavis,thesponsoroftheActontheHouseside,thelegislatureintendedtogivelegalrecognitiontothepremiumfinanceindustrywhichhaddevelopedpriortotheActspassage.Thisbroadstatementofpurpose,however,merelyestablishesthepermissibilityofpremiumfinancinginTennessee.Itdoesnotprovideforitsdaytodayoperation. ReviewingtheoverallstructureoftheActisofgreaterassistanceindeterminingtheissue.TheActisstructuredsoastoevinceacleardesigntoregulatethepremiumfinanceindustry P*& andtherebyprotecttheinsurancefinancingpublic.AsprovidedintheAct,itsregulatoryfunctionisaccomplishedbyprovidingforlicensureofcompanies,directingthecontentsoffinancialagreements,establishinginterestrates,andcontrollingthecancellationofinsurancecontractsfornonpaymentofapremiumloan.SeeActofApril18,1980,ch.920,preamble,1980Tenn. X4)2 Pub.Acts1574,1574.Enforcementisthroughadministrativepenaltiesandcriminalsanctions,allagainstthepremiumfinancecompanies.SeeTenn.CodeAnn.5637105(a)(1994)(license \9.8 forfeiture);105(b)(1994)(civilfines);and113(1994)(criminalsanctions).Whereanactasawholeprovidesforgovernmentalenforcementofitsprovisions,wewillnotcasuallyengraftmeansofenforcementofoneofthoseprovisionsunlesssuchlegislativeintentismanifestlyclear.Wedonotfindsuchclearintentioninthestatuteunderreview. FocusingonTenn.CodeAnn.5637111,wethinkitisplainthatthelegislatureintendedthissectiontobeofprimarybenefittotheinsurancefinancingpublic,witharesidualbenefittopremiumfinancecompanies.Thissectiondirectsinsurerstoreturnunearnedpremiumstothefinancecompanywhomustthenapplythoserefundstoreduceaninsuredsdebt.Butforthissection,insurerswouldreturnunearnedpremiumsdirectlytotheinsured.Theinsuredwould,however,remainliabletothefinancecompanyforthepremiumloanbalancedueundertheagreement.Thus,thissectionclarifiestheprocedureforinsuredsuponcancellationofafinancedinsurancecontract. Astatutorycauseofactiontoenforcethissectionisnotnecessarytofurtherthelegislativepurpose.Insurersareheavilyregulatedentitieswhoareunderanobligationtoreturnunearnedpremiumsaftercancellationofaninsurancecontract.Aninsurerwhorefusestoreturnsuchpremiumswillbesubjecttoliabilitytoitsinsuredandmayfaceregulatorysanctionsaswell.Thus,theinsurerhaseveryincentivetopromptlyreturntheunearnedpremiumsasdirectedbythestatute.  7$-6  Inaddition,wedeclinetoacceptthepredictionforecastofthe plaintiffthatthepremiumfinanceindustrycannotoperatesuccessfullyandwillceasetoexistifexistifsuchcompaniesareunabletoseekstatutoryrecourseagainstinsurers.Aswenotedabove,thepremiumfinanceindustrypredatestheenactmentofthestatuteatissue.Furthermore,suchcompanieshaveotheravenuesofreliefavailabletothem.Theymayelecttoproceedagainsttheborrowerinsuredunderthetermsoftheoutstandingpremiumloan.Theymayelecttoexerciseanycommonlawremedyintortorcontractavailableagainstaninsurer.Finally,theymayprotecttheirinterestsbyprovidingforsuchapossibilityeventualityasatermofthecontract.  IV_ WeholdthatTenn.CodeAnn.5637111doesnotgrantpremiumfinancecompaniesacauseofactionagainstinsurersforfailuretoreturnunearnedpremiumsaftercancellationofafinancedinsurancecontract.Theplaintiffhasthereforefailedtostateaclaimuponwhichreliefcanbegrantedwithrespecttothisstatute.ItresultsthatthejudgmentoftheCourtofAppealsisreversedastothedefendantinsurancecompaniesandaffirmedastothe generalagent.    h      p ______________________________    h      p ADOLPHOA.BIRCH,JR.,JusticeCONCUR:Anderson,C.J. \9.8 Drowota,Holder,JJ.