Banks and Financial Institutions - As enacted, authorizes a premium finance company to impose and collect a convenience fee from an insured for use of certain payment methods; authorizes a premium finance company to charge and collect a handling charge for certain payment instruments when the payment instrument is not paid by the financial institution from which the instrument is drawn. - Amends TCA Title 56, Chapter 37.

SB 766 allows premium finance companies in Tennessee to charge customers convenience fees for using credit cards, debit cards, or electronic payments (like e-transfers), but only to cover their actual processing costs. Companies must disclose the fee amount before payment, offer alternatives like checks or cash without fees, and cannot charge more than the average cost of processing electronic payments. The bill also permits a single handling charge if a payment method (like a check) bounces, but prohibits charging fees for transactions where payment networks forbid them. This directly affects premium finance companies and their customers who pay insurance premiums through electronic methods.