Tenn. Code Ann. § 56-13-111 — TN Code / Title 56 / Chapter 13 / Section 56-13-111
Investment requirements
Status: in_force

(a) Except as may be otherwise authorized by the commissioner, association captive insurance companies and risk retention groups shall comply with the investment requirements contained in §§ 56-3-401 - 56-3-409, as applicable. Notwithstanding any other provision of this title, the commissioner may approve the use of alternative reliable methods of valuation and rating. (b) No pure captive insurance company, industrial insured captive insurance company, protected cell captive insurance company, incorporated cell captive insurance company or special purpose financial captive insurance company as defined in part 4 of this chapter shall be subject to any restrictions on allowable investments; provided, that the commissioner may prohibit or limit any investment that threatens the solvency or liquidity of any such company. Companies under this subsection (b) must file with the commissioner a statement of investment policy approved by its governing body that describes the types of investments that the company may elect to undertake and may not make investments that materially deviate from the statement of investment policy that is on file with the commissioner. (c) No pure captive insurance company shall make a loan to or an investment in its parent company or affiliates without prior written approval of the commissioner, and any such loan or investment shall be evidenced by documentation approved by the commissioner. Loans of minimum capital and surplus funds required by § 56-13-105 are prohibited. (d) (1) Notwithstanding this section or chapter 3, part 4 of this title, an association captive insurance company of an association described in § 56-13-102(3)(B) may hold any interest in qualified headquarters property as defined in subdivision (d)(2), and the qualified headquarters property shall be admitted assets and authorized investments of the association captive insurance company. The net book value of the qualified headquarters property deemed admitted and authorized under this subsection (d) may not exceed two million five hundred thousand dollars ($2,500,000), and an association captive insurance company holding qualified headquarters property pursuant to this subsection (d) shall at all times maintain total surplus, without regard to the qualified headquarters property, of at least the sum of: (A) Fifty percent (50%) of the net book value of the qualified headquarters property; and (B) The minimum capital and surplus requirements. (2) For purposes of this subsection (d), "qualified headquarters property" includes the real property and the building in which the principal office of the association captive insurance company is located and also includes any improved and unimproved real property of the association captive insurance company that is located within one thousand five hundred feet (1,500') of the company's principal office. Amended by 2015 Tenn. Acts, ch. 156,s 8, eff. 4/17/2015. Acts 2011, ch. 468, § 1.
(a) Except as may be otherwise authorized by the commissioner, association captive insurance companies and risk retention groups shall comply with the investment requirements contained in §§ 56-3-401 - 56-3-409, as applicable. Notwithstanding any other provision of this title, the commissioner may approve the use of alternative reliable methods of valuation and rating.
(b) No pure captive insurance company, industrial insured captive insurance company, protected cell captive insurance company, incorporated cell captive insurance company or special purpose financial captive insurance company as defined in part 4 of this chapter shall be subject to any restrictions on allowable investments; provided, that the commissioner may prohibit or limit any investment that threatens the solvency or liquidity of any such company. Companies under this subsection (b) must file with the commissioner a statement of investment policy approved by its governing body that describes the types of investments that the company may elect to undertake and may not make investments that materially deviate from the statement of investment policy that is on file with the commissioner.
(c) No pure captive insurance company shall make a loan to or an investment in its parent company or affiliates without prior written approval of the commissioner, and any such loan or investment shall be evidenced by documentation approved by the commissioner. Loans of minimum capital and surplus funds required by § 56-13-105 are prohibited.
(d) (1) Notwithstanding this section or chapter 3, part 4 of this title, an association captive insurance company of an association described in § 56-13-102(3)(B) may hold any interest in qualified headquarters property as defined in subdivision (d)(2), and the qualified headquarters property shall be admitted assets and authorized investments of the association captive insurance company. The net book value of the qualified headquarters property deemed admitted and authorized under this subsection (d) may not exceed two million five hundred thousand dollars ($2,500,000), and an association captive insurance company holding qualified headquarters property pursuant to this subsection (d) shall at all times maintain total surplus, without regard to the qualified headquarters property, of at least the sum of: (A) Fifty percent (50%) of the net book value of the qualified headquarters property; and (B) The minimum capital and surplus requirements. (2) For purposes of this subsection (d), "qualified headquarters property" includes the real property and the building in which the principal office of the association captive insurance company is located and also includes any improved and unimproved real property of the association captive insurance company that is located within one thousand five hundred feet (1,500') of the company's principal office.
(1) Notwithstanding this section or chapter 3, part 4 of this title, an association captive insurance company of an association described in § 56-13-102(3)(B) may hold any interest in qualified headquarters property as defined in subdivision (d)(2), and the qualified headquarters property shall be admitted assets and authorized investments of the association captive insurance company. The net book value of the qualified headquarters property deemed admitted and authorized under this subsection (d) may not exceed two million five hundred thousand dollars ($2,500,000), and an association captive insurance company holding qualified headquarters property pursuant to this subsection (d) shall at all times maintain total surplus, without regard to the qualified headquarters property, of at least the sum of: (A) Fifty percent (50%) of the net book value of the qualified headquarters property; and (B) The minimum capital and surplus requirements.
(A) Fifty percent (50%) of the net book value of the qualified headquarters property; and
(B) The minimum capital and surplus requirements.
(2) For purposes of this subsection (d), "qualified headquarters property" includes the real property and the building in which the principal office of the association captive insurance company is located and also includes any improved and unimproved real property of the association captive insurance company that is located within one thousand five hundred feet (1,500') of the company's principal office.
Amended by 2015 Tenn. Acts, ch. 156,s 8, eff. 4/17/2015.
Acts 2011, ch. 468, § 1.
Tenn. Code Ann. § 56-5-201 — TN Code / Title 56 / Chapter 5 / Section 56-5-201
Part definitions
Status: in_force

As used in this part, unless the context otherwise requires: (1) "Adverse action" means a denial or cancellation of, an increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connection with the underwriting of personal insurance. An offer of placement with an affiliate insurer does not constitute adverse action, a refusal to insure, cancellation or nonrenewal of coverage; (2) "Affiliate" means any company that controls, is controlled by, or is under common control with another company; (3) "Consumer" means an insured whose credit information is used or whose insurance score is calculated in the underwriting or rating of a personal insurance policy or an applicant for the policy; (4) "Consumer reporting agency" means any entity that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties; (5) "Credit information" means any credit-related information derived from a credit report, found on a credit report itself, or provided on an application for personal insurance. Information that is not credit-related shall not be considered "credit information," regardless of whether it is contained in a credit report or in an application, or is used to calculate an insurance score; (6) "Credit report" means any written, oral, or other communication of information by a consumer reporting agency bearing on a consumer's creditworthiness, credit standing or credit capacity that is used or expected to be used or collected in whole or in part for the purpose of serving as a factor to determine personal insurance premiums, eligibility for coverage, or tier placement; (7) "Insurance score" means a number or rating that is derived from an algorithm, computer application, model, or other process that is based in whole or in part on credit information for the purposes of predicting the future insurance loss exposure of an individual applicant or insured; and (8) "Personal insurance," for the purposes of this part, means private passenger automobile, homeowners, motorcycle, manufactured home owners, noncommercial dwelling fire insurance, boat, personal watercraft, and recreational vehicle policies when those policies are individually underwritten for personal, family or household use. Acts 2004, ch. 527, § 2.
As used in this part, unless the context otherwise requires:
(1) "Adverse action" means a denial or cancellation of, an increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connection with the underwriting of personal insurance. An offer of placement with an affiliate insurer does not constitute adverse action, a refusal to insure, cancellation or nonrenewal of coverage;
(2) "Affiliate" means any company that controls, is controlled by, or is under common control with another company;
(3) "Consumer" means an insured whose credit information is used or whose insurance score is calculated in the underwriting or rating of a personal insurance policy or an applicant for the policy;
(4) "Consumer reporting agency" means any entity that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties;
(5) "Credit information" means any credit-related information derived from a credit report, found on a credit report itself, or provided on an application for personal insurance. Information that is not credit-related shall not be considered "credit information," regardless of whether it is contained in a credit report or in an application, or is used to calculate an insurance score;
(6) "Credit report" means any written, oral, or other communication of information by a consumer reporting agency bearing on a consumer's creditworthiness, credit standing or credit capacity that is used or expected to be used or collected in whole or in part for the purpose of serving as a factor to determine personal insurance premiums, eligibility for coverage, or tier placement;
(7) "Insurance score" means a number or rating that is derived from an algorithm, computer application, model, or other process that is based in whole or in part on credit information for the purposes of predicting the future insurance loss exposure of an individual applicant or insured; and
(8) "Personal insurance," for the purposes of this part, means private passenger automobile, homeowners, motorcycle, manufactured home owners, noncommercial dwelling fire insurance, boat, personal watercraft, and recreational vehicle policies when those policies are individually underwritten for personal, family or household use.
Acts 2004, ch. 527, § 2.
Tenn. Code Ann. § 56-9-331 — TN Code / Title 56 / Chapter 9 / Section 56-9-331
Liquidator's report on claims - Review of report by court - When liquidator may treat claims as allowed
Status: in_force

(a) The liquidator shall review all claims duly filed in the liquidation and shall make further investigation as the liquidator deems necessary. The liquidator may compound, compromise or in any other manner negotiate the amount for which claims will be recommended to the court, except where the liquidator is required by law to accept claims as settled by any person or organization, including any guaranty association or foreign guaranty association. Unresolved disputes shall be determined under § 56-9-327 . As soon as practicable, the liquidator shall present to the court a report of the claims against the insurer with the liquidator's recommendations. The report shall include the name and address of each claimant and the amount of the claim finally recommended, if any. If the insurer has issued annuities or life insurance policies, the liquidator shall report the persons to whom, according to the records of the insurer, amounts are owed as cash surrender values or other investment value and the amounts owed. (b) The court may approve, disapprove or modify the report on claims by the liquidator. Such reports as are not modified by the court within a period of sixty (60) days following submission by the liquidator shall be treated by the liquidator as allowed claims, subject thereafter to later modification or to rulings made by the court pursuant to § 56-9-327 . No claim under a policy of insurance shall be allowed for an amount in excess of the applicable policy limits. Acts 1991, ch. 142, § 4.
(a) The liquidator shall review all claims duly filed in the liquidation and shall make further investigation as the liquidator deems necessary. The liquidator may compound, compromise or in any other manner negotiate the amount for which claims will be recommended to the court, except where the liquidator is required by law to accept claims as settled by any person or organization, including any guaranty association or foreign guaranty association. Unresolved disputes shall be determined under § 56-9-327 . As soon as practicable, the liquidator shall present to the court a report of the claims against the insurer with the liquidator's recommendations. The report shall include the name and address of each claimant and the amount of the claim finally recommended, if any. If the insurer has issued annuities or life insurance policies, the liquidator shall report the persons to whom, according to the records of the insurer, amounts are owed as cash surrender values or other investment value and the amounts owed.
(b) The court may approve, disapprove or modify the report on claims by the liquidator. Such reports as are not modified by the court within a period of sixty (60) days following submission by the liquidator shall be treated by the liquidator as allowed claims, subject thereafter to later modification or to rulings made by the court pursuant to § 56-9-327 . No claim under a policy of insurance shall be allowed for an amount in excess of the applicable policy limits.
Acts 1991, ch. 142, § 4.
Tenn. Code Ann. § 56-16-209 — TN Code / Title 56 / Chapter 16 / Section 56-16-209
Liquidation - Distribution of assets
Status: in_force

Upon the liquidation of a domestic reciprocal, its assets shall be distributed pursuant to chapter 9 of this title. Acts 1990, ch. 728, § 2; T.C.A. § 56-16-309.
Upon the liquidation of a domestic reciprocal, its assets shall be distributed pursuant to chapter 9 of this title.
Acts 1990, ch. 728, § 2; T.C.A. § 56-16-309.
Tenn. Code Ann. § 56-47-107 — TN Code / Title 56 / Chapter 47 / Section 56-47-107
Violations by licensed professionals deemed moral turpitude
Status: in_force

Any practitioner determined by the court to have violated § 56-47-103 shall be deemed to have committed an act involving moral turpitude that is inimical to the public well-being. The court or prosecutor shall notify the appropriate licensing authority in this state of the judgment for appropriate disciplinary action, including revocation of any such professional's license, and may notify appropriate licensing authorities in any other jurisdictions where the practitioner is licensed. Any victim may notify the appropriate licensing authorities in this state and any other jurisdiction where the practitioner is licensed, of the conviction. The state licensing authority shall take appropriate administrative action authorized by state law, to consider the imposition of any administrative sanctions or license revocations as provided by law against the practitioner. It is recommended by the general assembly that the state supreme court shall take appropriate action, including, but not limited to, disbarment with respect to any attorney found guilty of such felony. All the referrals to the appropriate licensing or other agencies, and all dispositive actions of the licensing or other agencies, shall be a matter of public record. Acts 1996, ch. 944, § 48.
Any practitioner determined by the court to have violated § 56-47-103 shall be deemed to have committed an act involving moral turpitude that is inimical to the public well-being. The court or prosecutor shall notify the appropriate licensing authority in this state of the judgment for appropriate disciplinary action, including revocation of any such professional's license, and may notify appropriate licensing authorities in any other jurisdictions where the practitioner is licensed. Any victim may notify the appropriate licensing authorities in this state and any other jurisdiction where the practitioner is licensed, of the conviction. The state licensing authority shall take appropriate administrative action authorized by state law, to consider the imposition of any administrative sanctions or license revocations as provided by law against the practitioner. It is recommended by the general assembly that the state supreme court shall take appropriate action, including, but not limited to, disbarment with respect to any attorney found guilty of such felony. All the referrals to the appropriate licensing or other agencies, and all dispositive actions of the licensing or other agencies, shall be a matter of public record.
Acts 1996, ch. 944, § 48.
Tenn. Code Ann. § 56-7-1507 — TN Code / Title 56 / Chapter 7 / Section 56-7-1507
Review of advertisements
Status: in_force

Every issuer of medicare supplement insurance policies or certificates in this state shall provide a copy of any medicare supplement advertisement intended for use in this state whether through written, radio or television medium to the commissioner for review or approval by the commissioner. The commissioner shall promulgate reasonable rules and regulations to implement this section. Acts 1992, ch. 735, § 7.
Every issuer of medicare supplement insurance policies or certificates in this state shall provide a copy of any medicare supplement advertisement intended for use in this state whether through written, radio or television medium to the commissioner for review or approval by the commissioner. The commissioner shall promulgate reasonable rules and regulations to implement this section.
Acts 1992, ch. 735, § 7.
Tenn. Code Ann. § 56-23-104 — TN Code / Title 56 / Chapter 23 / Section 56-23-104
Assuming insurers - Determination of financial condition
Status: in_force

For the purpose of determining the financial condition of any assuming insurer, the insurer shall be charged with an amount in its unearned premium liability equal to the amount of the deductions specified in § 56-23-103 , and in its valuation reserve liability with an amount at least equal to the amount that it would be required to maintain if it were the direct insurer of the assumed risks on the basis specified in the reinsurance agreement. Acts 1973, ch. 293, § 4; T.C.A., § 56-4204.
For the purpose of determining the financial condition of any assuming insurer, the insurer shall be charged with an amount in its unearned premium liability equal to the amount of the deductions specified in § 56-23-103 , and in its valuation reserve liability with an amount at least equal to the amount that it would be required to maintain if it were the direct insurer of the assumed risks on the basis specified in the reinsurance agreement.
Acts 1973, ch. 293, § 4; T.C.A., § 56-4204.
Tenn. Code Ann. § 56-51-142 — TN Code / Title 56 / Chapter 51 / Section 56-51-142
Payment of judgment by prepaid limited health service organization
Status: in_force

Except as otherwise ordered by the court or as mutually agreed upon by the parties, every judgment or decree entered in any court against any prepaid limited health service organization for the recovery of money must be fully satisfied within sixty (60) days after the entry of the judgment or decree, or, in the case of an appeal from the judgment or decree, within sixty (60) days after the affirmance of the judgment or decree by the appellate court. Acts 2000, ch. 948, § 42.
Except as otherwise ordered by the court or as mutually agreed upon by the parties, every judgment or decree entered in any court against any prepaid limited health service organization for the recovery of money must be fully satisfied within sixty (60) days after the entry of the judgment or decree, or, in the case of an appeal from the judgment or decree, within sixty (60) days after the affirmance of the judgment or decree by the appellate court.
Acts 2000, ch. 948, § 42.
Tenn. Code Ann. § 56-7-3710 — TN Code / Title 56 / Chapter 7 / Section 56-7-3710
Prior authorization and opioid use disorder
Status: in_force

(a) A utilization review organization and health carrier shall not require prior authorization for prescription drugs labeled by the United States food and drug administration for the treatment of opioid use disorder. (b) This section does not require a policy to cover any care, treatment, or services for a health condition that the terms of coverage otherwise completely exclude from the policy's covered benefits without regard for whether the care, treatment, or services are medically necessary unless otherwise required by law. (c) This section does not apply to behavioral health inpatient services. Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
(a) A utilization review organization and health carrier shall not require prior authorization for prescription drugs labeled by the United States food and drug administration for the treatment of opioid use disorder.
(b) This section does not require a policy to cover any care, treatment, or services for a health condition that the terms of coverage otherwise completely exclude from the policy's covered benefits without regard for whether the care, treatment, or services are medically necessary unless otherwise required by law.
(c) This section does not apply to behavioral health inpatient services.
Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
Tenn. Code Ann. § 56-11-115 — TN Code / Title 56 / Chapter 11 / Section 56-11-115
Appeal of commissioner's action
Status: in_force

Any person aggrieved by an act, determination, rule, regulation, order, or any other action of the commissioner pursuant to this part may appeal as set forth in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Amended by 2014 Tenn. Acts, ch. 583,s 1, eff. 3/28/2014. Acts 1986, ch. 572, § 15; T.C.A. § 56-11-215.
Any person aggrieved by an act, determination, rule, regulation, order, or any other action of the commissioner pursuant to this part may appeal as set forth in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Amended by 2014 Tenn. Acts, ch. 583,s 1, eff. 3/28/2014.
Acts 1986, ch. 572, § 15; T.C.A. § 56-11-215.
Tenn. Code Ann. § 56-1-603 — TN Code / Title 56 / Chapter 1 / Section 56-1-603
Seal of department
Status: in_force

The commissioner, with the approval of the governor, shall devise a seal, with suitable inscription, for the department, a description of which, with a certificate of approval by the governor, together with an impression of the seal, shall be filed in the office of the secretary of state, and may be renewed whenever necessary. Acts 1873, ch. 58, § 13; Shan., § 3343; mod. Code 1932, § 6168; T.C.A. (orig. ed.), § 56-136.
The commissioner, with the approval of the governor, shall devise a seal, with suitable inscription, for the department, a description of which, with a certificate of approval by the governor, together with an impression of the seal, shall be filed in the office of the secretary of state, and may be renewed whenever necessary.
Acts 1873, ch. 58, § 13; Shan., § 3343; mod. Code 1932, § 6168; T.C.A. (orig. ed.), § 56-136.
Tenn. Code Ann. § 56-23-103 — TN Code / Title 56 / Chapter 23 / Section 56-23-103
Ceding insurers credited pro rata unearned premium liability
Status: in_force

For the purpose of determining the financial condition of a ceding insurer, only if the reinsurance is effected by the ceding insurer in any assuming insurer authorized to do such business in this state, or in any other state of the United States or the District of Columbia, the ceding insurer shall, in addition to any credit allowed against its loss reserves, receive credit for the reinsurance by way of deduction from its unearned premium liability, which liability shall be equal to the unearned portions of the gross premiums charged on unexpired or unterminated risks and policies. Acts 1973, ch. 293, § 3; T.C.A., § 56-4203.
For the purpose of determining the financial condition of a ceding insurer, only if the reinsurance is effected by the ceding insurer in any assuming insurer authorized to do such business in this state, or in any other state of the United States or the District of Columbia, the ceding insurer shall, in addition to any credit allowed against its loss reserves, receive credit for the reinsurance by way of deduction from its unearned premium liability, which liability shall be equal to the unearned portions of the gross premiums charged on unexpired or unterminated risks and policies.
Acts 1973, ch. 293, § 3; T.C.A., § 56-4203.
Tenn. Code Ann. § 56-19-102 — TN Code / Title 56 / Chapter 19 / Section 56-19-102
Name of company
Status: in_force

No name shall be adopted by the company that does not contain the word "mutual," or that is so similar to any name already in use by any such existing corporation, company or association, organized and doing business in the United States, as to be confusing or misleading. Acts 1919, ch. 108, § 3; Shan. Supp., § 3369a58b7; Code 1932, § 6319; T.C.A. (orig. ed.), § 56-1702.
No name shall be adopted by the company that does not contain the word "mutual," or that is so similar to any name already in use by any such existing corporation, company or association, organized and doing business in the United States, as to be confusing or misleading.
Acts 1919, ch. 108, § 3; Shan. Supp., § 3369a58b7; Code 1932, § 6319; T.C.A. (orig. ed.), § 56-1702.
Tenn. Code Ann. § 56-7-133 — TN Code / Title 56 / Chapter 7 / Section 56-7-133
Provision in policy of group accident and health insurance requiring notification when person covered under group policy ceases to be covered
Status: in_force

A policy of group accident and health insurance as defined in § 56-26-201 that is issued to an employer shall contain a provision requiring the employer to notify the insurer when any person covered under the group policy ceases to be eligible for coverage. The employer shall notify the health insurer of a covered person's loss of eligibility within the time set forth in the contract, but in no event shall the notification occur more than sixty (60) days after the employer learns of a covered person's loss of eligibility. Acts 2009, ch. 462, § 6.
A policy of group accident and health insurance as defined in § 56-26-201 that is issued to an employer shall contain a provision requiring the employer to notify the insurer when any person covered under the group policy ceases to be eligible for coverage. The employer shall notify the health insurer of a covered person's loss of eligibility within the time set forth in the contract, but in no event shall the notification occur more than sixty (60) days after the employer learns of a covered person's loss of eligibility.
Acts 2009, ch. 462, § 6.
Tenn. Code Ann. § 56-28-106 — TN Code / Title 56 / Chapter 28 / Section 56-28-106
Issuance of license - Prerequisites
Status: in_force

The commissioner shall issue a license upon compliance with this chapter and other proper requirements of the commissioner, and upon being satisfied that: (1) The applicant is established as a bona fide nonprofit hospital service corporation and the service rendered by the corporation is not an unnecessary duplication of similar service in the community served, and is desirable for public necessity and convenience, and hospital contracts have been obtained, if possible, in the finding of the commissioner, with hospitals representing a majority of the bed capacity in the area where members are enrolled, and a fair opportunity has been given to all institutions of standing in the area to be served, to become member hospitals; (2) A provision has been made in the subscriber's contract authorizing hospital service in hospitals other than participating hospitals, in which case money benefits shall be provided as specified in subscriber's contract and approved as fair by the commissioner; (3) Member hospitals of a hospital service plan agree to render service benefits of the plan of which it is a member at the agreed payment schedule to all subscribers; and (4) The rates charged and benefits to be provided are to be fair, reasonable and not unfairly discriminatory. Rates may differ between subscribers in recognized groups and subscribers not in groups, all subject as above to the review and approval or disapproval of the commissioner as provided in §§ 56-26-102 and 56-26-202 and any rules promulgated under that section. Sections 56-26-102 and 56-26-202 and related rules shall apply to all hospital service plans in the same manner as to accident and sickness policies subject to §§ 56-26-102 and 56-26-202 . Acts 1945, ch. 98, § 5; C. Supp. 1950, § 4186.5; T.C.A. (orig. ed.), §56-3006; Acts 2011 , ch. 344, § 15.
The commissioner shall issue a license upon compliance with this chapter and other proper requirements of the commissioner, and upon being satisfied that:
(1) The applicant is established as a bona fide nonprofit hospital service corporation and the service rendered by the corporation is not an unnecessary duplication of similar service in the community served, and is desirable for public necessity and convenience, and hospital contracts have been obtained, if possible, in the finding of the commissioner, with hospitals representing a majority of the bed capacity in the area where members are enrolled, and a fair opportunity has been given to all institutions of standing in the area to be served, to become member hospitals;
(2) A provision has been made in the subscriber's contract authorizing hospital service in hospitals other than participating hospitals, in which case money benefits shall be provided as specified in subscriber's contract and approved as fair by the commissioner;
(3) Member hospitals of a hospital service plan agree to render service benefits of the plan of which it is a member at the agreed payment schedule to all subscribers; and
(4) The rates charged and benefits to be provided are to be fair, reasonable and not unfairly discriminatory. Rates may differ between subscribers in recognized groups and subscribers not in groups, all subject as above to the review and approval or disapproval of the commissioner as provided in §§ 56-26-102 and 56-26-202 and any rules promulgated under that section. Sections 56-26-102 and 56-26-202 and related rules shall apply to all hospital service plans in the same manner as to accident and sickness policies subject to §§ 56-26-102 and 56-26-202 .
Acts 1945, ch. 98, § 5; C. Supp. 1950, § 4186.5; T.C.A. (orig. ed.), §56-3006; Acts 2011 , ch. 344, § 15.
Tenn. Code Ann. § 56-1-402 — TN Code / Title 56 / Chapter 1 / Section 56-1-402
[Repealed]
Status: repealed

Repealed by 2013 Tenn. Acts, ch. 260, s 1, eff. 7/1/2013. Acts 1895, ch. 160, § 8; Shan., § 3288; Code 1932, § 6103; Acts 1945, ch. 56, § 1; C. Supp. 1950, § 6103; Acts 1963, ch. 140, §§ 1, 2; T.C.A. (orig. ed.), § 56-114; Acts 1995, ch. 363, § 1.
Repealed by 2013 Tenn. Acts, ch. 260, s 1, eff. 7/1/2013.
Acts 1895, ch. 160, § 8; Shan., § 3288; Code 1932, § 6103; Acts 1945, ch. 56, § 1; C. Supp. 1950, § 6103; Acts 1963, ch. 140, §§ 1, 2; T.C.A. (orig. ed.), § 56-114; Acts 1995, ch. 363, § 1.
Tenn. Code Ann. § 56-9-339 — TN Code / Title 56 / Chapter 9 / Section 56-9-339
Federal home loan bank's secured claim on insurer subject to delinquency proceeding
Status: in_force

(a) Notwithstanding any other provision of this title, any secured claim that a federal home loan bank has on an insurer who is subject to a delinquency proceeding under this chapter is governed exclusively by this section. (b) Notwithstanding any other provision of this title, a receiver shall not void a redemption or repurchase of any stock or equity securities made by a federal home loan bank within four (4) months of the commencement of the delinquency proceedings or that received prior approval of the receiver. However, a transfer is voidable if the transfer is made with the actual intent to hinder, delay, or defraud the insurer member, the receiver for the insurer member, existing creditors, or future creditors. (c) If a federal home loan bank exercises its rights regarding collateral pledged by an insurer member who is subject to a delinquency proceeding, then the federal home loan bank shall repurchase any capital stock that is in excess of the amount of federal home loan bank stock that the insurer member is required to hold as a minimum investment, to the extent the federal home loan bank in good faith determines the repurchase to be permissible under applicable laws, regulations, regulatory obligations, and the federal home loan bank's capital plan, and consistent with the federal home loan bank's current capital stock practices applicable to its entire membership. (d) Following the appointment of a receiver for an insurer member, the federal home loan bank, within ten (10) business days after a request made by the receiver, shall provide a process and establish timelines for the: (1) Release of collateral that exceeds the lendable collateral value, as determined pursuant to the advance agreement with the federal home loan bank, required to support secured obligations remaining after any repayment of advances; (2) Release of any of the insurer member's collateral remaining in the federal home loan bank's possession following repayment in full of all outstanding secured obligations of the insurer member; (3) Payment of fees owed by the insurer member and the operation of deposits and other accounts of the insurer member with the federal home loan bank; and (4) Possible redemption or repurchase of federal home loan bank stock or excess stock of any class that an insurer member is required to own. (e) Upon request from the receiver for an insurer member, the federal home loan bank shall provide any available options that an insurer member may exercise to renew or restructure an advance to defer associated prepayment fees, subject to the following: (1) Market conditions; (2) The terms of the advances outstanding to the insurer member; (3) The applicable policies of the federal home loan bank; and (4) Compliance with the Federal Home Loan Bank Act ( 12 U.S.C. § 1421 et seq.) and corresponding regulations. (f) After the tenth day following the commencement of a delinquency proceeding in this state involving an insurer member of the federal home loan bank, the federal home loan bank must not be stayed or prohibited from exercising its rights regarding collateral pledged by that insurer member. Added by 2019 Tenn. Acts, ch. 430, s 7, eff. 5/21/2019.
(a) Notwithstanding any other provision of this title, any secured claim that a federal home loan bank has on an insurer who is subject to a delinquency proceeding under this chapter is governed exclusively by this section.
(b) Notwithstanding any other provision of this title, a receiver shall not void a redemption or repurchase of any stock or equity securities made by a federal home loan bank within four (4) months of the commencement of the delinquency proceedings or that received prior approval of the receiver. However, a transfer is voidable if the transfer is made with the actual intent to hinder, delay, or defraud the insurer member, the receiver for the insurer member, existing creditors, or future creditors.
(c) If a federal home loan bank exercises its rights regarding collateral pledged by an insurer member who is subject to a delinquency proceeding, then the federal home loan bank shall repurchase any capital stock that is in excess of the amount of federal home loan bank stock that the insurer member is required to hold as a minimum investment, to the extent the federal home loan bank in good faith determines the repurchase to be permissible under applicable laws, regulations, regulatory obligations, and the federal home loan bank's capital plan, and consistent with the federal home loan bank's current capital stock practices applicable to its entire membership.
(d) Following the appointment of a receiver for an insurer member, the federal home loan bank, within ten (10) business days after a request made by the receiver, shall provide a process and establish timelines for the: (1) Release of collateral that exceeds the lendable collateral value, as determined pursuant to the advance agreement with the federal home loan bank, required to support secured obligations remaining after any repayment of advances; (2) Release of any of the insurer member's collateral remaining in the federal home loan bank's possession following repayment in full of all outstanding secured obligations of the insurer member; (3) Payment of fees owed by the insurer member and the operation of deposits and other accounts of the insurer member with the federal home loan bank; and (4) Possible redemption or repurchase of federal home loan bank stock or excess stock of any class that an insurer member is required to own.
(1) Release of collateral that exceeds the lendable collateral value, as determined pursuant to the advance agreement with the federal home loan bank, required to support secured obligations remaining after any repayment of advances;
(2) Release of any of the insurer member's collateral remaining in the federal home loan bank's possession following repayment in full of all outstanding secured obligations of the insurer member;
(3) Payment of fees owed by the insurer member and the operation of deposits and other accounts of the insurer member with the federal home loan bank; and
(4) Possible redemption or repurchase of federal home loan bank stock or excess stock of any class that an insurer member is required to own.
(e) Upon request from the receiver for an insurer member, the federal home loan bank shall provide any available options that an insurer member may exercise to renew or restructure an advance to defer associated prepayment fees, subject to the following: (1) Market conditions; (2) The terms of the advances outstanding to the insurer member; (3) The applicable policies of the federal home loan bank; and (4) Compliance with the Federal Home Loan Bank Act ( 12 U.S.C. § 1421 et seq.) and corresponding regulations.
(1) Market conditions;
(2) The terms of the advances outstanding to the insurer member;
(3) The applicable policies of the federal home loan bank; and
(4) Compliance with the Federal Home Loan Bank Act ( 12 U.S.C. § 1421 et seq.) and corresponding regulations.
(f) After the tenth day following the commencement of a delinquency proceeding in this state involving an insurer member of the federal home loan bank, the federal home loan bank must not be stayed or prohibited from exercising its rights regarding collateral pledged by that insurer member.
Added by 2019 Tenn. Acts, ch. 430, s 7, eff. 5/21/2019.
Tenn. Code Ann. § 56-35-201 — TN Code / Title 56 / Chapter 35 / Section 56-35-201
Agents to be licensed - Examination - Other requirements
Status: in_force

(a) No person within this state shall act as or hold out to be a title insurance agent unless properly licensed in accordance with chapter 6, part 1 of this title. (b) The examination administered to applicants for a title insurance agent's license shall include questions regarding the search and examination of title to real property. (c) Any title insurance agent who is employed by a title insurance agency or company shall not be required to enter into any agreement, term or condition as set forth in § 56-35-131 insofar as the agent's employment with the title insurance agency or company is concerned; provided, that the agent meets all other licensing requirements. Acts 1980, ch. 857, § 9.
(a) No person within this state shall act as or hold out to be a title insurance agent unless properly licensed in accordance with chapter 6, part 1 of this title.
(b) The examination administered to applicants for a title insurance agent's license shall include questions regarding the search and examination of title to real property.
(c) Any title insurance agent who is employed by a title insurance agency or company shall not be required to enter into any agreement, term or condition as set forth in § 56-35-131 insofar as the agent's employment with the title insurance agency or company is concerned; provided, that the agent meets all other licensing requirements.
Acts 1980, ch. 857, § 9.
Tenn. Code Ann. § 56-2-117 — TN Code / Title 56 / Chapter 2 / Section 56-2-117
[Repealed]
Status: repealed

Acts 1980, ch. 503, § 3; repealed by Acts 2012 , ch. 680, § 2, effective 7/1/2012.
Tenn. Code Ann. § 56-25-503 — TN Code / Title 56 / Chapter 25 / Section 56-25-503
Exemption from insurance laws
Status: in_force

Except as herein provided, societies are governed by this chapter and are exempt from all other provisions of the insurance laws of this state unless they are expressly designated therein, or unless it is specifically made applicable by this chapter. Acts 1990, ch. 703, § 1.
Except as herein provided, societies are governed by this chapter and are exempt from all other provisions of the insurance laws of this state unless they are expressly designated therein, or unless it is specifically made applicable by this chapter.
Acts 1990, ch. 703, § 1.
Tenn. Code Ann. § 56-15-108 — TN Code / Title 56 / Chapter 15 / Section 56-15-108
Unlawful to write policies except through resident agents
Status: in_force

(a) It is unlawful for the corporation to write or cause to be written any policy or fidelity contract, except through licensed resident agents who shall countersign and record the policies or contracts and receive the full commission usually paid on business of the same classification in this state. (b) This section does not apply to bid bonds issued by the corporation in connection with any public or private contract. Acts 1919, ch. 163, § 1; Shan. Supp., § 2216a1; mod. Code 1932, § 3956; Acts 1963, ch. 24, § 1; T.C.A. (orig. ed.), § 56-1408.
(a) It is unlawful for the corporation to write or cause to be written any policy or fidelity contract, except through licensed resident agents who shall countersign and record the policies or contracts and receive the full commission usually paid on business of the same classification in this state.
(b) This section does not apply to bid bonds issued by the corporation in connection with any public or private contract.
Acts 1919, ch. 163, § 1; Shan. Supp., § 2216a1; mod. Code 1932, § 3956; Acts 1963, ch. 24, § 1; T.C.A. (orig. ed.), § 56-1408.
Tenn. Code Ann. § 56-47-110 — TN Code / Title 56 / Chapter 47 / Section 56-47-110
Cooperation with official investigating - Disclosure required - Right of insurer to request information
Status: in_force

(a) When any law enforcement official or authority, the department of commerce and insurance or department of labor and workforce development requests information from an insurer, insurance professional or any other person for the purpose of detecting, prosecuting or preventing insurance fraud, the insurer, insurance professional or other person shall take all reasonable actions to promptly provide the information requested, subject to any legal privilege protecting the information. (b) Any insurer, insurance professional or other person who has reasonable belief that an act violating § 56-47-103 or § 56-47-104 will be, is being, or has been committed, shall furnish and disclose any information in its possession concerning the act to the appropriate law enforcement official or authority, department of commerce and insurance or department of labor and workforce development, subject to any legal privilege protecting the information. (c) An insurer, insurance professional or other person providing information to any law enforcement, regulatory, licensing or other governmental agency under subsection (a) or (b), shall have the right to request information in the possession or control of the agency relating to the suspected violation or to a pattern of related activity, except information that was privileged or confidential under the laws of this state prior to its submission to the agency. In instances where disclosure would not jeopardize an ongoing investigation or prosecution, the agency shall provide the requested information to the insurer, insurance professional or other person. The agency may request that the insurer, insurance professional or other person keep the disclosed information confidential. (d) Any person that has a reasonable belief that an act violating this chapter will be, is being, or has been committed or any person who collects, reviews or analyzes information concerning insurance fraud, may furnish and disclose any information in its possession concerning the act to an authorized representative of an insurer that requests the information for the purpose of detecting, prosecuting or preventing insurance fraud. (e) Failure to cooperate with a request for information from an appropriate local or state authority shall bar a person's eligibility for restitution from any proceeds resulting from the governmental investigation and prosecution. Acts 1996, ch. 944, § 48; 1999, ch. 520, § 42.
(a) When any law enforcement official or authority, the department of commerce and insurance or department of labor and workforce development requests information from an insurer, insurance professional or any other person for the purpose of detecting, prosecuting or preventing insurance fraud, the insurer, insurance professional or other person shall take all reasonable actions to promptly provide the information requested, subject to any legal privilege protecting the information.
(b) Any insurer, insurance professional or other person who has reasonable belief that an act violating § 56-47-103 or § 56-47-104 will be, is being, or has been committed, shall furnish and disclose any information in its possession concerning the act to the appropriate law enforcement official or authority, department of commerce and insurance or department of labor and workforce development, subject to any legal privilege protecting the information.
(c) An insurer, insurance professional or other person providing information to any law enforcement, regulatory, licensing or other governmental agency under subsection (a) or (b), shall have the right to request information in the possession or control of the agency relating to the suspected violation or to a pattern of related activity, except information that was privileged or confidential under the laws of this state prior to its submission to the agency. In instances where disclosure would not jeopardize an ongoing investigation or prosecution, the agency shall provide the requested information to the insurer, insurance professional or other person. The agency may request that the insurer, insurance professional or other person keep the disclosed information confidential.
(d) Any person that has a reasonable belief that an act violating this chapter will be, is being, or has been committed or any person who collects, reviews or analyzes information concerning insurance fraud, may furnish and disclose any information in its possession concerning the act to an authorized representative of an insurer that requests the information for the purpose of detecting, prosecuting or preventing insurance fraud.
(e) Failure to cooperate with a request for information from an appropriate local or state authority shall bar a person's eligibility for restitution from any proceeds resulting from the governmental investigation and prosecution.
Acts 1996, ch. 944, § 48; 1999, ch. 520, § 42.
Tenn. Code Ann. § 56-3-113 — TN Code / Title 56 / Chapter 3 / Section 56-3-113
Valuation of bonds
Status: in_force

(a) All bonds permitted by this chapter or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows: (1) If purchased at par, at the par value; (2) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made, or in lieu of that method, according to the accepted method of valuation approved by the department; and (3) The purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage or express charges paid in the acquisition of the securities. (b) The department shall have full discretion in determining the method of calculating values according to the rules set forth in this section, but the method or valuation shall not be inconsistent with any applicable valuation or method used by insurers in general, or the method then currently formulated or approved by the National Association of Insurance Commissioners or its successor organization. Acts 1991, ch. 142, § 2.
(a) All bonds permitted by this chapter or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows: (1) If purchased at par, at the par value; (2) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made, or in lieu of that method, according to the accepted method of valuation approved by the department; and (3) The purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage or express charges paid in the acquisition of the securities.
(1) If purchased at par, at the par value;
(2) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made, or in lieu of that method, according to the accepted method of valuation approved by the department; and
(3) The purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage or express charges paid in the acquisition of the securities.
(b) The department shall have full discretion in determining the method of calculating values according to the rules set forth in this section, but the method or valuation shall not be inconsistent with any applicable valuation or method used by insurers in general, or the method then currently formulated or approved by the National Association of Insurance Commissioners or its successor organization.
Acts 1991, ch. 142, § 2.
Tenn. Code Ann. § 56-12-108 — TN Code / Title 56 / Chapter 12 / Section 56-12-108
Plan of operation - Requirements of plan - Delegation of authority
Status: in_force

(a) (1) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon approval in writing by the commissioner. (2) If the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate this part. Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner. (b) All member insurers shall comply with the plan of operation. (c) The plan of operation shall: (1) Establish the procedures whereby all the powers and duties of the association under § 56-12-107 will be performed; (2) Establish procedures for handling assets of the association; (3) Establish the amount and method of reimbursing members of the board of directors under § 56-12-106 ; (4) Establish procedures by which claims may be filed with the association and establish acceptable forms of proof of covered claims. Notice of claims to the receiver or liquidator of the insolvent insurer shall be deemed notice to the association or its agent, and a list of such claims shall be periodically submitted to the association or similar organization in another state by the receiver or liquidator; (5) Establish regular places and times for meetings of the board of directors; (6) Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors; (7) Provide that any member insurer aggrieved by any final action or decision of the association may appeal to the commissioner within thirty (30) days after the action or decision; (8) Establish the procedures whereby selections for the board of directors will be submitted to the commissioner; (9) Contain additional provisions necessary or proper for the execution of the powers and duties of the association; and (10) Establish procedures for the disposition of liquidating dividends or other moneys received from the estate of the insolvent insurer. (d) The plan of operation may provide that any or all powers and duties of the association, except those under § 56-12-107(a)(3) and (b)(3) , are delegated to a corporation, association, or other organization that performs or will perform functions similar to those of this association, or its equivalent, in two (2) or more states. Such a corporation, association or organization shall be reimbursed as a servicing facility would be reimbursed and shall be paid for its performance of any other functions of the association. A delegation under this subsection (d) shall take effect only with the approval of both the board of directors and the commissioner, and may be made only to a corporation, association, or organization that extends protection not substantially less favorable and effective than that provided by this part. Acts 1971, ch. 180, § 8; T.C.A., § 56-4008; Acts 1999, ch. 48, § 7.
(a) (1) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon approval in writing by the commissioner. (2) If the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate this part. Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.
(1) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon approval in writing by the commissioner.
(2) If the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate this part. Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.
(b) All member insurers shall comply with the plan of operation.
(c) The plan of operation shall: (1) Establish the procedures whereby all the powers and duties of the association under § 56-12-107 will be performed; (2) Establish procedures for handling assets of the association; (3) Establish the amount and method of reimbursing members of the board of directors under § 56-12-106 ; (4) Establish procedures by which claims may be filed with the association and establish acceptable forms of proof of covered claims. Notice of claims to the receiver or liquidator of the insolvent insurer shall be deemed notice to the association or its agent, and a list of such claims shall be periodically submitted to the association or similar organization in another state by the receiver or liquidator; (5) Establish regular places and times for meetings of the board of directors; (6) Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors; (7) Provide that any member insurer aggrieved by any final action or decision of the association may appeal to the commissioner within thirty (30) days after the action or decision; (8) Establish the procedures whereby selections for the board of directors will be submitted to the commissioner; (9) Contain additional provisions necessary or proper for the execution of the powers and duties of the association; and (10) Establish procedures for the disposition of liquidating dividends or other moneys received from the estate of the insolvent insurer.
(1) Establish the procedures whereby all the powers and duties of the association under § 56-12-107 will be performed;
(2) Establish procedures for handling assets of the association;
(3) Establish the amount and method of reimbursing members of the board of directors under § 56-12-106 ;
(4) Establish procedures by which claims may be filed with the association and establish acceptable forms of proof of covered claims. Notice of claims to the receiver or liquidator of the insolvent insurer shall be deemed notice to the association or its agent, and a list of such claims shall be periodically submitted to the association or similar organization in another state by the receiver or liquidator;
(5) Establish regular places and times for meetings of the board of directors;
(6) Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors;
(7) Provide that any member insurer aggrieved by any final action or decision of the association may appeal to the commissioner within thirty (30) days after the action or decision;
(8) Establish the procedures whereby selections for the board of directors will be submitted to the commissioner;
(9) Contain additional provisions necessary or proper for the execution of the powers and duties of the association; and
(10) Establish procedures for the disposition of liquidating dividends or other moneys received from the estate of the insolvent insurer.
(d) The plan of operation may provide that any or all powers and duties of the association, except those under § 56-12-107(a)(3) and (b)(3) , are delegated to a corporation, association, or other organization that performs or will perform functions similar to those of this association, or its equivalent, in two (2) or more states. Such a corporation, association or organization shall be reimbursed as a servicing facility would be reimbursed and shall be paid for its performance of any other functions of the association. A delegation under this subsection (d) shall take effect only with the approval of both the board of directors and the commissioner, and may be made only to a corporation, association, or organization that extends protection not substantially less favorable and effective than that provided by this part.
Acts 1971, ch. 180, § 8; T.C.A., § 56-4008; Acts 1999, ch. 48, § 7.
Tenn. Code Ann. § 56-35-130 — TN Code / Title 56 / Chapter 35 / Section 56-35-130
Accounts and records
Status: in_force

Every title insurance company, agency and agent shall: (1) Keep books of account and records and vouchers pertaining to the business of title insurance in such a manner that the commissioner or the commissioner's authorized representative may readily ascertain whether the company, agency or agent has complied with any and all applicable laws and regulations; and (2) Maintain a separate record of all receipts and disbursements made while handling escrows, settlements and closings in connection with the business of title insurance and shall establish a separate account for the handling of funds received in the course of the transactions. Acts 1980, ch. 857, § 13.
Every title insurance company, agency and agent shall:
(1) Keep books of account and records and vouchers pertaining to the business of title insurance in such a manner that the commissioner or the commissioner's authorized representative may readily ascertain whether the company, agency or agent has complied with any and all applicable laws and regulations; and
(2) Maintain a separate record of all receipts and disbursements made while handling escrows, settlements and closings in connection with the business of title insurance and shall establish a separate account for the handling of funds received in the course of the transactions.
Acts 1980, ch. 857, § 13.
Tenn. Code Ann. § 56-56-102 — TN Code / Title 56 / Chapter 56 / Section 56-56-102
Self-insured plans
Status: in_force

A professional employer organization may sponsor and maintain employee benefit and welfare plans in accordance with § 62-43-108(c) , for the benefit of covered employees. The self-insured plans developed under this section are not subject to the premium taxes imposed by this title. The department may promulgate rules regulating self-insured plans under this section. Acts 2012, ch. 1081, § 2.
A professional employer organization may sponsor and maintain employee benefit and welfare plans in accordance with § 62-43-108(c) , for the benefit of covered employees. The self-insured plans developed under this section are not subject to the premium taxes imposed by this title. The department may promulgate rules regulating self-insured plans under this section.
Acts 2012, ch. 1081, § 2.
Tenn. Code Ann. § 56-1-414 — TN Code / Title 56 / Chapter 1 / Section 56-1-414
Impairment of capital stock of domestic insurance company
Status: in_force

When it appears to the commissioner that the capital stock of a domestic insurance company is impaired to the extent of twenty percent (20%) or more, the commissioner shall notify the company that its capital is legally subject to be made good; and, if the company does not, within sixty (60) days after the notice, satisfy the commissioner that it has fully repaired its capital, or reduced its capital as provided by law, the commissioner shall institute proceedings against it. Acts 1895, ch. 160, § 6; Shan., § 3286; Code 1932, § 6101; T.C.A. (orig. ed.), § 56-126.
When it appears to the commissioner that the capital stock of a domestic insurance company is impaired to the extent of twenty percent (20%) or more, the commissioner shall notify the company that its capital is legally subject to be made good; and, if the company does not, within sixty (60) days after the notice, satisfy the commissioner that it has fully repaired its capital, or reduced its capital as provided by law, the commissioner shall institute proceedings against it.
Acts 1895, ch. 160, § 6; Shan., § 3286; Code 1932, § 6101; T.C.A. (orig. ed.), § 56-126.
Tenn. Code Ann. § 56-2-303 — TN Code / Title 56 / Chapter 2 / Section 56-2-303
Hearings
Status: in_force

Any hearing conducted under this part shall be conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Acts 1993, ch. 253, § 16.
Any hearing conducted under this part shall be conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 1993, ch. 253, § 16.
Tenn. Code Ann. § 56-28-114 — TN Code / Title 56 / Chapter 28 / Section 56-28-114
Contracts for service to subscribers - Rates
Status: in_force

The corporation may enter into contracts for the rendering of hospital service to the subscribers only with hospitals approved by the commissioner. All contracts issued by the corporation to the subscribers shall constitute individually and jointly direct obligations of the hospital or hospitals with which the corporation has contracted for hospital service. The rates charged to the subscribers for hospital service and the rates of payment by the corporation to the contracting hospital or hospitals at all times shall be subject to the approval or disapproval of the commissioner; provided, that in the case of experience-rated group insurance, premium rates and classification of risks need not be filed but shall be maintained by the hospital service corporations and made available for review by the commissioner upon the commissioner's request. Acts 1945, ch. 98, § 3; C. Supp. 1950, § 4186.3; Acts 1978, ch. 513, § 1; T.C.A. (orig. ed.), § 56-3014.
The corporation may enter into contracts for the rendering of hospital service to the subscribers only with hospitals approved by the commissioner. All contracts issued by the corporation to the subscribers shall constitute individually and jointly direct obligations of the hospital or hospitals with which the corporation has contracted for hospital service. The rates charged to the subscribers for hospital service and the rates of payment by the corporation to the contracting hospital or hospitals at all times shall be subject to the approval or disapproval of the commissioner; provided, that in the case of experience-rated group insurance, premium rates and classification of risks need not be filed but shall be maintained by the hospital service corporations and made available for review by the commissioner upon the commissioner's request.
Acts 1945, ch. 98, § 3; C. Supp. 1950, § 4186.3; Acts 1978, ch. 513, § 1; T.C.A. (orig. ed.), § 56-3014.
Tenn. Code Ann. § 56-6-1205 — TN Code / Title 56 / Chapter 6 / Section 56-6-1205
Violations
Status: in_force

lf an owner or its employee or authorized representative violates this part, the commissioner is authorized to: (1) After notice and hearing, impose on a person licensed pursuant to this part civil penalties not to exceed five hundred dollars ($500) per violation and five thousand dollars ($5,000) in the aggregate for such conduct; and (2) After notice and hearing, impose on a person licensed pursuant to this part other penalties that the commissioner deems necessary and reasonable to carry out the purpose of this part, including: (A) Suspending the privilege of transacting self-service storage insurance pursuant to this part at specific business locations where violations have occurred; and (B) Suspending or revoking the authority of individual employees or authorized representatives to act under a license issued pursuant to § 56-6-1202 . Added by 2013 Tenn. Acts, ch. 293,s 6, eff. 7/1/2013.
lf an owner or its employee or authorized representative violates this part, the commissioner is authorized to:
(1) After notice and hearing, impose on a person licensed pursuant to this part civil penalties not to exceed five hundred dollars ($500) per violation and five thousand dollars ($5,000) in the aggregate for such conduct; and
(2) After notice and hearing, impose on a person licensed pursuant to this part other penalties that the commissioner deems necessary and reasonable to carry out the purpose of this part, including: (A) Suspending the privilege of transacting self-service storage insurance pursuant to this part at specific business locations where violations have occurred; and (B) Suspending or revoking the authority of individual employees or authorized representatives to act under a license issued pursuant to § 56-6-1202 .
(A) Suspending the privilege of transacting self-service storage insurance pursuant to this part at specific business locations where violations have occurred; and
(B) Suspending or revoking the authority of individual employees or authorized representatives to act under a license issued pursuant to § 56-6-1202 .
Added by 2013 Tenn. Acts, ch. 293,s 6, eff. 7/1/2013.
Tenn. Code Ann. § 56-3-110 — TN Code / Title 56 / Chapter 3 / Section 56-3-110
Unclaimed dividends - Publication
Status: in_force

Every insurance company doing business in this state shall, on January 1 of each year, and for thirty (30) days thereafter, cause to be published, in one (1) newspaper printed in the city of Nashville, a full and accurate statement, verified by the oath of the presiding officer, of the dividends and profits declared and payable upon stocks, bonds, or other evidences of indebtedness that remain unclaimed by the person entitled to the dividends and profits. Code 1858, § 1830; Shan., § 3346; Code 1932, § 6171; T.C.A. (orig. ed.), §§ 56-236, 56-331.
Every insurance company doing business in this state shall, on January 1 of each year, and for thirty (30) days thereafter, cause to be published, in one (1) newspaper printed in the city of Nashville, a full and accurate statement, verified by the oath of the presiding officer, of the dividends and profits declared and payable upon stocks, bonds, or other evidences of indebtedness that remain unclaimed by the person entitled to the dividends and profits.
Code 1858, § 1830; Shan., § 3346; Code 1932, § 6171; T.C.A. (orig. ed.), §§ 56-236, 56-331.
Tenn. Code Ann. § 56-2-703 — TN Code / Title 56 / Chapter 2 / Section 56-2-703
List of reciprocal states
Status: in_force

The commissioner shall determine which states and territories qualify as reciprocal states and shall maintain at all times an up-to-date list of those states. Acts 1969, ch. 315, § 1; T.C.A., § 56-262.
The commissioner shall determine which states and territories qualify as reciprocal states and shall maintain at all times an up-to-date list of those states.
Acts 1969, ch. 315, § 1; T.C.A., § 56-262.
Tenn. Code Ann. § 56-16-210 — TN Code / Title 56 / Chapter 16 / Section 56-16-210
Assets insufficient to settle liabilities - Levy of assessment on subscribers - Delinquency proceedings
Status: in_force

(a) (1) The domestic reciprocal's attorney shall levy an assessment upon subscribers made subject to assessment by the terms of their policies for the amount needed to make up the deficiency, if: (A) The assets of a domestic reciprocal are at any time insufficient to settle the sum of its liabilities, except those on account of funds contributed by the attorney or other parties, and its required surplus to policyholders; and (B) The deficiency is not cured from other sources; (2) However, the assessment shall be subject to § 56-16-112 . (b) If the attorney fails to make the assessment within thirty (30) days after the department orders it to do so, or if the deficiency is not fully made up within sixty (60) days after the date the assessment was made, delinquency proceedings may be instituted and conducted against the insurer as provided in chapter 9 of this title. (c) If liquidation of the reciprocal is ordered, an assessment shall be levied upon the subscribers for the amount the department or the court, as the case may be, determines to be necessary to discharge all liabilities of the reciprocal. This assessment shall exclude any funds contributed by the attorney or other persons, but shall include the reasonable cost of the liquidation. However, the assessment shall be subject to § 56-16-112 . Acts 1990, ch. 728, § 2; T.C.A. § 56-16-310.
(a) (1) The domestic reciprocal's attorney shall levy an assessment upon subscribers made subject to assessment by the terms of their policies for the amount needed to make up the deficiency, if: (A) The assets of a domestic reciprocal are at any time insufficient to settle the sum of its liabilities, except those on account of funds contributed by the attorney or other parties, and its required surplus to policyholders; and (B) The deficiency is not cured from other sources; (2) However, the assessment shall be subject to § 56-16-112 .
(1) The domestic reciprocal's attorney shall levy an assessment upon subscribers made subject to assessment by the terms of their policies for the amount needed to make up the deficiency, if: (A) The assets of a domestic reciprocal are at any time insufficient to settle the sum of its liabilities, except those on account of funds contributed by the attorney or other parties, and its required surplus to policyholders; and (B) The deficiency is not cured from other sources;
(A) The assets of a domestic reciprocal are at any time insufficient to settle the sum of its liabilities, except those on account of funds contributed by the attorney or other parties, and its required surplus to policyholders; and
(B) The deficiency is not cured from other sources;
(2) However, the assessment shall be subject to § 56-16-112 .
(b) If the attorney fails to make the assessment within thirty (30) days after the department orders it to do so, or if the deficiency is not fully made up within sixty (60) days after the date the assessment was made, delinquency proceedings may be instituted and conducted against the insurer as provided in chapter 9 of this title.
(c) If liquidation of the reciprocal is ordered, an assessment shall be levied upon the subscribers for the amount the department or the court, as the case may be, determines to be necessary to discharge all liabilities of the reciprocal. This assessment shall exclude any funds contributed by the attorney or other persons, but shall include the reasonable cost of the liquidation. However, the assessment shall be subject to § 56-16-112 .
Acts 1990, ch. 728, § 2; T.C.A. § 56-16-310.
Tenn. Code Ann. § 56-6-701 — TN Code / Title 56 / Chapter 6 / Section 56-6-701
Short title
Status: in_force

This part shall be known and may be cited as the "Health Care Service Utilization Review Act." Acts 1992, ch. 812, § 2.
This part shall be known and may be cited as the "Health Care Service Utilization Review Act."
Acts 1992, ch. 812, § 2.
Tenn. Code Ann. § 56-29-111 — TN Code / Title 56 / Chapter 29 / Section 56-29-111
Reserve requirements
Status: in_force

The service corporation shall maintain at all times proper reserves, subject to the approval of the commissioner, for unearned subscription fees and unearned premiums and for unpaid hospital bills, including provision for unreported and undischarged hospital cases and for incurred medical expense indemnity claims and other known liabilities. In addition, a contingency or epidemic reserve shall be accumulated annually at a rate not less than two and one half percent (2.5%) of net premium income. If the service corporation provides for hospital service benefits only when the contingency or epidemic reserve equals seventy-five thousand dollars ($75,000), or fifty-five percent (55%) of the annual premium income, whichever is higher, or if the service corporation provides for hospital service and medical expense indemnity benefits when the contingency or epidemic reserve equals one hundred fifty thousand dollars ($150,000), or fifty-five percent (55%) of the annual premium income, whichever is higher, further accumulations may be discontinued for any length of time that they are not required to meet the contingency or epidemic reserve requirement. If the service corporation is unable to meet the requirements of this section, then the commissioner is empowered to require that the corporation either increase rates or reduce benefits to the extent necessary in order that the corporation may be able to meet the requirements. Acts 1949, ch. 234, § 10; C. Supp. 1950, § 4186.52 (Williams, § 4186.55); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-3111.
The service corporation shall maintain at all times proper reserves, subject to the approval of the commissioner, for unearned subscription fees and unearned premiums and for unpaid hospital bills, including provision for unreported and undischarged hospital cases and for incurred medical expense indemnity claims and other known liabilities. In addition, a contingency or epidemic reserve shall be accumulated annually at a rate not less than two and one half percent (2.5%) of net premium income. If the service corporation provides for hospital service benefits only when the contingency or epidemic reserve equals seventy-five thousand dollars ($75,000), or fifty-five percent (55%) of the annual premium income, whichever is higher, or if the service corporation provides for hospital service and medical expense indemnity benefits when the contingency or epidemic reserve equals one hundred fifty thousand dollars ($150,000), or fifty-five percent (55%) of the annual premium income, whichever is higher, further accumulations may be discontinued for any length of time that they are not required to meet the contingency or epidemic reserve requirement. If the service corporation is unable to meet the requirements of this section, then the commissioner is empowered to require that the corporation either increase rates or reduce benefits to the extent necessary in order that the corporation may be able to meet the requirements.
Acts 1949, ch. 234, § 10; C. Supp. 1950, § 4186.52 (Williams, § 4186.55); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-3111.
Tenn. Code Ann. § 56-16-206 — TN Code / Title 56 / Chapter 16 / Section 56-16-206
Advancement of funds for operation
Status: in_force

The attorney or other interested persons may advance to a domestic reciprocal any funds required in its operations. The funds advanced shall not be treated as a liability of the reciprocal and shall not be withdrawn or repaid except out of the reciprocal's earned surplus in excess of its minimum required surplus. Acts 1990, ch. 728, § 2; T.C.A. § 56-16-306.
The attorney or other interested persons may advance to a domestic reciprocal any funds required in its operations. The funds advanced shall not be treated as a liability of the reciprocal and shall not be withdrawn or repaid except out of the reciprocal's earned surplus in excess of its minimum required surplus.
Acts 1990, ch. 728, § 2; T.C.A. § 56-16-306.
Tenn. Code Ann. § 56-32-124 — TN Code / Title 56 / Chapter 32 / Section 56-32-124
Taxation
Status: in_force

(a) All HMOs doing business in this state shall pay tax on the gross amount of all dollars collected from an enrollee or on an enrollee's behalf in the amount of six percent (6%). (b) The taxes provided for in this section shall be due and payable in an electronic format approved by the commissioner on a quarterly basis with payments being due and payable on June 1, August 20, December 1 and March 1. Any company failing or refusing to render tax statement information or to pay taxes as specified in this section shall be subject to § 56-4-216 . (c) The amount of taxes collected under this section shall be a single credit against the sum total of the taxes imposed by the Franchise Tax Law, compiled in title 67, chapter 4, part 21, and by the Excise Tax Law, compiled in title 67, chapter 4, part 20. Acts 1986, ch. 713, § 24; 1995, ch. 303, § 1; T.C.A. § 56-32-224 ; Acts 2009, ch. 531, § 12; 2015, ch. 362, § 1; 2015, ch. 155, § 19.
(a) All HMOs doing business in this state shall pay tax on the gross amount of all dollars collected from an enrollee or on an enrollee's behalf in the amount of six percent (6%).
(b) The taxes provided for in this section shall be due and payable in an electronic format approved by the commissioner on a quarterly basis with payments being due and payable on June 1, August 20, December 1 and March 1. Any company failing or refusing to render tax statement information or to pay taxes as specified in this section shall be subject to § 56-4-216 .
(c) The amount of taxes collected under this section shall be a single credit against the sum total of the taxes imposed by the Franchise Tax Law, compiled in title 67, chapter 4, part 21, and by the Excise Tax Law, compiled in title 67, chapter 4, part 20.
Acts 1986, ch. 713, § 24; 1995, ch. 303, § 1; T.C.A. § 56-32-224 ; Acts 2009, ch. 531, § 12; 2015, ch. 362, § 1; 2015, ch. 155, § 19.
Tenn. Code Ann. § 56-4-101 — TN Code / Title 56 / Chapter 4 / Section 56-4-101
Schedule and applicability of fees
Status: in_force

(a) The commissioner shall collect and pay into the state treasury the following nonrefundable fees: (1) For receiving and reviewing each new application for admission from every foreign or domestic insurance company, including application for eligibility of surplus lines insurers, captive insurance companies, protected cells of captive insurance companies, and incorporated protected cells of captive insurance companies, six hundred seventy-five dollars ($675); (2) For issuing each new certificate of authority to a company, foreign or domestic, including letter of notification of eligibility of surplus lines insurers, upon application for admission or eligibility, as the case may be, four hundred forty dollars ($440); (3) For annual review for determination of continuing eligibility of surplus lines insurers, two hundred seventy dollars ($270); (4) For each company's annual statement, five hundred fifteen dollars ($515); (5) For amendments to the company's certificate of authority, ninety dollars ($90.00); (6) For each seal of office, with certificate, seven dollars ($7.00); (7) For copies of any paper on file or deposit with the commissioner or the commissioner's office, fifty cents (50¢) per page; (8) For receiving and reviewing each change of business plan or change in ownership for a captive insurance company, four hundred dollars ($400); and (9) For receiving and reviewing each change of ownership for a protected cell of a captive insurance company or an incorporated protected cell of a captive insurance company, one hundred twenty-five dollars ($125). (b) This section shall apply to all insurance companies, including state and county mutual fire insurance companies, title insurance companies, associations, fraternal benefit societies, captive insurance companies and surplus lines insurers maintaining eligibility status, notwithstanding any law or statute under which companies, associations and societies may have been organized. Amended by 2015 Tenn. Acts, ch. 156,Secs.s17, s18 eff. 4/17/2015. Acts 1895, ch. 160, § 27; Shan., § 3311; Code 1932, § 6131; Acts 1967, ch. 24, § 2; 1971, ch. 272, § 1; 1972, ch. 481, § 1; 1975, ch. 68, § 21; 1979, ch. 298, § 1; T.C.A. (orig. ed.), § 56-401; Acts 1983, ch. 262, § 1; 1985, ch. 215, § 1; 2001, ch. 333, § 2.
(a) The commissioner shall collect and pay into the state treasury the following nonrefundable fees: (1) For receiving and reviewing each new application for admission from every foreign or domestic insurance company, including application for eligibility of surplus lines insurers, captive insurance companies, protected cells of captive insurance companies, and incorporated protected cells of captive insurance companies, six hundred seventy-five dollars ($675); (2) For issuing each new certificate of authority to a company, foreign or domestic, including letter of notification of eligibility of surplus lines insurers, upon application for admission or eligibility, as the case may be, four hundred forty dollars ($440); (3) For annual review for determination of continuing eligibility of surplus lines insurers, two hundred seventy dollars ($270); (4) For each company's annual statement, five hundred fifteen dollars ($515); (5) For amendments to the company's certificate of authority, ninety dollars ($90.00); (6) For each seal of office, with certificate, seven dollars ($7.00); (7) For copies of any paper on file or deposit with the commissioner or the commissioner's office, fifty cents (50¢) per page; (8) For receiving and reviewing each change of business plan or change in ownership for a captive insurance company, four hundred dollars ($400); and (9) For receiving and reviewing each change of ownership for a protected cell of a captive insurance company or an incorporated protected cell of a captive insurance company, one hundred twenty-five dollars ($125).
(1) For receiving and reviewing each new application for admission from every foreign or domestic insurance company, including application for eligibility of surplus lines insurers, captive insurance companies, protected cells of captive insurance companies, and incorporated protected cells of captive insurance companies, six hundred seventy-five dollars ($675);
(2) For issuing each new certificate of authority to a company, foreign or domestic, including letter of notification of eligibility of surplus lines insurers, upon application for admission or eligibility, as the case may be, four hundred forty dollars ($440);
(3) For annual review for determination of continuing eligibility of surplus lines insurers, two hundred seventy dollars ($270);
(4) For each company's annual statement, five hundred fifteen dollars ($515);
(5) For amendments to the company's certificate of authority, ninety dollars ($90.00);
(6) For each seal of office, with certificate, seven dollars ($7.00);
(7) For copies of any paper on file or deposit with the commissioner or the commissioner's office, fifty cents (50¢) per page;
(8) For receiving and reviewing each change of business plan or change in ownership for a captive insurance company, four hundred dollars ($400); and
(9) For receiving and reviewing each change of ownership for a protected cell of a captive insurance company or an incorporated protected cell of a captive insurance company, one hundred twenty-five dollars ($125).
(b) This section shall apply to all insurance companies, including state and county mutual fire insurance companies, title insurance companies, associations, fraternal benefit societies, captive insurance companies and surplus lines insurers maintaining eligibility status, notwithstanding any law or statute under which companies, associations and societies may have been organized.
Amended by 2015 Tenn. Acts, ch. 156,Secs.s17, s18 eff. 4/17/2015.
Acts 1895, ch. 160, § 27; Shan., § 3311; Code 1932, § 6131; Acts 1967, ch. 24, § 2; 1971, ch. 272, § 1; 1972, ch. 481, § 1; 1975, ch. 68, § 21; 1979, ch. 298, § 1; T.C.A. (orig. ed.), § 56-401; Acts 1983, ch. 262, § 1; 1985, ch. 215, § 1; 2001, ch. 333, § 2.
Tenn. Code Ann. § 56-32-106 — TN Code / Title 56 / Chapter 32 / Section 56-32-106
Fiduciaries - Bonds
Status: in_force

(a) Any director, officer, employee or partner of an HMO who receives, collects, disburses or invests funds in connection with the activities of the organization shall be responsible for the funds in a fiduciary relationship to the organization. (b) An HMO shall maintain in force a fidelity bond on employees and officers in an amount not less than one hundred thousand dollars ($100,000) or such other sum as prescribed by the commissioner. The bonds shall be written with at least a one-year discovery period and, if written with at least a three-year discovery period, shall contain a provision that no cancellation or termination of the bond, whether by or at the request of the insured or by the underwriter, shall take effect prior to the expiration of ninety (90) days after written notice of the cancellation or termination has been filed with the commissioner, unless an earlier date of cancellation or termination is approved by the commissioner. Acts 1986, ch. 713, § 6; T.C.A. § 56-32-206.
(a) Any director, officer, employee or partner of an HMO who receives, collects, disburses or invests funds in connection with the activities of the organization shall be responsible for the funds in a fiduciary relationship to the organization.
(b) An HMO shall maintain in force a fidelity bond on employees and officers in an amount not less than one hundred thousand dollars ($100,000) or such other sum as prescribed by the commissioner. The bonds shall be written with at least a one-year discovery period and, if written with at least a three-year discovery period, shall contain a provision that no cancellation or termination of the bond, whether by or at the request of the insured or by the underwriter, shall take effect prior to the expiration of ninety (90) days after written notice of the cancellation or termination has been filed with the commissioner, unless an earlier date of cancellation or termination is approved by the commissioner.
Acts 1986, ch. 713, § 6; T.C.A. § 56-32-206.
Tenn. Code Ann. § 56-8-111 — TN Code / Title 56 / Chapter 8 / Section 56-8-111
Powers of commissioner additional to existing law
Status: in_force

The powers vested in the commissioner by this part shall be in addition to any other powers in this title to enforce any penalties, fines or forfeitures authorized by law with respect to the methods, acts and practices declared to be unfair or deceptive by this part. Acts 2008, ch. 1079, §§ 1, 12.
The powers vested in the commissioner by this part shall be in addition to any other powers in this title to enforce any penalties, fines or forfeitures authorized by law with respect to the methods, acts and practices declared to be unfair or deceptive by this part.
Acts 2008, ch. 1079, §§ 1, 12.
Tenn. Code Ann. § 56-2-1001 — TN Code / Title 56 / Chapter 2 / Section 56-2-1001
Short title
Status: in_force

This part is known and may be cited as the "Insurance Data Security Law." Added by 2021 Tenn. Acts, ch. 345, s 1, eff. 7/1/2021.
This part is known and may be cited as the "Insurance Data Security Law."
Added by 2021 Tenn. Acts, ch. 345, s 1, eff. 7/1/2021.
Tenn. Code Ann. § 56-7-3706 — TN Code / Title 56 / Chapter 7 / Section 56-7-3706
Chronic conditions
Status: in_force

(a) If a prior authorization is required for a healthcare service for the treatment of a chronic condition of an enrollee, then the prior authorization remains valid for at least six (6) months, from the date the healthcare professional or provider receives the prior authorization approval, unless the clinical criteria as specified in § 56-7-3707 state otherwise. (b) If prior authorization is required for a prescription drug for the treatment of a chronic condition of an enrollee, then the prior authorization remains valid for at least six (6) months from the date the healthcare professional or provider receives the prior authorization approval, unless the clinical criteria as specified in § 56-7-3707 state otherwise. (c) This section does not apply to the requirements of a prior authorization for the prescription of a schedule II, III, IV, or V drug. However, notice must be given to the healthcare provider pursuant to this section if prior authorization is or may be required for a schedule II, III, IV or V drug. (d) This section does not require a policy of health insurance coverage to cover care, treatment, or services for a health condition that the terms of coverage otherwise completely exclude from the policy's covered benefits without regard for whether the care, treatment, or services are medically necessary. (e) This section does not apply to inpatient services. Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
(a) If a prior authorization is required for a healthcare service for the treatment of a chronic condition of an enrollee, then the prior authorization remains valid for at least six (6) months, from the date the healthcare professional or provider receives the prior authorization approval, unless the clinical criteria as specified in § 56-7-3707 state otherwise.
(b) If prior authorization is required for a prescription drug for the treatment of a chronic condition of an enrollee, then the prior authorization remains valid for at least six (6) months from the date the healthcare professional or provider receives the prior authorization approval, unless the clinical criteria as specified in § 56-7-3707 state otherwise.
(c) This section does not apply to the requirements of a prior authorization for the prescription of a schedule II, III, IV, or V drug. However, notice must be given to the healthcare provider pursuant to this section if prior authorization is or may be required for a schedule II, III, IV or V drug.
(d) This section does not require a policy of health insurance coverage to cover care, treatment, or services for a health condition that the terms of coverage otherwise completely exclude from the policy's covered benefits without regard for whether the care, treatment, or services are medically necessary.
(e) This section does not apply to inpatient services.
Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
Tenn. Code Ann. § 56-14-107 — TN Code / Title 56 / Chapter 14 / Section 56-14-107
Requirements for surplus lines contracts
Status: in_force

(a) For each insured whose home state is Tennessee, every new or renewed insurance contract certificate, cover note or other confirmation of insurance procured and delivered as a surplus line insurance coverage pursuant to this chapter shall bear the name and address of the writing agent and shall have stamped, affixed, or printed upon it the following: This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as a surplus lines coverage pursuant to the Tennessee insurance statutes. (b) The document shall show the description and location of the subject of the insurance, coverage, conditions, and term of the insurance, the premium and rate charged and premium taxes to be collected from the insured and the name and address of the insured and insurer. If the direct risk is assumed by more than one (1) insurer, the document shall state the name and address and proportion of the entire direct risk assumed by each insurer. Acts 1969, ch. 270, § 7; T.C.A., § 56-3807; Acts 2011, ch. 446, § 1.
(a) For each insured whose home state is Tennessee, every new or renewed insurance contract certificate, cover note or other confirmation of insurance procured and delivered as a surplus line insurance coverage pursuant to this chapter shall bear the name and address of the writing agent and shall have stamped, affixed, or printed upon it the following: This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as a surplus lines coverage pursuant to the Tennessee insurance statutes.
This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as a surplus lines coverage pursuant to the Tennessee insurance statutes.
(b) The document shall show the description and location of the subject of the insurance, coverage, conditions, and term of the insurance, the premium and rate charged and premium taxes to be collected from the insured and the name and address of the insured and insurer. If the direct risk is assumed by more than one (1) insurer, the document shall state the name and address and proportion of the entire direct risk assumed by each insurer.
Acts 1969, ch. 270, § 7; T.C.A., § 56-3807; Acts 2011, ch. 446, § 1.
Tenn. Code Ann. § 56-30-123 — TN Code / Title 56 / Chapter 30 / Section 56-30-123
Revocation of license for violation of chapter
Status: in_force

A dental service plan corporation that neglects to make and file its annual statement in the form and within the time provided by § 56-27-117 , or neglects to reply in writing to the inquiries of the commissioner within a reasonable time as may be specified by the commissioner, or who otherwise violates this chapter, shall be subject to revocation of license after proper notice and right of hearing. Any agent or solicitor who violates this chapter or any written order or official regulation of the commissioner or any other insurance law, particularly the agents' licensing law set forth in chapter 6 of this title, shall be subject to revocation of the license after due notice and right of hearing. Acts 1961, ch. 340, § 22; impl. am. Acts 1975, ch. 68, §§ 1, 2; T.C.A., § 56-3523.
A dental service plan corporation that neglects to make and file its annual statement in the form and within the time provided by § 56-27-117 , or neglects to reply in writing to the inquiries of the commissioner within a reasonable time as may be specified by the commissioner, or who otherwise violates this chapter, shall be subject to revocation of license after proper notice and right of hearing. Any agent or solicitor who violates this chapter or any written order or official regulation of the commissioner or any other insurance law, particularly the agents' licensing law set forth in chapter 6 of this title, shall be subject to revocation of the license after due notice and right of hearing.
Acts 1961, ch. 340, § 22; impl. am. Acts 1975, ch. 68, §§ 1, 2; T.C.A., § 56-3523.
Tenn. Code Ann. § 56-50-117 — TN Code / Title 56 / Chapter 50 / Section 56-50-117
Authority to promulgate regulations
Status: in_force

The commissioner shall have the authority to: (1) Promulgate rules to effectuate the purposes of this chapter. The rules shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; (2) Establish standards for evaluating reasonableness of payments under viatical settlement contracts for persons who are terminally or chronically ill. This authority includes, but is not limited to, regulation of discount rates used to determine the amount paid in exchange for assignment, transfer, sale, devise or bequest of a benefit under a life insurance policy insuring the life of a person who is chronically or terminally ill; (3) Establish appropriate licensing requirements, fees and standards for continued licensure for viatical settlement providers, brokers and viatical settlement investment agents; (4) Require a bond or other mechanism for financial accountability for viatical settlement providers and brokers; (5) Adopt rules governing the relationship and responsibilities of both insurers and viatical settlement providers, viatical settlement brokers and viatical settlement investment agents during the viatication of a life insurance policy or certificate; and (6) Establish guidelines and standards of permissible and impermissible conduct in the advertising of viatical settlements to assure that product descriptions are presented in a manner that prevents unfair, deceptive or misleading advertising, and is conducive to accurate presentation and description of viatical settlements through the advertising media and materials used by viatical settlement licensees. Acts 2009, ch. 604, § 18.
The commissioner shall have the authority to:
(1) Promulgate rules to effectuate the purposes of this chapter. The rules shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5;
(2) Establish standards for evaluating reasonableness of payments under viatical settlement contracts for persons who are terminally or chronically ill. This authority includes, but is not limited to, regulation of discount rates used to determine the amount paid in exchange for assignment, transfer, sale, devise or bequest of a benefit under a life insurance policy insuring the life of a person who is chronically or terminally ill;
(3) Establish appropriate licensing requirements, fees and standards for continued licensure for viatical settlement providers, brokers and viatical settlement investment agents;
(4) Require a bond or other mechanism for financial accountability for viatical settlement providers and brokers;
(5) Adopt rules governing the relationship and responsibilities of both insurers and viatical settlement providers, viatical settlement brokers and viatical settlement investment agents during the viatication of a life insurance policy or certificate; and
(6) Establish guidelines and standards of permissible and impermissible conduct in the advertising of viatical settlements to assure that product descriptions are presented in a manner that prevents unfair, deceptive or misleading advertising, and is conducive to accurate presentation and description of viatical settlements through the advertising media and materials used by viatical settlement licensees.
Acts 2009, ch. 604, § 18.
Tenn. Code Ann. § 56-31-118 — TN Code / Title 56 / Chapter 31 / Section 56-31-118
Fees and taxes
Status: in_force

Every vision service plan corporation, or its agents, subject to this chapter, is subject to the fees and taxes as prescribed for life and health and accident insurance companies and agents of the insurance companies doing business in this state. It is not the purpose of this chapter to discriminate in favor of the vision service plan corporations. Acts 1969, ch. 118, § 19; T.C.A., § 56-3718.
Every vision service plan corporation, or its agents, subject to this chapter, is subject to the fees and taxes as prescribed for life and health and accident insurance companies and agents of the insurance companies doing business in this state. It is not the purpose of this chapter to discriminate in favor of the vision service plan corporations.
Acts 1969, ch. 118, § 19; T.C.A., § 56-3718.
Tenn. Code Ann. § 56-7-1602 — TN Code / Title 56 / Chapter 7 / Section 56-7-1602
Purpose of part
Status: in_force

(a) The purpose of this part is to establish minimum standards for language used in policies, contracts and certificates of life insurance, health insurance, credit life insurance and credit health insurance delivered or issued for delivery in this state to facilitate ease of reading by persons insured under the policies. (b) (1) This part is not intended to increase the risk assumed by insurance companies or other entities subject to this part or to supersede their obligation to comply with the substance of other insurance legislation applicable to life, health, credit life or credit health insurance policies. (2) This part is not intended to impede flexibility and innovation in the development of policy forms or content or to lead to the standardization of policy forms or content. Acts 1981, ch. 415, § 3.
(a) The purpose of this part is to establish minimum standards for language used in policies, contracts and certificates of life insurance, health insurance, credit life insurance and credit health insurance delivered or issued for delivery in this state to facilitate ease of reading by persons insured under the policies.
(b) (1) This part is not intended to increase the risk assumed by insurance companies or other entities subject to this part or to supersede their obligation to comply with the substance of other insurance legislation applicable to life, health, credit life or credit health insurance policies. (2) This part is not intended to impede flexibility and innovation in the development of policy forms or content or to lead to the standardization of policy forms or content.
(1) This part is not intended to increase the risk assumed by insurance companies or other entities subject to this part or to supersede their obligation to comply with the substance of other insurance legislation applicable to life, health, credit life or credit health insurance policies.
(2) This part is not intended to impede flexibility and innovation in the development of policy forms or content or to lead to the standardization of policy forms or content.
Acts 1981, ch. 415, § 3.
Tenn. Code Ann. § 56-7-309 — TN Code / Title 56 / Chapter 7 / Section 56-7-309
Life insurance - Policies for one-year preliminary term insurance - Reserve value
Status: in_force

(a) This section applies only to policies of life insurance issued prior to the operative date of § 56-7-401 , the Standard Nonforfeiture Law. (b) Policies may be issued in this state providing for not more than one-year preliminary term insurance by the incorporation in the policy of a clause on the face of the policy distinctly specifying that the first year's insurance is term insurance. (c) If the premium charged for term insurance under a limited payment life or endowment preliminary term policy, providing for the payment of all premiums in less than twenty (20) years from the date of the policy, exceeds that charged for like insurance under twenty (20) pay life preliminary term policies of the same company at the same age, the reserve at the end of any year, including the first, shall not be less than the reserve on a twenty (20) pay life preliminary term policy issued in the same year and at the same age, together with an amount equivalent to the accumulation of a net level premium sufficient to provide for a pure endowment at the end of the premium payment period equal to the difference between the value at the end of the period for the twenty (20) pay life preliminary term policy and the full reserve at the time of the limited payment life or endowment policy. Acts 1907, ch. 457, § 3; Shan., § 3348a10; Code 1932, § 6181; Acts 1945, ch. 56, § 4; C. Supp. 1950, § 6181; T.C.A. (orig. ed.), § 56-1120.
(a) This section applies only to policies of life insurance issued prior to the operative date of § 56-7-401 , the Standard Nonforfeiture Law.
(b) Policies may be issued in this state providing for not more than one-year preliminary term insurance by the incorporation in the policy of a clause on the face of the policy distinctly specifying that the first year's insurance is term insurance.
(c) If the premium charged for term insurance under a limited payment life or endowment preliminary term policy, providing for the payment of all premiums in less than twenty (20) years from the date of the policy, exceeds that charged for like insurance under twenty (20) pay life preliminary term policies of the same company at the same age, the reserve at the end of any year, including the first, shall not be less than the reserve on a twenty (20) pay life preliminary term policy issued in the same year and at the same age, together with an amount equivalent to the accumulation of a net level premium sufficient to provide for a pure endowment at the end of the premium payment period equal to the difference between the value at the end of the period for the twenty (20) pay life preliminary term policy and the full reserve at the time of the limited payment life or endowment policy.
Acts 1907, ch. 457, § 3; Shan., § 3348a10; Code 1932, § 6181; Acts 1945, ch. 56, § 4; C. Supp. 1950, § 6181; T.C.A. (orig. ed.), § 56-1120.
Tenn. Code Ann. § 56-7-2603 — TN Code / Title 56 / Chapter 7 / Section 56-7-2603
Treatment by licensed audiologists or speech pathologists
Status: in_force

(a) (1) Notwithstanding any other law to the contrary, any insurer providing individual, franchise, blanket or group policy of insurance issued pursuant to this title that provides hospital expense and surgical or medical expense insurance and/or that is entered into, delivered, issued for delivery or renewed in this state after January 1, 1989, shall offer to provide benefits for expense of residents of this state covered under the policy or plan arising from conditions or disorders of hearing or conditions or disorders of speech, voice, or language, so long as such conditions or disorders receive treatment from duly licensed audiologists or speech pathologists, as defined in § 63-17-103 . (2) This section is applicable to all health benefit policies, programs, or contracts offered by commercial insurance companies, nonprofit insurance companies, prepaid plans, i.e., health maintenance organizations, and to all health benefit programs provided state government employees. (b) Nothing in this section shall apply to any insurance policy that only provides coverage for specified diseases, hospital indemnity, medicare supplement or other limited benefit coverages. (c) Notwithstanding any provision of this section to the contrary, this section shall be construed to apply to the state and its political subdivisions. Acts 1988, ch. 970, §§ 1-3; 1992, ch. 984, § 4; T.C.A., § 56-7-1011.
(a) (1) Notwithstanding any other law to the contrary, any insurer providing individual, franchise, blanket or group policy of insurance issued pursuant to this title that provides hospital expense and surgical or medical expense insurance and/or that is entered into, delivered, issued for delivery or renewed in this state after January 1, 1989, shall offer to provide benefits for expense of residents of this state covered under the policy or plan arising from conditions or disorders of hearing or conditions or disorders of speech, voice, or language, so long as such conditions or disorders receive treatment from duly licensed audiologists or speech pathologists, as defined in § 63-17-103 . (2) This section is applicable to all health benefit policies, programs, or contracts offered by commercial insurance companies, nonprofit insurance companies, prepaid plans, i.e., health maintenance organizations, and to all health benefit programs provided state government employees.
(1) Notwithstanding any other law to the contrary, any insurer providing individual, franchise, blanket or group policy of insurance issued pursuant to this title that provides hospital expense and surgical or medical expense insurance and/or that is entered into, delivered, issued for delivery or renewed in this state after January 1, 1989, shall offer to provide benefits for expense of residents of this state covered under the policy or plan arising from conditions or disorders of hearing or conditions or disorders of speech, voice, or language, so long as such conditions or disorders receive treatment from duly licensed audiologists or speech pathologists, as defined in § 63-17-103 .
(2) This section is applicable to all health benefit policies, programs, or contracts offered by commercial insurance companies, nonprofit insurance companies, prepaid plans, i.e., health maintenance organizations, and to all health benefit programs provided state government employees.
(b) Nothing in this section shall apply to any insurance policy that only provides coverage for specified diseases, hospital indemnity, medicare supplement or other limited benefit coverages.
(c) Notwithstanding any provision of this section to the contrary, this section shall be construed to apply to the state and its political subdivisions.
Acts 1988, ch. 970, §§ 1-3; 1992, ch. 984, § 4; T.C.A., § 56-7-1011.
Tenn. Code Ann. § 56-2-507 — TN Code / Title 56 / Chapter 2 / Section 56-2-507
Continuance may be granted - Motion to quash or set aside service
Status: in_force

(a) The court in any action or proceeding in which service is made in the manner provided in § 56-2-506 may, in its discretion, order a postponement necessary to afford the company reasonable opportunity to defend the action or proceeding. (b) Nothing in this section is to be construed to prevent an unauthorized foreign or alien company from filing a motion to quash a writ or to set aside service of the motion made in the manner provided in § 56-2-506 on the ground that the unauthorized company has not done any of the acts referred to in § 56-2-107 . Acts 1968, ch. 536, § 9; T.C.A., § 56-257.
(a) The court in any action or proceeding in which service is made in the manner provided in § 56-2-506 may, in its discretion, order a postponement necessary to afford the company reasonable opportunity to defend the action or proceeding.
(b) Nothing in this section is to be construed to prevent an unauthorized foreign or alien company from filing a motion to quash a writ or to set aside service of the motion made in the manner provided in § 56-2-506 on the ground that the unauthorized company has not done any of the acts referred to in § 56-2-107 .
Acts 1968, ch. 536, § 9; T.C.A., § 56-257.
Tenn. Code Ann. § 56-27-127 — TN Code / Title 56 / Chapter 27 / Section 56-27-127
Printed portions of subscription certificate
Status: in_force

In the subscription certificate referred to in § 56-27-126 : (1) All printed portions shall be plainly printed in type of which the face is not smaller than ten (10) point; (2) There shall be a brief description of the subscription certificate on its first page and on its filing back in type of which the face is not smaller than fourteen (14) point. The description shall not be broader than the coverage granted in the contract; (3) The exceptions of the contract shall appear with the same prominence in the certificate as the benefits to which they apply, and reference to the exceptions by a paragraph section shall be specifically made in the insuring clause; (4) If the contract contains any provisions purporting to make any portion of the articles of incorporation or of the bylaws of the corporation a part of the contract, the portion shall be set forth in full in the subscription certificate; and All in a manner and in compliance with published regulations of the commissioner. Acts 1945, ch. 113, § 13; C. Supp. 1950, § 4186.29 (Williams, § 4186.30); T.C.A. (orig. ed.), § 56-2927.
In the subscription certificate referred to in § 56-27-126 :
(1) All printed portions shall be plainly printed in type of which the face is not smaller than ten (10) point;
(2) There shall be a brief description of the subscription certificate on its first page and on its filing back in type of which the face is not smaller than fourteen (14) point. The description shall not be broader than the coverage granted in the contract;
(3) The exceptions of the contract shall appear with the same prominence in the certificate as the benefits to which they apply, and reference to the exceptions by a paragraph section shall be specifically made in the insuring clause;
(4) If the contract contains any provisions purporting to make any portion of the articles of incorporation or of the bylaws of the corporation a part of the contract, the portion shall be set forth in full in the subscription certificate; and
All in a manner and in compliance with published regulations of the commissioner.
Acts 1945, ch. 113, § 13; C. Supp. 1950, § 4186.29 (Williams, § 4186.30); T.C.A. (orig. ed.), § 56-2927.
Tenn. Code Ann. § 56-32-137 — TN Code / Title 56 / Chapter 32 / Section 56-32-137
Discrimination prohibited - Coverage not created
Status: in_force

A managed health insurance issuer shall not discriminate with respect to participation, referral, reimbursement of covered services, or indemnification as to any provider who is acting within the scope of the provider's license or certification under state law, solely on the basis of the license or certification. In selecting among providers of health services for membership in a provider network, a managed health insurance issuer or other network shall not discriminate against a class of providers who provide services that are covered by the plan by prohibiting the class of providers from membership in the provider network. As used in this section, "class of providers" means licensed physician assistants as defined in § 63-19-102 , certified nurse midwives as described in § 56-7-2407 , and nurses in advanced practice as defined in § 56-7-2408 . This section shall not be construed as prohibiting managed health insurance issuers from including providers or classes of providers only to the extent necessary to meet the needs of the managed health insurance issuer's plan and its enrollees or from limiting referrals or establishing any other measure designed to maintain quality and control costs consistent with the responsibilities of the plan. This section shall not be construed as creating coverage for any service that is not otherwise covered under the terms of the managed health insurance issuer's plan. Acts 2001, ch. 88, § 1; 2002, ch. 554, § 1; T.C.A. § 56-32-237.
A managed health insurance issuer shall not discriminate with respect to participation, referral, reimbursement of covered services, or indemnification as to any provider who is acting within the scope of the provider's license or certification under state law, solely on the basis of the license or certification. In selecting among providers of health services for membership in a provider network, a managed health insurance issuer or other network shall not discriminate against a class of providers who provide services that are covered by the plan by prohibiting the class of providers from membership in the provider network. As used in this section, "class of providers" means licensed physician assistants as defined in § 63-19-102 , certified nurse midwives as described in § 56-7-2407 , and nurses in advanced practice as defined in § 56-7-2408 . This section shall not be construed as prohibiting managed health insurance issuers from including providers or classes of providers only to the extent necessary to meet the needs of the managed health insurance issuer's plan and its enrollees or from limiting referrals or establishing any other measure designed to maintain quality and control costs consistent with the responsibilities of the plan. This section shall not be construed as creating coverage for any service that is not otherwise covered under the terms of the managed health insurance issuer's plan.
Acts 2001, ch. 88, § 1; 2002, ch. 554, § 1; T.C.A. § 56-32-237.
Tenn. Code Ann. § 56-9-306 — TN Code / Title 56 / Chapter 9 / Section 56-9-306
Grounds for order of liquidation
Status: in_force

The commissioner may petition the chancery court of Davidson County for an order directing the commissioner to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis: (1) Of any ground for an order of rehabilitation as specified in § 56-9-301 , whether or not there has been a prior order directing the rehabilitation of the insurer; (2) That the insurer is insolvent; or (3) That the insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors or the public. Acts 1991, ch. 142, § 4.
The commissioner may petition the chancery court of Davidson County for an order directing the commissioner to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis:
(1) Of any ground for an order of rehabilitation as specified in § 56-9-301 , whether or not there has been a prior order directing the rehabilitation of the insurer;
(2) That the insurer is insolvent; or
(3) That the insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors or the public.
Acts 1991, ch. 142, § 4.
Tenn. Code Ann. § 56-11-209 — TN Code / Title 56 / Chapter 11 / Section 56-11-209
Failure to timely file ORSA summary report - Penalty
Status: in_force

Any insurer or health maintenance organization failing, without just cause, to timely file the ORSA Summary Report as required in this part shall be required, after notice and hearing, to pay a penalty of one hundred dollars ($100) for each day's delay, to be recovered by the commissioner and the penalty so recovered shall be paid into the general revenue fund of this state. The maximum penalty under this section is ten thousand dollars ($10,000). The commissioner may reduce the penalty if the insurer or health maintenance organization demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer or health maintenance organization. Acts 2014, ch. 583, § 26.
Any insurer or health maintenance organization failing, without just cause, to timely file the ORSA Summary Report as required in this part shall be required, after notice and hearing, to pay a penalty of one hundred dollars ($100) for each day's delay, to be recovered by the commissioner and the penalty so recovered shall be paid into the general revenue fund of this state. The maximum penalty under this section is ten thousand dollars ($10,000). The commissioner may reduce the penalty if the insurer or health maintenance organization demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer or health maintenance organization.
Acts 2014, ch. 583, § 26.
Tenn. Code Ann. § 56-6-404 — TN Code / Title 56 / Chapter 6 / Section 56-6-404
Recordkeeping requirements
Status: in_force

(a) Every administrator shall maintain at its principal administrative office, for the duration of the written agreement referred to in § 56-6-402 and five (5) years thereafter, adequate books and records of all transactions between it, insurers and insured persons. The books and records shall be maintained in accordance with prudent standards of insurance record keeping. The commissioner shall have access to the books and records for the purpose of examination, audit and inspection. (b) Any trade secrets contained in the books and records, including, but not limited to, the identity and addresses of policyholders and certificate holders, shall be confidential, except the commissioner may use the information in any proceedings instituted against the administrator. (c) The insurer shall retain the right to continuing access to the books and records of the administrator sufficient to permit the insurer to fulfill all of its contractual obligations to insured persons, subject to any restrictions in the written agreement between the insurer and administrator concerning the proprietary rights of the parties in the books and records. (d) The commissioner shall collect the proper charges incurred in the examination in accordance with § 56-1-413 . Acts 1980, ch. 640, § 4.
(a) Every administrator shall maintain at its principal administrative office, for the duration of the written agreement referred to in § 56-6-402 and five (5) years thereafter, adequate books and records of all transactions between it, insurers and insured persons. The books and records shall be maintained in accordance with prudent standards of insurance record keeping. The commissioner shall have access to the books and records for the purpose of examination, audit and inspection.
(b) Any trade secrets contained in the books and records, including, but not limited to, the identity and addresses of policyholders and certificate holders, shall be confidential, except the commissioner may use the information in any proceedings instituted against the administrator.
(c) The insurer shall retain the right to continuing access to the books and records of the administrator sufficient to permit the insurer to fulfill all of its contractual obligations to insured persons, subject to any restrictions in the written agreement between the insurer and administrator concerning the proprietary rights of the parties in the books and records.
(d) The commissioner shall collect the proper charges incurred in the examination in accordance with § 56-1-413 .
Acts 1980, ch. 640, § 4.
Tenn. Code Ann. § 56-41-114 — TN Code / Title 56 / Chapter 41 / Section 56-41-114
Examination of organizations
Status: in_force

The commissioner shall make an examination as may be required into the affairs of any organization set up under this agreement at least once every five (5) years. The examination shall be conducted and the report filed in the manner prescribed for insurance companies in this title. The expenses of the examination shall be paid by the organization established under this chapter in the manner prescribed by this title. Acts 1987, ch. 439, § 13.
The commissioner shall make an examination as may be required into the affairs of any organization set up under this agreement at least once every five (5) years. The examination shall be conducted and the report filed in the manner prescribed for insurance companies in this title. The expenses of the examination shall be paid by the organization established under this chapter in the manner prescribed by this title.
Acts 1987, ch. 439, § 13.
Tenn. Code Ann. § 56-61-104 — TN Code / Title 56 / Chapter 61 / Section 56-61-104
No limitations or restrictions on denying coverage of services not medically necessary
Status: in_force

Nothing in this chapter shall limit or restrict the health carrier from denying coverage on the grounds that the services are determined not to be medically necessary. Acts 2010, ch. 980, § 5.
Nothing in this chapter shall limit or restrict the health carrier from denying coverage on the grounds that the services are determined not to be medically necessary.
Acts 2010, ch. 980, § 5.
Tenn. Code Ann. § 56-33-109 — TN Code / Title 56 / Chapter 33 / Section 56-33-109
Promulgation of rules
Status: in_force

The commissioner is authorized to promulgate rules to effectuate this chapter. The rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Acts 2022, ch. 703, § 6.
The commissioner is authorized to promulgate rules to effectuate this chapter. The rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 2022, ch. 703, § 6.
Tenn. Code Ann. § 56-7-2347 — TN Code / Title 56 / Chapter 7 / Section 56-7-2347
Coverage of children in custody of guardians
Status: in_force

(a) Notwithstanding any other law to the contrary, any individual, franchise, blanket or group policy issued pursuant to this title or any medical service plan, contract, hospital service corporation contract, hospital and medical service contract, fraternal benefit society or health maintenance organization that provides hospital expense insurance, surgical expense insurance, medical or major medical services insurance and that is entered into, delivered, issued for delivery, or renewed, excepting individual insurance policy renewal, by agreement or otherwise, beginning January 1, 1994, shall provide benefits for minor children who are by court order in the custody of a guardian who is a resident of this state covered under any such policy or plan issued to or on behalf of the guardian, unless the policy or plan specifically excludes or reduces the benefits. (b) This section shall not apply to policies that provide only hospital indemnity benefits or to policies that provide only benefits for specified accidents or specified diseases. (c) Any increase in expenditure requirements on a municipality or a county resulting from this section shall be appropriated from funds that the municipality or county receives from the state-shared taxes that are not earmarked by statute for a particular purpose. Acts 1994, ch. 841, § 1.
(a) Notwithstanding any other law to the contrary, any individual, franchise, blanket or group policy issued pursuant to this title or any medical service plan, contract, hospital service corporation contract, hospital and medical service contract, fraternal benefit society or health maintenance organization that provides hospital expense insurance, surgical expense insurance, medical or major medical services insurance and that is entered into, delivered, issued for delivery, or renewed, excepting individual insurance policy renewal, by agreement or otherwise, beginning January 1, 1994, shall provide benefits for minor children who are by court order in the custody of a guardian who is a resident of this state covered under any such policy or plan issued to or on behalf of the guardian, unless the policy or plan specifically excludes or reduces the benefits.
(b) This section shall not apply to policies that provide only hospital indemnity benefits or to policies that provide only benefits for specified accidents or specified diseases.
(c) Any increase in expenditure requirements on a municipality or a county resulting from this section shall be appropriated from funds that the municipality or county receives from the state-shared taxes that are not earmarked by statute for a particular purpose.
Acts 1994, ch. 841, § 1.
Tenn. Code Ann. § 56-7-1608 — TN Code / Title 56 / Chapter 7 / Section 56-7-1608
Approval of policy notwithstanding other laws
Status: in_force

A policy for meeting the requirements of § 56-7-1605(a) shall be approved, notwithstanding any other laws that specify the content of policies, if the policy form provides the policyholders and claimants protection not less favorable than they would be entitled to under such laws. Acts 1981, ch. 415, § 9.
A policy for meeting the requirements of § 56-7-1605(a) shall be approved, notwithstanding any other laws that specify the content of policies, if the policy form provides the policyholders and claimants protection not less favorable than they would be entitled to under such laws.
Acts 1981, ch. 415, § 9.
Tenn. Code Ann. § 56-7-902 — TN Code / Title 56 / Chapter 7 / Section 56-7-902
Compensation to creditors
Status: in_force

(a) (1) As used in this section: (A) "Compensation" includes commissions, dividends, except where they are the distribution of earnings to stockholders of an insurance company or insurance holding company, retrospective rate credits, service fees, expense allowances or reimbursements, underwriting participations, gifts or any other form of compensation. A distribution of earnings to a stockholder of an insurance company or insurance holding company does not constitute compensation for purposes of this section, even though the stockholder receives compensation in a capacity other than that of stockholder; and (B) "Creditor" means the lender of money or vendor or lessor of goods, services, or property rights, or privileges, for which payment is arranged through a credit transaction, or any successor to the right, title, or interest of any lender, vendor, or lessor, or an affiliate, associate or subsidiary of any of them, or any director, officer or employee of any of them, or any other person in any way associated with them. (2) All other terms used in this section have the meanings generally ascribed to them in the insurance industry. (b) No insurer shall pay or propose to pay, directly or indirectly, to any creditor as compensation for that creditor, total compensation in excess of forty percent (40%) of premiums earned, except that if provision is made for refund of unearned commissions in the event of termination of coverage, commissions may be paid in one (1) sum at the time the single premium policy or certificate is written. Acts 1980, ch. 867, § 2; 1981, ch. 216, § 1; 1988, ch. 557, § 1.
(a) (1) As used in this section: (A) "Compensation" includes commissions, dividends, except where they are the distribution of earnings to stockholders of an insurance company or insurance holding company, retrospective rate credits, service fees, expense allowances or reimbursements, underwriting participations, gifts or any other form of compensation. A distribution of earnings to a stockholder of an insurance company or insurance holding company does not constitute compensation for purposes of this section, even though the stockholder receives compensation in a capacity other than that of stockholder; and (B) "Creditor" means the lender of money or vendor or lessor of goods, services, or property rights, or privileges, for which payment is arranged through a credit transaction, or any successor to the right, title, or interest of any lender, vendor, or lessor, or an affiliate, associate or subsidiary of any of them, or any director, officer or employee of any of them, or any other person in any way associated with them. (2) All other terms used in this section have the meanings generally ascribed to them in the insurance industry.
(1) As used in this section: (A) "Compensation" includes commissions, dividends, except where they are the distribution of earnings to stockholders of an insurance company or insurance holding company, retrospective rate credits, service fees, expense allowances or reimbursements, underwriting participations, gifts or any other form of compensation. A distribution of earnings to a stockholder of an insurance company or insurance holding company does not constitute compensation for purposes of this section, even though the stockholder receives compensation in a capacity other than that of stockholder; and (B) "Creditor" means the lender of money or vendor or lessor of goods, services, or property rights, or privileges, for which payment is arranged through a credit transaction, or any successor to the right, title, or interest of any lender, vendor, or lessor, or an affiliate, associate or subsidiary of any of them, or any director, officer or employee of any of them, or any other person in any way associated with them.
(A) "Compensation" includes commissions, dividends, except where they are the distribution of earnings to stockholders of an insurance company or insurance holding company, retrospective rate credits, service fees, expense allowances or reimbursements, underwriting participations, gifts or any other form of compensation. A distribution of earnings to a stockholder of an insurance company or insurance holding company does not constitute compensation for purposes of this section, even though the stockholder receives compensation in a capacity other than that of stockholder; and
(B) "Creditor" means the lender of money or vendor or lessor of goods, services, or property rights, or privileges, for which payment is arranged through a credit transaction, or any successor to the right, title, or interest of any lender, vendor, or lessor, or an affiliate, associate or subsidiary of any of them, or any director, officer or employee of any of them, or any other person in any way associated with them.
(2) All other terms used in this section have the meanings generally ascribed to them in the insurance industry.
(b) No insurer shall pay or propose to pay, directly or indirectly, to any creditor as compensation for that creditor, total compensation in excess of forty percent (40%) of premiums earned, except that if provision is made for refund of unearned commissions in the event of termination of coverage, commissions may be paid in one (1) sum at the time the single premium policy or certificate is written.
Acts 1980, ch. 867, § 2; 1981, ch. 216, § 1; 1988, ch. 557, § 1.
Tenn. Code Ann. § 56-15-109 — TN Code / Title 56 / Chapter 15 / Section 56-15-109
Signing policy in blank unlawful
Status: in_force

It is unlawful for the resident agent to sign the policy in blank. Acts 1919, ch. 163, § 2; Shan. Supp., § 2216a2; Code 1932, § 3957; T.C.A. (orig. ed.), § 56-1409.
It is unlawful for the resident agent to sign the policy in blank.
Acts 1919, ch. 163, § 2; Shan. Supp., § 2216a2; Code 1932, § 3957; T.C.A. (orig. ed.), § 56-1409.
Tenn. Code Ann. § 56-37-105 — TN Code / Title 56 / Chapter 37 / Section 56-37-105
Revocation or suspension of license
Status: in_force

(a) The commissioner may revoke or suspend the license of any premium finance company when after investigation the commissioner finds that: (1) The license issued to the company was obtained by fraud; (2) There was any misrepresentation in the application for the license; (3) The holder of the license has otherwise proven untrustworthy or incompetent to act as a premium finance company; or (4) The company has violated any of the provisions of this chapter. (b) Before the commissioner revokes, suspends or refuses to renew the license of any premium finance company, the aggrieved person shall be entitled to a hearing in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. In lieu of revoking or suspending the license for any of the causes enumerated in this section, after hearing as herein provided, the commissioner may subject the company to a penalty of not more than two hundred dollars ($200) for each offense when the commissioner finds that the public interest would not be harmed by the continued operation of the company. The amount of the penalty shall be paid by the company to the commissioner. (c) If the commissioner refuses to issue to any person a license as a premium finance company, or revokes, suspends or refuses to renew the license of any premium finance company, or imposes a penalty on the company, after a hearing as provided under subsection (b), the applicant or licensee may appeal from the refusal to issue a license or from the adjudication in accordance with the Uniform Administrative Procedures Act. Acts 1980, ch. 920, § 5.
(a) The commissioner may revoke or suspend the license of any premium finance company when after investigation the commissioner finds that: (1) The license issued to the company was obtained by fraud; (2) There was any misrepresentation in the application for the license; (3) The holder of the license has otherwise proven untrustworthy or incompetent to act as a premium finance company; or (4) The company has violated any of the provisions of this chapter.
(1) The license issued to the company was obtained by fraud;
(2) There was any misrepresentation in the application for the license;
(3) The holder of the license has otherwise proven untrustworthy or incompetent to act as a premium finance company; or
(4) The company has violated any of the provisions of this chapter.
(b) Before the commissioner revokes, suspends or refuses to renew the license of any premium finance company, the aggrieved person shall be entitled to a hearing in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. In lieu of revoking or suspending the license for any of the causes enumerated in this section, after hearing as herein provided, the commissioner may subject the company to a penalty of not more than two hundred dollars ($200) for each offense when the commissioner finds that the public interest would not be harmed by the continued operation of the company. The amount of the penalty shall be paid by the company to the commissioner.
(c) If the commissioner refuses to issue to any person a license as a premium finance company, or revokes, suspends or refuses to renew the license of any premium finance company, or imposes a penalty on the company, after a hearing as provided under subsection (b), the applicant or licensee may appeal from the refusal to issue a license or from the adjudication in accordance with the Uniform Administrative Procedures Act.
Acts 1980, ch. 920, § 5.
Tenn. Code Ann. § 56-13-405 — TN Code / Title 56 / Chapter 13 / Section 56-13-405
Organization of SPFC
Status: in_force

(a) An SPFC may be established as a stock corporation, limited liability company, mutual, partnership, or other form of organization approved by the commissioner. (b) The SPFC's organizational documents shall limit the SPFC's authority to transact the business of insurance or reinsurance to those activities the SPFC conducts to accomplish its purpose as expressed in this part. (c) The SPFC shall not adopt a name that is the same as, deceptively similar to, or likely to be confused with or mistaken for another existing business name registered in this state. Any name adopted by an SPFC shall comply with titles 48 and 61. (d) An SPFC shall have at least three (3) incorporators or organizers, of whom at least two (2) shall be residents of this state. (e) At least one (1) of the members of the management of the SPFC shall be a resident of this state. (f) An SPFC formed pursuant to this part has the privileges of and is subject to all other requirements of this state's law applicable to its formation, as well as the applicable provisions contained in this part; provided, that this part controls if a conflict exists in this state's law. Acts 2011, ch. 468, § 1.
(a) An SPFC may be established as a stock corporation, limited liability company, mutual, partnership, or other form of organization approved by the commissioner.
(b) The SPFC's organizational documents shall limit the SPFC's authority to transact the business of insurance or reinsurance to those activities the SPFC conducts to accomplish its purpose as expressed in this part.
(c) The SPFC shall not adopt a name that is the same as, deceptively similar to, or likely to be confused with or mistaken for another existing business name registered in this state. Any name adopted by an SPFC shall comply with titles 48 and 61.
(d) An SPFC shall have at least three (3) incorporators or organizers, of whom at least two (2) shall be residents of this state.
(e) At least one (1) of the members of the management of the SPFC shall be a resident of this state.
(f) An SPFC formed pursuant to this part has the privileges of and is subject to all other requirements of this state's law applicable to its formation, as well as the applicable provisions contained in this part; provided, that this part controls if a conflict exists in this state's law.
Acts 2011, ch. 468, § 1.
Tenn. Code Ann. § 56-55-108 — TN Code / Title 56 / Chapter 55 / Section 56-55-108
Cancellation of sale and warranty
Status: in_force

(a) No vehicle protection product may be sold or offered for sale in this state, unless the vehicle protection product warranty clearly states the terms and conditions governing the cancellation of the sale and warranty, if any. (b) The warrantor may only cancel the warranty if the warranty holder does any of the following: (1) Fails to pay for the vehicle protection product; (2) Makes a material misrepresentation to the seller or warrantor; (3) Commits fraud; or (4) Substantially breaches the warranty holder's duties under the warranty. (c) A warrantor canceling a warranty shall mail written notice of cancellation to the warranty holder at the last address of the warranty holder in the warrantor's records, at least thirty (30) days prior to the effective date of the cancellation. The notice shall state the effective date of the cancellation and the reason for the cancellation. Acts 2005, ch. 244, § 9.
(a) No vehicle protection product may be sold or offered for sale in this state, unless the vehicle protection product warranty clearly states the terms and conditions governing the cancellation of the sale and warranty, if any.
(b) The warrantor may only cancel the warranty if the warranty holder does any of the following: (1) Fails to pay for the vehicle protection product; (2) Makes a material misrepresentation to the seller or warrantor; (3) Commits fraud; or (4) Substantially breaches the warranty holder's duties under the warranty.
(1) Fails to pay for the vehicle protection product;
(2) Makes a material misrepresentation to the seller or warrantor;
(3) Commits fraud; or
(4) Substantially breaches the warranty holder's duties under the warranty.
(c) A warrantor canceling a warranty shall mail written notice of cancellation to the warranty holder at the last address of the warranty holder in the warrantor's records, at least thirty (30) days prior to the effective date of the cancellation. The notice shall state the effective date of the cancellation and the reason for the cancellation.
Acts 2005, ch. 244, § 9.
Tenn. Code Ann. § 56-46-211 — TN Code / Title 56 / Chapter 46 / Section 56-46-211
Immunity of commissioner and department
Status: in_force

There shall be no liability on the part of, and no cause of action shall arise against, the commissioner or the department or its employees or agents for any action taken by them in the performance of their powers and duties under this part. Acts 2014, ch. 559, § 7.
There shall be no liability on the part of, and no cause of action shall arise against, the commissioner or the department or its employees or agents for any action taken by them in the performance of their powers and duties under this part.
Acts 2014, ch. 559, § 7.
Tenn. Code Ann. § 56-7-2814 — TN Code / Title 56 / Chapter 7 / Section 56-7-2814
Legislative intent - Rules and regulations
Status: in_force

It is the intent of this part to meet the minimum standards established by the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) ( 42 U.S.C. § 1320d et seq.), and the rules and regulations to be promulgated by federal authorities in connection with HIPAA. The commissioner is, therefore, authorized to promulgate rules and regulations according to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, as may be necessary to ensure compliance with the federal law as well as those rules necessary to carry out the proper administration of this part. Acts 1997, ch. 157, § 15.
It is the intent of this part to meet the minimum standards established by the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) ( 42 U.S.C. § 1320d et seq.), and the rules and regulations to be promulgated by federal authorities in connection with HIPAA. The commissioner is, therefore, authorized to promulgate rules and regulations according to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, as may be necessary to ensure compliance with the federal law as well as those rules necessary to carry out the proper administration of this part.
Acts 1997, ch. 157, § 15.
Tenn. Code Ann. § 56-7-123 — TN Code / Title 56 / Chapter 7 / Section 56-7-123
Policies to be in English - Language of promotional material
Status: in_force

(a) Every insurance policy, issued to or for the benefit of any citizen or resident of this state, shall be written in the English language. (b) Nothing in this part shall prohibit an insurer from advertising or providing information or translations to consumers in a language other than English; provided, that the advertisement or informational materials clearly state the insurance policy being advertised is available only in English. (c) In the event of a dispute, the language contained in the insurance policy is controlling and any advertisement or informational materials used by an insurer shall not be construed to modify or change the insurance policy. (d) Notwithstanding subsection (c), the use of any advertising or informational materials by any person, without regard as to the language in which the materials are written, that materially contradict or misrepresent any provision of the underlying policy of insurance shall constitute an unfair and deceptive practice in the insurance business as provided by §§ 56-8-103 and 56-8-104 . Acts 1999, ch. 101, § 1.
(a) Every insurance policy, issued to or for the benefit of any citizen or resident of this state, shall be written in the English language.
(b) Nothing in this part shall prohibit an insurer from advertising or providing information or translations to consumers in a language other than English; provided, that the advertisement or informational materials clearly state the insurance policy being advertised is available only in English.
(c) In the event of a dispute, the language contained in the insurance policy is controlling and any advertisement or informational materials used by an insurer shall not be construed to modify or change the insurance policy.
(d) Notwithstanding subsection (c), the use of any advertising or informational materials by any person, without regard as to the language in which the materials are written, that materially contradict or misrepresent any provision of the underlying policy of insurance shall constitute an unfair and deceptive practice in the insurance business as provided by §§ 56-8-103 and 56-8-104 .
Acts 1999, ch. 101, § 1.
Tenn. Code Ann. § 56-1-801 — TN Code / Title 56 / Chapter 1 / Section 56-1-801
Violation of insurance laws - General penalty
Status: in_force

A violation of this chapter and chapters 2-4, 7, 11 and 32 of this title, the penalty of which is not specifically provided, is a Class C misdemeanor. Acts 1895, ch. 160, § 36; Shan., § 3321; Code 1932, § 6150; modified; T.C.A. (orig. ed.), § 56-139; Acts 1989, ch. 591, § 113; 2000, ch. 708, § 9.
A violation of this chapter and chapters 2-4, 7, 11 and 32 of this title, the penalty of which is not specifically provided, is a Class C misdemeanor.
Acts 1895, ch. 160, § 36; Shan., § 3321; Code 1932, § 6150; modified; T.C.A. (orig. ed.), § 56-139; Acts 1989, ch. 591, § 113; 2000, ch. 708, § 9.
Tenn. Code Ann. § 56-7-1607 — TN Code / Title 56 / Chapter 7 / Section 56-7-1607
Authorization of lower reading ease test scores
Status: in_force

The commissioner may authorize a lower score than the Flesch reading ease score required in § 56-7-1605(a)(1) whenever, in the commissioner's sole discretion, the commissioner finds that a lower score: (1) Will provide a more accurate reflection of the readability of a policy form; (2) Is warranted by the nature of a particular policy form or type or class of policy forms; or (3) Is caused by certain policy language that is drafted to conform to the requirements of any state law, regulation or agency interpretation. Acts 1981, ch. 415, § 8.
The commissioner may authorize a lower score than the Flesch reading ease score required in § 56-7-1605(a)(1) whenever, in the commissioner's sole discretion, the commissioner finds that a lower score:
(1) Will provide a more accurate reflection of the readability of a policy form;
(2) Is warranted by the nature of a particular policy form or type or class of policy forms; or
(3) Is caused by certain policy language that is drafted to conform to the requirements of any state law, regulation or agency interpretation.
Acts 1981, ch. 415, § 8.
Tenn. Code Ann. § 56-28-104 — TN Code / Title 56 / Chapter 28 / Section 56-28-104
License required
Status: in_force

A corporation, subject to this chapter, may issue contracts only when the department has, by formal license, authorized the corporation to do so. Acts 1945, ch. 98, § 4; C. Supp. 1950, § 4186.4; impl. am. Acts 1971, ch. 137, § 1; T.C.A. (orig. ed.), § 56-3004.
A corporation, subject to this chapter, may issue contracts only when the department has, by formal license, authorized the corporation to do so.
Acts 1945, ch. 98, § 4; C. Supp. 1950, § 4186.4; impl. am. Acts 1971, ch. 137, § 1; T.C.A. (orig. ed.), § 56-3004.
Tenn. Code Ann. § 56-2-502 — TN Code / Title 56 / Chapter 2 / Section 56-2-502
Service of process on foreign and alien companies - Definitions
Status: in_force

As used in this section and §§ 56-2-503 and 56-2-504 : (1) "Alien insurance company" means an insurance company organized under the laws of any country other than the United States or territory or insular possession of the United States or of the District of Columbia; (2) "Doing business in this state" by any foreign or alien insurance company means the doing in this state by the company of any act whatsoever, whether interstate or intrastate in nature, including the soliciting, making, or delivering of insurance contracts in this state, by an agent, mail or otherwise; (3) "Foreign insurance company" means an insurance company organized under the laws of any state of the United States, other than this state, or under the law of any territory or insular possession of the United States or the District of Columbia; and (4) "Insurance company" means an insurance or surety company, including mutual companies, and includes a corporation, company, partnership, association, social, fraternal or otherwise, order, individual or aggregation of individuals engaging in or proposing or attempting to engage in any kind of insurance or surety business, including the exchange of reciprocal or interinsurance contracts between individuals, partnerships and corporations. Acts 1947, ch. 119, §§ 1, 2; C. Supp. 1950, § 6211.1 (Williams, §§ 6459.48, 6459.49); T.C.A. (orig. ed.), §§ 56-319, 56-243.
As used in this section and §§ 56-2-503 and 56-2-504 :
(1) "Alien insurance company" means an insurance company organized under the laws of any country other than the United States or territory or insular possession of the United States or of the District of Columbia;
(2) "Doing business in this state" by any foreign or alien insurance company means the doing in this state by the company of any act whatsoever, whether interstate or intrastate in nature, including the soliciting, making, or delivering of insurance contracts in this state, by an agent, mail or otherwise;
(3) "Foreign insurance company" means an insurance company organized under the laws of any state of the United States, other than this state, or under the law of any territory or insular possession of the United States or the District of Columbia; and
(4) "Insurance company" means an insurance or surety company, including mutual companies, and includes a corporation, company, partnership, association, social, fraternal or otherwise, order, individual or aggregation of individuals engaging in or proposing or attempting to engage in any kind of insurance or surety business, including the exchange of reciprocal or interinsurance contracts between individuals, partnerships and corporations.
Acts 1947, ch. 119, §§ 1, 2; C. Supp. 1950, § 6211.1 (Williams, §§ 6459.48, 6459.49); T.C.A. (orig. ed.), §§ 56-319, 56-243.
Tenn. Code Ann. § 56-28-110 — TN Code / Title 56 / Chapter 28 / Section 56-28-110
Investments
Status: in_force

The funds of the service corporation, subject to this chapter, shall be invested only in securities permitted by the law of this state for the investment of assets of life insurance companies. Acts 1945, ch. 98, § 13; C. Supp. 1950, § 4186.13; T.C.A. (orig. ed.), § 56-3010.
The funds of the service corporation, subject to this chapter, shall be invested only in securities permitted by the law of this state for the investment of assets of life insurance companies.
Acts 1945, ch. 98, § 13; C. Supp. 1950, § 4186.13; T.C.A. (orig. ed.), § 56-3010.
Tenn. Code Ann. § 56-3-108 — TN Code / Title 56 / Chapter 3 / Section 56-3-108
Dividends - Unauthorized payment - Penalty
Status: in_force

(a) It is not lawful for the directors, trustees, or managers of any insurance company incorporated by the laws of this state to make any dividend except from the surplus profits. (b) Any dividend made contrary to this chapter shall subject the company making the dividend to a forfeiture of its charter, and each stockholder receiving it to a liability to the creditors of the company to the extent of double the amount of the dividend declared. Acts 1895, ch. 160, § 25; Shan., § 3309; Code 1932, § 6129; T.C.A. (orig. ed.), §§ 56-234, 56-329.
(a) It is not lawful for the directors, trustees, or managers of any insurance company incorporated by the laws of this state to make any dividend except from the surplus profits.
(b) Any dividend made contrary to this chapter shall subject the company making the dividend to a forfeiture of its charter, and each stockholder receiving it to a liability to the creditors of the company to the extent of double the amount of the dividend declared.
Acts 1895, ch. 160, § 25; Shan., § 3309; Code 1932, § 6129; T.C.A. (orig. ed.), §§ 56-234, 56-329.
Tenn. Code Ann. § 56-7-3708 — TN Code / Title 56 / Chapter 7 / Section 56-7-3708
Electronic prior authorization
Status: in_force

(a) A health carrier or utilization review organization shall accept and respond electronically to prior authorization requests from a healthcare provider submitted through a secure electronic transmission as determined by the carrier or organization. (b) If a prior authorization for a prescription drug is submitted electronically using the National Council for Prescription Drug Programs (NCPDP) SCRIPT Standard for electronic prior authorization (ePA) transactions, then the health carrier or utilization review organization must accept and respond to the prior authorization request using the NCPDP SCRIPT Standard for ePA transactions. (c) This section does not require a healthcare professional to submit prior authorization requests electronically. Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
(a) A health carrier or utilization review organization shall accept and respond electronically to prior authorization requests from a healthcare provider submitted through a secure electronic transmission as determined by the carrier or organization.
(b) If a prior authorization for a prescription drug is submitted electronically using the National Council for Prescription Drug Programs (NCPDP) SCRIPT Standard for electronic prior authorization (ePA) transactions, then the health carrier or utilization review organization must accept and respond to the prior authorization request using the NCPDP SCRIPT Standard for ePA transactions.
(c) This section does not require a healthcare professional to submit prior authorization requests electronically.
Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
Tenn. Code Ann. § 56-51-101 — TN Code / Title 56 / Chapter 51 / Section 56-51-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Tennessee Prepaid Limited Health Service Organization Act of 2000." Acts 2000, ch. 948, § 1.
This chapter shall be known and may be cited as the "Tennessee Prepaid Limited Health Service Organization Act of 2000."
Acts 2000, ch. 948, § 1.
Tenn. Code Ann. § 56-24-102 — TN Code / Title 56 / Chapter 24 / Section 56-24-102
Receivers - Power of court to appoint - Removal of officers
Status: in_force

The court may, in its discretion, appoint receivers to take charge of the effects and wind up the business of the corporation, subject to rules and orders as the court may from time to time prescribe, according to the course of proceedings in equity, or the court may, if it deems that the best interests of the corporation will be served thereby, decree a removal from office of the officers or any number thereof, and substitute suitable persons to serve until the regular annual election, or until a successor is regularly chosen. Acts 1897, ch. 127, § 13; Shan., § 3350a12; Code 1932, § 6229; T.C.A. (orig. ed.), § 56-2322.
The court may, in its discretion, appoint receivers to take charge of the effects and wind up the business of the corporation, subject to rules and orders as the court may from time to time prescribe, according to the course of proceedings in equity, or the court may, if it deems that the best interests of the corporation will be served thereby, decree a removal from office of the officers or any number thereof, and substitute suitable persons to serve until the regular annual election, or until a successor is regularly chosen.
Acts 1897, ch. 127, § 13; Shan., § 3350a12; Code 1932, § 6229; T.C.A. (orig. ed.), § 56-2322.
Tenn. Code Ann. § 56-43-102 — TN Code / Title 56 / Chapter 43 / Section 56-43-102
Construction - Legislative intent
Status: in_force

This chapter shall be interpreted liberally in order to: (1) Encourage the development of effective and economically sound methods for making legal services more readily available; (2) Protect the interests of the users of legal services and of the public of this state with a minimum of restrictions on experimentation with new forms of organization, administration, or benefits; (3) Seek to have the risk inherent in experimentation borne by the promoters of new plans rather than by the consumers; (4) Permit and encourage the providing of legal services through persons other than professional insurers subject to practical and reasonable financial and regulatory requirements; (5) Permit and encourage fair and effective competition among the various systems of financing legal services; and (6) Maintain a high level of quality and conformity to professional insurers subject to practical and reasonable financial and regulatory requirements. Acts 1989, ch. 423, § 1.
This chapter shall be interpreted liberally in order to:
(1) Encourage the development of effective and economically sound methods for making legal services more readily available;
(2) Protect the interests of the users of legal services and of the public of this state with a minimum of restrictions on experimentation with new forms of organization, administration, or benefits;
(3) Seek to have the risk inherent in experimentation borne by the promoters of new plans rather than by the consumers;
(4) Permit and encourage the providing of legal services through persons other than professional insurers subject to practical and reasonable financial and regulatory requirements;
(5) Permit and encourage fair and effective competition among the various systems of financing legal services; and
(6) Maintain a high level of quality and conformity to professional insurers subject to practical and reasonable financial and regulatory requirements.
Acts 1989, ch. 423, § 1.
Tenn. Code Ann. § 56-48-104 — TN Code / Title 56 / Chapter 48 / Section 56-48-104
Rules and regulations
Status: in_force

The commissioner is authorized to adopt rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement this chapter, including solvency standards, that do not impose requirements in addition to those required by federal regulations applicable to PSOs. Acts 1998, ch. 896, § 5.
The commissioner is authorized to adopt rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement this chapter, including solvency standards, that do not impose requirements in addition to those required by federal regulations applicable to PSOs.
Acts 1998, ch. 896, § 5.
Tenn. Code Ann. § 56-6-201 — TN Code / Title 56 / Chapter 6 / Section 56-6-201
Insurance companies offering only surety insurance
Status: in_force

(a) In addition to other powers permitted to banks by title 45, a state bank may own, operate or manage an insurance company offering only surety insurance, as defined in § 56-2-201(6)(E) . (b) An insurance company owned by a bank shall comply with all Tennessee law applicable to insurance companies and shall be regulated by the commissioner of commerce and insurance. Acts 1988, ch. 948, § 2.
(a) In addition to other powers permitted to banks by title 45, a state bank may own, operate or manage an insurance company offering only surety insurance, as defined in § 56-2-201(6)(E) .
(b) An insurance company owned by a bank shall comply with all Tennessee law applicable to insurance companies and shall be regulated by the commissioner of commerce and insurance.
Acts 1988, ch. 948, § 2.
Tenn. Code Ann. § 56-27-118 — TN Code / Title 56 / Chapter 27 / Section 56-27-118
Examination - Rehabilitation or liquidation
Status: in_force

The commissioner has the same authority to examine the service corporation as is granted to the commissioner for the examination of life, accident and health insurance companies, and has the same authority for the correction, rehabilitation or liquidation of the service corporation as is now provided by law for life, health and accident companies. Acts 1945, ch. 113, § 9; C. Supp. 1950, § 4186.25 (Williams, § 4186.26); T.C.A. (orig. ed.), § 56-2918.
The commissioner has the same authority to examine the service corporation as is granted to the commissioner for the examination of life, accident and health insurance companies, and has the same authority for the correction, rehabilitation or liquidation of the service corporation as is now provided by law for life, health and accident companies.
Acts 1945, ch. 113, § 9; C. Supp. 1950, § 4186.25 (Williams, § 4186.26); T.C.A. (orig. ed.), § 56-2918.
Tenn. Code Ann. § 56-2-910 — TN Code / Title 56 / Chapter 2 / Section 56-2-910
Severability
Status: in_force

If any provision of this part other than § 56-2-907 , or the application of this part to any person or circumstance, is held invalid, such determination shall not affect the provisions or applications of this part that can be given effect without the invalid provision or application, and to that end the provisions of this part, with the exception of § 56-2-907 , are severable. Added by 2018 Tenn. Acts, ch. 873,s 8, eff. 1/1/2019.
If any provision of this part other than § 56-2-907 , or the application of this part to any person or circumstance, is held invalid, such determination shall not affect the provisions or applications of this part that can be given effect without the invalid provision or application, and to that end the provisions of this part, with the exception of § 56-2-907 , are severable.
Added by 2018 Tenn. Acts, ch. 873,s 8, eff. 1/1/2019.
Tenn. Code Ann. § 56-1-413 — TN Code / Title 56 / Chapter 1 / Section 56-1-413
Expenses of examination - Payment by company examined
Status: in_force

(a) (1) Any insurance company authorized to do business in this state and examined under the law shall pay the proper charges incurred in the examination, including the expenses of the commissioner or the commissioner's deputy, and the expenses and compensation of the commissioner's assistants employed in the examination. (2) The compensation of the experts, actuaries and examiners designated by the commissioner for examining the books or business of insurance companies doing business in this state shall be fixed by the commissioner at a reasonable amount commensurate with usual compensation for like services. (b) All persons engaging, assisting, or making the required examination under this chapter shall be regular state employees, and their entire expenses and compensation shall be paid only by the state as now provided for by law. Notwithstanding this subsection (b), the commissioner may contract, in accordance with applicable state contracting procedures, for qualified actuaries and financial examiners the commissioner deems necessary due to the unavailability of qualified regular state employees to conduct a particular examination; provided, that, with respect to financial examinations, the compensation and per diem allowances paid to the persons shall be fixed by the commissioner at a reasonable amount commensurate with usual compensation for like services. (c) The full cost of the examination fixed by the commissioner shall be paid into the department for its use and benefit in meeting the expenses and compensation for the persons engaged in the examinations. Amended by 2017 Tenn. Acts, ch. 354,s 6, eff. 5/11/2017. Acts 1895, ch. 160, § 4; Shan., § 3282; Acts 1921, ch. 30, § 1; Code 1932, § 6097; Acts 1951, ch. 103, § 1; 1965, ch. 263, § 1; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-125; Acts 1991, ch. 142, § 9; 2000, ch. 642, § 1; 2005, ch. 251, § 1.
(a) (1) Any insurance company authorized to do business in this state and examined under the law shall pay the proper charges incurred in the examination, including the expenses of the commissioner or the commissioner's deputy, and the expenses and compensation of the commissioner's assistants employed in the examination. (2) The compensation of the experts, actuaries and examiners designated by the commissioner for examining the books or business of insurance companies doing business in this state shall be fixed by the commissioner at a reasonable amount commensurate with usual compensation for like services.
(1) Any insurance company authorized to do business in this state and examined under the law shall pay the proper charges incurred in the examination, including the expenses of the commissioner or the commissioner's deputy, and the expenses and compensation of the commissioner's assistants employed in the examination.
(2) The compensation of the experts, actuaries and examiners designated by the commissioner for examining the books or business of insurance companies doing business in this state shall be fixed by the commissioner at a reasonable amount commensurate with usual compensation for like services.
(b) All persons engaging, assisting, or making the required examination under this chapter shall be regular state employees, and their entire expenses and compensation shall be paid only by the state as now provided for by law. Notwithstanding this subsection (b), the commissioner may contract, in accordance with applicable state contracting procedures, for qualified actuaries and financial examiners the commissioner deems necessary due to the unavailability of qualified regular state employees to conduct a particular examination; provided, that, with respect to financial examinations, the compensation and per diem allowances paid to the persons shall be fixed by the commissioner at a reasonable amount commensurate with usual compensation for like services.
(c) The full cost of the examination fixed by the commissioner shall be paid into the department for its use and benefit in meeting the expenses and compensation for the persons engaged in the examinations.
Amended by 2017 Tenn. Acts, ch. 354,s 6, eff. 5/11/2017.
Acts 1895, ch. 160, § 4; Shan., § 3282; Acts 1921, ch. 30, § 1; Code 1932, § 6097; Acts 1951, ch. 103, § 1; 1965, ch. 263, § 1; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-125; Acts 1991, ch. 142, § 9; 2000, ch. 642, § 1; 2005, ch. 251, § 1.
Tenn. Code Ann. § 56-21-110 — TN Code / Title 56 / Chapter 21 / Section 56-21-110
Deposits and investments - Borrowing of funds by officers or committee members prohibited - Director or officer not to take fees for making loans - Penalty
Status: in_force

(a) The deposits and investments of every mutual fire insurance company subject to this chapter shall be made in its corporate name. (b) No officer of the company or member of any committee thereof charged with the investment of funds shall borrow the same or be, directly or indirectly, liable therefor, for or on account of loans made to others, nor shall any director or any officer take or receive to use any fee, brokerage, commission, gift or other consideration on account of any loan made by or on behalf of any such company; provided, that this does not prevent the persons subscribing for or securing shares of guaranty capital in any company operating on the guaranty capital plan on equal terms and conditions with other guarantors. (c) A violation of this section is a Class C misdemeanor. Acts 1907, ch. 461, § 10; Shan., § 3369a26; Acts 1921, ch. 160, § 10; Code 1932, § 6277; T.C.A. (orig. ed.), § 56-2012; Acts 1989, ch. 591, § 113.
(a) The deposits and investments of every mutual fire insurance company subject to this chapter shall be made in its corporate name.
(b) No officer of the company or member of any committee thereof charged with the investment of funds shall borrow the same or be, directly or indirectly, liable therefor, for or on account of loans made to others, nor shall any director or any officer take or receive to use any fee, brokerage, commission, gift or other consideration on account of any loan made by or on behalf of any such company; provided, that this does not prevent the persons subscribing for or securing shares of guaranty capital in any company operating on the guaranty capital plan on equal terms and conditions with other guarantors.
(c) A violation of this section is a Class C misdemeanor.
Acts 1907, ch. 461, § 10; Shan., § 3369a26; Acts 1921, ch. 160, § 10; Code 1932, § 6277; T.C.A. (orig. ed.), § 56-2012; Acts 1989, ch. 591, § 113.
Tenn. Code Ann. § 56-22-103 — TN Code / Title 56 / Chapter 22 / Section 56-22-103
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Certificate of authority" means a legal right granted by the commissioner and enjoyed by a county mutual insurance company to provide insurance as provided for in this chapter; (2) "Commissioner" means the commissioner of commerce and insurance; (3) "County mutual insurance company" means a person that is authorized to provide insurance coverage pursuant to this chapter; (4) "Department" means the department of commerce and insurance; (5) "Gross premium" means maximum gross premiums as provided in the policy contracts, new and renewal, including policy or membership fees, whether paid in part or in whole by cash, automatic premium loans, dividends applied in any manner whatsoever, and without deduction or exclusion of dividends in any manner, but excluding premiums returned on cancelled policies, on account of reduction in rates, or reductions in the amount insured; (6) "Insurer" or "insurance company" means any corporation, association, partnership or individual engaged as a principal in the business of insurance not licensed pursuant to this chapter; (7) "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of these acting in concert; (8) "Policyholder" means a person who is insured by a county mutual insurance company; (9) "Premium" means money given in consideration to a county mutual insurance company on account of or in connection with an insurance policy for a specified policy period; (10) "Principal place of business" means the primary office maintained by a county mutual insurance company in the county in which a county mutual insurance company was first granted a certificate of authority; and (11) "Surplus" means the accumulated assets of a county mutual insurance company that exceed the county mutual insurance company's accrued losses and expenses. Acts 2006, ch. 689, §§ 3, 6.
As used in this chapter, unless the context otherwise requires:
(1) "Certificate of authority" means a legal right granted by the commissioner and enjoyed by a county mutual insurance company to provide insurance as provided for in this chapter;
(2) "Commissioner" means the commissioner of commerce and insurance;
(3) "County mutual insurance company" means a person that is authorized to provide insurance coverage pursuant to this chapter;
(4) "Department" means the department of commerce and insurance;
(5) "Gross premium" means maximum gross premiums as provided in the policy contracts, new and renewal, including policy or membership fees, whether paid in part or in whole by cash, automatic premium loans, dividends applied in any manner whatsoever, and without deduction or exclusion of dividends in any manner, but excluding premiums returned on cancelled policies, on account of reduction in rates, or reductions in the amount insured;
(6) "Insurer" or "insurance company" means any corporation, association, partnership or individual engaged as a principal in the business of insurance not licensed pursuant to this chapter;
(7) "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of these acting in concert;
(8) "Policyholder" means a person who is insured by a county mutual insurance company;
(9) "Premium" means money given in consideration to a county mutual insurance company on account of or in connection with an insurance policy for a specified policy period;
(10) "Principal place of business" means the primary office maintained by a county mutual insurance company in the county in which a county mutual insurance company was first granted a certificate of authority; and
(11) "Surplus" means the accumulated assets of a county mutual insurance company that exceed the county mutual insurance company's accrued losses and expenses.
Acts 2006, ch. 689, §§ 3, 6.
Tenn. Code Ann. § 56-29-115 — TN Code / Title 56 / Chapter 29 / Section 56-29-115
Examination - Rehabilitation or liquidation
Status: in_force

The commissioner has the same authority to examine such service corporations as granted to the commissioner for the examination of life, accident and health insurance companies, and has the same authority for the correction, rehabilitation or liquidation of such service corporations as now provided by law for life, accident and health companies. Acts 1949, ch. 234, § 12; C. Supp. 1950, § 4186.54 (Williams, § 4186.57); T.C.A. (orig. ed.), § 56-3115.
The commissioner has the same authority to examine such service corporations as granted to the commissioner for the examination of life, accident and health insurance companies, and has the same authority for the correction, rehabilitation or liquidation of such service corporations as now provided by law for life, accident and health companies.
Acts 1949, ch. 234, § 12; C. Supp. 1950, § 4186.54 (Williams, § 4186.57); T.C.A. (orig. ed.), § 56-3115.
Tenn. Code Ann. § 56-7-119 — TN Code / Title 56 / Chapter 7 / Section 56-7-119
Excuse for absence of employee or student
Status: in_force

Any employer or educational institution may accept, and a duly licensed doctor of chiropractic may issue, an excuse for the absence of an employee or student. Nothing in this section shall be construed to require the insurer of the employee or student to pay for the service or include it within the scope of coverage of any insurance policy. Acts 1992, ch. 848, § 1.
Any employer or educational institution may accept, and a duly licensed doctor of chiropractic may issue, an excuse for the absence of an employee or student. Nothing in this section shall be construed to require the insurer of the employee or student to pay for the service or include it within the scope of coverage of any insurance policy.
Acts 1992, ch. 848, § 1.
Tenn. Code Ann. § 56-61-101 — TN Code / Title 56 / Chapter 61 / Section 56-61-101
Short title - Purpose
Status: in_force

(a) This chapter shall be known and may be cited as the "Tennessee Health Carrier Grievance and External Review Procedure Act." (b) The purpose of this chapter is to provide standards for the establishment and maintenance of procedures by health carriers to assure that covered persons and healthcare providers have the opportunity for the appropriate resolution of grievances, as defined in this chapter. Acts 2010, ch. 980, § 2.
(a) This chapter shall be known and may be cited as the "Tennessee Health Carrier Grievance and External Review Procedure Act."
(b) The purpose of this chapter is to provide standards for the establishment and maintenance of procedures by health carriers to assure that covered persons and healthcare providers have the opportunity for the appropriate resolution of grievances, as defined in this chapter.
Acts 2010, ch. 980, § 2.
Tenn. Code Ann. § 56-16-103 — TN Code / Title 56 / Chapter 16 / Section 56-16-103
Licensed reciprocal authorized to write certain classes of insurance
Status: in_force

A reciprocal licensed to transact the business of insurance in this state may write the classes of insurance enumerated in § 56-2-101 . Acts 1990, ch. 728, § 2; T.C.A. § 56-16-203 .
A reciprocal licensed to transact the business of insurance in this state may write the classes of insurance enumerated in § 56-2-101 .
Acts 1990, ch. 728, § 2; T.C.A. § 56-16-203 .
Tenn. Code Ann. § 56-5-102 — TN Code / Title 56 / Chapter 5 / Section 56-5-102
Part definitions
Status: in_force

As used in this part, unless the context otherwise requires: (1) "Advisory organization" means any person or organization, other than a rate service organization, that assists insurers as authorized by § 56-5-111 ; (2) "Advisory prospective loss costs" means historical aggregate losses and loss adjustment expenses projected through development to their ultimate value and through trending to a future point in time. "Advisory prospective loss costs" does not include provisions for profit or for expenses other than loss adjustment expenses; (3) "Commercial risk insurance" means insurance within the scope of this part that is not personal risk insurance; (4) "Commissioner" means the commissioner of commerce and insurance; (5) "Joint underwriting" means a voluntary arrangement established on an ad hoc basis to provide insurance coverage for a commercial risk pursuant to which two (2) or more insurers separately contract with the insured at a price and under policy terms agreed upon between the insurers; (6) "Multiplier" means a workers' compensation insurance company's determination of the profits and expenses, other than loss expense and loss adjustment expense, all other applicable rating factors, including, but not limited to, schedule rating, experience rating and small deductible credits, and deviation from advisory prospective loss costs associated with writing workers' compensation insurance, which shall be expressed as a single multiplicative factor to be applied equally and uniformly to the advisory prospective loss costs approved by the commissioner in making rates for all classification of risks utilized by the company; (7) "Personal risk insurance" means property and casualty insurance that provides: (A) Insurance on one (1) to four (4) family dwelling units, including mobile homes; (B) Individual insurance on household goods in dwellings, mobile homes, apartments, or other residential facilities; (C) Insurance on every kind of farm property or farm risk, including farm premises, buildings, machinery, equipment, motor vehicles, livestock, and other personal property used in farming operations; (D) Insurance on private passenger nonfleet motor-driven vehicles, not used for hire, which are used for personal, farm or family needs. The motor-driven vehicles include pickups, station wagons, vans, and vehicles with fewer than four (4) wheels; (E) Insurance on pleasure watercraft that are used for personal, farm or family needs; and (F) Insurance sold in connection with and incidental to rental agreements for a period not to exceed ninety (90) days; (8) "Pool" means a voluntary arrangement other than a residual market mechanism, established on an ongoing basis, pursuant to which two (2) or more insurers participate in the sharing of risks on a predetermined basis. The pool may operate through an association, syndicate or other pooling agreement; (9) "Rate" includes advisory prospective loss costs; (10) "Rate service organization" means any person or organization that assists insurers in ratemaking or filing as authorized by § 56-5-110 ; (11) "Rate service organization" and "advisory organization" do not include joint underwriting organizations, actuarial, legal or other consultants, a single insurer, any employees of an insurer, or insurers under common control or management or their employees or managers; (12) "Residual market mechanism" means an arrangement, either voluntary or mandated by law, involving participation by insurers in the equitable apportionment among them of insurance that may be afforded applicants who are unable to obtain insurance through ordinary methods; (13) "Supplementary rate information" includes any manual or plan of rates, classification, rating schedule, minimum premium, policy fee, rating rule, loss adjustment expense, including defense costs incurred for any reason under the policy, and any other similar information needed to determine the applicable rate in effect or to be in effect; and (14) "Supporting information" means: (A) The experience and judgment of the filer and the experience or data of other insurers or organizations relied upon by the filer; (B) The interpretation of any statistical data relied upon by the filer; (C) A description of methods used in making the rates; and (D) Other similar information relied upon by the filer. Amended by 2015 Tenn. Acts, ch. 188,s 1, eff. 4/22/2015. Acts 1983, ch. 66, § 3; 1996, ch. 944, § 34; 1997, ch. 533, § 8; 2000, ch. 651, § 2; 2001, ch. 192, §§ 4, 14.
As used in this part, unless the context otherwise requires:
(1) "Advisory organization" means any person or organization, other than a rate service organization, that assists insurers as authorized by § 56-5-111 ;
(2) "Advisory prospective loss costs" means historical aggregate losses and loss adjustment expenses projected through development to their ultimate value and through trending to a future point in time. "Advisory prospective loss costs" does not include provisions for profit or for expenses other than loss adjustment expenses;
(3) "Commercial risk insurance" means insurance within the scope of this part that is not personal risk insurance;
(4) "Commissioner" means the commissioner of commerce and insurance;
(5) "Joint underwriting" means a voluntary arrangement established on an ad hoc basis to provide insurance coverage for a commercial risk pursuant to which two (2) or more insurers separately contract with the insured at a price and under policy terms agreed upon between the insurers;
(6) "Multiplier" means a workers' compensation insurance company's determination of the profits and expenses, other than loss expense and loss adjustment expense, all other applicable rating factors, including, but not limited to, schedule rating, experience rating and small deductible credits, and deviation from advisory prospective loss costs associated with writing workers' compensation insurance, which shall be expressed as a single multiplicative factor to be applied equally and uniformly to the advisory prospective loss costs approved by the commissioner in making rates for all classification of risks utilized by the company;
(7) "Personal risk insurance" means property and casualty insurance that provides: (A) Insurance on one (1) to four (4) family dwelling units, including mobile homes; (B) Individual insurance on household goods in dwellings, mobile homes, apartments, or other residential facilities; (C) Insurance on every kind of farm property or farm risk, including farm premises, buildings, machinery, equipment, motor vehicles, livestock, and other personal property used in farming operations; (D) Insurance on private passenger nonfleet motor-driven vehicles, not used for hire, which are used for personal, farm or family needs. The motor-driven vehicles include pickups, station wagons, vans, and vehicles with fewer than four (4) wheels; (E) Insurance on pleasure watercraft that are used for personal, farm or family needs; and (F) Insurance sold in connection with and incidental to rental agreements for a period not to exceed ninety (90) days;
(A) Insurance on one (1) to four (4) family dwelling units, including mobile homes;
(B) Individual insurance on household goods in dwellings, mobile homes, apartments, or other residential facilities;
(C) Insurance on every kind of farm property or farm risk, including farm premises, buildings, machinery, equipment, motor vehicles, livestock, and other personal property used in farming operations;
(D) Insurance on private passenger nonfleet motor-driven vehicles, not used for hire, which are used for personal, farm or family needs. The motor-driven vehicles include pickups, station wagons, vans, and vehicles with fewer than four (4) wheels;
(E) Insurance on pleasure watercraft that are used for personal, farm or family needs; and
(F) Insurance sold in connection with and incidental to rental agreements for a period not to exceed ninety (90) days;
(8) "Pool" means a voluntary arrangement other than a residual market mechanism, established on an ongoing basis, pursuant to which two (2) or more insurers participate in the sharing of risks on a predetermined basis. The pool may operate through an association, syndicate or other pooling agreement;
(9) "Rate" includes advisory prospective loss costs;
(10) "Rate service organization" means any person or organization that assists insurers in ratemaking or filing as authorized by § 56-5-110 ;
(11) "Rate service organization" and "advisory organization" do not include joint underwriting organizations, actuarial, legal or other consultants, a single insurer, any employees of an insurer, or insurers under common control or management or their employees or managers;
(12) "Residual market mechanism" means an arrangement, either voluntary or mandated by law, involving participation by insurers in the equitable apportionment among them of insurance that may be afforded applicants who are unable to obtain insurance through ordinary methods;
(13) "Supplementary rate information" includes any manual or plan of rates, classification, rating schedule, minimum premium, policy fee, rating rule, loss adjustment expense, including defense costs incurred for any reason under the policy, and any other similar information needed to determine the applicable rate in effect or to be in effect; and
(14) "Supporting information" means: (A) The experience and judgment of the filer and the experience or data of other insurers or organizations relied upon by the filer; (B) The interpretation of any statistical data relied upon by the filer; (C) A description of methods used in making the rates; and (D) Other similar information relied upon by the filer.
(A) The experience and judgment of the filer and the experience or data of other insurers or organizations relied upon by the filer;
(B) The interpretation of any statistical data relied upon by the filer;
(C) A description of methods used in making the rates; and
(D) Other similar information relied upon by the filer.
Amended by 2015 Tenn. Acts, ch. 188,s 1, eff. 4/22/2015.
Acts 1983, ch. 66, § 3; 1996, ch. 944, § 34; 1997, ch. 533, § 8; 2000, ch. 651, § 2; 2001, ch. 192, §§ 4, 14.
Tenn. Code Ann. § 56-8-113 — TN Code / Title 56 / Chapter 8 / Section 56-8-113
Remedies and sanctions for breach of, or for alleged unfair or deceptive acts or practices in connection with, a contract of insurance
Status: in_force

Notwithstanding any other law, title 50 and this title shall provide the sole and exclusive statutory remedies and sanctions applicable to an insurer, person, or entity licensed, permitted, or authorized to do business under this title for alleged breach of, or for alleged unfair or deceptive acts or practices in connection with, a contract of insurance as such term is defined in § 56-7-101(a) . Nothing in this section shall be construed to eliminate or otherwise affect any: (1) Remedy, cause of action, right to relief or sanction available under common law; (2) Right to declaratory, injunctive or equitable relief, whether provided under title 29 or the Tennessee Rules of Civil Procedure; or (3) Statutory remedy, cause of action, right to relief or sanction referenced in title 50 or this title. Acts 2011, ch. 130, § 1.
Notwithstanding any other law, title 50 and this title shall provide the sole and exclusive statutory remedies and sanctions applicable to an insurer, person, or entity licensed, permitted, or authorized to do business under this title for alleged breach of, or for alleged unfair or deceptive acts or practices in connection with, a contract of insurance as such term is defined in § 56-7-101(a) . Nothing in this section shall be construed to eliminate or otherwise affect any:
(1) Remedy, cause of action, right to relief or sanction available under common law;
(2) Right to declaratory, injunctive or equitable relief, whether provided under title 29 or the Tennessee Rules of Civil Procedure; or
(3) Statutory remedy, cause of action, right to relief or sanction referenced in title 50 or this title.
Acts 2011, ch. 130, § 1.
Tenn. Code Ann. § 56-35-101 — TN Code / Title 56 / Chapter 35 / Section 56-35-101
Short title - Application - Scope
Status: in_force

(a) This chapter shall be known and may be cited as the "Title Insurance Law." (b) All title insurance companies, title insurance agents and the business of title insurance in this state shall be regulated, licensed and controlled by and under this chapter to the exclusion of all other laws and parts of laws of a general nature not specifically applicable. Acts 1955, ch. 173, § 1; T.C.A., § 56-3401.
(a) This chapter shall be known and may be cited as the "Title Insurance Law."
(b) All title insurance companies, title insurance agents and the business of title insurance in this state shall be regulated, licensed and controlled by and under this chapter to the exclusion of all other laws and parts of laws of a general nature not specifically applicable.
Acts 1955, ch. 173, § 1; T.C.A., § 56-3401.
Tenn. Code Ann. § 56-35-118 — TN Code / Title 56 / Chapter 35 / Section 56-35-118
Reasonable competition not discouraged
Status: in_force

Nothing in this chapter is intended to prohibit or discourage reasonable competition, or to prohibit or discourage uniformity in insurance rates, including risk rates, or premiums, or practices, or contracts, policies or guarantees of title. Acts 1955, ch. 173, § 12; T.C.A., § 56-3418; Acts 1983, ch. 139, § 4.
Nothing in this chapter is intended to prohibit or discourage reasonable competition, or to prohibit or discourage uniformity in insurance rates, including risk rates, or premiums, or practices, or contracts, policies or guarantees of title.
Acts 1955, ch. 173, § 12; T.C.A., § 56-3418; Acts 1983, ch. 139, § 4.
Tenn. Code Ann. § 56-20-116 — TN Code / Title 56 / Chapter 20 / Section 56-20-116
Extension of business operations
Status: in_force

Companies organized or incorporated under the laws of this state, and operated under and according to this chapter, are authorized and empowered to extend their business to and operate in contiguous counties. Acts 1897, ch. 130, § 1; Shan., § 3369a1; Code 1932, § 6252; T.C.A. (orig. ed.), § 56-1916.
Companies organized or incorporated under the laws of this state, and operated under and according to this chapter, are authorized and empowered to extend their business to and operate in contiguous counties.
Acts 1897, ch. 130, § 1; Shan., § 3369a1; Code 1932, § 6252; T.C.A. (orig. ed.), § 56-1916.
Tenn. Code Ann. § 56-7-2205 — TN Code / Title 56 / Chapter 7 / Section 56-7-2205
Distinct grouping - Additional groupings
Status: in_force

(a) A distinct grouping may only be established by a small employer carrier on the basis that the applicable health benefit plans: (1) Are marketed and sold through individuals and organizations that are not participating in the marketing or sale of other distinct groupings of small employers for the small employer carrier; (2) Have been acquired from another small employer carrier as a distinct grouping of plans; or (3) Are provided through an association with membership of not less than ten (10) small employers that has been formed for purposes other than obtaining insurance. (b) A small employer carrier may establish no more than two (2) additional groupings under subdivision (a)(1), (a)(2) or (a)(3) on the basis of underwriting criteria that are expected to produce substantial variation in the health care costs. (c) The commissioner may approve the establishment of additional distinct groupings upon application to the commissioner and the commissioner's determination that the action would enhance the efficiency and fairness of the small employer marketplace. Acts 1992, ch. 808, § 5.
(a) A distinct grouping may only be established by a small employer carrier on the basis that the applicable health benefit plans: (1) Are marketed and sold through individuals and organizations that are not participating in the marketing or sale of other distinct groupings of small employers for the small employer carrier; (2) Have been acquired from another small employer carrier as a distinct grouping of plans; or (3) Are provided through an association with membership of not less than ten (10) small employers that has been formed for purposes other than obtaining insurance.
(1) Are marketed and sold through individuals and organizations that are not participating in the marketing or sale of other distinct groupings of small employers for the small employer carrier;
(2) Have been acquired from another small employer carrier as a distinct grouping of plans; or
(3) Are provided through an association with membership of not less than ten (10) small employers that has been formed for purposes other than obtaining insurance.
(b) A small employer carrier may establish no more than two (2) additional groupings under subdivision (a)(1), (a)(2) or (a)(3) on the basis of underwriting criteria that are expected to produce substantial variation in the health care costs.
(c) The commissioner may approve the establishment of additional distinct groupings upon application to the commissioner and the commissioner's determination that the action would enhance the efficiency and fairness of the small employer marketplace.
Acts 1992, ch. 808, § 5.