Tenn. Code Ann. § 56-13-118 — TN Code / Title 56 / Chapter 13 / Section 56-13-118
Approval of material change of plan of operation - Filing of change of information
Status: in_force

(a) No captive insurance company shall make any material change or changes to its plan of operation until the department has approved the change or changes. (b) Each subsequent material change of plan of operation filed during each year is subject to the fee described in § 56-4-101(a)(8) . (c) For purposes of this section and § 56-4-101(a)(8) , the "plan of operation" and "business plan" have the same meaning. (d) (1) A change in any information filed with the application that does not constitute a material change, or a change otherwise requiring commissioner approval, must be filed with the commissioner within thirty (30) days, but does not require prior approval under this section. (2) For purposes of this chapter, a material change does not include adding an additional line of coverage or increasing or decreasing premiums for a line of coverage, provided such increase or decrease is less than fifteen percent (15%). Amended by 2024 Tenn. Acts, ch. 643,s 12, eff. 4/4/2024. Added by 2019 Tenn. Acts, ch. 452, s 5, eff. 5/22/2019. Prior version repealed by 2017 Tenn. Acts, ch. 354, s 2, eff. 5/11/2017.
(a) No captive insurance company shall make any material change or changes to its plan of operation until the department has approved the change or changes.
(b) Each subsequent material change of plan of operation filed during each year is subject to the fee described in § 56-4-101(a)(8) .
(c) For purposes of this section and § 56-4-101(a)(8) , the "plan of operation" and "business plan" have the same meaning.
(d) (1) A change in any information filed with the application that does not constitute a material change, or a change otherwise requiring commissioner approval, must be filed with the commissioner within thirty (30) days, but does not require prior approval under this section. (2) For purposes of this chapter, a material change does not include adding an additional line of coverage or increasing or decreasing premiums for a line of coverage, provided such increase or decrease is less than fifteen percent (15%).
(1) A change in any information filed with the application that does not constitute a material change, or a change otherwise requiring commissioner approval, must be filed with the commissioner within thirty (30) days, but does not require prior approval under this section.
(2) For purposes of this chapter, a material change does not include adding an additional line of coverage or increasing or decreasing premiums for a line of coverage, provided such increase or decrease is less than fifteen percent (15%).
Amended by 2024 Tenn. Acts, ch. 643,s 12, eff. 4/4/2024.
Added by 2019 Tenn. Acts, ch. 452, s 5, eff. 5/22/2019.
Prior version repealed by 2017 Tenn. Acts, ch. 354, s 2, eff. 5/11/2017.
Tenn. Code Ann. § 56-22-116 — TN Code / Title 56 / Chapter 22 / Section 56-22-116
Cease and desist order
Status: in_force

(a) In addition to all other powers granted under this chapter, the commissioner may issue an order requiring a county mutual insurance company to cease and desist from engaging in any act or practice found to be in violation of this chapter or any other applicable law, rule, regulation or order of the commissioner. (b) Any order issued pursuant to this section shall be accompanied by a notice to the county mutual insurance company as to the right to have a hearing. All hearings conducted pursuant to this chapter shall be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (c) Without limitation on other remedies provided by law, upon finding that any county mutual insurance company or other person has violated any cease and desist order issued by the commissioner, the commissioner may seek enforcement of the order through the attorney general and reporter in the chancery court of Davidson County. Acts 2006, ch. 689, §§ 3, 19.
(a) In addition to all other powers granted under this chapter, the commissioner may issue an order requiring a county mutual insurance company to cease and desist from engaging in any act or practice found to be in violation of this chapter or any other applicable law, rule, regulation or order of the commissioner.
(b) Any order issued pursuant to this section shall be accompanied by a notice to the county mutual insurance company as to the right to have a hearing. All hearings conducted pursuant to this chapter shall be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c) Without limitation on other remedies provided by law, upon finding that any county mutual insurance company or other person has violated any cease and desist order issued by the commissioner, the commissioner may seek enforcement of the order through the attorney general and reporter in the chancery court of Davidson County.
Acts 2006, ch. 689, §§ 3, 19.
Tenn. Code Ann. § 56-21-132 — TN Code / Title 56 / Chapter 21 / Section 56-21-132
Guaranty capital - Contingent premiums
Status: in_force

All companies operating under this chapter and not maintaining a nine hundred fifty thousand dollar ($950,000) guaranty capital or more and issuing policies providing for a contingent premium equal to and in addition to the regular premium and the contingent liabilities of the policyholders are included as contingent assets of the company, and the inclusion of these contingent assets on a statement of financial condition of the company at any date is required to show admitted assets equal to or greater than the outstanding liabilities, including provision for unearned premiums, the company shall cease to write any contracts of insurance except policies providing insurance against damage by fire, lightning, hail, extended coverage and tornadoes. Acts 1975, ch. 62, § 2; 1977, ch. 202, § 2; T.C.A., § 56-2034.
All companies operating under this chapter and not maintaining a nine hundred fifty thousand dollar ($950,000) guaranty capital or more and issuing policies providing for a contingent premium equal to and in addition to the regular premium and the contingent liabilities of the policyholders are included as contingent assets of the company, and the inclusion of these contingent assets on a statement of financial condition of the company at any date is required to show admitted assets equal to or greater than the outstanding liabilities, including provision for unearned premiums, the company shall cease to write any contracts of insurance except policies providing insurance against damage by fire, lightning, hail, extended coverage and tornadoes.
Acts 1975, ch. 62, § 2; 1977, ch. 202, § 2; T.C.A., § 56-2034.
Tenn. Code Ann. § 56-36-110 — TN Code / Title 56 / Chapter 36 / Section 56-36-110
Inclusion of lapse of time considerations
Status: in_force

Any paid-up annuity, cash surrender or death benefits available at any time, other than on the contract anniversary under any contract with fixed scheduled considerations, shall be calculated with allowance for the lapse of time and the payment of any scheduled considerations beyond the beginning of the contract year in which cessation of payment of considerations under the contract occurs. Acts 1978, ch. 590, § 10; T.C.A., § 56-4610.
Any paid-up annuity, cash surrender or death benefits available at any time, other than on the contract anniversary under any contract with fixed scheduled considerations, shall be calculated with allowance for the lapse of time and the payment of any scheduled considerations beyond the beginning of the contract year in which cessation of payment of considerations under the contract occurs.
Acts 1978, ch. 590, § 10; T.C.A., § 56-4610.
Tenn. Code Ann. § 56-54-102 — TN Code / Title 56 / Chapter 54 / Section 56-54-102
[Repealed]
Status: repealed

Repealed by 2021 Tenn. Acts, ch. 537, s 8, eff. 5/25/2021. Acts 2008 , ch. 1009, § 3; 2012 , ch. 798, § 28.
Repealed by 2021 Tenn. Acts, ch. 537, s 8, eff. 5/25/2021.
Acts 2008 , ch. 1009, § 3; 2012 , ch. 798, § 28.
Tenn. Code Ann. § 56-45-111 — TN Code / Title 56 / Chapter 45 / Section 56-45-111
Commissioner - Power to enforce laws
Status: in_force

The commissioner is authorized to make use of any of the powers established under the insurance code of this state to enforce the laws of this state not specifically preempted by the Risk Retention Act of 1986, including the commissioner's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, impose penalties and seek injunctive relief. With regard to any investigation, administrative proceedings or litigation, the commissioner can rely on the procedural laws of this state. The injunctive authority of the commissioner, in regard to risk retention groups, is restricted by the requirement that any injunction be issued by a court of competent jurisdiction. Acts 1991, ch. 142, § 6.
The commissioner is authorized to make use of any of the powers established under the insurance code of this state to enforce the laws of this state not specifically preempted by the Risk Retention Act of 1986, including the commissioner's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, impose penalties and seek injunctive relief. With regard to any investigation, administrative proceedings or litigation, the commissioner can rely on the procedural laws of this state. The injunctive authority of the commissioner, in regard to risk retention groups, is restricted by the requirement that any injunction be issued by a court of competent jurisdiction.
Acts 1991, ch. 142, § 6.
Tenn. Code Ann. § 56-27-103 — TN Code / Title 56 / Chapter 27 / Section 56-27-103
Formation of nonprofit medical service plan corporation
Status: in_force

Nine (9) natural persons of full age and of either sex, all of whom are residents of this state and citizens of the United States, and at least a majority of whom are doctors of medicine licensed to practice medicine and surgery in this state, may form, under the laws of this state relating to benevolent corporations, so far as these laws are applicable and are not inconsistent with this chapter, a nonprofit medical service plan corporation for the purpose of establishing and operating a medical service plan or plans. The corporation shall be subject to regulation and supervision by the commissioner and is expressly made subject to the applicable insurance laws of this code. Acts 1945, ch. 113, § 3; C. Supp. 1950, § 4186.20; T.C.A. (orig. ed.), § 56-2903.
Nine (9) natural persons of full age and of either sex, all of whom are residents of this state and citizens of the United States, and at least a majority of whom are doctors of medicine licensed to practice medicine and surgery in this state, may form, under the laws of this state relating to benevolent corporations, so far as these laws are applicable and are not inconsistent with this chapter, a nonprofit medical service plan corporation for the purpose of establishing and operating a medical service plan or plans. The corporation shall be subject to regulation and supervision by the commissioner and is expressly made subject to the applicable insurance laws of this code.
Acts 1945, ch. 113, § 3; C. Supp. 1950, § 4186.20; T.C.A. (orig. ed.), § 56-2903.
Tenn. Code Ann. § 56-9-401 — TN Code / Title 56 / Chapter 9 / Section 56-9-401
Application of commissioner to act as conservator of alien or foreign insurer - Grounds - Notice to insurer - Issuance of order by court - Termination of conservation
Status: in_force

(a) If a domiciliary liquidator has not been appointed, the commissioner may apply to the chancery court by verified petition for an order directing the commissioner to act as conservator to conserve the property found in this state or any other state of an alien insurer not domiciled in this state or property found in this state or any other state of a foreign insurer on any one (1) or more of the following grounds: (1) The insurer is insolvent; (2) Any of its property has been sequestered by official action in its domiciliary state, or in any other state; (3) Enough of its property has been sequestered in a foreign country to give reasonable cause to fear that the insurer is or may become insolvent; (4) (A) Its certificate of authority to do business in this state has been revoked or that none was ever issued; and (B) There are residents of this state with outstanding claims or outstanding policies. (b) When an order is sought under subsection (a), the court shall cause the insurer to be given notice and time to respond thereto as is reasonable under the circumstances. (c) The court may issue the order in whatever terms it shall deem appropriate. The filing or recording of the order with the clerk of the chancery court, or the register of deeds of the county in which the principal business of the company is located, shall impart the same notice as a deed, bill of sale or other evidence of title duly filed or recorded which that register of deeds would have imparted. (d) The conservator shall hold and conserve the assets until the time the commissioner in the domiciliary state begins formal delinquency proceedings against the insurer or until an order terminating conservation is entered under subsection (e). Once a delinquency proceeding is instituted in the domiciliary state, the conservator may either turn the property over to the domiciliary commissioner or petition to be appointed ancillary receiver. If the insurer is an alien insurer that has not established a domicile in the United States under an appropriate port of entry statute, the conservator may petition the court for an order of liquidation under any permissible ground. The application may seek, and the order of liquidation shall provide, that all property and assets, affairs and claims against the alien insurer shall be vested in the liquidator in this state as if the insurer was domiciled in this state; provided, that if an order of liquidation of the alien insurer has been entered by a court of competent jurisdiction in a reciprocal state, which provides for the reciprocal state's receiver to be treated as if it is the domiciliary liquidator, then the order of liquidation in this state shall be issued as an order appointing an ancillary receiver. (e) The conservator may at any time petition the court for an order terminating conservation of the property of an insurer. If the court finds that the conservation is no longer necessary, it shall order that the insurer be restored to possession of its property and the control of its business. The court may also make a finding and issue an order at any time upon motion of any interested party, but if the motion is denied all costs shall be assessed against the party. Acts 1991, ch. 142, § 4; 1999, ch. 348, § 4.
(a) If a domiciliary liquidator has not been appointed, the commissioner may apply to the chancery court by verified petition for an order directing the commissioner to act as conservator to conserve the property found in this state or any other state of an alien insurer not domiciled in this state or property found in this state or any other state of a foreign insurer on any one (1) or more of the following grounds: (1) The insurer is insolvent; (2) Any of its property has been sequestered by official action in its domiciliary state, or in any other state; (3) Enough of its property has been sequestered in a foreign country to give reasonable cause to fear that the insurer is or may become insolvent; (4) (A) Its certificate of authority to do business in this state has been revoked or that none was ever issued; and (B) There are residents of this state with outstanding claims or outstanding policies.
(1) The insurer is insolvent;
(2) Any of its property has been sequestered by official action in its domiciliary state, or in any other state;
(3) Enough of its property has been sequestered in a foreign country to give reasonable cause to fear that the insurer is or may become insolvent;
(4) (A) Its certificate of authority to do business in this state has been revoked or that none was ever issued; and (B) There are residents of this state with outstanding claims or outstanding policies.
(A) Its certificate of authority to do business in this state has been revoked or that none was ever issued; and
(B) There are residents of this state with outstanding claims or outstanding policies.
(b) When an order is sought under subsection (a), the court shall cause the insurer to be given notice and time to respond thereto as is reasonable under the circumstances.
(c) The court may issue the order in whatever terms it shall deem appropriate. The filing or recording of the order with the clerk of the chancery court, or the register of deeds of the county in which the principal business of the company is located, shall impart the same notice as a deed, bill of sale or other evidence of title duly filed or recorded which that register of deeds would have imparted.
(d) The conservator shall hold and conserve the assets until the time the commissioner in the domiciliary state begins formal delinquency proceedings against the insurer or until an order terminating conservation is entered under subsection (e). Once a delinquency proceeding is instituted in the domiciliary state, the conservator may either turn the property over to the domiciliary commissioner or petition to be appointed ancillary receiver. If the insurer is an alien insurer that has not established a domicile in the United States under an appropriate port of entry statute, the conservator may petition the court for an order of liquidation under any permissible ground. The application may seek, and the order of liquidation shall provide, that all property and assets, affairs and claims against the alien insurer shall be vested in the liquidator in this state as if the insurer was domiciled in this state; provided, that if an order of liquidation of the alien insurer has been entered by a court of competent jurisdiction in a reciprocal state, which provides for the reciprocal state's receiver to be treated as if it is the domiciliary liquidator, then the order of liquidation in this state shall be issued as an order appointing an ancillary receiver.
(e) The conservator may at any time petition the court for an order terminating conservation of the property of an insurer. If the court finds that the conservation is no longer necessary, it shall order that the insurer be restored to possession of its property and the control of its business. The court may also make a finding and issue an order at any time upon motion of any interested party, but if the motion is denied all costs shall be assessed against the party.
Acts 1991, ch. 142, § 4; 1999, ch. 348, § 4.
Tenn. Code Ann. § 56-4-212 — TN Code / Title 56 / Chapter 4 / Section 56-4-212
Period covered by payments
Status: in_force

The taxes imposed under this part shall be for the privilege of transacting business for each calendar quarter of each year but shall be measured by the gross premiums and consideration received by the respective companies during the quarter immediately preceding. Amended by 2015 Tenn. Acts, ch. 155,s 11, eff. 4/17/2015. Acts 1945, ch. 3, § 8; C. Supp. 1950, § 1248.48 (Williams, § 1248.176); modified; T.C.A. (orig. ed), § 56-416.
The taxes imposed under this part shall be for the privilege of transacting business for each calendar quarter of each year but shall be measured by the gross premiums and consideration received by the respective companies during the quarter immediately preceding.
Amended by 2015 Tenn. Acts, ch. 155,s 11, eff. 4/17/2015.
Acts 1945, ch. 3, § 8; C. Supp. 1950, § 1248.48 (Williams, § 1248.176); modified; T.C.A. (orig. ed), § 56-416.
Tenn. Code Ann. § 56-49-112 — TN Code / Title 56 / Chapter 49 / Section 56-49-112
Premium remittance - Commissions
Status: in_force

(a) The entire amount of the premium due from a creditor shall be remitted to the insurer or its agent in accordance with the insurer's requirements. No commissions may be paid to, or retained by, a person or entity except a licensed and appointed insurance agent. (b) The retention by the creditor of unearned premiums upon cancellation of the insurance without crediting to the debtor's account the amount of unearned insurance charges is prohibited. (c) Rebates to the creditor of a portion of the premium charged to the debtor are prohibited as are other inducements provided to the creditor by an insurer or agent. The listing of the following activities as prohibited rebates or inducements is not intended to be restrictive, and the commissioner may identify an activity as prohibited by rule, regulation or order: (1) Allowing insurers or agents to purchase certificates of deposit from the creditor or to maintain accounts with the creditor at less than the market interest rates and charges that the creditor applies to other customers for deposit accounts of similar amounts and duration; (2) Paying a commission to a person, including a creditor, who is not appropriately licensed as an agent in this state; and (3) Purchasing or offering to purchase certificates of deposit from or maintaining or offering to maintain deposit accounts or investment accounts with a creditor as part of a creditor-placed insurance solicitation. (d) Prohibited rebates or inducements do not include: (1) The providing of insurance tracking and other services incidental to the creditor-placed insurance program; (2) The paying of commissions and other compensation to a duly licensed and appointed insurance agent, whether or not affiliated with the creditor; (3) The paying to the creditor policyholder of group experience rated refunds or policy dividends; or (4) The paying to the creditor of amounts intended to reimburse the creditor for its expenses incurred incidental to the creditor-placed insurance program, such as costs of data processing, mail processing, telephone service, insurance tracking, billing, collections and related activities; provided, that these payments are calculated in a manner that does not exceed an amount reasonably estimated to equal the expenses incurred by the creditor. (e) An insurer that pays commissions to creditor-related agents for creditor-placed insurance that are greater than twenty percent (20%) of the net written premium shall be required to demonstrate the commissions are not unreasonably high in relation to the value of the services rendered. (f) Nothing contained in this section shall prohibit or restrict an insurer or agent from maintaining a demand, premium deposit or other account or accounts with a creditor for which the insurer or agent provides insurance if the accounts pay the market interest rate and charges that the creditor applies to other customers for deposit accounts of similar amounts and duration. Acts 1999, ch. 144, § 12.
(a) The entire amount of the premium due from a creditor shall be remitted to the insurer or its agent in accordance with the insurer's requirements. No commissions may be paid to, or retained by, a person or entity except a licensed and appointed insurance agent.
(b) The retention by the creditor of unearned premiums upon cancellation of the insurance without crediting to the debtor's account the amount of unearned insurance charges is prohibited.
(c) Rebates to the creditor of a portion of the premium charged to the debtor are prohibited as are other inducements provided to the creditor by an insurer or agent. The listing of the following activities as prohibited rebates or inducements is not intended to be restrictive, and the commissioner may identify an activity as prohibited by rule, regulation or order: (1) Allowing insurers or agents to purchase certificates of deposit from the creditor or to maintain accounts with the creditor at less than the market interest rates and charges that the creditor applies to other customers for deposit accounts of similar amounts and duration; (2) Paying a commission to a person, including a creditor, who is not appropriately licensed as an agent in this state; and (3) Purchasing or offering to purchase certificates of deposit from or maintaining or offering to maintain deposit accounts or investment accounts with a creditor as part of a creditor-placed insurance solicitation.
(1) Allowing insurers or agents to purchase certificates of deposit from the creditor or to maintain accounts with the creditor at less than the market interest rates and charges that the creditor applies to other customers for deposit accounts of similar amounts and duration;
(2) Paying a commission to a person, including a creditor, who is not appropriately licensed as an agent in this state; and
(3) Purchasing or offering to purchase certificates of deposit from or maintaining or offering to maintain deposit accounts or investment accounts with a creditor as part of a creditor-placed insurance solicitation.
(d) Prohibited rebates or inducements do not include: (1) The providing of insurance tracking and other services incidental to the creditor-placed insurance program; (2) The paying of commissions and other compensation to a duly licensed and appointed insurance agent, whether or not affiliated with the creditor; (3) The paying to the creditor policyholder of group experience rated refunds or policy dividends; or (4) The paying to the creditor of amounts intended to reimburse the creditor for its expenses incurred incidental to the creditor-placed insurance program, such as costs of data processing, mail processing, telephone service, insurance tracking, billing, collections and related activities; provided, that these payments are calculated in a manner that does not exceed an amount reasonably estimated to equal the expenses incurred by the creditor.
(1) The providing of insurance tracking and other services incidental to the creditor-placed insurance program;
(2) The paying of commissions and other compensation to a duly licensed and appointed insurance agent, whether or not affiliated with the creditor;
(3) The paying to the creditor policyholder of group experience rated refunds or policy dividends; or
(4) The paying to the creditor of amounts intended to reimburse the creditor for its expenses incurred incidental to the creditor-placed insurance program, such as costs of data processing, mail processing, telephone service, insurance tracking, billing, collections and related activities; provided, that these payments are calculated in a manner that does not exceed an amount reasonably estimated to equal the expenses incurred by the creditor.
(e) An insurer that pays commissions to creditor-related agents for creditor-placed insurance that are greater than twenty percent (20%) of the net written premium shall be required to demonstrate the commissions are not unreasonably high in relation to the value of the services rendered.
(f) Nothing contained in this section shall prohibit or restrict an insurer or agent from maintaining a demand, premium deposit or other account or accounts with a creditor for which the insurer or agent provides insurance if the accounts pay the market interest rate and charges that the creditor applies to other customers for deposit accounts of similar amounts and duration.
Acts 1999, ch. 144, § 12.
Tenn. Code Ann. § 56-51-144 — TN Code / Title 56 / Chapter 51 / Section 56-51-144
Delinquency or supervision
Status: in_force

(a) A delinquency proceeding under chapter 9, part 2, 3, or 4 of this title, or supervision by the department pursuant to chapter 9, part 5 of this title constitutes the sole and exclusive means of supervising, liquidating, reorganizing, rehabilitating, or conserving a prepaid limited health service organization. (b) No prepaid limited health service organization is subject to the laws and regulations governing insurance or health maintenance organization insolvency guaranty funds. No insurance insolvency guaranty fund may provide protection to any individuals entitled to receive limited health services from a prepaid limited health service organization for services related to a prepaid limited health service contract. Acts 2000, ch. 948, § 44.
(a) A delinquency proceeding under chapter 9, part 2, 3, or 4 of this title, or supervision by the department pursuant to chapter 9, part 5 of this title constitutes the sole and exclusive means of supervising, liquidating, reorganizing, rehabilitating, or conserving a prepaid limited health service organization.
(b) No prepaid limited health service organization is subject to the laws and regulations governing insurance or health maintenance organization insolvency guaranty funds. No insurance insolvency guaranty fund may provide protection to any individuals entitled to receive limited health services from a prepaid limited health service organization for services related to a prepaid limited health service contract.
Acts 2000, ch. 948, § 44.
Tenn. Code Ann. § 56-7-126 — TN Code / Title 56 / Chapter 7 / Section 56-7-126
Duty of pharmacy benefits manager - Health insurance under TennCare program
Status: in_force

(a) A pharmacy benefits manager shall notify a pharmacist who furnishes goods or services under any policy or contract for health insurance coverage provided under the TennCare program of the failure of any health insurer to provide timely payments for nondisputed claims pursuant to contract within fourteen (14) days of the failure of the health insurer to fund a scheduled payment. (b) Failure by a pharmacy benefits manager to provide notice as described in subsection (a) shall be cause for the commissioner to impose the appropriate penalties allowed in this title. (c) As used in this section, "pharmacy benefits manager" means a person, business or other entity and any wholly or partially owned subsidiary of the entity, that administers the prescription drug or device portion of plans providing health insurance coverage on behalf of a third party, including plan sponsors, insurance companies, unions, and health maintenance organizations. Acts 2003, ch. 220, § 1.
(a) A pharmacy benefits manager shall notify a pharmacist who furnishes goods or services under any policy or contract for health insurance coverage provided under the TennCare program of the failure of any health insurer to provide timely payments for nondisputed claims pursuant to contract within fourteen (14) days of the failure of the health insurer to fund a scheduled payment.
(b) Failure by a pharmacy benefits manager to provide notice as described in subsection (a) shall be cause for the commissioner to impose the appropriate penalties allowed in this title.
(c) As used in this section, "pharmacy benefits manager" means a person, business or other entity and any wholly or partially owned subsidiary of the entity, that administers the prescription drug or device portion of plans providing health insurance coverage on behalf of a third party, including plan sponsors, insurance companies, unions, and health maintenance organizations.
Acts 2003, ch. 220, § 1.
Tenn. Code Ann. § 56-2-206 — TN Code / Title 56 / Chapter 2 / Section 56-2-206
Companies on Lloyd's plan authorized to do business
Status: in_force

(a) Associations of individuals, citizens of the United States, whether organized within this state or elsewhere within the United States, formed on the plan known as Lloyd's, whereby each associate underwriter becomes liable for a proportionate part of the whole amount insured by policy, may be authorized to transact insurance other than life in this state, in like manner and upon the same terms and conditions as are required of and imposed upon insurance companies of the United States, or one (1) of the states. (b) All Lloyd's, whether organized within this state or elsewhere in the United States, not having an actual, paid-up cash capital, shall make the same deposit, and upon the same terms and conditions as is required by § 56-2-405 of foreign insurance companies incorporated or associated under the laws of any government or state other than the United States or one (1) of the states. Acts 1895, ch. 160, § 15; Shan., § 3298; Code 1932, § 6114; T.C.A. (orig. ed.), §§ 56-210, 56-224.
(a) Associations of individuals, citizens of the United States, whether organized within this state or elsewhere within the United States, formed on the plan known as Lloyd's, whereby each associate underwriter becomes liable for a proportionate part of the whole amount insured by policy, may be authorized to transact insurance other than life in this state, in like manner and upon the same terms and conditions as are required of and imposed upon insurance companies of the United States, or one (1) of the states.
(b) All Lloyd's, whether organized within this state or elsewhere in the United States, not having an actual, paid-up cash capital, shall make the same deposit, and upon the same terms and conditions as is required by § 56-2-405 of foreign insurance companies incorporated or associated under the laws of any government or state other than the United States or one (1) of the states.
Acts 1895, ch. 160, § 15; Shan., § 3298; Code 1932, § 6114; T.C.A. (orig. ed.), §§ 56-210, 56-224.
Tenn. Code Ann. § 56-31-113 — TN Code / Title 56 / Chapter 31 / Section 56-31-113
Expenses - Limitation
Status: in_force

All acquisition and administrative expenses incurred in connection with the vision service corporation shall at all times be limited to a percentage of its total net premiums as set and approved by the commissioner. Acts 1969, ch. 118, § 14; T.C.A., § 56-3713.
All acquisition and administrative expenses incurred in connection with the vision service corporation shall at all times be limited to a percentage of its total net premiums as set and approved by the commissioner.
Acts 1969, ch. 118, § 14; T.C.A., § 56-3713.
Tenn. Code Ann. § 56-32-116 — TN Code / Title 56 / Chapter 32 / Section 56-32-116
Revocation or suspension of certificates
Status: in_force

(a) The commissioner may suspend or revoke any certificate of authority issued to an HMO under this chapter if the commissioner finds that any of the following conditions exist: (1) The HMO is operating significantly in contravention of its basic organizational document or in a manner contrary to that described in any other information submitted under § 56-32-103 , unless amendments to the submissions have been filed with and approved by the commissioner; (2) The HMO issues evidence of coverage or uses a schedule of charges for health care services that do not comply with the requirements of § 56-32-107 ; (3) The HMO does not provide or arrange for basic health care services; (4) The HMO is unable to fulfill its obligations to furnish health care services; (5) The HMO is no longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees; (6) The HMO has failed to implement the complaint system required by § 56-32-110 [repealed] in a reasonable manner to resolve complaints; (7) The HMO, or any person on its behalf, has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive or unfair manner; (8) The continued operation of the HMO would be hazardous to its enrollees; (9) The HMO has otherwise failed substantially to comply with this chapter; or (10) The HMO has filed with the department sworn financial statements that contain material omissions or errors. (b) A certificate of authority shall be suspended or revoked only after compliance with the requirements of § 56-32-118 . (c) When the certificate of authority of an HMO is suspended, the HMO shall not, during the period of suspension, enroll any additional enrollees, except newborn children or other newly acquired dependents of existing enrollees, and shall not engage in any advertising or solicitation whatsoever. (d) When the certificate of authority of an HMO is revoked, the HMO shall proceed, immediately following the effective date of the order of revocation, to wind up its affairs, and shall conduct no further business except as may be essential to the orderly conclusion of the affairs of the HMO. It shall engage in no further advertising or solicitation whatsoever. The commissioner may, by written order, permit such further operation of the organization as the commissioner may find to be in the best interest of enrollees, to the end that enrollees will be afforded the greatest practicable opportunity to obtain continuing health care coverage. Acts 1986, ch. 713, § 16; 2004, ch. 507, § 7; T.C.A. § 56-32-216.
(a) The commissioner may suspend or revoke any certificate of authority issued to an HMO under this chapter if the commissioner finds that any of the following conditions exist: (1) The HMO is operating significantly in contravention of its basic organizational document or in a manner contrary to that described in any other information submitted under § 56-32-103 , unless amendments to the submissions have been filed with and approved by the commissioner; (2) The HMO issues evidence of coverage or uses a schedule of charges for health care services that do not comply with the requirements of § 56-32-107 ; (3) The HMO does not provide or arrange for basic health care services; (4) The HMO is unable to fulfill its obligations to furnish health care services; (5) The HMO is no longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees; (6) The HMO has failed to implement the complaint system required by § 56-32-110 [repealed] in a reasonable manner to resolve complaints; (7) The HMO, or any person on its behalf, has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive or unfair manner; (8) The continued operation of the HMO would be hazardous to its enrollees; (9) The HMO has otherwise failed substantially to comply with this chapter; or (10) The HMO has filed with the department sworn financial statements that contain material omissions or errors.
(1) The HMO is operating significantly in contravention of its basic organizational document or in a manner contrary to that described in any other information submitted under § 56-32-103 , unless amendments to the submissions have been filed with and approved by the commissioner;
(2) The HMO issues evidence of coverage or uses a schedule of charges for health care services that do not comply with the requirements of § 56-32-107 ;
(3) The HMO does not provide or arrange for basic health care services;
(4) The HMO is unable to fulfill its obligations to furnish health care services;
(5) The HMO is no longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees;
(6) The HMO has failed to implement the complaint system required by § 56-32-110 [repealed] in a reasonable manner to resolve complaints;
(7) The HMO, or any person on its behalf, has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive or unfair manner;
(8) The continued operation of the HMO would be hazardous to its enrollees;
(9) The HMO has otherwise failed substantially to comply with this chapter; or
(10) The HMO has filed with the department sworn financial statements that contain material omissions or errors.
(b) A certificate of authority shall be suspended or revoked only after compliance with the requirements of § 56-32-118 .
(c) When the certificate of authority of an HMO is suspended, the HMO shall not, during the period of suspension, enroll any additional enrollees, except newborn children or other newly acquired dependents of existing enrollees, and shall not engage in any advertising or solicitation whatsoever.
(d) When the certificate of authority of an HMO is revoked, the HMO shall proceed, immediately following the effective date of the order of revocation, to wind up its affairs, and shall conduct no further business except as may be essential to the orderly conclusion of the affairs of the HMO. It shall engage in no further advertising or solicitation whatsoever. The commissioner may, by written order, permit such further operation of the organization as the commissioner may find to be in the best interest of enrollees, to the end that enrollees will be afforded the greatest practicable opportunity to obtain continuing health care coverage.
Acts 1986, ch. 713, § 16; 2004, ch. 507, § 7; T.C.A. § 56-32-216.
Tenn. Code Ann. § 56-7-3108 — TN Code / Title 56 / Chapter 7 / Section 56-7-3108
Appeal by pharmacy of cost of particular drug or device on maximum allowable cost list - Procedure
Status: in_force

(a) A pharmacy benefits manager or covered entity shall establish a clearly defined process through which a pharmacy may contest the listed maximum allowable cost for a particular drug or medical product or device. If a pharmacy chooses to contest the listed maximum allowable cost for a particular drug or medical product or device, the pharmacy shall have the right to designate a pharmacy services administrative organization or other agent to file and handle its appeal of the maximum allowable cost of the drug or medical product or device. (b) A pharmacy may base its appeal on one (1) or more of the following: (1) The maximum allowable cost established for a particular drug or medical product or device is below the cost at which the drug or medical product or device is generally available for purchase by pharmacies in this state from national or regional wholesalers; or (2) The pharmacy benefits manager or covered entity has placed a drug on the list without properly determining that the requirements of § 56-7-3106 have been met. (c) The pharmacy must file its appeal within seven (7) business days of its submission of the initial claim for reimbursement for the drug or medical product or device. The pharmacy benefits manager or covered entity must make a final determination resolving the pharmacy's appeal within seven (7) business days of the pharmacy benefits manager or covered entity's receipt of the appeal. (d) If the final determination is a denial of the pharmacy's appeal, the pharmacy benefits manager or covered entity must state the reason for the denial and provide the national drug code of an equivalent drug that is generally available for purchase by pharmacies in this state from national or regional wholesalers at a price which is equal to or less than the maximum allowable cost for that drug. (e) (1) If a pharmacy's appeal is determined to be valid by the pharmacy benefits manager or covered entity, the pharmacy benefits manager or covered entity shall adjust the maximum allowable cost of the drug or medical product or device for the appealing pharmacy. The adjustment for the appealing pharmacy shall be effective from the date the pharmacy's appeal was filed, and the pharmacy benefits manager or covered entity shall provide reimbursement to the appealing pharmacy and may require the appealing pharmacy to reverse and rebill the claim in question in order to receive the corrected reimbursement. (2) Once an appealing pharmacy's appeal is determined to be valid by the pharmacy benefits manager or covered entity, the pharmacy benefits manager or covered entity shall adjust the maximum allowable cost of the drug or medical product or device to which the maximum allowable cost applies for all similar pharmacies in the network as determined by the pharmacy benefits manager within three (3) business days for claims submitted in the next payment cycle. (f) A pharmacy benefits manager or covered entity shall make available on its secure web site information about the appeals process, including, but not limited to, a telephone number or process that a pharmacy may use to submit maximum allowable cost appeals. Amended by 2016 Tenn. Acts, ch. 631,s 2, eff. 3/23/2016. Added by 2014 Tenn. Acts, ch. 857,s 2, eff. 1/1/2015.
(a) A pharmacy benefits manager or covered entity shall establish a clearly defined process through which a pharmacy may contest the listed maximum allowable cost for a particular drug or medical product or device. If a pharmacy chooses to contest the listed maximum allowable cost for a particular drug or medical product or device, the pharmacy shall have the right to designate a pharmacy services administrative organization or other agent to file and handle its appeal of the maximum allowable cost of the drug or medical product or device.
(b) A pharmacy may base its appeal on one (1) or more of the following: (1) The maximum allowable cost established for a particular drug or medical product or device is below the cost at which the drug or medical product or device is generally available for purchase by pharmacies in this state from national or regional wholesalers; or (2) The pharmacy benefits manager or covered entity has placed a drug on the list without properly determining that the requirements of § 56-7-3106 have been met.
(1) The maximum allowable cost established for a particular drug or medical product or device is below the cost at which the drug or medical product or device is generally available for purchase by pharmacies in this state from national or regional wholesalers; or
(2) The pharmacy benefits manager or covered entity has placed a drug on the list without properly determining that the requirements of § 56-7-3106 have been met.
(c) The pharmacy must file its appeal within seven (7) business days of its submission of the initial claim for reimbursement for the drug or medical product or device. The pharmacy benefits manager or covered entity must make a final determination resolving the pharmacy's appeal within seven (7) business days of the pharmacy benefits manager or covered entity's receipt of the appeal.
(d) If the final determination is a denial of the pharmacy's appeal, the pharmacy benefits manager or covered entity must state the reason for the denial and provide the national drug code of an equivalent drug that is generally available for purchase by pharmacies in this state from national or regional wholesalers at a price which is equal to or less than the maximum allowable cost for that drug.
(e) (1) If a pharmacy's appeal is determined to be valid by the pharmacy benefits manager or covered entity, the pharmacy benefits manager or covered entity shall adjust the maximum allowable cost of the drug or medical product or device for the appealing pharmacy. The adjustment for the appealing pharmacy shall be effective from the date the pharmacy's appeal was filed, and the pharmacy benefits manager or covered entity shall provide reimbursement to the appealing pharmacy and may require the appealing pharmacy to reverse and rebill the claim in question in order to receive the corrected reimbursement. (2) Once an appealing pharmacy's appeal is determined to be valid by the pharmacy benefits manager or covered entity, the pharmacy benefits manager or covered entity shall adjust the maximum allowable cost of the drug or medical product or device to which the maximum allowable cost applies for all similar pharmacies in the network as determined by the pharmacy benefits manager within three (3) business days for claims submitted in the next payment cycle.
(1) If a pharmacy's appeal is determined to be valid by the pharmacy benefits manager or covered entity, the pharmacy benefits manager or covered entity shall adjust the maximum allowable cost of the drug or medical product or device for the appealing pharmacy. The adjustment for the appealing pharmacy shall be effective from the date the pharmacy's appeal was filed, and the pharmacy benefits manager or covered entity shall provide reimbursement to the appealing pharmacy and may require the appealing pharmacy to reverse and rebill the claim in question in order to receive the corrected reimbursement.
(2) Once an appealing pharmacy's appeal is determined to be valid by the pharmacy benefits manager or covered entity, the pharmacy benefits manager or covered entity shall adjust the maximum allowable cost of the drug or medical product or device to which the maximum allowable cost applies for all similar pharmacies in the network as determined by the pharmacy benefits manager within three (3) business days for claims submitted in the next payment cycle.
(f) A pharmacy benefits manager or covered entity shall make available on its secure web site information about the appeals process, including, but not limited to, a telephone number or process that a pharmacy may use to submit maximum allowable cost appeals.
Amended by 2016 Tenn. Acts, ch. 631,s 2, eff. 3/23/2016.
Added by 2014 Tenn. Acts, ch. 857,s 2, eff. 1/1/2015.
Tenn. Code Ann. § 56-12-213 — TN Code / Title 56 / Chapter 12 / Section 56-12-213
Liquidation, rehabilitation, and conservation proceedings
Status: in_force

(a) Nothing in this part shall be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability. (b) Records shall be kept of all negotiations and meetings in which the association or its representatives discuss the activities of the association in carrying out its powers and duties as created by § 56-12-207 . Records of such negotiations or meetings shall be made public only upon the termination of a liquidation, rehabilitation, or conservation proceeding involving the impaired or insolvent insurer, upon the termination of the impairment or insolvency of the insurer, or upon the order of a court of competent jurisdiction. Nothing in this subsection (b) shall limit the duty of the association to render a report of its activities pursuant to § 56-12-214 . (c) For the purpose of carrying out its obligations under this part, the association shall be deemed to be a creditor of the impaired or insolvent insurer to the extent of assets attributable to covered policies, reduced by any amounts to which the association is entitled as subrogee pursuant to § 56-12-207(k) . Assets of the impaired or insolvent insurer attributable to covered policies shall be used to continue all covered policies and pay all contractual obligations of the impaired or insolvent insurer as required by this part. Assets attributable to covered policies, as used in this subsection (c), are that proportion of the assets that the reserves that should have been established for such policies bear to the reserves that should have been established for all policies of insurance written by the impaired or insolvent insurer. (d) (1) Prior to the termination of any liquidation, rehabilitation, or conservation proceeding, the court may take into consideration the contributions of the respective parties, including the association, the shareholders, and policyowners of the insolvent insurer, and any other party with a bona fide interest, in making an equitable distribution of the ownership rights of such insolvent insurer. In such a determination, consideration shall be given to the welfare of the policyholders of the continuing or successor insurer. (2) No distribution to stockholders, if any, of an impaired or insolvent insurer shall be made until and unless the total amount of valid claims of the association with interest thereon for funds expended in carrying out its powers and duties as created by § 56-12-207 with respect to such insurer have been fully recovered by the association. (e) (1) If an order for liquidation or rehabilitation of an insurer domiciled in this state has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurer, from any affiliate that controlled it, the amount of distributions, other than stock dividends paid by the insurer on its capital stock, made at any time during the five (5) years preceding the petition for liquidation or rehabilitation, subject to the limitations of subdivisions (e)(2)-(4). (2) No such distribution shall be recoverable, if the insurer shows that when paid the distribution was lawful and reasonable, and that the insurer did not know, and could not reasonably have known, that the distribution might adversely affect the ability of the insurer to fulfill its contractual obligations. (3) Any person who was an affiliate that controlled the insurer at the time the distributions were paid shall be liable up to the amount of distributions received. Any person who was an affiliate that controlled the insurer at the time the distributions were declared shall be liable up to the amount of distributions the person would have received if they had been paid immediately. If two (2) or more persons are liable with respect to the same distributions, they shall be jointly and severally liable. (4) The maximum amount recoverable under this subsection (e) shall be the amount needed in excess of all other available assets of the insolvent insurer to pay the contractual obligations of the insolvent insurer. (5) If any person liable under subdivision (e)(3) is insolvent, all its affiliates that controlled it at the time the distribution was paid shall be jointly and severally liable for any resulting deficiency in the amount recovered from the insolvent affiliate. Acts 1988, ch. 1032, § 13.
(a) Nothing in this part shall be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability.
(b) Records shall be kept of all negotiations and meetings in which the association or its representatives discuss the activities of the association in carrying out its powers and duties as created by § 56-12-207 . Records of such negotiations or meetings shall be made public only upon the termination of a liquidation, rehabilitation, or conservation proceeding involving the impaired or insolvent insurer, upon the termination of the impairment or insolvency of the insurer, or upon the order of a court of competent jurisdiction. Nothing in this subsection (b) shall limit the duty of the association to render a report of its activities pursuant to § 56-12-214 .
(c) For the purpose of carrying out its obligations under this part, the association shall be deemed to be a creditor of the impaired or insolvent insurer to the extent of assets attributable to covered policies, reduced by any amounts to which the association is entitled as subrogee pursuant to § 56-12-207(k) . Assets of the impaired or insolvent insurer attributable to covered policies shall be used to continue all covered policies and pay all contractual obligations of the impaired or insolvent insurer as required by this part. Assets attributable to covered policies, as used in this subsection (c), are that proportion of the assets that the reserves that should have been established for such policies bear to the reserves that should have been established for all policies of insurance written by the impaired or insolvent insurer.
(d) (1) Prior to the termination of any liquidation, rehabilitation, or conservation proceeding, the court may take into consideration the contributions of the respective parties, including the association, the shareholders, and policyowners of the insolvent insurer, and any other party with a bona fide interest, in making an equitable distribution of the ownership rights of such insolvent insurer. In such a determination, consideration shall be given to the welfare of the policyholders of the continuing or successor insurer. (2) No distribution to stockholders, if any, of an impaired or insolvent insurer shall be made until and unless the total amount of valid claims of the association with interest thereon for funds expended in carrying out its powers and duties as created by § 56-12-207 with respect to such insurer have been fully recovered by the association.
(1) Prior to the termination of any liquidation, rehabilitation, or conservation proceeding, the court may take into consideration the contributions of the respective parties, including the association, the shareholders, and policyowners of the insolvent insurer, and any other party with a bona fide interest, in making an equitable distribution of the ownership rights of such insolvent insurer. In such a determination, consideration shall be given to the welfare of the policyholders of the continuing or successor insurer.
(2) No distribution to stockholders, if any, of an impaired or insolvent insurer shall be made until and unless the total amount of valid claims of the association with interest thereon for funds expended in carrying out its powers and duties as created by § 56-12-207 with respect to such insurer have been fully recovered by the association.
(e) (1) If an order for liquidation or rehabilitation of an insurer domiciled in this state has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurer, from any affiliate that controlled it, the amount of distributions, other than stock dividends paid by the insurer on its capital stock, made at any time during the five (5) years preceding the petition for liquidation or rehabilitation, subject to the limitations of subdivisions (e)(2)-(4). (2) No such distribution shall be recoverable, if the insurer shows that when paid the distribution was lawful and reasonable, and that the insurer did not know, and could not reasonably have known, that the distribution might adversely affect the ability of the insurer to fulfill its contractual obligations. (3) Any person who was an affiliate that controlled the insurer at the time the distributions were paid shall be liable up to the amount of distributions received. Any person who was an affiliate that controlled the insurer at the time the distributions were declared shall be liable up to the amount of distributions the person would have received if they had been paid immediately. If two (2) or more persons are liable with respect to the same distributions, they shall be jointly and severally liable. (4) The maximum amount recoverable under this subsection (e) shall be the amount needed in excess of all other available assets of the insolvent insurer to pay the contractual obligations of the insolvent insurer. (5) If any person liable under subdivision (e)(3) is insolvent, all its affiliates that controlled it at the time the distribution was paid shall be jointly and severally liable for any resulting deficiency in the amount recovered from the insolvent affiliate.
(1) If an order for liquidation or rehabilitation of an insurer domiciled in this state has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurer, from any affiliate that controlled it, the amount of distributions, other than stock dividends paid by the insurer on its capital stock, made at any time during the five (5) years preceding the petition for liquidation or rehabilitation, subject to the limitations of subdivisions (e)(2)-(4).
(2) No such distribution shall be recoverable, if the insurer shows that when paid the distribution was lawful and reasonable, and that the insurer did not know, and could not reasonably have known, that the distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.
(3) Any person who was an affiliate that controlled the insurer at the time the distributions were paid shall be liable up to the amount of distributions received. Any person who was an affiliate that controlled the insurer at the time the distributions were declared shall be liable up to the amount of distributions the person would have received if they had been paid immediately. If two (2) or more persons are liable with respect to the same distributions, they shall be jointly and severally liable.
(4) The maximum amount recoverable under this subsection (e) shall be the amount needed in excess of all other available assets of the insolvent insurer to pay the contractual obligations of the insolvent insurer.
(5) If any person liable under subdivision (e)(3) is insolvent, all its affiliates that controlled it at the time the distribution was paid shall be jointly and severally liable for any resulting deficiency in the amount recovered from the insolvent affiliate.
Acts 1988, ch. 1032, § 13.
Tenn. Code Ann. § 56-2-116 — TN Code / Title 56 / Chapter 2 / Section 56-2-116
Exemption of previously licensed companies - Termination of exemption for foreign insurance companies
Status: in_force

(a) No requirement of §§ 56-2-101 - 56-2-103, 56-2-113 - 56-2-115, 56-2-201, and 56-2-301 not in effect on March 1, 1986, shall be considered applicable to any insurance company properly licensed to transact business in this state on that date. (b) Notwithstanding subsection (a), any foreign insurance company filing an annual statement under § 56-1-501 , not possessing the minimum capital and surplus required by §§ 56-2-114 and 56-2-115 on and after January 1, 1987, shall cease to write any new business until the minimum capital and surplus required are met. (c) Subsection (b) shall not apply to the procedures and capital requirements of a casualty company for the exclusive purpose of writing bonds only. (d) Any domestic insurer otherwise exempt under subsection (a) that at any time meets the capital and surplus requirements under this chapter shall thereafter be required to maintain the required capital and surplus limits. Acts 1955, ch. 13, § 6 (T.C.A. (supp.), § 56-322); 1967, ch. 31, § 6; 1977, ch. 127, §§ 1, 2; T.C.A, § 56-217; Acts 1986, ch. 535, §§ 3-5.
(a) No requirement of §§ 56-2-101 - 56-2-103, 56-2-113 - 56-2-115, 56-2-201, and 56-2-301 not in effect on March 1, 1986, shall be considered applicable to any insurance company properly licensed to transact business in this state on that date.
(b) Notwithstanding subsection (a), any foreign insurance company filing an annual statement under § 56-1-501 , not possessing the minimum capital and surplus required by §§ 56-2-114 and 56-2-115 on and after January 1, 1987, shall cease to write any new business until the minimum capital and surplus required are met.
(c) Subsection (b) shall not apply to the procedures and capital requirements of a casualty company for the exclusive purpose of writing bonds only.
(d) Any domestic insurer otherwise exempt under subsection (a) that at any time meets the capital and surplus requirements under this chapter shall thereafter be required to maintain the required capital and surplus limits.
Acts 1955, ch. 13, § 6 (T.C.A. (supp.), § 56-322); 1967, ch. 31, § 6; 1977, ch. 127, §§ 1, 2; T.C.A, § 56-217; Acts 1986, ch. 535, §§ 3-5.
Tenn. Code Ann. § 56-7-3707 — TN Code / Title 56 / Chapter 7 / Section 56-7-3707
Clinical criteria
Status: in_force

(a) A health carrier shall maintain a complete list of healthcare services for which a prior authorization is required. (b) The clinical review criteria for healthcare services or prescription drugs requiring prior authorization must: (1) Be based on nationally recognized, generally accepted standards for national, clinical criteria, except where state law provides its own standard; (2) Not be arbitrary and must be cited by the utilization review organization; (3) Be developed in accordance with the current standards of a national medical accreditation entity; (4) Ensure quality of care and access to needed healthcare services; (5) Be evidence-based; (6) Be sufficiently flexible to allow deviations from norms when justified on a case-by-case basis; and (7) Be evaluated and updated in accordance with § 56-7-3718 . (c) A claim for failure to obtain prior authorization must not be denied if the prior authorization requirement was not in effect on the date of service on the claim. Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
(a) A health carrier shall maintain a complete list of healthcare services for which a prior authorization is required.
(b) The clinical review criteria for healthcare services or prescription drugs requiring prior authorization must: (1) Be based on nationally recognized, generally accepted standards for national, clinical criteria, except where state law provides its own standard; (2) Not be arbitrary and must be cited by the utilization review organization; (3) Be developed in accordance with the current standards of a national medical accreditation entity; (4) Ensure quality of care and access to needed healthcare services; (5) Be evidence-based; (6) Be sufficiently flexible to allow deviations from norms when justified on a case-by-case basis; and (7) Be evaluated and updated in accordance with § 56-7-3718 .
(1) Be based on nationally recognized, generally accepted standards for national, clinical criteria, except where state law provides its own standard;
(2) Not be arbitrary and must be cited by the utilization review organization;
(3) Be developed in accordance with the current standards of a national medical accreditation entity;
(4) Ensure quality of care and access to needed healthcare services;
(5) Be evidence-based;
(6) Be sufficiently flexible to allow deviations from norms when justified on a case-by-case basis; and
(7) Be evaluated and updated in accordance with § 56-7-3718 .
(c) A claim for failure to obtain prior authorization must not be denied if the prior authorization requirement was not in effect on the date of service on the claim.
Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
Tenn. Code Ann. § 56-28-101 — TN Code / Title 56 / Chapter 28 / Section 56-28-101
Application of chapter
Status: in_force

Any corporation organized not for profit under the general welfare corporation laws of the state for the purpose of establishing, maintaining and operating a nonprofit hospital service corporation, whereby hospital service may be provided by a hospital or group of hospitals with which the corporation has a contract for the purpose, to such of the public as become subscribers to the corporation under a contract that entitles each subscriber to certain hospital care, shall be governed by this chapter. Acts 1945, ch. 98, § 1; C. Supp. 1950, § 4186.1; T.C.A. (orig. ed.), § 56-3001.
Any corporation organized not for profit under the general welfare corporation laws of the state for the purpose of establishing, maintaining and operating a nonprofit hospital service corporation, whereby hospital service may be provided by a hospital or group of hospitals with which the corporation has a contract for the purpose, to such of the public as become subscribers to the corporation under a contract that entitles each subscriber to certain hospital care, shall be governed by this chapter.
Acts 1945, ch. 98, § 1; C. Supp. 1950, § 4186.1; T.C.A. (orig. ed.), § 56-3001.
Tenn. Code Ann. § 56-59-105 — TN Code / Title 56 / Chapter 59 / Section 56-59-105
Disclosure of guaranteed asset protection waiver
Status: in_force

GAP waivers must disclose, as applicable, in writing and in clear, understandable language that is easy to read, the following: (1) The name and address of the initial creditor and the borrower at the time of sale, and the identity of any administrator if different from the creditor; (2) The purchase price and the terms of the GAP waiver, including, without limitation, the requirements for protection, conditions, or exclusions associated with the GAP waiver; (3) That the borrower may cancel the GAP waiver within a free look period, as specified in the waiver, and will be entitled to a full refund of the purchase price; provided, that no claim for benefits has been made or no benefits have been paid, or in the event a claim has been made or benefits have been paid, the borrower may receive a full or partial refund if the waiver so provides; (4) The procedure the borrower must follow, if any, to obtain GAP waiver benefits under the terms and conditions of the waiver, including a telephone number and address where the borrower may apply for waiver benefits; (5) Whether or not the GAP waiver is cancelable after the free look period and the conditions under which it may be cancelled or terminated including the procedures for requesting any refund due; (6) That in order to receive any refund due in the event of a borrower's cancellation of the GAP waiver agreement or early termination of the finance agreement after the free look period of the GAP waiver, the borrower, in accordance with terms of the waiver, must provide a written request to cancel to the creditor, administrator or such other party, within ninety (90) days after the borrower's decision to cancel the waiver or the occurrence of the event terminating the finance agreement; (7) The methodology for calculating any refund of the unearned purchase price of the GAP waiver due, in the event of cancellation of the GAP waiver or early termination of the finance agreement; (8) That neither the extension of credit, the terms of the credit, nor the terms of the related motor vehicle sale or lease, may be conditioned upon the purchase of the GAP waiver; and (9) That the cost of the GAP waiver is not regulated and that the consumer has the responsibility to determine whether the cost of the GAP waiver is reasonable in relation to the protection afforded by the GAP waiver. Acts 2008, ch. 1055, § 6.
GAP waivers must disclose, as applicable, in writing and in clear, understandable language that is easy to read, the following:
(1) The name and address of the initial creditor and the borrower at the time of sale, and the identity of any administrator if different from the creditor;
(2) The purchase price and the terms of the GAP waiver, including, without limitation, the requirements for protection, conditions, or exclusions associated with the GAP waiver;
(3) That the borrower may cancel the GAP waiver within a free look period, as specified in the waiver, and will be entitled to a full refund of the purchase price; provided, that no claim for benefits has been made or no benefits have been paid, or in the event a claim has been made or benefits have been paid, the borrower may receive a full or partial refund if the waiver so provides;
(4) The procedure the borrower must follow, if any, to obtain GAP waiver benefits under the terms and conditions of the waiver, including a telephone number and address where the borrower may apply for waiver benefits;
(5) Whether or not the GAP waiver is cancelable after the free look period and the conditions under which it may be cancelled or terminated including the procedures for requesting any refund due;
(6) That in order to receive any refund due in the event of a borrower's cancellation of the GAP waiver agreement or early termination of the finance agreement after the free look period of the GAP waiver, the borrower, in accordance with terms of the waiver, must provide a written request to cancel to the creditor, administrator or such other party, within ninety (90) days after the borrower's decision to cancel the waiver or the occurrence of the event terminating the finance agreement;
(7) The methodology for calculating any refund of the unearned purchase price of the GAP waiver due, in the event of cancellation of the GAP waiver or early termination of the finance agreement;
(8) That neither the extension of credit, the terms of the credit, nor the terms of the related motor vehicle sale or lease, may be conditioned upon the purchase of the GAP waiver; and
(9) That the cost of the GAP waiver is not regulated and that the consumer has the responsibility to determine whether the cost of the GAP waiver is reasonable in relation to the protection afforded by the GAP waiver.
Acts 2008, ch. 1055, § 6.
Tenn. Code Ann. § 56-7-914 — TN Code / Title 56 / Chapter 7 / Section 56-7-914
Annual declaration concerning compensation to creditors
Status: in_force

(a) As part of its required annual statement, each company licensed to sell credit insurance in this state and each company authorized as a credit reinsurer in this state shall submit a declaration under oath executed by the company president stating whether the company or a subsidiary has: (1) Paid any compensation to creditors in violation of § 56-7-902 ; or (2) Entered into any reinsurance transaction with a reinsurer who, with the knowledge of the declaring company, has paid compensation to creditors in violation of § 56-7-902 . (b) In the event a company submits a false declaration as described in subsection (a), the company shall be subject to the sanctions set forth in § 56-8-109 . Acts 1988, ch. 834, § 1.
(a) As part of its required annual statement, each company licensed to sell credit insurance in this state and each company authorized as a credit reinsurer in this state shall submit a declaration under oath executed by the company president stating whether the company or a subsidiary has: (1) Paid any compensation to creditors in violation of § 56-7-902 ; or (2) Entered into any reinsurance transaction with a reinsurer who, with the knowledge of the declaring company, has paid compensation to creditors in violation of § 56-7-902 .
(1) Paid any compensation to creditors in violation of § 56-7-902 ; or
(2) Entered into any reinsurance transaction with a reinsurer who, with the knowledge of the declaring company, has paid compensation to creditors in violation of § 56-7-902 .
(b) In the event a company submits a false declaration as described in subsection (a), the company shall be subject to the sanctions set forth in § 56-8-109 .
Acts 1988, ch. 834, § 1.
Tenn. Code Ann. § 56-12-102 — TN Code / Title 56 / Chapter 12 / Section 56-12-102
Purpose
Status: in_force

The purpose of this part is to provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, and to provide an association to assess the cost of the protection among insurers. Acts 1971, ch. 180, § 2; T.C.A., § 56-4002.
The purpose of this part is to provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, and to provide an association to assess the cost of the protection among insurers.
Acts 1971, ch. 180, § 2; T.C.A., § 56-4002.
Tenn. Code Ann. § 56-14-109 — TN Code / Title 56 / Chapter 14 / Section 56-14-109
Unauthorized insurers
Status: in_force

(a) No surplus lines agent shall place any coverage with a unauthorized insurer that is not an eligible surplus lines insurer as provided under this section. (b) No unauthorized insurer shall be or become an eligible surplus lines insurer, unless: (1) The unauthorized insurer is a United States domiciled insurer and it is authorized to write the type of insurance in its domiciliary jurisdiction and one of the following criteria is met: (A) The unauthorized insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of: (i) The minimum capital and surplus requirements under the law of this state; or (ii) Fifteen million dollars ($15,000,000); or (B) If the unauthorized insurer does not satisfy the requirements of subdivision (b)(1)(A), the commissioner makes an affirmative finding that the unauthorized insurer is acceptable. The commissioner's finding shall be based upon such facts as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. In no event shall the commissioner make an affirmative finding of acceptability when the unauthorized insurer's capital and surplus is less than four million five hundred thousand dollars ($4,500,000); or (2) The unauthorized insurer is not a United States domiciled insurer but is listed by the NAIC International Insurers Department. (c) If, at any time the commissioner has reason to believe that any unauthorized insurer then on the list of eligible surplus lines insurers no longer meets conditions of eligibility, has willfully violated the laws of this state or does not conduct a proper claims practice, the commissioner may declare it ineligible. (d) The commissioner shall promptly mail notice of all declarations made pursuant to subsection (c) to each surplus lines agent at the agent's most recent address that is on record with the commissioner. Acts 1969, ch. 270, § 9; T.C.A., § 56-3809; Acts 2011, ch. 446, § 1.
(a) No surplus lines agent shall place any coverage with a unauthorized insurer that is not an eligible surplus lines insurer as provided under this section.
(b) No unauthorized insurer shall be or become an eligible surplus lines insurer, unless: (1) The unauthorized insurer is a United States domiciled insurer and it is authorized to write the type of insurance in its domiciliary jurisdiction and one of the following criteria is met: (A) The unauthorized insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of: (i) The minimum capital and surplus requirements under the law of this state; or (ii) Fifteen million dollars ($15,000,000); or (B) If the unauthorized insurer does not satisfy the requirements of subdivision (b)(1)(A), the commissioner makes an affirmative finding that the unauthorized insurer is acceptable. The commissioner's finding shall be based upon such facts as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. In no event shall the commissioner make an affirmative finding of acceptability when the unauthorized insurer's capital and surplus is less than four million five hundred thousand dollars ($4,500,000); or (2) The unauthorized insurer is not a United States domiciled insurer but is listed by the NAIC International Insurers Department.
(1) The unauthorized insurer is a United States domiciled insurer and it is authorized to write the type of insurance in its domiciliary jurisdiction and one of the following criteria is met: (A) The unauthorized insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of: (i) The minimum capital and surplus requirements under the law of this state; or (ii) Fifteen million dollars ($15,000,000); or (B) If the unauthorized insurer does not satisfy the requirements of subdivision (b)(1)(A), the commissioner makes an affirmative finding that the unauthorized insurer is acceptable. The commissioner's finding shall be based upon such facts as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. In no event shall the commissioner make an affirmative finding of acceptability when the unauthorized insurer's capital and surplus is less than four million five hundred thousand dollars ($4,500,000); or
(A) The unauthorized insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of: (i) The minimum capital and surplus requirements under the law of this state; or (ii) Fifteen million dollars ($15,000,000); or
(i) The minimum capital and surplus requirements under the law of this state; or
(ii) Fifteen million dollars ($15,000,000); or
(B) If the unauthorized insurer does not satisfy the requirements of subdivision (b)(1)(A), the commissioner makes an affirmative finding that the unauthorized insurer is acceptable. The commissioner's finding shall be based upon such facts as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. In no event shall the commissioner make an affirmative finding of acceptability when the unauthorized insurer's capital and surplus is less than four million five hundred thousand dollars ($4,500,000); or
(2) The unauthorized insurer is not a United States domiciled insurer but is listed by the NAIC International Insurers Department.
(c) If, at any time the commissioner has reason to believe that any unauthorized insurer then on the list of eligible surplus lines insurers no longer meets conditions of eligibility, has willfully violated the laws of this state or does not conduct a proper claims practice, the commissioner may declare it ineligible.
(d) The commissioner shall promptly mail notice of all declarations made pursuant to subsection (c) to each surplus lines agent at the agent's most recent address that is on record with the commissioner.
Acts 1969, ch. 270, § 9; T.C.A., § 56-3809; Acts 2011, ch. 446, § 1.
Tenn. Code Ann. § 56-13-116 — TN Code / Title 56 / Chapter 13 / Section 56-13-116
Applicable provisions
Status: in_force

No provisions of this title, other than those contained in this chapter or expressly provided in this chapter, shall apply to captive insurance companies. Risk retention groups shall have the privileges and be subject to chapter 45 of this title in addition to the applicable provisions of this chapter. Section 56-2-801 applies to this chapter. Amended by 2015 Tenn. Acts, ch. 156,s 12, eff. 4/17/2015. Acts 2011, ch. 468, § 1.
No provisions of this title, other than those contained in this chapter or expressly provided in this chapter, shall apply to captive insurance companies. Risk retention groups shall have the privileges and be subject to chapter 45 of this title in addition to the applicable provisions of this chapter. Section 56-2-801 applies to this chapter.
Amended by 2015 Tenn. Acts, ch. 156,s 12, eff. 4/17/2015.
Acts 2011, ch. 468, § 1.
Tenn. Code Ann. § 56-4-306 — TN Code / Title 56 / Chapter 4 / Section 56-4-306
Allocation - Companies doing business outside state
Status: in_force

The portion of the gross profits or income of the investment company to be allocated to the state where the investment company is engaged in business or operating partly within and partly without the state shall be the proportion of the gross profits or income of the investment company determined by dividing the gross amount received, during the year for which the tax is payable, from members, certificate holders or contract holders of the investment company who reside within the state, by the gross amount received during the year from all the members, certificate holders or contract holders, as the case may be, of the investment company, whether the members, certificate holders or contract holders reside within or without this state. Acts 1939, ch. 187, § 3; C. Supp. 1950, § 1248.35 (Williams, § 1248.162); T.C.A. (orig. ed.), §§ 67-4405, 67-4-1206.
The portion of the gross profits or income of the investment company to be allocated to the state where the investment company is engaged in business or operating partly within and partly without the state shall be the proportion of the gross profits or income of the investment company determined by dividing the gross amount received, during the year for which the tax is payable, from members, certificate holders or contract holders of the investment company who reside within the state, by the gross amount received during the year from all the members, certificate holders or contract holders, as the case may be, of the investment company, whether the members, certificate holders or contract holders reside within or without this state.
Acts 1939, ch. 187, § 3; C. Supp. 1950, § 1248.35 (Williams, § 1248.162); T.C.A. (orig. ed.), §§ 67-4405, 67-4-1206.
Tenn. Code Ann. § 56-13-302 — TN Code / Title 56 / Chapter 13 / Section 56-13-302
Part definitions
Status: in_force

As used in this part, unless the context requires otherwise: (1) "Alien captive insurance company" means any insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of an alien jurisdiction which imposes statutory or regulatory standards in a form acceptable to the commissioner on companies transacting the business of insurance in such jurisdiction; (2) "Branch business" means any insurance business transacted by a branch captive insurance company in this state; (3) "Branch captive insurance company" means any alien captive insurance company licensed by the commissioner to transact the business of insurance in this state through a business unit with a principal place of business in this state. A branch captive insurance company is a pure captive insurance company with respect to operations in this state, unless otherwise permitted by the commissioner; and (4) "Branch operations" means any business operations of a branch captive insurance company in this state. Acts 2011, ch. 468, § 1.
As used in this part, unless the context requires otherwise:
(1) "Alien captive insurance company" means any insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of an alien jurisdiction which imposes statutory or regulatory standards in a form acceptable to the commissioner on companies transacting the business of insurance in such jurisdiction;
(2) "Branch business" means any insurance business transacted by a branch captive insurance company in this state;
(3) "Branch captive insurance company" means any alien captive insurance company licensed by the commissioner to transact the business of insurance in this state through a business unit with a principal place of business in this state. A branch captive insurance company is a pure captive insurance company with respect to operations in this state, unless otherwise permitted by the commissioner; and
(4) "Branch operations" means any business operations of a branch captive insurance company in this state.
Acts 2011, ch. 468, § 1.
Tenn. Code Ann. § 56-47-101 — TN Code / Title 56 / Chapter 47 / Section 56-47-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Workers' Compensation Fraud Act." Acts 1996, ch. 944, § 48.
This chapter shall be known and may be cited as the "Workers' Compensation Fraud Act."
Acts 1996, ch. 944, § 48.
Tenn. Code Ann. § 56-2-605 — TN Code / Title 56 / Chapter 2 / Section 56-2-605
Time allowed before judgment
Status: in_force

No plaintiff or complainant shall be entitled to a judgment by default, or a judgment with leave to prove damages, or a judgment pro confesso under §§ 56-2-602 - 56-2-604, this section and § 56-2-606 until the expiration of thirty (30) days from the date of the filing of the affidavit of compliance. Acts 1955, ch. 2, § 2; T.C.A., §§ 56-331, 56-250.
No plaintiff or complainant shall be entitled to a judgment by default, or a judgment with leave to prove damages, or a judgment pro confesso under §§ 56-2-602 - 56-2-604, this section and § 56-2-606 until the expiration of thirty (30) days from the date of the filing of the affidavit of compliance.
Acts 1955, ch. 2, § 2; T.C.A., §§ 56-331, 56-250.
Tenn. Code Ann. § 56-7-2005 — TN Code / Title 56 / Chapter 7 / Section 56-7-2005
Presumption that operating entity satisfies requirements regarding health care sharing ministries
Status: in_force

Operation consistent with the standards described in § 56-7-2003 shall create a presumption that the operating entity satisfies the requirements of 26 U.S.C. § 5000A(d)(2)(B)(ii) . Acts 2012, ch. 1089, § 2.
Operation consistent with the standards described in § 56-7-2003 shall create a presumption that the operating entity satisfies the requirements of 26 U.S.C. § 5000A(d)(2)(B)(ii) .
Acts 2012, ch. 1089, § 2.
Tenn. Code Ann. § 56-28-115 — TN Code / Title 56 / Chapter 28 / Section 56-28-115
Publication of regulations regulating subscribers' contracts
Status: in_force

The commissioner is authorized to publish regulations that will have the effect of statute, regulating the form of subscribers' contracts and required and prohibited provisions in the contracts. Acts 1945, ch. 98, § 6; C. Supp. 1950, § 4186.6; T.C.A. (orig. ed.), § 56-3015.
The commissioner is authorized to publish regulations that will have the effect of statute, regulating the form of subscribers' contracts and required and prohibited provisions in the contracts.
Acts 1945, ch. 98, § 6; C. Supp. 1950, § 4186.6; T.C.A. (orig. ed.), § 56-3015.
Tenn. Code Ann. § 56-7-2357 — TN Code / Title 56 / Chapter 7 / Section 56-7-2357
Section definitions - Health insurance issuer limitations - Actions not prohibited
Status: in_force

(a) As used in this section: (1) "Managed health insurance issuer" has the same meaning as defined in § 56-32-128(a) ; and (2) "Medical laboratory" has the same meaning as defined in § 68-29-103 . (b) A health insurance issuer or a managed health insurance issuer shall not: (1) Deny a licensed medical laboratory the right to participate as a participating provider in a policy, contract, or plan on the same terms and conditions as are offered to another medical laboratory under the policy, contract, or plan; provided, that this subdivision (b)(1) does not prohibit a managed health insurance issuer or health insurance issuer from establishing rates or fees that may be higher in nonurban areas, or in specific instances where a managed health insurance issuer or health insurance issuer determines it necessary to contract with a particular provider in order to meet network adequacy standards or patient care needs; and (2) Prevent a person who is a party to or beneficiary of a policy, contract, or plan from selecting a licensed medical laboratory of the person's choice to furnish the medical laboratory services offered under the contract, policy, or plan; provided, that the medical laboratory is a participating provider under the same terms and conditions of the contract, policy, or plan as those offered to another medical laboratory. (c) Each health insurance issuer or managed health insurance issuer shall apply the same coinsurance, co-payment, deductible, and quantity limit factors within the same employee group and other plan-sponsored groups to all medical laboratory services provided by a licensed medical laboratory; provided, that all medical laboratories comply with the same terms and conditions. (d) This section does not prohibit: (1) A health insurance issuer or managed health insurance issuer from applying different coinsurance, co-payment, and deductible factors within the same employer group and other plan-sponsored groups; or (2) An employer or other plan-sponsored group from offering multiple options or choices of health insurance benefit plans, including, but not limited to, cafeteria benefit plans.
(a) As used in this section: (1) "Managed health insurance issuer" has the same meaning as defined in § 56-32-128(a) ; and (2) "Medical laboratory" has the same meaning as defined in § 68-29-103 .
(1) "Managed health insurance issuer" has the same meaning as defined in § 56-32-128(a) ; and
(2) "Medical laboratory" has the same meaning as defined in § 68-29-103 .
(b) A health insurance issuer or a managed health insurance issuer shall not: (1) Deny a licensed medical laboratory the right to participate as a participating provider in a policy, contract, or plan on the same terms and conditions as are offered to another medical laboratory under the policy, contract, or plan; provided, that this subdivision (b)(1) does not prohibit a managed health insurance issuer or health insurance issuer from establishing rates or fees that may be higher in nonurban areas, or in specific instances where a managed health insurance issuer or health insurance issuer determines it necessary to contract with a particular provider in order to meet network adequacy standards or patient care needs; and (2) Prevent a person who is a party to or beneficiary of a policy, contract, or plan from selecting a licensed medical laboratory of the person's choice to furnish the medical laboratory services offered under the contract, policy, or plan; provided, that the medical laboratory is a participating provider under the same terms and conditions of the contract, policy, or plan as those offered to another medical laboratory.
(1) Deny a licensed medical laboratory the right to participate as a participating provider in a policy, contract, or plan on the same terms and conditions as are offered to another medical laboratory under the policy, contract, or plan; provided, that this subdivision (b)(1) does not prohibit a managed health insurance issuer or health insurance issuer from establishing rates or fees that may be higher in nonurban areas, or in specific instances where a managed health insurance issuer or health insurance issuer determines it necessary to contract with a particular provider in order to meet network adequacy standards or patient care needs; and
(2) Prevent a person who is a party to or beneficiary of a policy, contract, or plan from selecting a licensed medical laboratory of the person's choice to furnish the medical laboratory services offered under the contract, policy, or plan; provided, that the medical laboratory is a participating provider under the same terms and conditions of the contract, policy, or plan as those offered to another medical laboratory.
(c) Each health insurance issuer or managed health insurance issuer shall apply the same coinsurance, co-payment, deductible, and quantity limit factors within the same employee group and other plan-sponsored groups to all medical laboratory services provided by a licensed medical laboratory; provided, that all medical laboratories comply with the same terms and conditions.
(d) This section does not prohibit: (1) A health insurance issuer or managed health insurance issuer from applying different coinsurance, co-payment, and deductible factors within the same employer group and other plan-sponsored groups; or (2) An employer or other plan-sponsored group from offering multiple options or choices of health insurance benefit plans, including, but not limited to, cafeteria benefit plans.
(1) A health insurance issuer or managed health insurance issuer from applying different coinsurance, co-payment, and deductible factors within the same employer group and other plan-sponsored groups; or
(2) An employer or other plan-sponsored group from offering multiple options or choices of health insurance benefit plans, including, but not limited to, cafeteria benefit plans.
Tenn. Code Ann. § 56-10-303 — TN Code / Title 56 / Chapter 10 / Section 56-10-303
Non-renewals, cancellations or revisions
Status: in_force

(a) (1) No non-renewals, cancellations or revisions of ceded reinsurance agreements need be reported pursuant to § 56-10-301 if the non-renewals, cancellations or revisions are not material. For purposes of this part, a material non-renewal, cancellation or revision is one that affects: (A) As respects property and casualty business, including accident and health business written by a property and casualty insurer: (i) More than fifty percent (50%) of the insurer's total ceded written premium; or (ii) More than fifty percent (50%) of the insurer's total ceded indemnity and loss adjustment reserves. (B) As respects life, annuity, and accident and health business: more than fifty percent (50%) of the total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement; and (C) As respects either property and casualty or life, annuity, and accident and health business, either of the following events shall constitute a material revision which must be reported: (i) An authorized reinsurer representing more than ten percent (10%) of a total cession is replaced by one (1) or more unauthorized reinsurers; or (ii) Previously established collateral requirements have been reduced or waived as respects one (1) or more unauthorized reinsurers representing collectively more than ten percent (10%) of a total cession. (2) However, no filing shall be required if: (A) As respects property and casualty business, including accident and health business written by a property and casualty insurer: the insurer's total ceded written premium represents, on an annualized basis, less than ten percent (10%) of its total written premium for direct and assumed business; or (B) As respects life, annuity, and accident and health business: the total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent (10%) of the statutory reserve requirement prior to any cession. (b) (1) The following information is required to be disclosed in any report of a material non-renewal, cancellation or revision of ceded reinsurance agreements: (A) Effective date of the non-renewal, cancellation or revision; (B) The description of the transaction with an identification of the initiator thereof; (C) Purpose of, or reason for, the transaction; and (D) If applicable, the identity of the replacement reinsurers. (2) Insurers are required to report all material non-renewals, cancellations or revisions of ceded reinsurance agreements on a non-consolidated basis unless the insurer is part of a consolidated group of insurers that utilizes a pooling arrangement or one hundred percent (100%) reinsurance agreement that affects the solvency and integrity of the insurer's reserves, and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars ($1,000,000) total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement, and the net income of the business not subject to the pooling arrangement represents less than five percent (5%) of the insurer's capital and surplus. Acts 1995, ch. 363, § 5.
(a) (1) No non-renewals, cancellations or revisions of ceded reinsurance agreements need be reported pursuant to § 56-10-301 if the non-renewals, cancellations or revisions are not material. For purposes of this part, a material non-renewal, cancellation or revision is one that affects: (A) As respects property and casualty business, including accident and health business written by a property and casualty insurer: (i) More than fifty percent (50%) of the insurer's total ceded written premium; or (ii) More than fifty percent (50%) of the insurer's total ceded indemnity and loss adjustment reserves. (B) As respects life, annuity, and accident and health business: more than fifty percent (50%) of the total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement; and (C) As respects either property and casualty or life, annuity, and accident and health business, either of the following events shall constitute a material revision which must be reported: (i) An authorized reinsurer representing more than ten percent (10%) of a total cession is replaced by one (1) or more unauthorized reinsurers; or (ii) Previously established collateral requirements have been reduced or waived as respects one (1) or more unauthorized reinsurers representing collectively more than ten percent (10%) of a total cession. (2) However, no filing shall be required if: (A) As respects property and casualty business, including accident and health business written by a property and casualty insurer: the insurer's total ceded written premium represents, on an annualized basis, less than ten percent (10%) of its total written premium for direct and assumed business; or (B) As respects life, annuity, and accident and health business: the total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent (10%) of the statutory reserve requirement prior to any cession.
(1) No non-renewals, cancellations or revisions of ceded reinsurance agreements need be reported pursuant to § 56-10-301 if the non-renewals, cancellations or revisions are not material. For purposes of this part, a material non-renewal, cancellation or revision is one that affects: (A) As respects property and casualty business, including accident and health business written by a property and casualty insurer: (i) More than fifty percent (50%) of the insurer's total ceded written premium; or (ii) More than fifty percent (50%) of the insurer's total ceded indemnity and loss adjustment reserves. (B) As respects life, annuity, and accident and health business: more than fifty percent (50%) of the total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement; and (C) As respects either property and casualty or life, annuity, and accident and health business, either of the following events shall constitute a material revision which must be reported: (i) An authorized reinsurer representing more than ten percent (10%) of a total cession is replaced by one (1) or more unauthorized reinsurers; or (ii) Previously established collateral requirements have been reduced or waived as respects one (1) or more unauthorized reinsurers representing collectively more than ten percent (10%) of a total cession.
(A) As respects property and casualty business, including accident and health business written by a property and casualty insurer: (i) More than fifty percent (50%) of the insurer's total ceded written premium; or (ii) More than fifty percent (50%) of the insurer's total ceded indemnity and loss adjustment reserves.
(i) More than fifty percent (50%) of the insurer's total ceded written premium; or
(ii) More than fifty percent (50%) of the insurer's total ceded indemnity and loss adjustment reserves.
(B) As respects life, annuity, and accident and health business: more than fifty percent (50%) of the total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement; and
(C) As respects either property and casualty or life, annuity, and accident and health business, either of the following events shall constitute a material revision which must be reported: (i) An authorized reinsurer representing more than ten percent (10%) of a total cession is replaced by one (1) or more unauthorized reinsurers; or (ii) Previously established collateral requirements have been reduced or waived as respects one (1) or more unauthorized reinsurers representing collectively more than ten percent (10%) of a total cession.
(i) An authorized reinsurer representing more than ten percent (10%) of a total cession is replaced by one (1) or more unauthorized reinsurers; or
(ii) Previously established collateral requirements have been reduced or waived as respects one (1) or more unauthorized reinsurers representing collectively more than ten percent (10%) of a total cession.
(2) However, no filing shall be required if: (A) As respects property and casualty business, including accident and health business written by a property and casualty insurer: the insurer's total ceded written premium represents, on an annualized basis, less than ten percent (10%) of its total written premium for direct and assumed business; or (B) As respects life, annuity, and accident and health business: the total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent (10%) of the statutory reserve requirement prior to any cession.
(A) As respects property and casualty business, including accident and health business written by a property and casualty insurer: the insurer's total ceded written premium represents, on an annualized basis, less than ten percent (10%) of its total written premium for direct and assumed business; or
(B) As respects life, annuity, and accident and health business: the total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent (10%) of the statutory reserve requirement prior to any cession.
(b) (1) The following information is required to be disclosed in any report of a material non-renewal, cancellation or revision of ceded reinsurance agreements: (A) Effective date of the non-renewal, cancellation or revision; (B) The description of the transaction with an identification of the initiator thereof; (C) Purpose of, or reason for, the transaction; and (D) If applicable, the identity of the replacement reinsurers. (2) Insurers are required to report all material non-renewals, cancellations or revisions of ceded reinsurance agreements on a non-consolidated basis unless the insurer is part of a consolidated group of insurers that utilizes a pooling arrangement or one hundred percent (100%) reinsurance agreement that affects the solvency and integrity of the insurer's reserves, and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars ($1,000,000) total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement, and the net income of the business not subject to the pooling arrangement represents less than five percent (5%) of the insurer's capital and surplus.
(1) The following information is required to be disclosed in any report of a material non-renewal, cancellation or revision of ceded reinsurance agreements: (A) Effective date of the non-renewal, cancellation or revision; (B) The description of the transaction with an identification of the initiator thereof; (C) Purpose of, or reason for, the transaction; and (D) If applicable, the identity of the replacement reinsurers.
(A) Effective date of the non-renewal, cancellation or revision;
(B) The description of the transaction with an identification of the initiator thereof;
(C) Purpose of, or reason for, the transaction; and
(D) If applicable, the identity of the replacement reinsurers.
(2) Insurers are required to report all material non-renewals, cancellations or revisions of ceded reinsurance agreements on a non-consolidated basis unless the insurer is part of a consolidated group of insurers that utilizes a pooling arrangement or one hundred percent (100%) reinsurance agreement that affects the solvency and integrity of the insurer's reserves, and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars ($1,000,000) total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement, and the net income of the business not subject to the pooling arrangement represents less than five percent (5%) of the insurer's capital and surplus.
Acts 1995, ch. 363, § 5.
Tenn. Code Ann. § 56-9-201 — TN Code / Title 56 / Chapter 9 / Section 56-9-201
Grounds for filing by commissioner - Court order
Status: in_force

(a) The commissioner may file in the chancery court of Davidson County a petition alleging, with respect to a domestic insurer: (1) That there exists any grounds that would justify a court order for a formal delinquency proceeding against an insurer under this part; (2) That the interests of policyholders, creditors or the public will be endangered by delay; and (3) The contents of an order deemed necessary by the commissioner. (b) Upon a filing under subsection (a), the court may issue forthwith, ex parte and without a hearing, the requested order, which shall direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents and other records of an insurer, and of the premises occupied by it for transaction of its business; and, until further order of the court, enjoin the insurer and its officers, managers, agents and employees from disposition of its property and from the transaction of its business except with the written consent of the commissioner. (c) The court shall specify in the order what its duration shall be, which shall be the time as the court deems necessary for the commissioner to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may from time to time hold hearings as it deems desirable after notice as it deems appropriate, and may extend, shorten or modify the terms of the seizure order. The court shall vacate the seizure order if the commissioner fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this chapter shall ipso facto vacate the seizure order. (d) Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the insurer. (e) An insurer subject to an ex parte order under this section may petition the court at any time after the issuance of the order for a hearing and review of the order. The court shall hold such a hearing and review not more than fifteen (15) days after the request. A hearing under this subsection (e) may be held privately in chambers, and it shall be so held if the insurer proceeded against so requests. (f) If, at any time after the issuance of such an order, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued by the court. Acts 1991, ch. 142, § 4.
(a) The commissioner may file in the chancery court of Davidson County a petition alleging, with respect to a domestic insurer: (1) That there exists any grounds that would justify a court order for a formal delinquency proceeding against an insurer under this part; (2) That the interests of policyholders, creditors or the public will be endangered by delay; and (3) The contents of an order deemed necessary by the commissioner.
(1) That there exists any grounds that would justify a court order for a formal delinquency proceeding against an insurer under this part;
(2) That the interests of policyholders, creditors or the public will be endangered by delay; and
(3) The contents of an order deemed necessary by the commissioner.
(b) Upon a filing under subsection (a), the court may issue forthwith, ex parte and without a hearing, the requested order, which shall direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents and other records of an insurer, and of the premises occupied by it for transaction of its business; and, until further order of the court, enjoin the insurer and its officers, managers, agents and employees from disposition of its property and from the transaction of its business except with the written consent of the commissioner.
(c) The court shall specify in the order what its duration shall be, which shall be the time as the court deems necessary for the commissioner to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may from time to time hold hearings as it deems desirable after notice as it deems appropriate, and may extend, shorten or modify the terms of the seizure order. The court shall vacate the seizure order if the commissioner fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this chapter shall ipso facto vacate the seizure order.
(d) Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the insurer.
(e) An insurer subject to an ex parte order under this section may petition the court at any time after the issuance of the order for a hearing and review of the order. The court shall hold such a hearing and review not more than fifteen (15) days after the request. A hearing under this subsection (e) may be held privately in chambers, and it shall be so held if the insurer proceeded against so requests.
(f) If, at any time after the issuance of such an order, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued by the court.
Acts 1991, ch. 142, § 4.
Tenn. Code Ann. § 56-60-109 — TN Code / Title 56 / Chapter 60 / Section 56-60-109
Unfair insurance practice - Complaints for violations
Status: in_force

(a) It is an unfair insurance practice for the purposes of the Tennessee Unfair Trade Practices and Unfair Claims Settlement Act of 2009, compiled in chapter 8, part 1 of this title, to knowingly access a provider's services or exercise a provider's contractual discounts pursuant to a provider network contract if the access or exercise is not pursuant to a contractual relationship with the provider or with a contracting entity or third party who has a contractual relationship with the provider as specified in this chapter. (b) (1) To effectuate the purposes of this section, the department shall develop a complaint form for providers or others to submit alleging violations of this chapter. (2) Information provided in good faith to the department shall not make the provider or other individual or entity providing the information liable for civil damages as a result of providing the information. Acts 2009, ch. 466, § 10.
(a) It is an unfair insurance practice for the purposes of the Tennessee Unfair Trade Practices and Unfair Claims Settlement Act of 2009, compiled in chapter 8, part 1 of this title, to knowingly access a provider's services or exercise a provider's contractual discounts pursuant to a provider network contract if the access or exercise is not pursuant to a contractual relationship with the provider or with a contracting entity or third party who has a contractual relationship with the provider as specified in this chapter.
(b) (1) To effectuate the purposes of this section, the department shall develop a complaint form for providers or others to submit alleging violations of this chapter. (2) Information provided in good faith to the department shall not make the provider or other individual or entity providing the information liable for civil damages as a result of providing the information.
(1) To effectuate the purposes of this section, the department shall develop a complaint form for providers or others to submit alleging violations of this chapter.
(2) Information provided in good faith to the department shall not make the provider or other individual or entity providing the information liable for civil damages as a result of providing the information.
Acts 2009, ch. 466, § 10.
Tenn. Code Ann. § 56-4-201 — TN Code / Title 56 / Chapter 4 / Section 56-4-201
Companies subject to tax - "Insurance company" defined
Status: in_force

(a) Every domestic or foreign insurance company writing life, fire, marine, fidelity, surety, casualty, liability, or other forms of insurance shall pay directly to the commissioner the taxes as provided for in this part. (b) As used in this part, "insurance company" means any insurance, fidelity or surety company, including any corporation, company, partnership, association, society, order, fraternal or otherwise, individual or aggregation of individuals engaging in, or proposing or attempting to engage in, any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships and corporations. Acts 1945, ch. 3, § 1; C. Supp. 1950, § 1248.41 (Williams, § 1248.169); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed), § 56-405.
(a) Every domestic or foreign insurance company writing life, fire, marine, fidelity, surety, casualty, liability, or other forms of insurance shall pay directly to the commissioner the taxes as provided for in this part.
(b) As used in this part, "insurance company" means any insurance, fidelity or surety company, including any corporation, company, partnership, association, society, order, fraternal or otherwise, individual or aggregation of individuals engaging in, or proposing or attempting to engage in, any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships and corporations.
Acts 1945, ch. 3, § 1; C. Supp. 1950, § 1248.41 (Williams, § 1248.169); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed), § 56-405.
Tenn. Code Ann. § 56-1-916 — TN Code / Title 56 / Chapter 1 / Section 56-1-916
Experience reporting for policies in force on or after the operative date of the valuation manual
Status: in_force

A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual. Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
Tenn. Code Ann. § 56-6-1207 — TN Code / Title 56 / Chapter 6 / Section 56-6-1207
Licensure
Status: in_force

(a) A sworn application for a license under this part shall be made to and filed with the commissioner on forms prescribed and furnished by the department. (b) The application shall: (1) Provide the name, residence address and other information required by the department for an individual that is designated by the applicant as the individual responsible for the owner's compliance with this part and the name of the principal, officer, employee, or representative who holds a current producer license in this state; and (2) Provide the location of the applicant's home office. (c) Initial licenses issued pursuant to this part shall be valid for a period of twenty-four (24) months and expire biennially on March 1 of the renewal year assigned by the commissioner. (d) (1) Except as provided in subdivision (d)(2), each owner licensed under this part shall pay to the commissioner a fee as prescribed by the commissioner, but in no event shall the fee exceed one thousand dollars ($1,000) for an initial self-service storage limited lines license and five hundred dollars ($500) for each renewal. (2) The fee prescribed for an owner that is engaged in self-service storage transactions at ten (10) or fewer locations in this state shall not exceed one hundred dollars ($100) for an initial license and for each renewal. Added by 2013 Tenn. Acts, ch. 293,s 8, eff. 7/1/2013.
(a) A sworn application for a license under this part shall be made to and filed with the commissioner on forms prescribed and furnished by the department.
(b) The application shall: (1) Provide the name, residence address and other information required by the department for an individual that is designated by the applicant as the individual responsible for the owner's compliance with this part and the name of the principal, officer, employee, or representative who holds a current producer license in this state; and (2) Provide the location of the applicant's home office.
(1) Provide the name, residence address and other information required by the department for an individual that is designated by the applicant as the individual responsible for the owner's compliance with this part and the name of the principal, officer, employee, or representative who holds a current producer license in this state; and
(2) Provide the location of the applicant's home office.
(c) Initial licenses issued pursuant to this part shall be valid for a period of twenty-four (24) months and expire biennially on March 1 of the renewal year assigned by the commissioner.
(d) (1) Except as provided in subdivision (d)(2), each owner licensed under this part shall pay to the commissioner a fee as prescribed by the commissioner, but in no event shall the fee exceed one thousand dollars ($1,000) for an initial self-service storage limited lines license and five hundred dollars ($500) for each renewal. (2) The fee prescribed for an owner that is engaged in self-service storage transactions at ten (10) or fewer locations in this state shall not exceed one hundred dollars ($100) for an initial license and for each renewal.
(1) Except as provided in subdivision (d)(2), each owner licensed under this part shall pay to the commissioner a fee as prescribed by the commissioner, but in no event shall the fee exceed one thousand dollars ($1,000) for an initial self-service storage limited lines license and five hundred dollars ($500) for each renewal.
(2) The fee prescribed for an owner that is engaged in self-service storage transactions at ten (10) or fewer locations in this state shall not exceed one hundred dollars ($100) for an initial license and for each renewal.
Added by 2013 Tenn. Acts, ch. 293,s 8, eff. 7/1/2013.
Tenn. Code Ann. § 56-2-305 — TN Code / Title 56 / Chapter 2 / Section 56-2-305
Violations - Commissioner's orders - Penalties
Status: in_force

(a) If, after providing notice consistent with the process established by § 4-5-320(c) and providing the opportunity for a contested case hearing held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3, the commissioner finds that any insurer, person, or entity required to be licensed, permitted, or authorized by the division of insurance has violated any statute, rule or order, the commissioner may, at the commissioner's discretion, order: (1) The insurer, person, or entity to cease and desist from engaging in the act or practice giving rise to the violation; (2) Payment of a monetary penalty of not more than one thousand dollars ($1,000) for each violation, but not to exceed an aggregate penalty of one hundred thousand dollars ($100,000), unless the insurer, person, or entity knowingly violates a statute, rule or order, in which case the penalty shall not be more than twenty-five thousand dollars ($25,000) for each violation, not to exceed an aggregate penalty of two hundred fifty thousand dollars ($250,000). This subdivision (a)(2) shall not apply where a statute or rule specifically provides for other civil penalties for the violation. For purposes of this subdivision (a)(2), each day of continued violation shall constitute a separate violation; and (3) The suspension or revocation of the insurer's, person's, or entity's license. (b) In determining the amount of penalty to assess under this section, or in determining whether the violation was a knowing violation for the purpose of subdivision (a)(2), the commissioner shall consider any evidence relative to the following criteria: (1) Whether the insurer, person or entity could reasonably have interpreted its actions to be in compliance with the obligations required by a statute, rule or order; (2) Whether the amount imposed will be a substantial economic deterrent to the violator; (3) Whether the amount imposed would put the violator in a hazardous financial condition; (4) The circumstances leading to the violation; (5) The severity of the violation and the risk of harm to the public; (6) The economic benefits gained by the violator as a result of noncompliance; (7) The interest of the public; and (8) The insurer's, person's, or entity's efforts to cure the violation. (c) Notwithstanding the limitations set forth in subdivision (a)(2), no aggregate penalty limits shall apply to the following: (1) Failure to file audited statements required pursuant to § 56-1-501(h) and rules promulgated under § 56-1-501(h) ; (2) Failure to file quarterly financial statements as required by statute or regulation; (3) Failure to file actuarial opinions pursuant to § 56-1-501(d) and rules promulgated under § 56-1-501(d) ; (4) Failure to file annual reports pursuant to §§ 56-19-119 , 56-28-111 , 56-29-113 , 56-30-117 , 56-31-116 , 56-43-108 , and 56-44-104 ; (5) Failure to file a risk-based capital report pursuant to § 56-46-103 ; and (6) Violations of orders issued after a contested case hearing held in accordance with the Uniform Administrative Procedures and pursuant to subdivision (a)(1). (d) This section does not apply to individual or business entity insurance producers licensed pursuant to chapter 6, part 1 of this title. (e) (1) Notwithstanding any law to the contrary, civil penalties received under the authority of this section shall be utilized by the department, at the discretion of the commissioner, to: (A) Defray its expenses related to the liquidation of insurance companies as provided by chapter 9 of this title; (B) Promote consumer awareness of insurance; or (C) Provide training or educational opportunities to employees of the division of insurance. (2) Any subaccount currently used by the department for training and education may also be used for the promotion of consumer awareness. (f) (1) If, at any time following the certification of the vehicle insurance verification program under § 55-12-212 , the commissioner of commerce and insurance finds that an automobile liability insurer, as defined in § 55-12-203 , has intentionally violated § 56-7-1118 , then the commissioner may, after providing the opportunity for a contested case hearing held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, assess a civil penalty against the automobile liability insurer of up to two hundred fifty dollars ($250) for each day the insurer fails to comply with § 56-7-1118 . The commissioner may excuse or reduce the civil penalty under this subdivision (f)(1) for good cause. (2) Until the certification of the program occurs, the commissioner shall not assess any civil penalty or convene a contested case hearing for an alleged violation of § 56-7-1118 by an automobile liability insurer. Amended by 2015 Tenn. Acts, ch. 511,s 8, eff. 1/1/2016. Acts 2007, ch. 338, § 1.
(a) If, after providing notice consistent with the process established by § 4-5-320(c) and providing the opportunity for a contested case hearing held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3, the commissioner finds that any insurer, person, or entity required to be licensed, permitted, or authorized by the division of insurance has violated any statute, rule or order, the commissioner may, at the commissioner's discretion, order: (1) The insurer, person, or entity to cease and desist from engaging in the act or practice giving rise to the violation; (2) Payment of a monetary penalty of not more than one thousand dollars ($1,000) for each violation, but not to exceed an aggregate penalty of one hundred thousand dollars ($100,000), unless the insurer, person, or entity knowingly violates a statute, rule or order, in which case the penalty shall not be more than twenty-five thousand dollars ($25,000) for each violation, not to exceed an aggregate penalty of two hundred fifty thousand dollars ($250,000). This subdivision (a)(2) shall not apply where a statute or rule specifically provides for other civil penalties for the violation. For purposes of this subdivision (a)(2), each day of continued violation shall constitute a separate violation; and (3) The suspension or revocation of the insurer's, person's, or entity's license.
(1) The insurer, person, or entity to cease and desist from engaging in the act or practice giving rise to the violation;
(2) Payment of a monetary penalty of not more than one thousand dollars ($1,000) for each violation, but not to exceed an aggregate penalty of one hundred thousand dollars ($100,000), unless the insurer, person, or entity knowingly violates a statute, rule or order, in which case the penalty shall not be more than twenty-five thousand dollars ($25,000) for each violation, not to exceed an aggregate penalty of two hundred fifty thousand dollars ($250,000). This subdivision (a)(2) shall not apply where a statute or rule specifically provides for other civil penalties for the violation. For purposes of this subdivision (a)(2), each day of continued violation shall constitute a separate violation; and
(3) The suspension or revocation of the insurer's, person's, or entity's license.
(b) In determining the amount of penalty to assess under this section, or in determining whether the violation was a knowing violation for the purpose of subdivision (a)(2), the commissioner shall consider any evidence relative to the following criteria: (1) Whether the insurer, person or entity could reasonably have interpreted its actions to be in compliance with the obligations required by a statute, rule or order; (2) Whether the amount imposed will be a substantial economic deterrent to the violator; (3) Whether the amount imposed would put the violator in a hazardous financial condition; (4) The circumstances leading to the violation; (5) The severity of the violation and the risk of harm to the public; (6) The economic benefits gained by the violator as a result of noncompliance; (7) The interest of the public; and (8) The insurer's, person's, or entity's efforts to cure the violation.
(1) Whether the insurer, person or entity could reasonably have interpreted its actions to be in compliance with the obligations required by a statute, rule or order;
(2) Whether the amount imposed will be a substantial economic deterrent to the violator;
(3) Whether the amount imposed would put the violator in a hazardous financial condition;
(4) The circumstances leading to the violation;
(5) The severity of the violation and the risk of harm to the public;
(6) The economic benefits gained by the violator as a result of noncompliance;
(7) The interest of the public; and
(8) The insurer's, person's, or entity's efforts to cure the violation.
(c) Notwithstanding the limitations set forth in subdivision (a)(2), no aggregate penalty limits shall apply to the following: (1) Failure to file audited statements required pursuant to § 56-1-501(h) and rules promulgated under § 56-1-501(h) ; (2) Failure to file quarterly financial statements as required by statute or regulation; (3) Failure to file actuarial opinions pursuant to § 56-1-501(d) and rules promulgated under § 56-1-501(d) ; (4) Failure to file annual reports pursuant to §§ 56-19-119 , 56-28-111 , 56-29-113 , 56-30-117 , 56-31-116 , 56-43-108 , and 56-44-104 ; (5) Failure to file a risk-based capital report pursuant to § 56-46-103 ; and (6) Violations of orders issued after a contested case hearing held in accordance with the Uniform Administrative Procedures and pursuant to subdivision (a)(1).
(1) Failure to file audited statements required pursuant to § 56-1-501(h) and rules promulgated under § 56-1-501(h) ;
(2) Failure to file quarterly financial statements as required by statute or regulation;
(3) Failure to file actuarial opinions pursuant to § 56-1-501(d) and rules promulgated under § 56-1-501(d) ;
(4) Failure to file annual reports pursuant to §§ 56-19-119 , 56-28-111 , 56-29-113 , 56-30-117 , 56-31-116 , 56-43-108 , and 56-44-104 ;
(5) Failure to file a risk-based capital report pursuant to § 56-46-103 ; and
(6) Violations of orders issued after a contested case hearing held in accordance with the Uniform Administrative Procedures and pursuant to subdivision (a)(1).
(d) This section does not apply to individual or business entity insurance producers licensed pursuant to chapter 6, part 1 of this title.
(e) (1) Notwithstanding any law to the contrary, civil penalties received under the authority of this section shall be utilized by the department, at the discretion of the commissioner, to: (A) Defray its expenses related to the liquidation of insurance companies as provided by chapter 9 of this title; (B) Promote consumer awareness of insurance; or (C) Provide training or educational opportunities to employees of the division of insurance. (2) Any subaccount currently used by the department for training and education may also be used for the promotion of consumer awareness.
(1) Notwithstanding any law to the contrary, civil penalties received under the authority of this section shall be utilized by the department, at the discretion of the commissioner, to: (A) Defray its expenses related to the liquidation of insurance companies as provided by chapter 9 of this title; (B) Promote consumer awareness of insurance; or (C) Provide training or educational opportunities to employees of the division of insurance.
(A) Defray its expenses related to the liquidation of insurance companies as provided by chapter 9 of this title;
(B) Promote consumer awareness of insurance; or
(C) Provide training or educational opportunities to employees of the division of insurance.
(2) Any subaccount currently used by the department for training and education may also be used for the promotion of consumer awareness.
(f) (1) If, at any time following the certification of the vehicle insurance verification program under § 55-12-212 , the commissioner of commerce and insurance finds that an automobile liability insurer, as defined in § 55-12-203 , has intentionally violated § 56-7-1118 , then the commissioner may, after providing the opportunity for a contested case hearing held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, assess a civil penalty against the automobile liability insurer of up to two hundred fifty dollars ($250) for each day the insurer fails to comply with § 56-7-1118 . The commissioner may excuse or reduce the civil penalty under this subdivision (f)(1) for good cause. (2) Until the certification of the program occurs, the commissioner shall not assess any civil penalty or convene a contested case hearing for an alleged violation of § 56-7-1118 by an automobile liability insurer.
(1) If, at any time following the certification of the vehicle insurance verification program under § 55-12-212 , the commissioner of commerce and insurance finds that an automobile liability insurer, as defined in § 55-12-203 , has intentionally violated § 56-7-1118 , then the commissioner may, after providing the opportunity for a contested case hearing held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, assess a civil penalty against the automobile liability insurer of up to two hundred fifty dollars ($250) for each day the insurer fails to comply with § 56-7-1118 . The commissioner may excuse or reduce the civil penalty under this subdivision (f)(1) for good cause.
(2) Until the certification of the program occurs, the commissioner shall not assess any civil penalty or convene a contested case hearing for an alleged violation of § 56-7-1118 by an automobile liability insurer.
Amended by 2015 Tenn. Acts, ch. 511,s 8, eff. 1/1/2016.
Acts 2007, ch. 338, § 1.
Tenn. Code Ann. § 56-2-119 — TN Code / Title 56 / Chapter 2 / Section 56-2-119
Insurance company's address to appear on insurance policy
Status: in_force

(a) On every policy of insurance covering risks in this state that is issued after July 1, 1991, by an insurance company doing business in this state, there shall be printed the address of the company's home office, regional office or service center. (b) Failure to include the information required by subsection (a) is a deceptive act or practice, and the procedures and penalties established by chapter 8, part 1 of this title are applicable. Acts 1990, ch. 671, § 1.
(a) On every policy of insurance covering risks in this state that is issued after July 1, 1991, by an insurance company doing business in this state, there shall be printed the address of the company's home office, regional office or service center.
(b) Failure to include the information required by subsection (a) is a deceptive act or practice, and the procedures and penalties established by chapter 8, part 1 of this title are applicable.
Acts 1990, ch. 671, § 1.
Tenn. Code Ann. § 56-1-212 — TN Code / Title 56 / Chapter 1 / Section 56-1-212
Commissioner's authority to regulate - Conversion of health insurance business
Status: in_force

(a) Notwithstanding any provision of this title to the contrary, the commissioner shall have the same authority to regulate and shall apply the same substantive standards to hospital and medical service corporations licensed pursuant to chapter 29 of this title as shall apply to health insurers doing business pursuant to chapter 26, part 1 of this title. (b) (1) Prior to engaging in any transaction or series of transactions the net effect of which shall be to effectuate the conversion by any method, directly or indirectly, of all or substantially all of the health insurance business of the nonprofit hospital and medical service corporation, as measured by annual revenue on a consolidated basis, to a for-profit entity of any kind the equity interest of which is not wholly owned by the corporation or its insureds, the service corporation shall file with the commissioner a written notice of its intention to do so. The commissioner shall, upon receipt of the notice, forward a copy of the notice to the governor and to the speaker of the house of representatives and the speaker of the senate. The service corporation shall take no action to effectuate the completion of the conversion for a period of one (1) year from the date of the filing, or until the end of the next regular session of the general assembly in the year following the year in which the notice is given in the event the one-year period does not include a full, regular legislative session of the general assembly. (2) For the purposes of subdivision (b)(1): (A) "All or substantially all of the health insurance business" shall not include the sale of all or part of the assets of equity interest in a subsidiary company unless the subsidiary company constitutes in excess of seventy-five percent (75%) of the total consolidated annual revenue of the service corporation as reflected on its annual statement for the preceding year; and (B) The transfer of health insurance business of the service corporation shall not be deemed to include the contracting or subcontracting of business or business functions. (c) Notwithstanding any law to the contrary, the board of directors of the service corporation licensed pursuant to chapter 29 of this title, shall meet all of the requirements for boards of directors of nonprofit corporations pursuant to title 48, chapter 58, part 1. To the extent that chapter 29 of this title conflicts with title 48, chapter 58, title 48, chapter 58 shall control. Acts 2003, ch. 96, § 1.
(a) Notwithstanding any provision of this title to the contrary, the commissioner shall have the same authority to regulate and shall apply the same substantive standards to hospital and medical service corporations licensed pursuant to chapter 29 of this title as shall apply to health insurers doing business pursuant to chapter 26, part 1 of this title.
(b) (1) Prior to engaging in any transaction or series of transactions the net effect of which shall be to effectuate the conversion by any method, directly or indirectly, of all or substantially all of the health insurance business of the nonprofit hospital and medical service corporation, as measured by annual revenue on a consolidated basis, to a for-profit entity of any kind the equity interest of which is not wholly owned by the corporation or its insureds, the service corporation shall file with the commissioner a written notice of its intention to do so. The commissioner shall, upon receipt of the notice, forward a copy of the notice to the governor and to the speaker of the house of representatives and the speaker of the senate. The service corporation shall take no action to effectuate the completion of the conversion for a period of one (1) year from the date of the filing, or until the end of the next regular session of the general assembly in the year following the year in which the notice is given in the event the one-year period does not include a full, regular legislative session of the general assembly. (2) For the purposes of subdivision (b)(1): (A) "All or substantially all of the health insurance business" shall not include the sale of all or part of the assets of equity interest in a subsidiary company unless the subsidiary company constitutes in excess of seventy-five percent (75%) of the total consolidated annual revenue of the service corporation as reflected on its annual statement for the preceding year; and (B) The transfer of health insurance business of the service corporation shall not be deemed to include the contracting or subcontracting of business or business functions.
(1) Prior to engaging in any transaction or series of transactions the net effect of which shall be to effectuate the conversion by any method, directly or indirectly, of all or substantially all of the health insurance business of the nonprofit hospital and medical service corporation, as measured by annual revenue on a consolidated basis, to a for-profit entity of any kind the equity interest of which is not wholly owned by the corporation or its insureds, the service corporation shall file with the commissioner a written notice of its intention to do so. The commissioner shall, upon receipt of the notice, forward a copy of the notice to the governor and to the speaker of the house of representatives and the speaker of the senate. The service corporation shall take no action to effectuate the completion of the conversion for a period of one (1) year from the date of the filing, or until the end of the next regular session of the general assembly in the year following the year in which the notice is given in the event the one-year period does not include a full, regular legislative session of the general assembly.
(2) For the purposes of subdivision (b)(1): (A) "All or substantially all of the health insurance business" shall not include the sale of all or part of the assets of equity interest in a subsidiary company unless the subsidiary company constitutes in excess of seventy-five percent (75%) of the total consolidated annual revenue of the service corporation as reflected on its annual statement for the preceding year; and (B) The transfer of health insurance business of the service corporation shall not be deemed to include the contracting or subcontracting of business or business functions.
(A) "All or substantially all of the health insurance business" shall not include the sale of all or part of the assets of equity interest in a subsidiary company unless the subsidiary company constitutes in excess of seventy-five percent (75%) of the total consolidated annual revenue of the service corporation as reflected on its annual statement for the preceding year; and
(B) The transfer of health insurance business of the service corporation shall not be deemed to include the contracting or subcontracting of business or business functions.
(c) Notwithstanding any law to the contrary, the board of directors of the service corporation licensed pursuant to chapter 29 of this title, shall meet all of the requirements for boards of directors of nonprofit corporations pursuant to title 48, chapter 58, part 1. To the extent that chapter 29 of this title conflicts with title 48, chapter 58, title 48, chapter 58 shall control.
Acts 2003, ch. 96, § 1.
Tenn. Code Ann. § 56-46-103 — TN Code / Title 56 / Chapter 46 / Section 56-46-103
RBC Report - Calculation of RBC Levels
Status: in_force

(a) Every domestic insurer shall, on or prior to each March 1 (the "filing date"), prepare and submit to the commissioner a report of its RBC Levels as of the end of the calendar year just ended, in a form and containing the information that is required by the RBC Instructions. In addition, every domestic insurer shall file its RBC Report: (1) With the NAIC in accordance with the RBC Instructions; and (2) With the insurance commissioner in any state in which the insurer is authorized to do business, if the insurance commissioner has notified the insurer of its request in writing, in which case the insurer shall file its RBC Report not later than the later of: (A) Fifteen (15) days from the receipt of notice to file its RBC Report with that state; or (B) The filing date. (b) A life and health insurer's RBC shall be determined in accordance with the formula set forth in the RBC Instructions. The formula shall take into account, and may adjust for the covariance between: (1) The risk with respect to the insurer's assets; (2) The risk of adverse insurance experience with respect to the insurer's liabilities and obligations; (3) The interest rate risk with respect to the insurer's business; and (4) All other business risks and other relevant risks that are set forth in the RBC Instructions, determined in each case by applying the factors in the manner set forth in the RBC Instructions. (c) A property and casualty insurer's RBC shall be determined in accordance with the formula set forth in the RBC Instructions. The formula shall take into account and may adjust for the covariance between: (1) Asset risk; (2) Credit risk; (3) Underwriting risk; and (4) All other business risks and other relevant risks that are set forth in the RBC Instructions; determined in each case by applying the manner set forth in the RBC Instructions. (d) An excess of capital over the amount produced by the risk-based capital requirements contained in this part and the formulas, schedules and instructions referenced in this part is desirable in the business of insurance. Accordingly, insurers should seek to maintain capital above the RBC levels required by this part. Additional capital is used and useful in the insurance business and helps to secure an insurer against various risks inherent in, or affecting, the business of insurance and not accounted for or only partially measured by the risk-based capital requirements contained in this part. (e) If a domestic insurer files an RBC Report that in the judgment of the commissioner is inaccurate, then the commissioner shall adjust the RBC Report to correct the inaccuracy and shall notify the insurer of the adjustment. The notice shall contain a statement of the reason for the adjustment. An RBC Report as so adjusted is referred to as an "Adjusted RBC Report." Amended by 2014 Tenn. Acts, ch. 559,s 2, eff. 3/21/2014. Acts 1996, ch. 750, § 4.
(a) Every domestic insurer shall, on or prior to each March 1 (the "filing date"), prepare and submit to the commissioner a report of its RBC Levels as of the end of the calendar year just ended, in a form and containing the information that is required by the RBC Instructions. In addition, every domestic insurer shall file its RBC Report: (1) With the NAIC in accordance with the RBC Instructions; and (2) With the insurance commissioner in any state in which the insurer is authorized to do business, if the insurance commissioner has notified the insurer of its request in writing, in which case the insurer shall file its RBC Report not later than the later of: (A) Fifteen (15) days from the receipt of notice to file its RBC Report with that state; or (B) The filing date.
(1) With the NAIC in accordance with the RBC Instructions; and
(2) With the insurance commissioner in any state in which the insurer is authorized to do business, if the insurance commissioner has notified the insurer of its request in writing, in which case the insurer shall file its RBC Report not later than the later of: (A) Fifteen (15) days from the receipt of notice to file its RBC Report with that state; or (B) The filing date.
(A) Fifteen (15) days from the receipt of notice to file its RBC Report with that state; or
(B) The filing date.
(b) A life and health insurer's RBC shall be determined in accordance with the formula set forth in the RBC Instructions. The formula shall take into account, and may adjust for the covariance between: (1) The risk with respect to the insurer's assets; (2) The risk of adverse insurance experience with respect to the insurer's liabilities and obligations; (3) The interest rate risk with respect to the insurer's business; and (4) All other business risks and other relevant risks that are set forth in the RBC Instructions, determined in each case by applying the factors in the manner set forth in the RBC Instructions.
(1) The risk with respect to the insurer's assets;
(2) The risk of adverse insurance experience with respect to the insurer's liabilities and obligations;
(3) The interest rate risk with respect to the insurer's business; and
(4) All other business risks and other relevant risks that are set forth in the RBC Instructions, determined in each case by applying the factors in the manner set forth in the RBC Instructions.
(c) A property and casualty insurer's RBC shall be determined in accordance with the formula set forth in the RBC Instructions. The formula shall take into account and may adjust for the covariance between: (1) Asset risk; (2) Credit risk; (3) Underwriting risk; and (4) All other business risks and other relevant risks that are set forth in the RBC Instructions; determined in each case by applying the manner set forth in the RBC Instructions.
(1) Asset risk;
(2) Credit risk;
(3) Underwriting risk; and
(4) All other business risks and other relevant risks that are set forth in the RBC Instructions; determined in each case by applying the manner set forth in the RBC Instructions.
determined in each case by applying the manner set forth in the RBC Instructions.
(d) An excess of capital over the amount produced by the risk-based capital requirements contained in this part and the formulas, schedules and instructions referenced in this part is desirable in the business of insurance. Accordingly, insurers should seek to maintain capital above the RBC levels required by this part. Additional capital is used and useful in the insurance business and helps to secure an insurer against various risks inherent in, or affecting, the business of insurance and not accounted for or only partially measured by the risk-based capital requirements contained in this part.
(e) If a domestic insurer files an RBC Report that in the judgment of the commissioner is inaccurate, then the commissioner shall adjust the RBC Report to correct the inaccuracy and shall notify the insurer of the adjustment. The notice shall contain a statement of the reason for the adjustment. An RBC Report as so adjusted is referred to as an "Adjusted RBC Report."
Amended by 2014 Tenn. Acts, ch. 559,s 2, eff. 3/21/2014.
Acts 1996, ch. 750, § 4.
Tenn. Code Ann. § 56-4-106 — TN Code / Title 56 / Chapter 4 / Section 56-4-106
Annual regulatory fee for credit life, accident, and health insurance
Status: in_force

With regard to each insurer qualified to transact only the business of reinsuring credit life and credit accident and credit health insurance, the commissioner shall collect a nonrefundable annual regulatory fee of three thousand dollars ($3,000). One half (1/2) of the regulatory fee shall be collected on April 1, which, notwithstanding § 56-1-501 , shall also be the date on or before which the insurer's annual statement shall be filed, and the balance shall be collected on September 1 of each year, except that the initial regulatory fee collected shall be reduced pro rata to reflect the number of months during the year in which the certificate of authority has been in effect. The regulatory fees paid into the department under this section shall be held by the commissioner as expendable receipts for the purpose of administering chapter 7, part 9 of this title. Acts 1988, ch. 667, § 3.
With regard to each insurer qualified to transact only the business of reinsuring credit life and credit accident and credit health insurance, the commissioner shall collect a nonrefundable annual regulatory fee of three thousand dollars ($3,000). One half (1/2) of the regulatory fee shall be collected on April 1, which, notwithstanding § 56-1-501 , shall also be the date on or before which the insurer's annual statement shall be filed, and the balance shall be collected on September 1 of each year, except that the initial regulatory fee collected shall be reduced pro rata to reflect the number of months during the year in which the certificate of authority has been in effect. The regulatory fees paid into the department under this section shall be held by the commissioner as expendable receipts for the purpose of administering chapter 7, part 9 of this title.
Acts 1988, ch. 667, § 3.
Tenn. Code Ann. § 56-14-117 — TN Code / Title 56 / Chapter 14 / Section 56-14-117
Violations and penalties
Status: in_force

Any violation of this part shall subject the agent to the revocation or suspension of the surplus lines agent's license for a period of not less than one (1) year and a fine of not more than five hundred dollars ($500). Acts 1969, ch. 270, § 17; T.C.A., § 56-3817; Acts 2011, ch. 446, § 1.
Any violation of this part shall subject the agent to the revocation or suspension of the surplus lines agent's license for a period of not less than one (1) year and a fine of not more than five hundred dollars ($500).
Acts 1969, ch. 270, § 17; T.C.A., § 56-3817; Acts 2011, ch. 446, § 1.
Tenn. Code Ann. § 56-6-603 — TN Code / Title 56 / Chapter 6 / Section 56-6-603
Producer with control of licensed property/casualty insurer - Requirements
Status: in_force

No producer that has control of a licensed property/casualty insurer may directly or indirectly place business with the insurer in any transaction in which the producer, at the time the business is placed, is acting as such on behalf of the insured for any compensation, commission or other thing of value, unless: (1) There is a written contract between the controlling producer and the insurer, which contract has been approved by the board of directors of the insurer; (2) The producer, prior to the effective date of the policy, delivers written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer. The disclosure, signed by the insured, shall be retained in the underwriting file until the filing of the report on examination covering the period in which the coverage is in effect. If the business is placed through a subproducer who is not a controlling producer, the controlling producer shall retain in the controlling producer's records a signed commitment from the subproducer that the subproducer is aware of the relationship between the insurer and the producer and that the subproducer has or will notify the insured; (3) All funds collected for the account of the insurer by the controlling producer must be paid, net of commissions, cancellations and other adjustments, to the insurer no less often than quarterly; (4) In addition to any other required loss reserve certification, the controlled insurer shall annually, on April 1 of each year, file with the commissioner an opinion of an independent casualty actuary, or other independent loss reserve specialist acceptable to the commissioner, reporting loss ratios for each line of business written and attesting to the adequacy of loss reserves established for losses incurred and outstanding as of year end, including incurred but not reported, on business placed by the producer; (5) The controlled insurer shall annually report to the commissioner the amount of commissions paid to the producer, the percentage the amount represents of the net premiums written and comparable amounts and percentage paid to noncontrolling producers for placements of the same kinds of insurance; and (6) Every controlled insurer shall have an audit committee of the board of directors composed of independent directors. Prior to approval of the annual financial statement, the audit committee shall meet with management, the insurer's independent certified public accountants, and an independent casualty actuary, or other independent loss reserve specialist acceptable to the commissioner, to review the adequacy of the insurer's loss reserves. Acts 1991, ch. 142, § 8; 1993, ch. 253, § 13.
No producer that has control of a licensed property/casualty insurer may directly or indirectly place business with the insurer in any transaction in which the producer, at the time the business is placed, is acting as such on behalf of the insured for any compensation, commission or other thing of value, unless:
(1) There is a written contract between the controlling producer and the insurer, which contract has been approved by the board of directors of the insurer;
(2) The producer, prior to the effective date of the policy, delivers written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer. The disclosure, signed by the insured, shall be retained in the underwriting file until the filing of the report on examination covering the period in which the coverage is in effect. If the business is placed through a subproducer who is not a controlling producer, the controlling producer shall retain in the controlling producer's records a signed commitment from the subproducer that the subproducer is aware of the relationship between the insurer and the producer and that the subproducer has or will notify the insured;
(3) All funds collected for the account of the insurer by the controlling producer must be paid, net of commissions, cancellations and other adjustments, to the insurer no less often than quarterly;
(4) In addition to any other required loss reserve certification, the controlled insurer shall annually, on April 1 of each year, file with the commissioner an opinion of an independent casualty actuary, or other independent loss reserve specialist acceptable to the commissioner, reporting loss ratios for each line of business written and attesting to the adequacy of loss reserves established for losses incurred and outstanding as of year end, including incurred but not reported, on business placed by the producer;
(5) The controlled insurer shall annually report to the commissioner the amount of commissions paid to the producer, the percentage the amount represents of the net premiums written and comparable amounts and percentage paid to noncontrolling producers for placements of the same kinds of insurance; and
(6) Every controlled insurer shall have an audit committee of the board of directors composed of independent directors. Prior to approval of the annual financial statement, the audit committee shall meet with management, the insurer's independent certified public accountants, and an independent casualty actuary, or other independent loss reserve specialist acceptable to the commissioner, to review the adequacy of the insurer's loss reserves.
Acts 1991, ch. 142, § 8; 1993, ch. 253, § 13.
Tenn. Code Ann. § 56-12-218 — TN Code / Title 56 / Chapter 12 / Section 56-12-218
Sales promotions listing association prohibited - Disclaimer notice
Status: in_force

(a) No person, including a member insurer or agent or affiliate of a member insurer shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, or placed before the public in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio or television broadcast, or in any other way, any advertisement, announcement, or statement, written or oral, that uses the existence of the Tennessee life and health insurance guaranty association for the purpose of sales, solicitation, or inducement to purchase any form of insurance or other coverage covered by this part. However, this section does not apply to the Tennessee life and health insurance guaranty association or any other entity that does not sell or solicit insurance or coverage by a health maintenance organization. (b) The association shall prepare a summary document that describes the general purposes and current limitations of this part and that complies with subsection (c). This document must be submitted to the commissioner for approval. At the expiration of the sixtieth day after the date on which the commissioner approves the document, a member insurer shall not deliver a policy or contract to a policy owner, contract owner, certificate holder, or enrollee unless the summary document is delivered to the policy owner, contract owner, certificate holder, or enrollee at the time of delivery of the policy or contract. The document must also be available upon request by a policy owner, contract owner, certificate holder, or enrollee. The distribution, delivery, or contents or interpretation of this document does not guarantee that either the policy or the contract, or the policy owner, contract owner, certificate holder, or enrollee is covered in the event of the impairment or insolvency of a member insurer. The association shall revise the document as amendments to this part require. Failure to receive the summary document does not give the policy owner, contract owner, certificate holder, enrollee, or insured any greater rights than those stated in this part. (c) The document prepared under subsection (b) must contain a clear and conspicuous disclaimer on its face. The commissioner shall establish the form and content of the disclaimer. The disclaimer must: (1) State the name and address of the Tennessee life and health insurance guaranty association and department of commerce and insurance; (2) Prominently warn the policy owner, contract owner, certificate holder, or enrollee that the Tennessee life and health insurance guaranty association may not cover the policy or contract or, if coverage is available, it will be subject to substantial limitations and exclusions and conditioned on continued residence in this state; (3) State the types of policies or contracts for which guaranty funds will provide coverage; (4) State that the member insurer and its agents are prohibited by law from using the existence of the Tennessee life and health insurance guaranty association for the purpose of sales, solicitation, or inducement to purchase any form of insurance or health maintenance organization coverage; (5) State that the policy owner, contract owner, certificate holder, or enrollee should not rely on coverage under the Tennessee life and health insurance guaranty association when selecting an insurer or health maintenance organization; (6) Explain the rights available and procedures provided for filing a complaint to allege a violation of this part; and (7) Provide other information as directed by the commissioner, including, but not limited to, sources for information about the financial condition of insurers; provided, that the information is not proprietary or is not protected from disclosure under Tennessee's public records law. (d) A member insurer shall retain evidence of compliance with subsection (b) for so long as the policy or contract for which the notice is given remains in effect. Amended by 2019 Tenn. Acts, ch. 5,s 7, eff. 7/1/2019. Acts 1988, ch. 1032, § 18.
(a) No person, including a member insurer or agent or affiliate of a member insurer shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, or placed before the public in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio or television broadcast, or in any other way, any advertisement, announcement, or statement, written or oral, that uses the existence of the Tennessee life and health insurance guaranty association for the purpose of sales, solicitation, or inducement to purchase any form of insurance or other coverage covered by this part. However, this section does not apply to the Tennessee life and health insurance guaranty association or any other entity that does not sell or solicit insurance or coverage by a health maintenance organization.
(b) The association shall prepare a summary document that describes the general purposes and current limitations of this part and that complies with subsection (c). This document must be submitted to the commissioner for approval. At the expiration of the sixtieth day after the date on which the commissioner approves the document, a member insurer shall not deliver a policy or contract to a policy owner, contract owner, certificate holder, or enrollee unless the summary document is delivered to the policy owner, contract owner, certificate holder, or enrollee at the time of delivery of the policy or contract. The document must also be available upon request by a policy owner, contract owner, certificate holder, or enrollee. The distribution, delivery, or contents or interpretation of this document does not guarantee that either the policy or the contract, or the policy owner, contract owner, certificate holder, or enrollee is covered in the event of the impairment or insolvency of a member insurer. The association shall revise the document as amendments to this part require. Failure to receive the summary document does not give the policy owner, contract owner, certificate holder, enrollee, or insured any greater rights than those stated in this part.
(c) The document prepared under subsection (b) must contain a clear and conspicuous disclaimer on its face. The commissioner shall establish the form and content of the disclaimer. The disclaimer must: (1) State the name and address of the Tennessee life and health insurance guaranty association and department of commerce and insurance; (2) Prominently warn the policy owner, contract owner, certificate holder, or enrollee that the Tennessee life and health insurance guaranty association may not cover the policy or contract or, if coverage is available, it will be subject to substantial limitations and exclusions and conditioned on continued residence in this state; (3) State the types of policies or contracts for which guaranty funds will provide coverage; (4) State that the member insurer and its agents are prohibited by law from using the existence of the Tennessee life and health insurance guaranty association for the purpose of sales, solicitation, or inducement to purchase any form of insurance or health maintenance organization coverage; (5) State that the policy owner, contract owner, certificate holder, or enrollee should not rely on coverage under the Tennessee life and health insurance guaranty association when selecting an insurer or health maintenance organization; (6) Explain the rights available and procedures provided for filing a complaint to allege a violation of this part; and (7) Provide other information as directed by the commissioner, including, but not limited to, sources for information about the financial condition of insurers; provided, that the information is not proprietary or is not protected from disclosure under Tennessee's public records law.
(1) State the name and address of the Tennessee life and health insurance guaranty association and department of commerce and insurance;
(2) Prominently warn the policy owner, contract owner, certificate holder, or enrollee that the Tennessee life and health insurance guaranty association may not cover the policy or contract or, if coverage is available, it will be subject to substantial limitations and exclusions and conditioned on continued residence in this state;
(3) State the types of policies or contracts for which guaranty funds will provide coverage;
(4) State that the member insurer and its agents are prohibited by law from using the existence of the Tennessee life and health insurance guaranty association for the purpose of sales, solicitation, or inducement to purchase any form of insurance or health maintenance organization coverage;
(5) State that the policy owner, contract owner, certificate holder, or enrollee should not rely on coverage under the Tennessee life and health insurance guaranty association when selecting an insurer or health maintenance organization;
(6) Explain the rights available and procedures provided for filing a complaint to allege a violation of this part; and
(7) Provide other information as directed by the commissioner, including, but not limited to, sources for information about the financial condition of insurers; provided, that the information is not proprietary or is not protected from disclosure under Tennessee's public records law.
(d) A member insurer shall retain evidence of compliance with subsection (b) for so long as the policy or contract for which the notice is given remains in effect.
Amended by 2019 Tenn. Acts, ch. 5,s 7, eff. 7/1/2019.
Acts 1988, ch. 1032, § 18.
Tenn. Code Ann. § 56-18-110 — TN Code / Title 56 / Chapter 18 / Section 56-18-110
Policyholders' meeting to consider plan for conversion into mutual company
Status: in_force

(a) If a plan of mutualization has been adopted by a vote of a majority of the directors of the corporation, approved by the commissioner, and approved by a vote of stockholders representing a majority of the capital stock then outstanding, a written notice of the meeting of policyholders to consider the plan shall be given by mailing the notice from the home office of the company to each policyholder holding a single policy in the amount of one thousand dollars ($1,000) or more at least thirty (30) days prior to the meeting in a sealed envelope, postage prepaid, addressed to the policyholder at the policyholder's last known post office address, and by a newspaper advertisement published at least thirty (30) days prior to the meeting, and not more than sixty (60) days prior to the meeting, in one (1) newspaper published in the capital city of each state in which the company is qualified to transact business. (b) A policyholder eligible to vote at the meeting is any policyholder who holds life insurance in the company in a total amount at least equal to one thousand dollars ($1,000), or a policy of noncancellable and guaranteed renewable accident and health insurance with an annual premium of one hundred dollars ($100) or more. The reference in this subdivision (b) to insurance in the amount of one thousand dollars ($1,000) or more includes any policy or policies with a total face or principal sum amount of one thousand dollars ($1,000) or more, any annuity contract or contract that at normal date of maturity requires the payment of a total of one hundred dollars ($100) or more annually, and any pure endowment contract or contracts for the total principal sum of one thousand dollars ($1,000) or more; provided, that the policy or policies or contracts have been in force, other than as reduced paid-up insurance or extended insurance, for at least one (1) year immediately preceding the meeting. (c) Each policyholder shall be entitled to one (1) vote at the policyholders' meeting, regardless of the number of policies or contracts held or their amounts. Acts 1949, ch. 91, § 2; C. Supp. 1950, § 6433.14 (Williams, § 6433.17); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-1611.
(a) If a plan of mutualization has been adopted by a vote of a majority of the directors of the corporation, approved by the commissioner, and approved by a vote of stockholders representing a majority of the capital stock then outstanding, a written notice of the meeting of policyholders to consider the plan shall be given by mailing the notice from the home office of the company to each policyholder holding a single policy in the amount of one thousand dollars ($1,000) or more at least thirty (30) days prior to the meeting in a sealed envelope, postage prepaid, addressed to the policyholder at the policyholder's last known post office address, and by a newspaper advertisement published at least thirty (30) days prior to the meeting, and not more than sixty (60) days prior to the meeting, in one (1) newspaper published in the capital city of each state in which the company is qualified to transact business.
(b) A policyholder eligible to vote at the meeting is any policyholder who holds life insurance in the company in a total amount at least equal to one thousand dollars ($1,000), or a policy of noncancellable and guaranteed renewable accident and health insurance with an annual premium of one hundred dollars ($100) or more. The reference in this subdivision (b) to insurance in the amount of one thousand dollars ($1,000) or more includes any policy or policies with a total face or principal sum amount of one thousand dollars ($1,000) or more, any annuity contract or contract that at normal date of maturity requires the payment of a total of one hundred dollars ($100) or more annually, and any pure endowment contract or contracts for the total principal sum of one thousand dollars ($1,000) or more; provided, that the policy or policies or contracts have been in force, other than as reduced paid-up insurance or extended insurance, for at least one (1) year immediately preceding the meeting.
(c) Each policyholder shall be entitled to one (1) vote at the policyholders' meeting, regardless of the number of policies or contracts held or their amounts.
Acts 1949, ch. 91, § 2; C. Supp. 1950, § 6433.14 (Williams, § 6433.17); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-1611.
Tenn. Code Ann. § 56-9-105 — TN Code / Title 56 / Chapter 9 / Section 56-9-105
Receivers - Restraining order and injunctive relief - Federal home loan bank
Status: in_force

(a) Any receiver appointed in a proceeding under this chapter may at any time apply for, and any court of general jurisdiction may grant, the restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to prevent: (1) The transaction of further business; (2) The transfer of property; (3) Interference with the receiver or with a proceeding under this chapter; (4) Waste of the insurer's assets; (5) Dissipation and transfer of bank accounts; (6) The institution or further prosecution of any actions or proceedings; (7) The obtaining of preferences, judgments, attachments, garnishments or liens against the insurer, its assets or its policyholders; (8) The levying of execution against the insurer, its assets or its policyholders; (9) The making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer; (10) The withholding from the receiver of books, accounts, documents or other records relating to the business of the insurer; or (11) Any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors or shareholders, or the administration of any proceeding under this chapter. (b) The receiver may apply to any court outside of this state for the relief described in subsection (a). (c) Notwithstanding subsections (a) and (b) and any other provision of this title, a federal home loan bank shall not be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under a security agreement or under any pledge agreement, security agreement, collateral agreement, or other similar arrangement or credit enhancement relating to a security agreement to which the federal home loan bank is a party. Amended by 2019 Tenn. Acts, ch. 430,s 2, eff. 5/21/2019. Acts 1991, ch. 142, § 4.
(a) Any receiver appointed in a proceeding under this chapter may at any time apply for, and any court of general jurisdiction may grant, the restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to prevent: (1) The transaction of further business; (2) The transfer of property; (3) Interference with the receiver or with a proceeding under this chapter; (4) Waste of the insurer's assets; (5) Dissipation and transfer of bank accounts; (6) The institution or further prosecution of any actions or proceedings; (7) The obtaining of preferences, judgments, attachments, garnishments or liens against the insurer, its assets or its policyholders; (8) The levying of execution against the insurer, its assets or its policyholders; (9) The making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer; (10) The withholding from the receiver of books, accounts, documents or other records relating to the business of the insurer; or (11) Any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors or shareholders, or the administration of any proceeding under this chapter.
(1) The transaction of further business;
(2) The transfer of property;
(3) Interference with the receiver or with a proceeding under this chapter;
(4) Waste of the insurer's assets;
(5) Dissipation and transfer of bank accounts;
(6) The institution or further prosecution of any actions or proceedings;
(7) The obtaining of preferences, judgments, attachments, garnishments or liens against the insurer, its assets or its policyholders;
(8) The levying of execution against the insurer, its assets or its policyholders;
(9) The making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer;
(10) The withholding from the receiver of books, accounts, documents or other records relating to the business of the insurer; or
(11) Any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors or shareholders, or the administration of any proceeding under this chapter.
(b) The receiver may apply to any court outside of this state for the relief described in subsection (a).
(c) Notwithstanding subsections (a) and (b) and any other provision of this title, a federal home loan bank shall not be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under a security agreement or under any pledge agreement, security agreement, collateral agreement, or other similar arrangement or credit enhancement relating to a security agreement to which the federal home loan bank is a party.
Amended by 2019 Tenn. Acts, ch. 430,s 2, eff. 5/21/2019.
Acts 1991, ch. 142, § 4.
Tenn. Code Ann. § 56-51-109 — TN Code / Title 56 / Chapter 51 / Section 56-51-109
Certain entities contracting with state Title XIX agency
Status: in_force

Any entity licensed under this chapter that provides services solely to Title XIX program recipients under a contract with the state shall be exempt from §§ 56-51-106(12) , 56-51-112(e) and (k) , 56-51-113 , 56-51-117 , 56-51-123 , 56-51-127 , and 56-51-134(b)(5)(A) and (B) . Further, the commissioner may by rule exempt the entities from other provisions of this chapter where determined by the commissioner to be reasonable and appropriate. The rules shall be promulgated in accordance with § 56-51-153 . Acts 2000, ch. 948, § 9; 2004, ch. 507, § 3.
Any entity licensed under this chapter that provides services solely to Title XIX program recipients under a contract with the state shall be exempt from §§ 56-51-106(12) , 56-51-112(e) and (k) , 56-51-113 , 56-51-117 , 56-51-123 , 56-51-127 , and 56-51-134(b)(5)(A) and (B) . Further, the commissioner may by rule exempt the entities from other provisions of this chapter where determined by the commissioner to be reasonable and appropriate. The rules shall be promulgated in accordance with § 56-51-153 .
Acts 2000, ch. 948, § 9; 2004, ch. 507, § 3.
Tenn. Code Ann. § 56-21-131 — TN Code / Title 56 / Chapter 21 / Section 56-21-131
Conversion of state mutual fire insurance company to state stock fire insurance company
Status: in_force

A state mutual fire insurance company organized under this chapter may become a state stock fire insurance company operating under chapter 23 of this title pursuant to a plan and procedure that is approved in advance by the commissioner. The commissioner shall not approve any such plan or procedure unless: (1) The plan or procedure is equitable to the insurer's policyholders; (2) The plan or procedure is subject to approval by vote of not less than three fourths (3/4) of the votes cast in person, by proxy, or by mail at a meeting of policyholders called for the purpose pursuant to the notice and procedure as may be approved by the commissioner; (3) The equity of each policyholder in the insurer is determinable under a fair formula approved by the commissioner, which equity shall be based upon not less than the insurer's entire surplus, after deducting contributed or borrowed surplus funds and any outstanding guaranty capital securities, plus a reasonable present equity in its reserves and in all nonadmitted assets; (4) The policyholders entitled to receive stock upon conversion and to participate in the purchase of additional stock, if any, include all policyholders having policies in force on the date of conversion; (5) The plan provides that each policyholder of the insurer specified in subdivision (4) shall receive a proportionate part of the capital stock to be issued in respect to the policyholders' equity, and further gives to each such policyholder a nontransferable preemptive right to acquire a proportionate part of any additional capital stock to be issued and sold by the insurer, within a designated reasonable period. In addition to the issuance of shares in respect of the policyholders' equity, in the event the insurer has outstanding guaranty capital securities, the plan shall require the sale of a sufficient number of shares (at the same price per share as all other shares issued under the plan) to retire the guaranty capital securities; and to the extent each policyholder specified in subdivision (4) does not exercise the preemptive right to purchase a pro rata number of shares to retire the guaranty capital securities, the holders of the guaranty capital securities shall have the right to convert the securities, including all accrued interest, into shares of capital stock at such price; (6) Shares are so offered to policyholders at a price not greater than that thereafter offered to others nor at more than five (5) times the par value of the shares; and (7) The plan, when completed, would provide for the converted insurer paid-in capital stock in an amount not less than the minimum paid-in capital required of a state stock insurer organized under chapter 23 of this title; provided, that this provision does not apply to any converting mutual companies that were qualified and authorized under this chapter prior to May 7, 1969. Acts 1973, ch. 292, § 1; T.C.A., § 56-2033.
A state mutual fire insurance company organized under this chapter may become a state stock fire insurance company operating under chapter 23 of this title pursuant to a plan and procedure that is approved in advance by the commissioner. The commissioner shall not approve any such plan or procedure unless:
(1) The plan or procedure is equitable to the insurer's policyholders;
(2) The plan or procedure is subject to approval by vote of not less than three fourths (3/4) of the votes cast in person, by proxy, or by mail at a meeting of policyholders called for the purpose pursuant to the notice and procedure as may be approved by the commissioner;
(3) The equity of each policyholder in the insurer is determinable under a fair formula approved by the commissioner, which equity shall be based upon not less than the insurer's entire surplus, after deducting contributed or borrowed surplus funds and any outstanding guaranty capital securities, plus a reasonable present equity in its reserves and in all nonadmitted assets;
(4) The policyholders entitled to receive stock upon conversion and to participate in the purchase of additional stock, if any, include all policyholders having policies in force on the date of conversion;
(5) The plan provides that each policyholder of the insurer specified in subdivision (4) shall receive a proportionate part of the capital stock to be issued in respect to the policyholders' equity, and further gives to each such policyholder a nontransferable preemptive right to acquire a proportionate part of any additional capital stock to be issued and sold by the insurer, within a designated reasonable period. In addition to the issuance of shares in respect of the policyholders' equity, in the event the insurer has outstanding guaranty capital securities, the plan shall require the sale of a sufficient number of shares (at the same price per share as all other shares issued under the plan) to retire the guaranty capital securities; and to the extent each policyholder specified in subdivision (4) does not exercise the preemptive right to purchase a pro rata number of shares to retire the guaranty capital securities, the holders of the guaranty capital securities shall have the right to convert the securities, including all accrued interest, into shares of capital stock at such price;
(6) Shares are so offered to policyholders at a price not greater than that thereafter offered to others nor at more than five (5) times the par value of the shares; and
(7) The plan, when completed, would provide for the converted insurer paid-in capital stock in an amount not less than the minimum paid-in capital required of a state stock insurer organized under chapter 23 of this title; provided, that this provision does not apply to any converting mutual companies that were qualified and authorized under this chapter prior to May 7, 1969.
Acts 1973, ch. 292, § 1; T.C.A., § 56-2033.
Tenn. Code Ann. § 56-30-122 — TN Code / Title 56 / Chapter 30 / Section 56-30-122
Suspension or cancellation of license - Withdrawal of approval of documents - Revocation and amendment of certificate, order, authority or consent
Status: in_force

(a) The commissioner has the authority to suspend or cancel the license of any dental service plan corporation or any agent for violation of this chapter or violation of the insurance laws that may apply and are not in conflict with this chapter, after proper legal notice and a hearing, which action of the commissioner shall be subject to judicial review. The commissioner has the authority, after the issuance of a certificate of authority, to withdraw approval, previously granted, of any document required to be filed with the department under any section of this chapter. In addition, the commissioner has the authority to require a dental service plan corporation to solicit in a manner required by agents' licensing laws, and to fulfill contracts approved by the commissioner, to utilize soliciting methods provided by this chapter, or by other insurance laws, and to comply with all other orders and regulations of the commissioner. (b) The commissioner has the power and authority to revoke and amend, after reasonable notice and hearing, any certificate, order, authority or consent made by the commissioner to a dental service plan corporation, and may also cancel or suspend the authority of the corporation to transact business in any particular county or counties or area, if the commissioner finds that less than fifty-one percent (51%) of the eligible licensed dentists practicing in that county are participating dentists and that less than twenty-five percent (25%) of the dentists duly licensed to practice in this state under title 63, chapter 5, have agreed to render dental services for corporations organized or to be organized pursuant to this chapter. Acts 1961, ch. 340, § 21; 1965, ch. 309, § 4; T.C.A., § 56-3522; Acts 1989, ch. 152, § 4.
(a) The commissioner has the authority to suspend or cancel the license of any dental service plan corporation or any agent for violation of this chapter or violation of the insurance laws that may apply and are not in conflict with this chapter, after proper legal notice and a hearing, which action of the commissioner shall be subject to judicial review. The commissioner has the authority, after the issuance of a certificate of authority, to withdraw approval, previously granted, of any document required to be filed with the department under any section of this chapter. In addition, the commissioner has the authority to require a dental service plan corporation to solicit in a manner required by agents' licensing laws, and to fulfill contracts approved by the commissioner, to utilize soliciting methods provided by this chapter, or by other insurance laws, and to comply with all other orders and regulations of the commissioner.
(b) The commissioner has the power and authority to revoke and amend, after reasonable notice and hearing, any certificate, order, authority or consent made by the commissioner to a dental service plan corporation, and may also cancel or suspend the authority of the corporation to transact business in any particular county or counties or area, if the commissioner finds that less than fifty-one percent (51%) of the eligible licensed dentists practicing in that county are participating dentists and that less than twenty-five percent (25%) of the dentists duly licensed to practice in this state under title 63, chapter 5, have agreed to render dental services for corporations organized or to be organized pursuant to this chapter.
Acts 1961, ch. 340, § 21; 1965, ch. 309, § 4; T.C.A., § 56-3522; Acts 1989, ch. 152, § 4.
Tenn. Code Ann. § 56-7-1105 — TN Code / Title 56 / Chapter 7 / Section 56-7-1105
Liability for failure to comply
Status: in_force

Willful violation of §§ 56-7-1103 , 56-7-1104 and this section by the liability insurance carrier shall render the carrier liable in damages to the plaintiff. Acts 1976, ch. 612, § 3; T.C.A., § 56-1175.
Willful violation of §§ 56-7-1103 , 56-7-1104 and this section by the liability insurance carrier shall render the carrier liable in damages to the plaintiff.
Acts 1976, ch. 612, § 3; T.C.A., § 56-1175.
Tenn. Code Ann. § 56-9-305 — TN Code / Title 56 / Chapter 9 / Section 56-9-305
Order of liquidation - Termination of rehabilitation
Status: in_force

(a) Whenever the commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders or the public, or would be futile, the commissioner may petition the chancery court of Davidson County for an order of liquidation. A petition under this subsection (a) shall have the same effect as a petition under § 56-9-306 . The chancery court of Davidson County shall permit the directors of the insurer to take actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of the costs and other expenses of defense as justice may require. (b) The protection of the interests of insureds, claimants and the public requires the timely performance of all insurance policy obligations. If the payment of policy obligations is suspended in substantial part for a period of six (6) months at any time after the appointment of the rehabilitator, and the rehabilitator has not filed an application for approval of a plan under § 56-9-303(e) , the rehabilitator shall petition the court for an order of liquidation on grounds of insolvency. (c) The rehabilitator may at any time petition the chancery court of Davidson County for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of such costs and other expenses of the petition as justice may require. If the chancery court of Davidson County finds that rehabilitation has been accomplished and that grounds for rehabilitation under § 56-9-301 no longer exist, it shall order that the insurer be restored to possession of its property and the control of the business. The chancery court of Davidson County may also make that finding and issue that order at any time upon its own motion. Acts 1991, ch. 142, § 4.
(a) Whenever the commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders or the public, or would be futile, the commissioner may petition the chancery court of Davidson County for an order of liquidation. A petition under this subsection (a) shall have the same effect as a petition under § 56-9-306 . The chancery court of Davidson County shall permit the directors of the insurer to take actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of the costs and other expenses of defense as justice may require.
(b) The protection of the interests of insureds, claimants and the public requires the timely performance of all insurance policy obligations. If the payment of policy obligations is suspended in substantial part for a period of six (6) months at any time after the appointment of the rehabilitator, and the rehabilitator has not filed an application for approval of a plan under § 56-9-303(e) , the rehabilitator shall petition the court for an order of liquidation on grounds of insolvency.
(c) The rehabilitator may at any time petition the chancery court of Davidson County for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of such costs and other expenses of the petition as justice may require. If the chancery court of Davidson County finds that rehabilitation has been accomplished and that grounds for rehabilitation under § 56-9-301 no longer exist, it shall order that the insurer be restored to possession of its property and the control of the business. The chancery court of Davidson County may also make that finding and issue that order at any time upon its own motion.
Acts 1991, ch. 142, § 4.