Tenn. Code Ann. § 50-6-405 — TN Code / Title 50 / Chapter 6 / Section 50-6-405
Compensation insurance or proof of financial ability required - Self insurers - Payment of premiums - Excess catastrophe reinsurance coverage - Authority and duty of administrator
Status: in_force

(a) Every employer under and affected by this chapter, shall: (1) Insure and keep insured the employer's liability under this chapter in some person or persons, association, organization or corporation authorized to transact the business of workers' compensation insurance in this state; or (2) Possess a valid certificate of authority from the commissioner of commerce and insurance by furnishing satisfactory proof of the employer's financial ability to pay all claims that may arise against the employer under this chapter and guarantee the payment of the claims in the amount and manner and when due as provided for in this chapter. (b) (1) If the employer elects to proceed under subdivision (a)(2), the commissioner of commerce and insurance shall require the applicant to pay a nonrefundable application fee of five hundred dollars ($500) or in an amount the commissioner shall promulgate by rule. (2) The commissioner of commerce and insurance shall require the applicant to file and maintain with the department of commerce and insurance the following: (A) (i) Security, in an amount to be determined by the commissioner of commerce and insurance, but not less than five hundred thousand dollars ($500,000), in any of the following forms, as specified herein: negotiable securities; a surety bond; a certificate of deposit; or a letter of credit; (ii) The security, or a contract between the self-insured employer, a depository institution and the commissioner of commerce and insurance evidencing the security held in the depository institution for purposes of compliance with this section, shall be held by the commissioner of commerce and insurance and shall be conditioned to run solely and directly for the benefit of the employees of the self-insured employer. Any legal actions to enforce the payment of the security being held for purposes of compliance with this section may be brought by the commissioner of commerce and insurance, or, with the approval of the commissioner of commerce and insurance, the Tennessee self-insurers' guaranty association, or both, for the benefit of the employees of the self-insured employer; (iii) The security held pursuant to this section may be used for the payment of any and all fees or costs required to administer the disbursement of the proceeds to or for the benefit of the employees; (iv) The venue for any suit filed by the commissioner of commerce and insurance or the Tennessee self-insurers' guaranty association under this subdivision (b)(2) must be in Davidson County; (v) (a) Any security held for purposes of compliance with this section shall be held for a minimum of ten (10) years after the self-insured employer is no longer self-insured and the self-insured employer shall maintain the fair market value of security on deposit at not less than five hundred thousand dollars ($500,000), unless otherwise approved by the commissioner of commerce and insurance or the commissioner's designee; (b) Any employer that is no longer self-insured pursuant to this section as of December 31, 2004, shall not be subject to subdivision (b)(2)(A)(v)( a ); (vi) All security, and contracts evidencing the security, filed with the commissioner of commerce and insurance shall be in a form substantively that has been previously approved by the commissioner of commerce and insurance. Any security that fails to meet any requirement under this section shall not be considered for purposes of determining a self-insurer's compliance with any of the security maintenance requirements of this section; (vii) As used in this subdivision (b)(2)(A), "qualified United States financial institution" shall have the meaning assigned by § 56-2-209(a) ; (viii) The commissioner of commerce and insurance may by rule establish requirements for securities posted pursuant to this subsection (b). These rules may also prescribe the various types and classes of securities that the commissioner of commerce and insurance will accept under this subsection (b); (B) (i) Evidence of the employer's financial ability to pay all claims that may arise against the employer in the form of an annual certified financial statement, including a statement of assets and liabilities and a statement of profit and loss, to be filed no later than the last day of the ninth month after the end of the employer's immediately preceding fiscal year; (ii) The financial statement is to include a detailed accounting for reserves for losses outstanding incurred in connection with workers' compensation self-insurance. The employer's losses and adequacy of reserves shall be certified annually by an actuary qualified under rules established by the commissioner of commerce and insurance for the filing of statements by insurance companies. (3) (A) Filings pursuant to this subsection (b) shall be kept confidential by the commissioner of commerce and insurance and shall not be construed to be a public record pursuant to title 10, chapter 7. (B) Notwithstanding subdivision (b)(3)(A), the commissioner of commerce and insurance may provide the filings received pursuant to this subsection (b) to the Tennessee self-insurers' guaranty association, which shall keep the filings and information in the filings confidential until made public by the commissioner. (4) The commissioner of commerce and insurance may assess a civil penalty of one hundred dollars ($100) per day for each day any self-insured employer has failed to comply with any financial record filing requirement. The civil penalty assessed under this subdivision (b)(4) shall be cumulative and in addition to any other civil penalty or remedy available to the commissioner. No civil penalty shall be assessed against any political subdivision of the state. (5) For employers electing to self-insure pursuant to subdivision (a)(2), the commissioner of commerce and insurance shall consider all available information when making the determination as to both the adequacy of all security deposits, letters of credit, negotiable securities, or bonds held by the commissioner and whether an employer has the ability to pay all claims that may arise. (6) No employer shall self-insure its workers' compensation liabilities without a certificate of authority issued by the commissioner of commerce and insurance. It shall be unlawful for any employer to self-insure its liabilities for workers' compensation without first obtaining a duly issued certificate of authority from the commissioner of commerce and insurance. Whenever an employer has complied with subdivisions (a)(2) and (b)(2)(A) and (B), the commissioner of commerce and insurance, or the commissioner's designee, may issue to the employer a certificate of authority allowing the employer to self-insure under this section. Notice of this authorization shall be sent to the administrator of the bureau of workers' compensation. (7) If an authorized self-insured employer fails to furnish the commissioner of commerce and insurance the requirements delineated in subdivisions (a)(2) and (b)(2)(A) and (B), or if the Tennessee self-insurers' guaranty association recommends revocation or suspension of an authorized self-insured employer's certificate of authority, then the commissioner may, after giving written notice and an opportunity for a hearing to the affected party or parties within thirty (30) days, suspend or revoke the certificate authorizing the employer to self-insure granted under this section. The commissioner may, without prior notice and if it appears in the commissioner's discretion that the continuation of the certificate would be clearly hazardous to the employees of the self-insurer or to the public generally, summarily suspend an authorized self-insurer's certificate before a hearing is commenced and in that event shall immediately notify the self-insurer, and the notice shall include a statement to the effect that the commissioner's action is subject to review. All hearings conducted under this section shall comply with the contested case provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (8) Any hearing under this section shall be requested in writing by the self-insured employer within fifteen (15) days of receiving written notification from the commissioner of commerce and insurance or the commissioner's designee. In any proceeding in which the self-insured employer's certificate of authority is suspended or revoked, the self-insured employer shall pay all costs associated with the proceeding. The commissioner may serve a notice, order, petition or complaint in any action arising under this section by certified mail to the self-insured employer at the address of record in the files of the department. Notwithstanding any law to the contrary, service in the manner set forth in this subdivision (b)(8), shall be deemed to constitute actual service on the self-insured employer. (9) The commissioner of commerce and insurance or the commissioner's designee shall immediately notify the administrator of the bureau of workers' compensation of any decision to suspend or revoke a certificate authorizing an employer to self-insure. (10) The commissioner of commerce and insurance or the commissioner's designee has the authority to examine and investigate any self-insured employer whenever the commissioner deems it prudent to do so. The purposes and scope of the examinations and the commissioner's powers shall be set forth in title 56, chapter 1, part 4, pertaining to examinations of insurance companies. (11) The commissioner of commerce and insurance may promulgate rules and regulations, including emergency rules and regulations, necessary for the administration of this section and shall conduct all rulemaking in accordance with the Uniform Administrative Procedures Act. (c) (1) With the permission of a trade or professional association board of directors, ten (10) or more employers of the same group may enter into agreements to pool their liabilities under this chapter for the purpose of qualifying as self-insurers. The trade or professional association shall have been in active existence in Tennessee for at least five (5) years and the association shall: (A) Have a constitution or bylaws; (B) Have members that support the association by regular payment of dues on an annual, semiannual, quarterly or monthly basis; and (C) Be created in good faith for purposes other than that of creating workers' compensation self-insurer pools. The commissioner of commerce and insurance has the authority to promulgate rules and regulations deemed necessary to provide for the solvency, administration and enforcement of the pooling agreements. To the extent deemed necessary by the commissioner of commerce and insurance, each employer member of the approved group shall be classified as a self-insurer as otherwise provided in this chapter. (2) Notwithstanding any other law or rule to the contrary, funds not needed for current obligations may be invested by the board of trustees in Tennessee securities as defined in § 56-4-210(a) . The board of trustees of each workers' compensation pool shall adopt an investment policy. The policy shall address credit, quality of investments, maximum maturity of investments and other matters the board deems appropriate. Real estate investments must be undertaken with the approval of the commissioner of commerce and insurance. (3) (A) Each group of employers qualifying as self-insurers pursuant to this subsection (c) shall submit to the commissioner of commerce and insurance a statement of financial condition audited by an independent certified public accountant on or before the last day of the sixth month following the end of the group's fiscal year. A thirty-day extension of the financial statement filing requirement shall be granted by the commissioner upon receipt of a request, via certified mail, by a group. The request shall be submitted to the commissioner not less than thirty (30) days prior to the date the financial statement is due to be filed. (B) Notwithstanding subdivision (c)(3)(A), a qualified self-insured trust that has entered into a self-insurance loss portfolio transfer agreement approved by the commissioner of commerce and insurance with an insurer licensed in this state pursuant to which all of the liabilities and obligations pooled by the group of employers of the self-insured trust for their workers' compensation and employers' liability losses, including all existing and incurred but not reported claims, is not required to annually submit a statement of financial condition audited by an independent certified public accountant; provided, that the commissioner of commerce and insurance has granted a request filed by the self-insured trust for exemption from the annual submission of an audited statement of financial condition. (4) (A) At the request of a group of employers qualifying as self-insurers pursuant to this subsection (c), the commissioner of commerce and insurance, in the commissioner's sole discretion, may grant additional thirty-day extensions to the financial statement filing requirements for acts of God, public enemies, fire, flood, storms or similar events constituting force majeure that cause the group to require more time to meet the filing requirements. (B) The commissioner of commerce and insurance, after notice and an opportunity for a hearing, may revoke the certificate of approval of a group of employers qualifying as self-insurers pursuant to this subsection (c) if the group fails to comply with this subsection (c) or any rules promulgated under this subsection (c). In addition to or in lieu of revoking a certificate of approval, the commissioner may assess a civil penalty of one hundred dollars ($100) per day for failure to timely meet the filing requirements set forth in this subsection (c). All hearings under this subsection (c) shall be conducted pursuant to the Uniform Administrative Procedures Act. (C) Financial statements filed pursuant to this subsection (c), individual member financial statements, work papers, notes, internal documents generated by the department of commerce and insurance or any other information obtained by or disclosed to the commissioner of commerce and insurance pursuant to this chapter or any regulations promulgated under this chapter, shall be confidential and shall not be disclosed to the public. This provision, however, shall not apply to the examination report prepared by the commissioner of commerce and insurance, nor to any rebuttal to the examination reports submitted by or on behalf of the group examined. However, nothing contained in this subdivision (c)(4)(C) shall be construed as prohibiting the commissioner of commerce and insurance from disclosing the information listed in this subdivision (c)(4)(C), or any matters relating to that information, to state agencies of this or any other state, or to law enforcement officials of this or any other state or agency of the federal government at any time. (D) Upon receipt of a request from any approved authorized agent of a group of employers qualifying as self-insurers pursuant to this subsection (c), the group shall provide a copy of the annual statement of financial condition. The agent, however, shall not further disseminate the information except for purposes of obtaining errors and omission insurance or in the exercise of due diligence of the agent on behalf of the agent's client seeking admission to the group. Further, any individual or entity obtaining a copy of the statement shall hold the information confidential and shall not share or disclose the information to any other individual or entity. (5) All groups pooling their liabilities pursuant to this subsection (c) shall pay premium tax and surcharges at the rates set forth in § 56-4-206 . Each group's premium tax and surcharge payments shall be due on or before the last day of the sixth month following the end of the group's fiscal year. Any group failing to timely pay the taxes and surcharges shall be subject to the penalties and sanctions set forth in § 56-4-216 . (6) The sponsoring trade association may determine whether or not the pool shall remain in existence, subject to the approval of the commissioner. (7) The pool shall provide to the sponsoring trade association all information requested by the association, other than a member's financial information. (8) The sponsoring association shall not be liable or responsible for any act or omission of the pool. (9) The commissioner of commerce and insurance has the authority to promulgate rules and regulations that would provide for civil penalties for violations of this subsection (c) or rules promulgated under this subsection (c). (d) (1) It is an offense for any employer whose employee is entitled to the benefits of this chapter: (A) To require such employee to pay any portion of the insurance premium paid by the employer; or (B) To deduct any portion of such premium from the wages or salary of such employee. (2) A violation of subdivision (d)(1) is a Class C misdemeanor. (3) (A) In addition to any criminal penalty assessed for a violation of subdivision (d)(1), the administrator of the bureau of workers' compensation is authorized to impose a civil penalty of up to an amount equal to the amount of premiums deducted from such employee's wages or salary. (B) If a civil penalty is assessed pursuant to subdivision (d)(3)(A), the administrator of the bureau of workers' compensation shall assess the penalty in a specific dollar amount to be paid directly to the employee. (e) If at any time the commissioner of commerce and insurance deems the security or bond inadequate or unsafe, the commissioner shall require adequate bond or security. (f) The commissioner of commerce and insurance may require the employer to secure excess catastrophe reinsurance coverage. (g) This part shall not apply to policies of insurance against loss from explosions of boilers or flywheels or other similar single catastrophe hazards. (h) The commissioner of commerce and insurance may issue rules, regulations and orders necessary to properly administer the deposits, bonds and financial evidence as required in this part. (i) It is the duty of the commissioner of commerce and insurance and the administrator of the bureau of workers' compensation to interchange information as to matters of mutual interest under this chapter. (j) Any employer of a construction services provider, as defined in § 50-6-901 , shall, upon request by the bureau, provide proof of valid workers' compensation insurance coverage at the employer's place of business and at job sites where the employer is providing construction services. Failure to provide proof of valid workers' compensation insurance coverage within one (1) business day of the request may result in a penalty of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) per violation for any initial violation at the discretion of the administrator or administrator's designee, and not less than fifty dollars ($50.00) nor more than five thousand dollars ($5,000) per violation for subsequent violations. The administrator has discretion in determining acceptable proof of coverage, including electronic proof of coverage, taking into account standard insurance industry practices. Insurers shall advise policy holders who are construction services providers regarding the availability of electronic downloads of policy information to facilitate field inspection of proof of workers' compensation coverage. (k) (1) An employer who elects to self-insure under subdivision (a)(2) and is deemed eligible by the Tennessee self-insurers' guaranty association for participation in the risk-based security program: (A) Must satisfy the employer's security requirements through the program; and (B) Is only subject to the requirements of subdivisions (b)(1) and (2) as outlined in the association's plan of operation. (2) Subdivision (k)(1) does not apply to: (A) Self-insured groups organized pursuant to subsection (c); or (B) Governmental entities that have not elected to be a member of the Tennessee self-insurers' guaranty association pursuant to § 50-6-1004(e) . Amended by 2024 Tenn. Acts, ch. 666,s 7, eff. 4/9/2024. Amended by 2024 Tenn. Acts, ch. 666,s 6, eff. 4/9/2024. Amended by 2024 Tenn. Acts, ch. 666,s 5, eff. 4/9/2024. Amended by 2024 Tenn. Acts, ch. 666,s 4, eff. 4/9/2024. Amended by 2024 Tenn. Acts, ch. 666,s 3, eff. 4/9/2024. Amended by 2024 Tenn. Acts, ch. 666,s 2, eff. 4/9/2024. Acts 1919, ch. 123, § 41; impl. am. Acts 1923, ch. 7, §§ 2, 50; Shan. Supp., § 3608a191; mod. Code 1932, § 6895; Acts 1941, ch. 90, § 11; mod. C. Supp. 1950, § 6895; impl. am. Acts 1971, ch. 137, § 1; Acts 1973, ch. 379, § 11; 1978, ch. 759, § 1; impl. am. Acts 1980, ch. 534, § 1; Acts 1980, ch. 457, §§ 1, 2; T.C.A. (orig. ed.), § 50-1205; Acts 1985, ch. 381, § 1; 1989, ch. 591, § 113; 1993, ch. 224, § 1; 1995, ch. 142, § 1; 1997 , ch. 533, § 50; 1999 , ch. 520, § 41; 2000 , ch. 852, § 15; 2002 , ch. 544, §§ 1, 2; 2003 , ch. 359, §§ 7 - 9, 13; 2004 , ch. 962, §§ 34 - 37, 47; 2005 , ch. 390, §§ 9 - 12; 2006 , ch. 954, §§ 1, 2; 2008 , ch. 841, § 1; 2009 , ch. 217, § 1; 2009 , ch. 373, §§ 1, 2; 2009 , ch. 566, § 12; 2010 , ch. 1149, § 7; 2013 , ch. 282, § 1; 2015 , ch. 341, § 15; 2017 , ch. 344, § 10; 2022 , ch. 742, § 1.
(a) Every employer under and affected by this chapter, shall: (1) Insure and keep insured the employer's liability under this chapter in some person or persons, association, organization or corporation authorized to transact the business of workers' compensation insurance in this state; or (2) Possess a valid certificate of authority from the commissioner of commerce and insurance by furnishing satisfactory proof of the employer's financial ability to pay all claims that may arise against the employer under this chapter and guarantee the payment of the claims in the amount and manner and when due as provided for in this chapter.
(1) Insure and keep insured the employer's liability under this chapter in some person or persons, association, organization or corporation authorized to transact the business of workers' compensation insurance in this state; or
(2) Possess a valid certificate of authority from the commissioner of commerce and insurance by furnishing satisfactory proof of the employer's financial ability to pay all claims that may arise against the employer under this chapter and guarantee the payment of the claims in the amount and manner and when due as provided for in this chapter.
(b) (1) If the employer elects to proceed under subdivision (a)(2), the commissioner of commerce and insurance shall require the applicant to pay a nonrefundable application fee of five hundred dollars ($500) or in an amount the commissioner shall promulgate by rule. (2) The commissioner of commerce and insurance shall require the applicant to file and maintain with the department of commerce and insurance the following: (A) (i) Security, in an amount to be determined by the commissioner of commerce and insurance, but not less than five hundred thousand dollars ($500,000), in any of the following forms, as specified herein: negotiable securities; a surety bond; a certificate of deposit; or a letter of credit; (ii) The security, or a contract between the self-insured employer, a depository institution and the commissioner of commerce and insurance evidencing the security held in the depository institution for purposes of compliance with this section, shall be held by the commissioner of commerce and insurance and shall be conditioned to run solely and directly for the benefit of the employees of the self-insured employer. Any legal actions to enforce the payment of the security being held for purposes of compliance with this section may be brought by the commissioner of commerce and insurance, or, with the approval of the commissioner of commerce and insurance, the Tennessee self-insurers' guaranty association, or both, for the benefit of the employees of the self-insured employer; (iii) The security held pursuant to this section may be used for the payment of any and all fees or costs required to administer the disbursement of the proceeds to or for the benefit of the employees; (iv) The venue for any suit filed by the commissioner of commerce and insurance or the Tennessee self-insurers' guaranty association under this subdivision (b)(2) must be in Davidson County; (v) (a) Any security held for purposes of compliance with this section shall be held for a minimum of ten (10) years after the self-insured employer is no longer self-insured and the self-insured employer shall maintain the fair market value of security on deposit at not less than five hundred thousand dollars ($500,000), unless otherwise approved by the commissioner of commerce and insurance or the commissioner's designee; (b) Any employer that is no longer self-insured pursuant to this section as of December 31, 2004, shall not be subject to subdivision (b)(2)(A)(v)( a ); (vi) All security, and contracts evidencing the security, filed with the commissioner of commerce and insurance shall be in a form substantively that has been previously approved by the commissioner of commerce and insurance. Any security that fails to meet any requirement under this section shall not be considered for purposes of determining a self-insurer's compliance with any of the security maintenance requirements of this section; (vii) As used in this subdivision (b)(2)(A), "qualified United States financial institution" shall have the meaning assigned by § 56-2-209(a) ; (viii) The commissioner of commerce and insurance may by rule establish requirements for securities posted pursuant to this subsection (b). These rules may also prescribe the various types and classes of securities that the commissioner of commerce and insurance will accept under this subsection (b); (B) (i) Evidence of the employer's financial ability to pay all claims that may arise against the employer in the form of an annual certified financial statement, including a statement of assets and liabilities and a statement of profit and loss, to be filed no later than the last day of the ninth month after the end of the employer's immediately preceding fiscal year; (ii) The financial statement is to include a detailed accounting for reserves for losses outstanding incurred in connection with workers' compensation self-insurance. The employer's losses and adequacy of reserves shall be certified annually by an actuary qualified under rules established by the commissioner of commerce and insurance for the filing of statements by insurance companies. (3) (A) Filings pursuant to this subsection (b) shall be kept confidential by the commissioner of commerce and insurance and shall not be construed to be a public record pursuant to title 10, chapter 7. (B) Notwithstanding subdivision (b)(3)(A), the commissioner of commerce and insurance may provide the filings received pursuant to this subsection (b) to the Tennessee self-insurers' guaranty association, which shall keep the filings and information in the filings confidential until made public by the commissioner. (4) The commissioner of commerce and insurance may assess a civil penalty of one hundred dollars ($100) per day for each day any self-insured employer has failed to comply with any financial record filing requirement. The civil penalty assessed under this subdivision (b)(4) shall be cumulative and in addition to any other civil penalty or remedy available to the commissioner. No civil penalty shall be assessed against any political subdivision of the state. (5) For employers electing to self-insure pursuant to subdivision (a)(2), the commissioner of commerce and insurance shall consider all available information when making the determination as to both the adequacy of all security deposits, letters of credit, negotiable securities, or bonds held by the commissioner and whether an employer has the ability to pay all claims that may arise. (6) No employer shall self-insure its workers' compensation liabilities without a certificate of authority issued by the commissioner of commerce and insurance. It shall be unlawful for any employer to self-insure its liabilities for workers' compensation without first obtaining a duly issued certificate of authority from the commissioner of commerce and insurance. Whenever an employer has complied with subdivisions (a)(2) and (b)(2)(A) and (B), the commissioner of commerce and insurance, or the commissioner's designee, may issue to the employer a certificate of authority allowing the employer to self-insure under this section. Notice of this authorization shall be sent to the administrator of the bureau of workers' compensation. (7) If an authorized self-insured employer fails to furnish the commissioner of commerce and insurance the requirements delineated in subdivisions (a)(2) and (b)(2)(A) and (B), or if the Tennessee self-insurers' guaranty association recommends revocation or suspension of an authorized self-insured employer's certificate of authority, then the commissioner may, after giving written notice and an opportunity for a hearing to the affected party or parties within thirty (30) days, suspend or revoke the certificate authorizing the employer to self-insure granted under this section. The commissioner may, without prior notice and if it appears in the commissioner's discretion that the continuation of the certificate would be clearly hazardous to the employees of the self-insurer or to the public generally, summarily suspend an authorized self-insurer's certificate before a hearing is commenced and in that event shall immediately notify the self-insurer, and the notice shall include a statement to the effect that the commissioner's action is subject to review. All hearings conducted under this section shall comply with the contested case provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (8) Any hearing under this section shall be requested in writing by the self-insured employer within fifteen (15) days of receiving written notification from the commissioner of commerce and insurance or the commissioner's designee. In any proceeding in which the self-insured employer's certificate of authority is suspended or revoked, the self-insured employer shall pay all costs associated with the proceeding. The commissioner may serve a notice, order, petition or complaint in any action arising under this section by certified mail to the self-insured employer at the address of record in the files of the department. Notwithstanding any law to the contrary, service in the manner set forth in this subdivision (b)(8), shall be deemed to constitute actual service on the self-insured employer. (9) The commissioner of commerce and insurance or the commissioner's designee shall immediately notify the administrator of the bureau of workers' compensation of any decision to suspend or revoke a certificate authorizing an employer to self-insure. (10) The commissioner of commerce and insurance or the commissioner's designee has the authority to examine and investigate any self-insured employer whenever the commissioner deems it prudent to do so. The purposes and scope of the examinations and the commissioner's powers shall be set forth in title 56, chapter 1, part 4, pertaining to examinations of insurance companies. (11) The commissioner of commerce and insurance may promulgate rules and regulations, including emergency rules and regulations, necessary for the administration of this section and shall conduct all rulemaking in accordance with the Uniform Administrative Procedures Act.
(1) If the employer elects to proceed under subdivision (a)(2), the commissioner of commerce and insurance shall require the applicant to pay a nonrefundable application fee of five hundred dollars ($500) or in an amount the commissioner shall promulgate by rule.
(2) The commissioner of commerce and insurance shall require the applicant to file and maintain with the department of commerce and insurance the following: (A) (i) Security, in an amount to be determined by the commissioner of commerce and insurance, but not less than five hundred thousand dollars ($500,000), in any of the following forms, as specified herein: negotiable securities; a surety bond; a certificate of deposit; or a letter of credit; (ii) The security, or a contract between the self-insured employer, a depository institution and the commissioner of commerce and insurance evidencing the security held in the depository institution for purposes of compliance with this section, shall be held by the commissioner of commerce and insurance and shall be conditioned to run solely and directly for the benefit of the employees of the self-insured employer. Any legal actions to enforce the payment of the security being held for purposes of compliance with this section may be brought by the commissioner of commerce and insurance, or, with the approval of the commissioner of commerce and insurance, the Tennessee self-insurers' guaranty association, or both, for the benefit of the employees of the self-insured employer; (iii) The security held pursuant to this section may be used for the payment of any and all fees or costs required to administer the disbursement of the proceeds to or for the benefit of the employees; (iv) The venue for any suit filed by the commissioner of commerce and insurance or the Tennessee self-insurers' guaranty association under this subdivision (b)(2) must be in Davidson County; (v) (a) Any security held for purposes of compliance with this section shall be held for a minimum of ten (10) years after the self-insured employer is no longer self-insured and the self-insured employer shall maintain the fair market value of security on deposit at not less than five hundred thousand dollars ($500,000), unless otherwise approved by the commissioner of commerce and insurance or the commissioner's designee; (b) Any employer that is no longer self-insured pursuant to this section as of December 31, 2004, shall not be subject to subdivision (b)(2)(A)(v)( a ); (vi) All security, and contracts evidencing the security, filed with the commissioner of commerce and insurance shall be in a form substantively that has been previously approved by the commissioner of commerce and insurance. Any security that fails to meet any requirement under this section shall not be considered for purposes of determining a self-insurer's compliance with any of the security maintenance requirements of this section; (vii) As used in this subdivision (b)(2)(A), "qualified United States financial institution" shall have the meaning assigned by § 56-2-209(a) ; (viii) The commissioner of commerce and insurance may by rule establish requirements for securities posted pursuant to this subsection (b). These rules may also prescribe the various types and classes of securities that the commissioner of commerce and insurance will accept under this subsection (b); (B) (i) Evidence of the employer's financial ability to pay all claims that may arise against the employer in the form of an annual certified financial statement, including a statement of assets and liabilities and a statement of profit and loss, to be filed no later than the last day of the ninth month after the end of the employer's immediately preceding fiscal year; (ii) The financial statement is to include a detailed accounting for reserves for losses outstanding incurred in connection with workers' compensation self-insurance. The employer's losses and adequacy of reserves shall be certified annually by an actuary qualified under rules established by the commissioner of commerce and insurance for the filing of statements by insurance companies.
(A) (i) Security, in an amount to be determined by the commissioner of commerce and insurance, but not less than five hundred thousand dollars ($500,000), in any of the following forms, as specified herein: negotiable securities; a surety bond; a certificate of deposit; or a letter of credit; (ii) The security, or a contract between the self-insured employer, a depository institution and the commissioner of commerce and insurance evidencing the security held in the depository institution for purposes of compliance with this section, shall be held by the commissioner of commerce and insurance and shall be conditioned to run solely and directly for the benefit of the employees of the self-insured employer. Any legal actions to enforce the payment of the security being held for purposes of compliance with this section may be brought by the commissioner of commerce and insurance, or, with the approval of the commissioner of commerce and insurance, the Tennessee self-insurers' guaranty association, or both, for the benefit of the employees of the self-insured employer; (iii) The security held pursuant to this section may be used for the payment of any and all fees or costs required to administer the disbursement of the proceeds to or for the benefit of the employees; (iv) The venue for any suit filed by the commissioner of commerce and insurance or the Tennessee self-insurers' guaranty association under this subdivision (b)(2) must be in Davidson County; (v) (a) Any security held for purposes of compliance with this section shall be held for a minimum of ten (10) years after the self-insured employer is no longer self-insured and the self-insured employer shall maintain the fair market value of security on deposit at not less than five hundred thousand dollars ($500,000), unless otherwise approved by the commissioner of commerce and insurance or the commissioner's designee; (b) Any employer that is no longer self-insured pursuant to this section as of December 31, 2004, shall not be subject to subdivision (b)(2)(A)(v)( a ); (vi) All security, and contracts evidencing the security, filed with the commissioner of commerce and insurance shall be in a form substantively that has been previously approved by the commissioner of commerce and insurance. Any security that fails to meet any requirement under this section shall not be considered for purposes of determining a self-insurer's compliance with any of the security maintenance requirements of this section; (vii) As used in this subdivision (b)(2)(A), "qualified United States financial institution" shall have the meaning assigned by § 56-2-209(a) ; (viii) The commissioner of commerce and insurance may by rule establish requirements for securities posted pursuant to this subsection (b). These rules may also prescribe the various types and classes of securities that the commissioner of commerce and insurance will accept under this subsection (b);
(i) Security, in an amount to be determined by the commissioner of commerce and insurance, but not less than five hundred thousand dollars ($500,000), in any of the following forms, as specified herein: negotiable securities; a surety bond; a certificate of deposit; or a letter of credit;
(ii) The security, or a contract between the self-insured employer, a depository institution and the commissioner of commerce and insurance evidencing the security held in the depository institution for purposes of compliance with this section, shall be held by the commissioner of commerce and insurance and shall be conditioned to run solely and directly for the benefit of the employees of the self-insured employer. Any legal actions to enforce the payment of the security being held for purposes of compliance with this section may be brought by the commissioner of commerce and insurance, or, with the approval of the commissioner of commerce and insurance, the Tennessee self-insurers' guaranty association, or both, for the benefit of the employees of the self-insured employer;
(iii) The security held pursuant to this section may be used for the payment of any and all fees or costs required to administer the disbursement of the proceeds to or for the benefit of the employees;
(iv) The venue for any suit filed by the commissioner of commerce and insurance or the Tennessee self-insurers' guaranty association under this subdivision (b)(2) must be in Davidson County;
(v) (a) Any security held for purposes of compliance with this section shall be held for a minimum of ten (10) years after the self-insured employer is no longer self-insured and the self-insured employer shall maintain the fair market value of security on deposit at not less than five hundred thousand dollars ($500,000), unless otherwise approved by the commissioner of commerce and insurance or the commissioner's designee; (b) Any employer that is no longer self-insured pursuant to this section as of December 31, 2004, shall not be subject to subdivision (b)(2)(A)(v)( a );
(a) Any security held for purposes of compliance with this section shall be held for a minimum of ten (10) years after the self-insured employer is no longer self-insured and the self-insured employer shall maintain the fair market value of security on deposit at not less than five hundred thousand dollars ($500,000), unless otherwise approved by the commissioner of commerce and insurance or the commissioner's designee;
(b) Any employer that is no longer self-insured pursuant to this section as of December 31, 2004, shall not be subject to subdivision (b)(2)(A)(v)( a );
(vi) All security, and contracts evidencing the security, filed with the commissioner of commerce and insurance shall be in a form substantively that has been previously approved by the commissioner of commerce and insurance. Any security that fails to meet any requirement under this section shall not be considered for purposes of determining a self-insurer's compliance with any of the security maintenance requirements of this section;
(vii) As used in this subdivision (b)(2)(A), "qualified United States financial institution" shall have the meaning assigned by § 56-2-209(a) ;
(viii) The commissioner of commerce and insurance may by rule establish requirements for securities posted pursuant to this subsection (b). These rules may also prescribe the various types and classes of securities that the commissioner of commerce and insurance will accept under this subsection (b);
(B) (i) Evidence of the employer's financial ability to pay all claims that may arise against the employer in the form of an annual certified financial statement, including a statement of assets and liabilities and a statement of profit and loss, to be filed no later than the last day of the ninth month after the end of the employer's immediately preceding fiscal year; (ii) The financial statement is to include a detailed accounting for reserves for losses outstanding incurred in connection with workers' compensation self-insurance. The employer's losses and adequacy of reserves shall be certified annually by an actuary qualified under rules established by the commissioner of commerce and insurance for the filing of statements by insurance companies.
(i) Evidence of the employer's financial ability to pay all claims that may arise against the employer in the form of an annual certified financial statement, including a statement of assets and liabilities and a statement of profit and loss, to be filed no later than the last day of the ninth month after the end of the employer's immediately preceding fiscal year;
(ii) The financial statement is to include a detailed accounting for reserves for losses outstanding incurred in connection with workers' compensation self-insurance. The employer's losses and adequacy of reserves shall be certified annually by an actuary qualified under rules established by the commissioner of commerce and insurance for the filing of statements by insurance companies.
(3) (A) Filings pursuant to this subsection (b) shall be kept confidential by the commissioner of commerce and insurance and shall not be construed to be a public record pursuant to title 10, chapter 7. (B) Notwithstanding subdivision (b)(3)(A), the commissioner of commerce and insurance may provide the filings received pursuant to this subsection (b) to the Tennessee self-insurers' guaranty association, which shall keep the filings and information in the filings confidential until made public by the commissioner.
(A) Filings pursuant to this subsection (b) shall be kept confidential by the commissioner of commerce and insurance and shall not be construed to be a public record pursuant to title 10, chapter 7.
(B) Notwithstanding subdivision (b)(3)(A), the commissioner of commerce and insurance may provide the filings received pursuant to this subsection (b) to the Tennessee self-insurers' guaranty association, which shall keep the filings and information in the filings confidential until made public by the commissioner.
(4) The commissioner of commerce and insurance may assess a civil penalty of one hundred dollars ($100) per day for each day any self-insured employer has failed to comply with any financial record filing requirement. The civil penalty assessed under this subdivision (b)(4) shall be cumulative and in addition to any other civil penalty or remedy available to the commissioner. No civil penalty shall be assessed against any political subdivision of the state.
(5) For employers electing to self-insure pursuant to subdivision (a)(2), the commissioner of commerce and insurance shall consider all available information when making the determination as to both the adequacy of all security deposits, letters of credit, negotiable securities, or bonds held by the commissioner and whether an employer has the ability to pay all claims that may arise.
(6) No employer shall self-insure its workers' compensation liabilities without a certificate of authority issued by the commissioner of commerce and insurance. It shall be unlawful for any employer to self-insure its liabilities for workers' compensation without first obtaining a duly issued certificate of authority from the commissioner of commerce and insurance. Whenever an employer has complied with subdivisions (a)(2) and (b)(2)(A) and (B), the commissioner of commerce and insurance, or the commissioner's designee, may issue to the employer a certificate of authority allowing the employer to self-insure under this section. Notice of this authorization shall be sent to the administrator of the bureau of workers' compensation.
(7) If an authorized self-insured employer fails to furnish the commissioner of commerce and insurance the requirements delineated in subdivisions (a)(2) and (b)(2)(A) and (B), or if the Tennessee self-insurers' guaranty association recommends revocation or suspension of an authorized self-insured employer's certificate of authority, then the commissioner may, after giving written notice and an opportunity for a hearing to the affected party or parties within thirty (30) days, suspend or revoke the certificate authorizing the employer to self-insure granted under this section. The commissioner may, without prior notice and if it appears in the commissioner's discretion that the continuation of the certificate would be clearly hazardous to the employees of the self-insurer or to the public generally, summarily suspend an authorized self-insurer's certificate before a hearing is commenced and in that event shall immediately notify the self-insurer, and the notice shall include a statement to the effect that the commissioner's action is subject to review. All hearings conducted under this section shall comply with the contested case provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(8) Any hearing under this section shall be requested in writing by the self-insured employer within fifteen (15) days of receiving written notification from the commissioner of commerce and insurance or the commissioner's designee. In any proceeding in which the self-insured employer's certificate of authority is suspended or revoked, the self-insured employer shall pay all costs associated with the proceeding. The commissioner may serve a notice, order, petition or complaint in any action arising under this section by certified mail to the self-insured employer at the address of record in the files of the department. Notwithstanding any law to the contrary, service in the manner set forth in this subdivision (b)(8), shall be deemed to constitute actual service on the self-insured employer.
(9) The commissioner of commerce and insurance or the commissioner's designee shall immediately notify the administrator of the bureau of workers' compensation of any decision to suspend or revoke a certificate authorizing an employer to self-insure.
(10) The commissioner of commerce and insurance or the commissioner's designee has the authority to examine and investigate any self-insured employer whenever the commissioner deems it prudent to do so. The purposes and scope of the examinations and the commissioner's powers shall be set forth in title 56, chapter 1, part 4, pertaining to examinations of insurance companies.
(11) The commissioner of commerce and insurance may promulgate rules and regulations, including emergency rules and regulations, necessary for the administration of this section and shall conduct all rulemaking in accordance with the Uniform Administrative Procedures Act.
(c) (1) With the permission of a trade or professional association board of directors, ten (10) or more employers of the same group may enter into agreements to pool their liabilities under this chapter for the purpose of qualifying as self-insurers. The trade or professional association shall have been in active existence in Tennessee for at least five (5) years and the association shall: (A) Have a constitution or bylaws; (B) Have members that support the association by regular payment of dues on an annual, semiannual, quarterly or monthly basis; and (C) Be created in good faith for purposes other than that of creating workers' compensation self-insurer pools. The commissioner of commerce and insurance has the authority to promulgate rules and regulations deemed necessary to provide for the solvency, administration and enforcement of the pooling agreements. To the extent deemed necessary by the commissioner of commerce and insurance, each employer member of the approved group shall be classified as a self-insurer as otherwise provided in this chapter. (2) Notwithstanding any other law or rule to the contrary, funds not needed for current obligations may be invested by the board of trustees in Tennessee securities as defined in § 56-4-210(a) . The board of trustees of each workers' compensation pool shall adopt an investment policy. The policy shall address credit, quality of investments, maximum maturity of investments and other matters the board deems appropriate. Real estate investments must be undertaken with the approval of the commissioner of commerce and insurance. (3) (A) Each group of employers qualifying as self-insurers pursuant to this subsection (c) shall submit to the commissioner of commerce and insurance a statement of financial condition audited by an independent certified public accountant on or before the last day of the sixth month following the end of the group's fiscal year. A thirty-day extension of the financial statement filing requirement shall be granted by the commissioner upon receipt of a request, via certified mail, by a group. The request shall be submitted to the commissioner not less than thirty (30) days prior to the date the financial statement is due to be filed. (B) Notwithstanding subdivision (c)(3)(A), a qualified self-insured trust that has entered into a self-insurance loss portfolio transfer agreement approved by the commissioner of commerce and insurance with an insurer licensed in this state pursuant to which all of the liabilities and obligations pooled by the group of employers of the self-insured trust for their workers' compensation and employers' liability losses, including all existing and incurred but not reported claims, is not required to annually submit a statement of financial condition audited by an independent certified public accountant; provided, that the commissioner of commerce and insurance has granted a request filed by the self-insured trust for exemption from the annual submission of an audited statement of financial condition. (4) (A) At the request of a group of employers qualifying as self-insurers pursuant to this subsection (c), the commissioner of commerce and insurance, in the commissioner's sole discretion, may grant additional thirty-day extensions to the financial statement filing requirements for acts of God, public enemies, fire, flood, storms or similar events constituting force majeure that cause the group to require more time to meet the filing requirements. (B) The commissioner of commerce and insurance, after notice and an opportunity for a hearing, may revoke the certificate of approval of a group of employers qualifying as self-insurers pursuant to this subsection (c) if the group fails to comply with this subsection (c) or any rules promulgated under this subsection (c). In addition to or in lieu of revoking a certificate of approval, the commissioner may assess a civil penalty of one hundred dollars ($100) per day for failure to timely meet the filing requirements set forth in this subsection (c). All hearings under this subsection (c) shall be conducted pursuant to the Uniform Administrative Procedures Act. (C) Financial statements filed pursuant to this subsection (c), individual member financial statements, work papers, notes, internal documents generated by the department of commerce and insurance or any other information obtained by or disclosed to the commissioner of commerce and insurance pursuant to this chapter or any regulations promulgated under this chapter, shall be confidential and shall not be disclosed to the public. This provision, however, shall not apply to the examination report prepared by the commissioner of commerce and insurance, nor to any rebuttal to the examination reports submitted by or on behalf of the group examined. However, nothing contained in this subdivision (c)(4)(C) shall be construed as prohibiting the commissioner of commerce and insurance from disclosing the information listed in this subdivision (c)(4)(C), or any matters relating to that information, to state agencies of this or any other state, or to law enforcement officials of this or any other state or agency of the federal government at any time. (D) Upon receipt of a request from any approved authorized agent of a group of employers qualifying as self-insurers pursuant to this subsection (c), the group shall provide a copy of the annual statement of financial condition. The agent, however, shall not further disseminate the information except for purposes of obtaining errors and omission insurance or in the exercise of due diligence of the agent on behalf of the agent's client seeking admission to the group. Further, any individual or entity obtaining a copy of the statement shall hold the information confidential and shall not share or disclose the information to any other individual or entity. (5) All groups pooling their liabilities pursuant to this subsection (c) shall pay premium tax and surcharges at the rates set forth in § 56-4-206 . Each group's premium tax and surcharge payments shall be due on or before the last day of the sixth month following the end of the group's fiscal year. Any group failing to timely pay the taxes and surcharges shall be subject to the penalties and sanctions set forth in § 56-4-216 . (6) The sponsoring trade association may determine whether or not the pool shall remain in existence, subject to the approval of the commissioner. (7) The pool shall provide to the sponsoring trade association all information requested by the association, other than a member's financial information. (8) The sponsoring association shall not be liable or responsible for any act or omission of the pool. (9) The commissioner of commerce and insurance has the authority to promulgate rules and regulations that would provide for civil penalties for violations of this subsection (c) or rules promulgated under this subsection (c).
(1) With the permission of a trade or professional association board of directors, ten (10) or more employers of the same group may enter into agreements to pool their liabilities under this chapter for the purpose of qualifying as self-insurers. The trade or professional association shall have been in active existence in Tennessee for at least five (5) years and the association shall: (A) Have a constitution or bylaws; (B) Have members that support the association by regular payment of dues on an annual, semiannual, quarterly or monthly basis; and (C) Be created in good faith for purposes other than that of creating workers' compensation self-insurer pools. The commissioner of commerce and insurance has the authority to promulgate rules and regulations deemed necessary to provide for the solvency, administration and enforcement of the pooling agreements. To the extent deemed necessary by the commissioner of commerce and insurance, each employer member of the approved group shall be classified as a self-insurer as otherwise provided in this chapter.
(A) Have a constitution or bylaws;
(B) Have members that support the association by regular payment of dues on an annual, semiannual, quarterly or monthly basis; and
(C) Be created in good faith for purposes other than that of creating workers' compensation self-insurer pools. The commissioner of commerce and insurance has the authority to promulgate rules and regulations deemed necessary to provide for the solvency, administration and enforcement of the pooling agreements. To the extent deemed necessary by the commissioner of commerce and insurance, each employer member of the approved group shall be classified as a self-insurer as otherwise provided in this chapter.
(2) Notwithstanding any other law or rule to the contrary, funds not needed for current obligations may be invested by the board of trustees in Tennessee securities as defined in § 56-4-210(a) . The board of trustees of each workers' compensation pool shall adopt an investment policy. The policy shall address credit, quality of investments, maximum maturity of investments and other matters the board deems appropriate. Real estate investments must be undertaken with the approval of the commissioner of commerce and insurance.
(3) (A) Each group of employers qualifying as self-insurers pursuant to this subsection (c) shall submit to the commissioner of commerce and insurance a statement of financial condition audited by an independent certified public accountant on or before the last day of the sixth month following the end of the group's fiscal year. A thirty-day extension of the financial statement filing requirement shall be granted by the commissioner upon receipt of a request, via certified mail, by a group. The request shall be submitted to the commissioner not less than thirty (30) days prior to the date the financial statement is due to be filed. (B) Notwithstanding subdivision (c)(3)(A), a qualified self-insured trust that has entered into a self-insurance loss portfolio transfer agreement approved by the commissioner of commerce and insurance with an insurer licensed in this state pursuant to which all of the liabilities and obligations pooled by the group of employers of the self-insured trust for their workers' compensation and employers' liability losses, including all existing and incurred but not reported claims, is not required to annually submit a statement of financial condition audited by an independent certified public accountant; provided, that the commissioner of commerce and insurance has granted a request filed by the self-insured trust for exemption from the annual submission of an audited statement of financial condition.
(A) Each group of employers qualifying as self-insurers pursuant to this subsection (c) shall submit to the commissioner of commerce and insurance a statement of financial condition audited by an independent certified public accountant on or before the last day of the sixth month following the end of the group's fiscal year. A thirty-day extension of the financial statement filing requirement shall be granted by the commissioner upon receipt of a request, via certified mail, by a group. The request shall be submitted to the commissioner not less than thirty (30) days prior to the date the financial statement is due to be filed.
(B) Notwithstanding subdivision (c)(3)(A), a qualified self-insured trust that has entered into a self-insurance loss portfolio transfer agreement approved by the commissioner of commerce and insurance with an insurer licensed in this state pursuant to which all of the liabilities and obligations pooled by the group of employers of the self-insured trust for their workers' compensation and employers' liability losses, including all existing and incurred but not reported claims, is not required to annually submit a statement of financial condition audited by an independent certified public accountant; provided, that the commissioner of commerce and insurance has granted a request filed by the self-insured trust for exemption from the annual submission of an audited statement of financial condition.
(4) (A) At the request of a group of employers qualifying as self-insurers pursuant to this subsection (c), the commissioner of commerce and insurance, in the commissioner's sole discretion, may grant additional thirty-day extensions to the financial statement filing requirements for acts of God, public enemies, fire, flood, storms or similar events constituting force majeure that cause the group to require more time to meet the filing requirements. (B) The commissioner of commerce and insurance, after notice and an opportunity for a hearing, may revoke the certificate of approval of a group of employers qualifying as self-insurers pursuant to this subsection (c) if the group fails to comply with this subsection (c) or any rules promulgated under this subsection (c). In addition to or in lieu of revoking a certificate of approval, the commissioner may assess a civil penalty of one hundred dollars ($100) per day for failure to timely meet the filing requirements set forth in this subsection (c). All hearings under this subsection (c) shall be conducted pursuant to the Uniform Administrative Procedures Act. (C) Financial statements filed pursuant to this subsection (c), individual member financial statements, work papers, notes, internal documents generated by the department of commerce and insurance or any other information obtained by or disclosed to the commissioner of commerce and insurance pursuant to this chapter or any regulations promulgated under this chapter, shall be confidential and shall not be disclosed to the public. This provision, however, shall not apply to the examination report prepared by the commissioner of commerce and insurance, nor to any rebuttal to the examination reports submitted by or on behalf of the group examined. However, nothing contained in this subdivision (c)(4)(C) shall be construed as prohibiting the commissioner of commerce and insurance from disclosing the information listed in this subdivision (c)(4)(C), or any matters relating to that information, to state agencies of this or any other state, or to law enforcement officials of this or any other state or agency of the federal government at any time. (D) Upon receipt of a request from any approved authorized agent of a group of employers qualifying as self-insurers pursuant to this subsection (c), the group shall provide a copy of the annual statement of financial condition. The agent, however, shall not further disseminate the information except for purposes of obtaining errors and omission insurance or in the exercise of due diligence of the agent on behalf of the agent's client seeking admission to the group. Further, any individual or entity obtaining a copy of the statement shall hold the information confidential and shall not share or disclose the information to any other individual or entity.
(A) At the request of a group of employers qualifying as self-insurers pursuant to this subsection (c), the commissioner of commerce and insurance, in the commissioner's sole discretion, may grant additional thirty-day extensions to the financial statement filing requirements for acts of God, public enemies, fire, flood, storms or similar events constituting force majeure that cause the group to require more time to meet the filing requirements.
(B) The commissioner of commerce and insurance, after notice and an opportunity for a hearing, may revoke the certificate of approval of a group of employers qualifying as self-insurers pursuant to this subsection (c) if the group fails to comply with this subsection (c) or any rules promulgated under this subsection (c). In addition to or in lieu of revoking a certificate of approval, the commissioner may assess a civil penalty of one hundred dollars ($100) per day for failure to timely meet the filing requirements set forth in this subsection (c). All hearings under this subsection (c) shall be conducted pursuant to the Uniform Administrative Procedures Act.
(C) Financial statements filed pursuant to this subsection (c), individual member financial statements, work papers, notes, internal documents generated by the department of commerce and insurance or any other information obtained by or disclosed to the commissioner of commerce and insurance pursuant to this chapter or any regulations promulgated under this chapter, shall be confidential and shall not be disclosed to the public. This provision, however, shall not apply to the examination report prepared by the commissioner of commerce and insurance, nor to any rebuttal to the examination reports submitted by or on behalf of the group examined. However, nothing contained in this subdivision (c)(4)(C) shall be construed as prohibiting the commissioner of commerce and insurance from disclosing the information listed in this subdivision (c)(4)(C), or any matters relating to that information, to state agencies of this or any other state, or to law enforcement officials of this or any other state or agency of the federal government at any time.
(D) Upon receipt of a request from any approved authorized agent of a group of employers qualifying as self-insurers pursuant to this subsection (c), the group shall provide a copy of the annual statement of financial condition. The agent, however, shall not further disseminate the information except for purposes of obtaining errors and omission insurance or in the exercise of due diligence of the agent on behalf of the agent's client seeking admission to the group. Further, any individual or entity obtaining a copy of the statement shall hold the information confidential and shall not share or disclose the information to any other individual or entity.
(5) All groups pooling their liabilities pursuant to this subsection (c) shall pay premium tax and surcharges at the rates set forth in § 56-4-206 . Each group's premium tax and surcharge payments shall be due on or before the last day of the sixth month following the end of the group's fiscal year. Any group failing to timely pay the taxes and surcharges shall be subject to the penalties and sanctions set forth in § 56-4-216 .
(6) The sponsoring trade association may determine whether or not the pool shall remain in existence, subject to the approval of the commissioner.
(7) The pool shall provide to the sponsoring trade association all information requested by the association, other than a member's financial information.
(8) The sponsoring association shall not be liable or responsible for any act or omission of the pool.
(9) The commissioner of commerce and insurance has the authority to promulgate rules and regulations that would provide for civil penalties for violations of this subsection (c) or rules promulgated under this subsection (c).
(d) (1) It is an offense for any employer whose employee is entitled to the benefits of this chapter: (A) To require such employee to pay any portion of the insurance premium paid by the employer; or (B) To deduct any portion of such premium from the wages or salary of such employee. (2) A violation of subdivision (d)(1) is a Class C misdemeanor. (3) (A) In addition to any criminal penalty assessed for a violation of subdivision (d)(1), the administrator of the bureau of workers' compensation is authorized to impose a civil penalty of up to an amount equal to the amount of premiums deducted from such employee's wages or salary. (B) If a civil penalty is assessed pursuant to subdivision (d)(3)(A), the administrator of the bureau of workers' compensation shall assess the penalty in a specific dollar amount to be paid directly to the employee.
(1) It is an offense for any employer whose employee is entitled to the benefits of this chapter: (A) To require such employee to pay any portion of the insurance premium paid by the employer; or (B) To deduct any portion of such premium from the wages or salary of such employee.
(A) To require such employee to pay any portion of the insurance premium paid by the employer; or
(B) To deduct any portion of such premium from the wages or salary of such employee.
(2) A violation of subdivision (d)(1) is a Class C misdemeanor.
(3) (A) In addition to any criminal penalty assessed for a violation of subdivision (d)(1), the administrator of the bureau of workers' compensation is authorized to impose a civil penalty of up to an amount equal to the amount of premiums deducted from such employee's wages or salary. (B) If a civil penalty is assessed pursuant to subdivision (d)(3)(A), the administrator of the bureau of workers' compensation shall assess the penalty in a specific dollar amount to be paid directly to the employee.
(A) In addition to any criminal penalty assessed for a violation of subdivision (d)(1), the administrator of the bureau of workers' compensation is authorized to impose a civil penalty of up to an amount equal to the amount of premiums deducted from such employee's wages or salary.
(B) If a civil penalty is assessed pursuant to subdivision (d)(3)(A), the administrator of the bureau of workers' compensation shall assess the penalty in a specific dollar amount to be paid directly to the employee.
(e) If at any time the commissioner of commerce and insurance deems the security or bond inadequate or unsafe, the commissioner shall require adequate bond or security.
(f) The commissioner of commerce and insurance may require the employer to secure excess catastrophe reinsurance coverage.
(g) This part shall not apply to policies of insurance against loss from explosions of boilers or flywheels or other similar single catastrophe hazards.
(h) The commissioner of commerce and insurance may issue rules, regulations and orders necessary to properly administer the deposits, bonds and financial evidence as required in this part.
(i) It is the duty of the commissioner of commerce and insurance and the administrator of the bureau of workers' compensation to interchange information as to matters of mutual interest under this chapter.
(j) Any employer of a construction services provider, as defined in § 50-6-901 , shall, upon request by the bureau, provide proof of valid workers' compensation insurance coverage at the employer's place of business and at job sites where the employer is providing construction services. Failure to provide proof of valid workers' compensation insurance coverage within one (1) business day of the request may result in a penalty of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) per violation for any initial violation at the discretion of the administrator or administrator's designee, and not less than fifty dollars ($50.00) nor more than five thousand dollars ($5,000) per violation for subsequent violations. The administrator has discretion in determining acceptable proof of coverage, including electronic proof of coverage, taking into account standard insurance industry practices. Insurers shall advise policy holders who are construction services providers regarding the availability of electronic downloads of policy information to facilitate field inspection of proof of workers' compensation coverage.
(k) (1) An employer who elects to self-insure under subdivision (a)(2) and is deemed eligible by the Tennessee self-insurers' guaranty association for participation in the risk-based security program: (A) Must satisfy the employer's security requirements through the program; and (B) Is only subject to the requirements of subdivisions (b)(1) and (2) as outlined in the association's plan of operation. (2) Subdivision (k)(1) does not apply to: (A) Self-insured groups organized pursuant to subsection (c); or (B) Governmental entities that have not elected to be a member of the Tennessee self-insurers' guaranty association pursuant to § 50-6-1004(e) .
(1) An employer who elects to self-insure under subdivision (a)(2) and is deemed eligible by the Tennessee self-insurers' guaranty association for participation in the risk-based security program: (A) Must satisfy the employer's security requirements through the program; and (B) Is only subject to the requirements of subdivisions (b)(1) and (2) as outlined in the association's plan of operation.
(A) Must satisfy the employer's security requirements through the program; and
(B) Is only subject to the requirements of subdivisions (b)(1) and (2) as outlined in the association's plan of operation.
(2) Subdivision (k)(1) does not apply to: (A) Self-insured groups organized pursuant to subsection (c); or (B) Governmental entities that have not elected to be a member of the Tennessee self-insurers' guaranty association pursuant to § 50-6-1004(e) .
(A) Self-insured groups organized pursuant to subsection (c); or
(B) Governmental entities that have not elected to be a member of the Tennessee self-insurers' guaranty association pursuant to § 50-6-1004(e) .
Amended by 2024 Tenn. Acts, ch. 666,s 7, eff. 4/9/2024.
Amended by 2024 Tenn. Acts, ch. 666,s 6, eff. 4/9/2024.
Amended by 2024 Tenn. Acts, ch. 666,s 5, eff. 4/9/2024.
Amended by 2024 Tenn. Acts, ch. 666,s 4, eff. 4/9/2024.
Amended by 2024 Tenn. Acts, ch. 666,s 3, eff. 4/9/2024.
Amended by 2024 Tenn. Acts, ch. 666,s 2, eff. 4/9/2024.
Acts 1919, ch. 123, § 41; impl. am. Acts 1923, ch. 7, §§ 2, 50; Shan. Supp., § 3608a191; mod. Code 1932, § 6895; Acts 1941, ch. 90, § 11; mod. C. Supp. 1950, § 6895; impl. am. Acts 1971, ch. 137, § 1; Acts 1973, ch. 379, § 11; 1978, ch. 759, § 1; impl. am. Acts 1980, ch. 534, § 1; Acts 1980, ch. 457, §§ 1, 2; T.C.A. (orig. ed.), § 50-1205; Acts 1985, ch. 381, § 1; 1989, ch. 591, § 113; 1993, ch. 224, § 1; 1995, ch. 142, § 1; 1997 , ch. 533, § 50; 1999 , ch. 520, § 41; 2000 , ch. 852, § 15; 2002 , ch. 544, §§ 1, 2; 2003 , ch. 359, §§ 7 - 9, 13; 2004 , ch. 962, §§ 34 - 37, 47; 2005 , ch. 390, §§ 9 - 12; 2006 , ch. 954, §§ 1, 2; 2008 , ch. 841, § 1; 2009 , ch. 217, § 1; 2009 , ch. 373, §§ 1, 2; 2009 , ch. 566, § 12; 2010 , ch. 1149, § 7; 2013 , ch. 282, § 1; 2015 , ch. 341, § 15; 2017 , ch. 344, § 10; 2022 , ch. 742, § 1.
Tenn. Code Ann. § 50-7-102 — TN Code / Title 50 / Chapter 7 / Section 50-7-102
Declaration of state public policy - Construction
Status: in_force

(a) As a guide to the interpretation and application of this chapter, the public policy of this state is declared to be as follows: (1) Economic insecurity due to unemployment is a serious menace to the health, morals and welfare of the people of this state; therefore, involuntary unemployment is a subject of general interest and concern that requires action by the general assembly to prevent its spread and to lighten its burden that now so often falls with crushing force upon the unemployed worker and the worker's family; (2) The achievement of social security requires protection against this greatest hazard to our economic life. This can be provided by encouraging employers to provide more stable employment and, by the systematic accumulation of funds during periods of employment, to provide benefits for periods of unemployment, thus maintaining purchasing power and limiting the serious social consequences of poor relief assistance; and (3) The general assembly, therefore, declares that in its considered judgment the public good and general welfare of the citizens of this state require the enactment of this measure, under the police powers of the state, for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own. (b) This chapter is to be construed in pari materia with Internal Revenue Code, § 3303(a)(1) ( 26 U.S.C. § 3303(a)(1) ), and is to be construed in accordance with the construction placed on the Internal Revenue Code, § 3303(a)(1) to the extent the construction is relevant to this chapter, it being the intent of the general assembly that this chapter was adopted with the intent to conform with the Internal Revenue Code, and further that it was the intent of the general assembly to enact the remaining portions of this chapter that are in conformity with the Internal Revenue Code, if some portions of this chapter should be declared not to meet the requirements. Acts 1947, ch. 29, § 1; C. Supp. 1950, § 6901.1 (Williams, § 6901.25); Acts 1957, ch. 322, § 1; T.C.A. (orig. ed.), § 50-1302.
(a) As a guide to the interpretation and application of this chapter, the public policy of this state is declared to be as follows: (1) Economic insecurity due to unemployment is a serious menace to the health, morals and welfare of the people of this state; therefore, involuntary unemployment is a subject of general interest and concern that requires action by the general assembly to prevent its spread and to lighten its burden that now so often falls with crushing force upon the unemployed worker and the worker's family; (2) The achievement of social security requires protection against this greatest hazard to our economic life. This can be provided by encouraging employers to provide more stable employment and, by the systematic accumulation of funds during periods of employment, to provide benefits for periods of unemployment, thus maintaining purchasing power and limiting the serious social consequences of poor relief assistance; and (3) The general assembly, therefore, declares that in its considered judgment the public good and general welfare of the citizens of this state require the enactment of this measure, under the police powers of the state, for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own.
(1) Economic insecurity due to unemployment is a serious menace to the health, morals and welfare of the people of this state; therefore, involuntary unemployment is a subject of general interest and concern that requires action by the general assembly to prevent its spread and to lighten its burden that now so often falls with crushing force upon the unemployed worker and the worker's family;
(2) The achievement of social security requires protection against this greatest hazard to our economic life. This can be provided by encouraging employers to provide more stable employment and, by the systematic accumulation of funds during periods of employment, to provide benefits for periods of unemployment, thus maintaining purchasing power and limiting the serious social consequences of poor relief assistance; and
(3) The general assembly, therefore, declares that in its considered judgment the public good and general welfare of the citizens of this state require the enactment of this measure, under the police powers of the state, for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own.
(b) This chapter is to be construed in pari materia with Internal Revenue Code, § 3303(a)(1) ( 26 U.S.C. § 3303(a)(1) ), and is to be construed in accordance with the construction placed on the Internal Revenue Code, § 3303(a)(1) to the extent the construction is relevant to this chapter, it being the intent of the general assembly that this chapter was adopted with the intent to conform with the Internal Revenue Code, and further that it was the intent of the general assembly to enact the remaining portions of this chapter that are in conformity with the Internal Revenue Code, if some portions of this chapter should be declared not to meet the requirements.
Acts 1947, ch. 29, § 1; C. Supp. 1950, § 6901.1 (Williams, § 6901.25); Acts 1957, ch. 322, § 1; T.C.A. (orig. ed.), § 50-1302.
Tenn. Code Ann. § 50-6-418 — TN Code / Title 50 / Chapter 6 / Section 50-6-418
Rating plans based on drug-free workplace program participation
Status: in_force

(a) (1) The department of commerce and insurance shall approve rating plans for workers' compensation insurance that give specific identifiable consideration in the setting of rates to employers that implement a drug-free workplace program pursuant to rules adopted by the bureau of workers' compensation of the department of labor and workforce development. The plans must take effect January 1, 1997, must be actuarially sound, and must state the savings anticipated to result from the drug testing. The credit shall be at least five percent (5%) unless the commissioner of commerce and insurance determines that five percent (5%) is actuarially unsound. (2) The commissioner is also authorized to develop a schedule of premium credits for workers' compensation insurance for employers who have safety programs that attain certain criteria for safety programs. The commissioner shall consult with the administrator of the bureau of workers' compensation in setting the criteria. (b) The department of commerce and insurance shall apply the drug-free workplace program credit separately to each individual company for an employer having more than one (1) company under one (1) workers' compensation insurance policy. However, no credit given to an individual company may be combined with any credit given to any other company of the common employer or to the common employer itself. Acts 1996, ch. 944, § 51; 1999, ch. 520, § 41; 2005, ch. 390, § 14; 2013, ch. 282, § 1; 2015, ch. 341, § 15.
(a) (1) The department of commerce and insurance shall approve rating plans for workers' compensation insurance that give specific identifiable consideration in the setting of rates to employers that implement a drug-free workplace program pursuant to rules adopted by the bureau of workers' compensation of the department of labor and workforce development. The plans must take effect January 1, 1997, must be actuarially sound, and must state the savings anticipated to result from the drug testing. The credit shall be at least five percent (5%) unless the commissioner of commerce and insurance determines that five percent (5%) is actuarially unsound. (2) The commissioner is also authorized to develop a schedule of premium credits for workers' compensation insurance for employers who have safety programs that attain certain criteria for safety programs. The commissioner shall consult with the administrator of the bureau of workers' compensation in setting the criteria.
(1) The department of commerce and insurance shall approve rating plans for workers' compensation insurance that give specific identifiable consideration in the setting of rates to employers that implement a drug-free workplace program pursuant to rules adopted by the bureau of workers' compensation of the department of labor and workforce development. The plans must take effect January 1, 1997, must be actuarially sound, and must state the savings anticipated to result from the drug testing. The credit shall be at least five percent (5%) unless the commissioner of commerce and insurance determines that five percent (5%) is actuarially unsound.
(2) The commissioner is also authorized to develop a schedule of premium credits for workers' compensation insurance for employers who have safety programs that attain certain criteria for safety programs. The commissioner shall consult with the administrator of the bureau of workers' compensation in setting the criteria.
(b) The department of commerce and insurance shall apply the drug-free workplace program credit separately to each individual company for an employer having more than one (1) company under one (1) workers' compensation insurance policy. However, no credit given to an individual company may be combined with any credit given to any other company of the common employer or to the common employer itself.
Acts 1996, ch. 944, § 51; 1999, ch. 520, § 41; 2005, ch. 390, § 14; 2013, ch. 282, § 1; 2015, ch. 341, § 15.
Tenn. Code Ann. § 50-1-602 — TN Code / Title 50 / Chapter 1 / Section 50-1-602
Notification of employees and state
Status: in_force

(a) Upon notifying affected employees of a reduction in operations, the employer shall then notify state government by telephoning the commissioner of labor and workforce development and informing the commissioner of the circumstances of the reduction in operations, as well as the number of employees affected. (b) (1) The commissioner of labor and workforce development shall obtain and operate a toll-free telephone line for the purpose of receiving and encouraging employer compliance with subsection (a). (2) The commissioner shall regularly undertake appropriate activities to inform and remind employers of the existence of the toll-free telephone line and of the requirements contained in subsection (a). (c) Upon receiving initial notification of a reduction in operations, the commissioner shall immediately advise the commissioners of economic and community development, education, health, human services, and mental health and substance abuse services, the executive director of the state board of education, and the chancellor of the board of regents of the state university and community college system, concerning the circumstances of the reduction in operations and the number of affected employees. Acts 1988, ch. 997, § 3; 1989, ch. 399, § 3; 1999, ch. 520, § 41; 2010, ch. 1100, § 85; 2012, ch. 575, § 2.
(a) Upon notifying affected employees of a reduction in operations, the employer shall then notify state government by telephoning the commissioner of labor and workforce development and informing the commissioner of the circumstances of the reduction in operations, as well as the number of employees affected.
(b) (1) The commissioner of labor and workforce development shall obtain and operate a toll-free telephone line for the purpose of receiving and encouraging employer compliance with subsection (a). (2) The commissioner shall regularly undertake appropriate activities to inform and remind employers of the existence of the toll-free telephone line and of the requirements contained in subsection (a).
(1) The commissioner of labor and workforce development shall obtain and operate a toll-free telephone line for the purpose of receiving and encouraging employer compliance with subsection (a).
(2) The commissioner shall regularly undertake appropriate activities to inform and remind employers of the existence of the toll-free telephone line and of the requirements contained in subsection (a).
(c) Upon receiving initial notification of a reduction in operations, the commissioner shall immediately advise the commissioners of economic and community development, education, health, human services, and mental health and substance abuse services, the executive director of the state board of education, and the chancellor of the board of regents of the state university and community college system, concerning the circumstances of the reduction in operations and the number of affected employees.
Acts 1988, ch. 997, § 3; 1989, ch. 399, § 3; 1999, ch. 520, § 41; 2010, ch. 1100, § 85; 2012, ch. 575, § 2.
Tenn. Code Ann. § 50-6-1005 — TN Code / Title 50 / Chapter 6 / Section 50-6-1005
Board of directors
Status: in_force

(a) The board of directors of the association consists of five (5) persons serving three-year terms, with each director having one (1) vote. The commissioner shall select the members of the board. The commissioner, or the commissioner's delegate, shall serve on the board in an ex officio, nonvoting capacity. At least three (3) board members must be employed by a company holding an active certificate of authority to self-insure in this state. Vacancies on the board must be filled for the remaining period of the term in the same manner as initial appointments. (b) In making selections to the board, the commissioner shall consider, among other things, whether all member self-insurers are fairly represented. (c) Members of the board serve without compensation but may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter. Added by 2024 Tenn. Acts, ch. 666,s 1, eff. 4/9/2024.
(a) The board of directors of the association consists of five (5) persons serving three-year terms, with each director having one (1) vote. The commissioner shall select the members of the board. The commissioner, or the commissioner's delegate, shall serve on the board in an ex officio, nonvoting capacity. At least three (3) board members must be employed by a company holding an active certificate of authority to self-insure in this state. Vacancies on the board must be filled for the remaining period of the term in the same manner as initial appointments.
(b) In making selections to the board, the commissioner shall consider, among other things, whether all member self-insurers are fairly represented.
(c) Members of the board serve without compensation but may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
Added by 2024 Tenn. Acts, ch. 666,s 1, eff. 4/9/2024.
Tenn. Code Ann. § 50-1-715 — TN Code / Title 50 / Chapter 1 / Section 50-1-715
Expiration of federal electronic work authorization verification system
Status: in_force

If the federal electronic work authorization verification service provided by the United States department of homeland security pursuant to the federal Basic Pilot Program Extension and Expansion Act of 2003, Pub. L. No. 108-156, or any successor program, expires and a successor program is not implemented prior to such expiration date, then this part shall cease to be effective as of such expiration date. Acts 2011 , ch. 436, § 7.
If the federal electronic work authorization verification service provided by the United States department of homeland security pursuant to the federal Basic Pilot Program Extension and Expansion Act of 2003, Pub. L. No. 108-156, or any successor program, expires and a successor program is not implemented prior to such expiration date, then this part shall cease to be effective as of such expiration date.
Acts 2011 , ch. 436, § 7.
Tenn. Code Ann. § 50-6-412-d-1 — TN Code / Title 50 / Chapter 6 / Section 50-6-412-d-1
2024 Tennessee Code Title 50 - EMPLOYER AND EMPLOYEE (§§ 50-1-101 — 50-11-106) Chapter 6 - WORKERS' COMPENSATION LAW (§§ 50-6-101 — 50-6-1016) Part 4 - INSURANCE (§§ 50-6-401 — 50-6-421) Section 50-6-412 - [Effective 7/1/2029] Penalties for noncompliance with insurance requirements
Status: in_force

(a) The administrator of the bureau of workers' compensation or the administrator's designee has the authority to issue a subpoena to require an employer doing business in the state to produce any and all books, documents or other tangible things that may be relevant to or reasonably calculated to lead to the discovery of relevant information necessary to determine whether an employer is subject to this chapter, or has secured payment of compensation pursuant to this chapter, and to determine the amount of any monetary penalty that is required to be assessed against an employer for failure to secure payment of compensation pursuant to this chapter. (b) (1) All monetary penalties assessed pursuant to this section that are based on the average yearly workers' compensation premium shall be calculated by utilizing the appropriate assigned risk plan advisory prospective loss cost and multiplier for the employer as of the date of determination that the employer is subject to this chapter, and has not secured payment of compensation pursuant to this chapter. (2) If the administrator or administrator's designee determines the period of noncompliance with this chapter, is less than one (1) year, any assessed monetary penalty shall be prorated; however, the monetary penalty shall not be less than an amount equal to one (1) month's premium of the average yearly workers' compensation premium for the employer based on the appropriate assigned risk plan advisory prospective loss cost and multiplier. (3) If any monetary penalty assessed against an employer is held in abeyance pursuant to this section, the period of abeyance shall be two (2) years. Any abated penalty becomes void upon the expiration of the two-year period; provided, that the employer remained subject to this chapter, during the two-year period and continuously secured payment of compensation as required by law. Any abated penalty becomes voidable, if within the two-year period, the employer provides notice to the administrator that the employer is no longer subject to this chapter and upon concurrence of the administrator that the employer is no longer subject to this chapter, the penalty shall become void. Any abated penalty shall become due and payable immediately if, within the two-year period, the employer continues to be subject to this chapter and fails to secure payment of compensation as required by law. (4) The administrator shall advise an employer of the amount of any assessed monetary penalty in writing and shall include the date on which the monetary penalty shall be due and payable. (c) (1) When the records of the bureau of workers' compensation indicate, or when the bureau's investigation of an employer indicates, that an employer is subject to this chapter, and has failed to secure payment of compensation as required by this chapter, the bureau shall so notify the employer by certified letter, return receipt requested. (2) The bureau shall require the employer to provide, within fifteen (15) calendar days of the receipt of the certified letter, either proof that the employer had secured payment of compensation as required by this chapter or a verifiable sworn affidavit, with supporting documentation, that the employer is exempt from this chapter. (3) The certified letter shall also advise the employer of the monetary penalties that may be assessed against the employer if it is determined by the administrator or the administrator's designee that the employer has failed to secure payment of compensation as required by this chapter and shall advise the employer of the criminal penalties to which the employer may be subject for the failure. (d) (1) If the employer responds to the certified letter within fifteen (15) calendar days of its receipt and the administrator or the administrator's designee determines that the employer has secured payment of compensation as required by this chapter, or that the employer is not subject to this chapter, no monetary penalty shall be assessed. (2) If the employer responds to the certified letter within fifteen (15) calendar days of its receipt and the administrator or the administrator's designee determines that the employer is subject to this chapter and that the employer has secured the payment of compensation since the date of receipt of the certified letter, the administrator or the administrator's designee shall issue a decision assessing a monetary penalty to the employer equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium. (e) (1) (A) If the employer fails to respond to the certified letter within fifteen (15) calendar days of its receipt or the employer responds to the certified letter but does not provide a verifiable sworn affidavit of exemption, the administrator or the administrator's designee shall issue a decision assessing two (2) penalties. The administrator or administrator's designee shall send the decision to the employer by certified mail, return receipt requested, to the employer's last known address, according to the bureau's records. (B) The first monetary penalty shall be equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6- 901, the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium. (C) The second monetary penalty shall be equal to the average yearly workers' compensation premium for such employer. (2) The administrator's or administrator's designee's decision shall notify the employer of all monetary penalties that have been assessed against the employer and the criminal penalties to which the employer may be subject. (3) The administrator's or administrator's designee's decision shall advise the employer that it may request a contested case hearing to show cause why it should not have been assessed penalties for failure to comply with the workers' compensation law or to challenge the amount of the penalties assessed. Such a request must be made to the bureau in writing within fifteen (15) calendar days of receipt of the administrator's or administrator's designee's decision assessing monetary penalties. If such request is not timely made, the decision becomes final. (4) The employer has the burden of proof at the contested case hearing and shall produce documentary evidence that the penalties should be reduced, that the employer is not subject to this chapter, or that the employer was in compliance with this chapter. (5) The contested case hearing shall be scheduled to be heard in a timely manner, not to exceed forty-five (45) calendar days from the date of the employer's timely written request for a contested case hearing pursuant to subdivision (e)(3). (f) (1) If the administrator or the administrator's designee determines at the contested case hearing that the employer is not subject to this chapter, or that the employer had secured and continues to secure payment of compensation as required by this chapter, all monetary penalties shall be void. (2) If the administrator or the administrator's designee determines at the contested case hearing that the employer is subject to this chapter and that the employer has come into compliance with this chapter by securing payment of compensation prior to the date of the contested case hearing, the first monetary penalty equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium shall be due; however, the second monetary penalty equal to the average yearly workers' compensation premium shall be held in abeyance. (3) If the administrator or the administrator's designee determines at the contested case hearing that the employer is subject to this chapter and that the employer has failed to secure payment of compensation as required by this chapter, the employer shall be ordered to procure workers' compensation insurance coverage and to provide the bureau with proof of coverage within five (5) days of the issuance of the order, excluding Saturdays, Sundays and holidays. If the employer obtains workers' compensation insurance coverage and provides the bureau with proof of coverage as ordered, the first monetary penalty equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium shall be due; however, the second monetary penalty equal to the average yearly workers' compensation premium shall be held in abeyance. (4) If the employer fails to obtain workers' compensation insurance coverage as ordered by the administrator or administrator's designee within the required time period, all monetary penalties, totaling two and one-half (21/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of two thousand dollars ($2,000) or two and one-half (21/2) times the average yearly workers' compensation premium, shall be immediately due and payable. (g) [Deleted by 2021 amendment.] (h) (1) In the event an employer engaged in the construction industry, as defined in § 50-6-901 , fails to comply with the requirements of this chapter, by failing to secure payment two (2) or more times within a five-year period, then the administrator shall issue a monetary penalty against the employer that is the greater of three thousand dollars ($3,000) or three (3) times the average yearly workers' compensation premium for each second or subsequent violation. (2) (A) In the event an employer engaged in the construction industry, as defined in § 50-6-901 , fails to comply with the requirements of this chapter, by failing to secure payment two (2) or more times within a five-year period, such employer shall be permanently prohibited from obtaining an exemption pursuant to part 9 of this chapter. (B) For purposes of subdivision (h)(2)(A), "such employer" includes any construction services provider, as defined by § 50-6-901 , who applies for or has ever received a workers' compensation exemption pursuant to part 9 of this chapter using the same federal employer identification number as the employer who fails to comply with the requirements of this chapter. (i) (1) The administrator has the authority to seek an injunction in the chancery court of Davidson County to prohibit an employer from operating its business in any way until the employer has complied with an order by the administrator or the administrator's designee to obtain workers' compensation insurance coverage. (2) In the event an employer fails to comply with the requirements of this chapter, by failing to secure payment of compensation on a second or subsequent occasion, the administrator shall have the authority to seek an injunction in the chancery court of Davidson County to prohibit the employer from operating its business in any way until the employer provides proof that it has complied with this chapter by securing payment of compensation. (j) The employer shall have the right to appeal, pursuant to the Uniform Administrative Procedures Act, compiled at title 4, chapter 5, any decision made by or order issued by the administrator or the administrator's designee pursuant to this section. (k) (1) A successor in interest, as defined in § 50-6-411(d)(1) , is liable for any penalty issued under this section against a construction services provider. (2) A person or entity designated as a successor in interest may appeal a penalty assessment by requesting a contested case hearing pursuant to subsection (e). (3) The administrator or the administrator's designee may waive a penalty against a successor in interest for good cause. Amended by 2024 Tenn. Acts, ch. 532,s 5, eff. 6/30/2024. Amended by 2024 Tenn. Acts, ch. 532,s 4, eff. 7/1/2024. Amended by 2021 Tenn. Acts, ch. 189, s 2, eff. 7/1/2021; Section 10 of the Act as amended by 2024 Tenn. Acts, ch. 532 provides: "This act ceases to exist July 1, 2029, at which time the provisions of law changed by this act that were in effect on June 30, 2021, will be revived." Amended by 2021 Tenn. Acts, ch. 88, s 12, eff. 1/1/2022. Amended by 2021 Tenn. Acts, ch. 88, s 11, eff. 1/1/2022. Amended by 2020 Tenn. Acts, ch. 682, s 6, eff. 6/15/2020. Amended by 2015 Tenn. Acts, ch. 341, s 17, eff. 5/4/2015. Amended by 2014 Tenn. Acts, ch. 903, s 8, eff. 5/13/2014. Acts 1992, ch. 900, § 23; 1999, ch. 520, § 41; 2000, ch. 972, § 4; 2010 , ch. 1149, §§ 8 - 12. This section is set out more than once due to postponed, multiple, or conflicting amendments.
(a) The administrator of the bureau of workers' compensation or the administrator's designee has the authority to issue a subpoena to require an employer doing business in the state to produce any and all books, documents or other tangible things that may be relevant to or reasonably calculated to lead to the discovery of relevant information necessary to determine whether an employer is subject to this chapter, or has secured payment of compensation pursuant to this chapter, and to determine the amount of any monetary penalty that is required to be assessed against an employer for failure to secure payment of compensation pursuant to this chapter.
(b) (1) All monetary penalties assessed pursuant to this section that are based on the average yearly workers' compensation premium shall be calculated by utilizing the appropriate assigned risk plan advisory prospective loss cost and multiplier for the employer as of the date of determination that the employer is subject to this chapter, and has not secured payment of compensation pursuant to this chapter. (2) If the administrator or administrator's designee determines the period of noncompliance with this chapter, is less than one (1) year, any assessed monetary penalty shall be prorated; however, the monetary penalty shall not be less than an amount equal to one (1) month's premium of the average yearly workers' compensation premium for the employer based on the appropriate assigned risk plan advisory prospective loss cost and multiplier. (3) If any monetary penalty assessed against an employer is held in abeyance pursuant to this section, the period of abeyance shall be two (2) years. Any abated penalty becomes void upon the expiration of the two-year period; provided, that the employer remained subject to this chapter, during the two-year period and continuously secured payment of compensation as required by law. Any abated penalty becomes voidable, if within the two-year period, the employer provides notice to the administrator that the employer is no longer subject to this chapter and upon concurrence of the administrator that the employer is no longer subject to this chapter, the penalty shall become void. Any abated penalty shall become due and payable immediately if, within the two-year period, the employer continues to be subject to this chapter and fails to secure payment of compensation as required by law. (4) The administrator shall advise an employer of the amount of any assessed monetary penalty in writing and shall include the date on which the monetary penalty shall be due and payable.
(1) All monetary penalties assessed pursuant to this section that are based on the average yearly workers' compensation premium shall be calculated by utilizing the appropriate assigned risk plan advisory prospective loss cost and multiplier for the employer as of the date of determination that the employer is subject to this chapter, and has not secured payment of compensation pursuant to this chapter.
(2) If the administrator or administrator's designee determines the period of noncompliance with this chapter, is less than one (1) year, any assessed monetary penalty shall be prorated; however, the monetary penalty shall not be less than an amount equal to one (1) month's premium of the average yearly workers' compensation premium for the employer based on the appropriate assigned risk plan advisory prospective loss cost and multiplier.
(3) If any monetary penalty assessed against an employer is held in abeyance pursuant to this section, the period of abeyance shall be two (2) years. Any abated penalty becomes void upon the expiration of the two-year period; provided, that the employer remained subject to this chapter, during the two-year period and continuously secured payment of compensation as required by law. Any abated penalty becomes voidable, if within the two-year period, the employer provides notice to the administrator that the employer is no longer subject to this chapter and upon concurrence of the administrator that the employer is no longer subject to this chapter, the penalty shall become void. Any abated penalty shall become due and payable immediately if, within the two-year period, the employer continues to be subject to this chapter and fails to secure payment of compensation as required by law.
(4) The administrator shall advise an employer of the amount of any assessed monetary penalty in writing and shall include the date on which the monetary penalty shall be due and payable.
(c) (1) When the records of the bureau of workers' compensation indicate, or when the bureau's investigation of an employer indicates, that an employer is subject to this chapter, and has failed to secure payment of compensation as required by this chapter, the bureau shall so notify the employer by certified letter, return receipt requested. (2) The bureau shall require the employer to provide, within fifteen (15) calendar days of the receipt of the certified letter, either proof that the employer had secured payment of compensation as required by this chapter or a verifiable sworn affidavit, with supporting documentation, that the employer is exempt from this chapter. (3) The certified letter shall also advise the employer of the monetary penalties that may be assessed against the employer if it is determined by the administrator or the administrator's designee that the employer has failed to secure payment of compensation as required by this chapter and shall advise the employer of the criminal penalties to which the employer may be subject for the failure.
(1) When the records of the bureau of workers' compensation indicate, or when the bureau's investigation of an employer indicates, that an employer is subject to this chapter, and has failed to secure payment of compensation as required by this chapter, the bureau shall so notify the employer by certified letter, return receipt requested.
(2) The bureau shall require the employer to provide, within fifteen (15) calendar days of the receipt of the certified letter, either proof that the employer had secured payment of compensation as required by this chapter or a verifiable sworn affidavit, with supporting documentation, that the employer is exempt from this chapter.
(3) The certified letter shall also advise the employer of the monetary penalties that may be assessed against the employer if it is determined by the administrator or the administrator's designee that the employer has failed to secure payment of compensation as required by this chapter and shall advise the employer of the criminal penalties to which the employer may be subject for the failure.
(d) (1) If the employer responds to the certified letter within fifteen (15) calendar days of its receipt and the administrator or the administrator's designee determines that the employer has secured payment of compensation as required by this chapter, or that the employer is not subject to this chapter, no monetary penalty shall be assessed. (2) If the employer responds to the certified letter within fifteen (15) calendar days of its receipt and the administrator or the administrator's designee determines that the employer is subject to this chapter and that the employer has secured the payment of compensation since the date of receipt of the certified letter, the administrator or the administrator's designee shall issue a decision assessing a monetary penalty to the employer equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium.
(1) If the employer responds to the certified letter within fifteen (15) calendar days of its receipt and the administrator or the administrator's designee determines that the employer has secured payment of compensation as required by this chapter, or that the employer is not subject to this chapter, no monetary penalty shall be assessed.
(2) If the employer responds to the certified letter within fifteen (15) calendar days of its receipt and the administrator or the administrator's designee determines that the employer is subject to this chapter and that the employer has secured the payment of compensation since the date of receipt of the certified letter, the administrator or the administrator's designee shall issue a decision assessing a monetary penalty to the employer equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium.
(e) (1) (A) If the employer fails to respond to the certified letter within fifteen (15) calendar days of its receipt or the employer responds to the certified letter but does not provide a verifiable sworn affidavit of exemption, the administrator or the administrator's designee shall issue a decision assessing two (2) penalties. The administrator or administrator's designee shall send the decision to the employer by certified mail, return receipt requested, to the employer's last known address, according to the bureau's records. (B) The first monetary penalty shall be equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6- 901, the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium. (C) The second monetary penalty shall be equal to the average yearly workers' compensation premium for such employer. (2) The administrator's or administrator's designee's decision shall notify the employer of all monetary penalties that have been assessed against the employer and the criminal penalties to which the employer may be subject. (3) The administrator's or administrator's designee's decision shall advise the employer that it may request a contested case hearing to show cause why it should not have been assessed penalties for failure to comply with the workers' compensation law or to challenge the amount of the penalties assessed. Such a request must be made to the bureau in writing within fifteen (15) calendar days of receipt of the administrator's or administrator's designee's decision assessing monetary penalties. If such request is not timely made, the decision becomes final. (4) The employer has the burden of proof at the contested case hearing and shall produce documentary evidence that the penalties should be reduced, that the employer is not subject to this chapter, or that the employer was in compliance with this chapter. (5) The contested case hearing shall be scheduled to be heard in a timely manner, not to exceed forty-five (45) calendar days from the date of the employer's timely written request for a contested case hearing pursuant to subdivision (e)(3).
(1) (A) If the employer fails to respond to the certified letter within fifteen (15) calendar days of its receipt or the employer responds to the certified letter but does not provide a verifiable sworn affidavit of exemption, the administrator or the administrator's designee shall issue a decision assessing two (2) penalties. The administrator or administrator's designee shall send the decision to the employer by certified mail, return receipt requested, to the employer's last known address, according to the bureau's records. (B) The first monetary penalty shall be equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6- 901, the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium. (C) The second monetary penalty shall be equal to the average yearly workers' compensation premium for such employer.
(A) If the employer fails to respond to the certified letter within fifteen (15) calendar days of its receipt or the employer responds to the certified letter but does not provide a verifiable sworn affidavit of exemption, the administrator or the administrator's designee shall issue a decision assessing two (2) penalties. The administrator or administrator's designee shall send the decision to the employer by certified mail, return receipt requested, to the employer's last known address, according to the bureau's records.
(B) The first monetary penalty shall be equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6- 901, the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium.
(C) The second monetary penalty shall be equal to the average yearly workers' compensation premium for such employer.
(2) The administrator's or administrator's designee's decision shall notify the employer of all monetary penalties that have been assessed against the employer and the criminal penalties to which the employer may be subject.
(3) The administrator's or administrator's designee's decision shall advise the employer that it may request a contested case hearing to show cause why it should not have been assessed penalties for failure to comply with the workers' compensation law or to challenge the amount of the penalties assessed. Such a request must be made to the bureau in writing within fifteen (15) calendar days of receipt of the administrator's or administrator's designee's decision assessing monetary penalties. If such request is not timely made, the decision becomes final.
(4) The employer has the burden of proof at the contested case hearing and shall produce documentary evidence that the penalties should be reduced, that the employer is not subject to this chapter, or that the employer was in compliance with this chapter.
(5) The contested case hearing shall be scheduled to be heard in a timely manner, not to exceed forty-five (45) calendar days from the date of the employer's timely written request for a contested case hearing pursuant to subdivision (e)(3).
(f) (1) If the administrator or the administrator's designee determines at the contested case hearing that the employer is not subject to this chapter, or that the employer had secured and continues to secure payment of compensation as required by this chapter, all monetary penalties shall be void. (2) If the administrator or the administrator's designee determines at the contested case hearing that the employer is subject to this chapter and that the employer has come into compliance with this chapter by securing payment of compensation prior to the date of the contested case hearing, the first monetary penalty equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium shall be due; however, the second monetary penalty equal to the average yearly workers' compensation premium shall be held in abeyance. (3) If the administrator or the administrator's designee determines at the contested case hearing that the employer is subject to this chapter and that the employer has failed to secure payment of compensation as required by this chapter, the employer shall be ordered to procure workers' compensation insurance coverage and to provide the bureau with proof of coverage within five (5) days of the issuance of the order, excluding Saturdays, Sundays and holidays. If the employer obtains workers' compensation insurance coverage and provides the bureau with proof of coverage as ordered, the first monetary penalty equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium shall be due; however, the second monetary penalty equal to the average yearly workers' compensation premium shall be held in abeyance. (4) If the employer fails to obtain workers' compensation insurance coverage as ordered by the administrator or administrator's designee within the required time period, all monetary penalties, totaling two and one-half (21/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of two thousand dollars ($2,000) or two and one-half (21/2) times the average yearly workers' compensation premium, shall be immediately due and payable.
(1) If the administrator or the administrator's designee determines at the contested case hearing that the employer is not subject to this chapter, or that the employer had secured and continues to secure payment of compensation as required by this chapter, all monetary penalties shall be void.
(2) If the administrator or the administrator's designee determines at the contested case hearing that the employer is subject to this chapter and that the employer has come into compliance with this chapter by securing payment of compensation prior to the date of the contested case hearing, the first monetary penalty equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium shall be due; however, the second monetary penalty equal to the average yearly workers' compensation premium shall be held in abeyance.
(3) If the administrator or the administrator's designee determines at the contested case hearing that the employer is subject to this chapter and that the employer has failed to secure payment of compensation as required by this chapter, the employer shall be ordered to procure workers' compensation insurance coverage and to provide the bureau with proof of coverage within five (5) days of the issuance of the order, excluding Saturdays, Sundays and holidays. If the employer obtains workers' compensation insurance coverage and provides the bureau with proof of coverage as ordered, the first monetary penalty equal to one and one-half (11/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of one thousand dollars ($1,000) or one and one-half (11/2) times the average yearly workers' compensation premium shall be due; however, the second monetary penalty equal to the average yearly workers' compensation premium shall be held in abeyance.
(4) If the employer fails to obtain workers' compensation insurance coverage as ordered by the administrator or administrator's designee within the required time period, all monetary penalties, totaling two and one-half (21/2) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901 , the greater of two thousand dollars ($2,000) or two and one-half (21/2) times the average yearly workers' compensation premium, shall be immediately due and payable.
(g) [Deleted by 2021 amendment.]
(h) (1) In the event an employer engaged in the construction industry, as defined in § 50-6-901 , fails to comply with the requirements of this chapter, by failing to secure payment two (2) or more times within a five-year period, then the administrator shall issue a monetary penalty against the employer that is the greater of three thousand dollars ($3,000) or three (3) times the average yearly workers' compensation premium for each second or subsequent violation. (2) (A) In the event an employer engaged in the construction industry, as defined in § 50-6-901 , fails to comply with the requirements of this chapter, by failing to secure payment two (2) or more times within a five-year period, such employer shall be permanently prohibited from obtaining an exemption pursuant to part 9 of this chapter. (B) For purposes of subdivision (h)(2)(A), "such employer" includes any construction services provider, as defined by § 50-6-901 , who applies for or has ever received a workers' compensation exemption pursuant to part 9 of this chapter using the same federal employer identification number as the employer who fails to comply with the requirements of this chapter.
(1) In the event an employer engaged in the construction industry, as defined in § 50-6-901 , fails to comply with the requirements of this chapter, by failing to secure payment two (2) or more times within a five-year period, then the administrator shall issue a monetary penalty against the employer that is the greater of three thousand dollars ($3,000) or three (3) times the average yearly workers' compensation premium for each second or subsequent violation.
(2) (A) In the event an employer engaged in the construction industry, as defined in § 50-6-901 , fails to comply with the requirements of this chapter, by failing to secure payment two (2) or more times within a five-year period, such employer shall be permanently prohibited from obtaining an exemption pursuant to part 9 of this chapter. (B) For purposes of subdivision (h)(2)(A), "such employer" includes any construction services provider, as defined by § 50-6-901 , who applies for or has ever received a workers' compensation exemption pursuant to part 9 of this chapter using the same federal employer identification number as the employer who fails to comply with the requirements of this chapter.
(A) In the event an employer engaged in the construction industry, as defined in § 50-6-901 , fails to comply with the requirements of this chapter, by failing to secure payment two (2) or more times within a five-year period, such employer shall be permanently prohibited from obtaining an exemption pursuant to part 9 of this chapter.
(B) For purposes of subdivision (h)(2)(A), "such employer" includes any construction services provider, as defined by § 50-6-901 , who applies for or has ever received a workers' compensation exemption pursuant to part 9 of this chapter using the same federal employer identification number as the employer who fails to comply with the requirements of this chapter.
(i) (1) The administrator has the authority to seek an injunction in the chancery court of Davidson County to prohibit an employer from operating its business in any way until the employer has complied with an order by the administrator or the administrator's designee to obtain workers' compensation insurance coverage. (2) In the event an employer fails to comply with the requirements of this chapter, by failing to secure payment of compensation on a second or subsequent occasion, the administrator shall have the authority to seek an injunction in the chancery court of Davidson County to prohibit the employer from operating its business in any way until the employer provides proof that it has complied with this chapter by securing payment of compensation.
(1) The administrator has the authority to seek an injunction in the chancery court of Davidson County to prohibit an employer from operating its business in any way until the employer has complied with an order by the administrator or the administrator's designee to obtain workers' compensation insurance coverage.
(2) In the event an employer fails to comply with the requirements of this chapter, by failing to secure payment of compensation on a second or subsequent occasion, the administrator shall have the authority to seek an injunction in the chancery court of Davidson County to prohibit the employer from operating its business in any way until the employer provides proof that it has complied with this chapter by securing payment of compensation.
(j) The employer shall have the right to appeal, pursuant to the Uniform Administrative Procedures Act, compiled at title 4, chapter 5, any decision made by or order issued by the administrator or the administrator's designee pursuant to this section.
(k) (1) A successor in interest, as defined in § 50-6-411(d)(1) , is liable for any penalty issued under this section against a construction services provider. (2) A person or entity designated as a successor in interest may appeal a penalty assessment by requesting a contested case hearing pursuant to subsection (e). (3) The administrator or the administrator's designee may waive a penalty against a successor in interest for good cause.
(1) A successor in interest, as defined in § 50-6-411(d)(1) , is liable for any penalty issued under this section against a construction services provider.
(2) A person or entity designated as a successor in interest may appeal a penalty assessment by requesting a contested case hearing pursuant to subsection (e).
(3) The administrator or the administrator's designee may waive a penalty against a successor in interest for good cause.
Amended by 2024 Tenn. Acts, ch. 532,s 5, eff. 6/30/2024.
Amended by 2024 Tenn. Acts, ch. 532,s 4, eff. 7/1/2024.
Amended by 2021 Tenn. Acts, ch. 189, s 2, eff. 7/1/2021; Section 10 of the Act as amended by 2024 Tenn. Acts, ch. 532 provides: "This act ceases to exist July 1, 2029, at which time the provisions of law changed by this act that were in effect on June 30, 2021, will be revived."
Amended by 2021 Tenn. Acts, ch. 88, s 12, eff. 1/1/2022.
Amended by 2021 Tenn. Acts, ch. 88, s 11, eff. 1/1/2022.
Amended by 2020 Tenn. Acts, ch. 682, s 6, eff. 6/15/2020.
Amended by 2015 Tenn. Acts, ch. 341, s 17, eff. 5/4/2015.
Amended by 2014 Tenn. Acts, ch. 903, s 8, eff. 5/13/2014.
Acts 1992, ch. 900, § 23; 1999, ch. 520, § 41; 2000, ch. 972, § 4; 2010 , ch. 1149, §§ 8 - 12.
This section is set out more than once due to postponed, multiple, or conflicting amendments.
Tenn. Code Ann. § 50-7-405 — TN Code / Title 50 / Chapter 7 / Section 50-7-405
Period, election and termination of employer's coverage
Status: in_force

(a) Any employing unit that is or becomes an employer subject to this chapter within any calendar year shall be subject to this chapter during the whole of the calendar year. (b) (1) (A) Except as otherwise provided in this section, an employing unit other than one covered under § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of the year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed one (1) or more individuals in employment subject to this chapter, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment, or if an agricultural employer, the administrator finds there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed ten (10) or more individuals in employment subject to this chapter, and that there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment, or, if a domestic employer, the administrator finds there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment. During any calendar year, if the administrator deems advisable, the administrator, on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for premiums under the terms of this chapter but who: (i) Has removed from the state; (ii) Has discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter; (iii) Has been adjudged bankrupt or insolvent; (iv) Has not, if other than an agricultural or domestic employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment one (1) or more individuals, regardless of whether the same individuals were employed in each day, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment; (v) Has not, if an agricultural employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment ten (10) or more individuals, regardless of whether the same individuals were employed in each day, and there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment; or (vi) If a domestic employer, has no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment. (B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer. (2) (A) Except as otherwise provided in this section, an employing unit that became an employer through the application of § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of such year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed four (4) or more individuals in employment subject to this chapter. During any calendar year, if the administrator deems advisable, the administrator on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for contributions or reimbursement of benefits paid and charged to the employer's account under the terms of this chapter, but who has: (i) Removed from the state; (ii) Discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter; (iii) Been adjudged bankrupt or insolvent; or (iv) Not for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment four (4) or more individuals, regardless of whether the same individuals were employed in each day. (B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer. (c) Any employing unit that is, or becomes, an employer only by virtue of § 50-7-205(3) shall, in addition to the foregoing requirements of this section, cease to become an employer subject to this chapter only as of January 1 of any calendar year, only if the administrator finds, in addition to the findings prescribed by this section, that within the preceding calendar year no services in employment were performed for the employer with respect to which the employer was liable for any federal tax against which credit may be taken for contributions required to be paid to a state unemployment compensation fund. (d) (1) An employing unit, not otherwise subject to this chapter, that files with the administrator its written election to become an employer subject to this chapter for not less than two (2) calendar years, shall, with the written approval of the election by the administrator, become an employer subject to this chapter to the same extent as all other employers, as of the date stated in the approval, and shall cease to be subject to this chapter as of January 1 of any calendar year, subsequent to the two (2) calendar years, only if it files with the administrator, prior to April 1 of that year, a written notice to that effect, except as otherwise provided by this section. (2) Any employing unit, for which services that do not constitute employment, as defined in this chapter, are performed, may file with the administrator a written election that all the services performed by individuals in its employ in one (1) or more distinct establishments or places of business shall be deemed to constitute employment for all the purposes of this chapter for not less than two (2) calendar years. Upon the written approval of the election by the administrator, the services shall be deemed to constitute employment subject to this chapter from and after the date stated in the approval. The services shall cease to be deemed employment subject to this chapter as of January 1 of any calendar year subsequent to the two (2) calendar years, only if the employing unit files with the administrator, prior to April 1 of that year, a written notice to that effect, except as otherwise provided by this section. (3) Elective coverage by political subdivisions: (A) Any political subdivision of this state may elect to cover, under this chapter, service performed by employees in all of the hospitals and institutions of higher education, as defined in § 50-7-207(f)(6) and (7) , operated by the political subdivision. Election is to be made by filing with the administrator a notice of the election at least thirty (30) days prior to the effective date of the election. The election may exclude any services described in § 50-7-207(c)(5) . Any political subdivision electing coverage under this subdivision (d)(3) shall make payments in lieu of premiums with respect to benefits attributable to the employment as provided with respect to nonprofit organizations in § 50-7-403(h) ; (B) Section 50-7-207(c)(9) with respect to benefit rights based on service for state and nonprofit institutions of higher education shall be applicable also to service covered by an election under this section; (C) The amounts required to be paid in lieu of premiums by any political subdivision under this section shall be billed and payment made as provided in § 50-7-403(h) with respect to similar payments by nonprofit organizations; and (D) An election under this section may be terminated by filing with the administrator written notice not later than thirty (30) days preceding the last day of the calendar year in which the termination is to be effective. The termination becomes effective as of the first day of the next ensuing calendar year with respect to services performed after that date. Acts 1947, ch. 29, § 8; 1949, ch. 226, § 6; C. Supp. 1950, § 6901.8 (Williams, § 6901.32); Acts 1951, ch. 139, § 9; 1955, ch. 21, § 2; 1955, ch. 115, § 12; 1971, ch. 204, §§ 10, 11; 1980, ch. 641, § 8; T.C.A. (orig. ed.), § 50-1330; Acts 1985, ch. 318, §§ 65-68.
(a) Any employing unit that is or becomes an employer subject to this chapter within any calendar year shall be subject to this chapter during the whole of the calendar year.
(b) (1) (A) Except as otherwise provided in this section, an employing unit other than one covered under § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of the year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed one (1) or more individuals in employment subject to this chapter, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment, or if an agricultural employer, the administrator finds there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed ten (10) or more individuals in employment subject to this chapter, and that there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment, or, if a domestic employer, the administrator finds there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment. During any calendar year, if the administrator deems advisable, the administrator, on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for premiums under the terms of this chapter but who: (i) Has removed from the state; (ii) Has discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter; (iii) Has been adjudged bankrupt or insolvent; (iv) Has not, if other than an agricultural or domestic employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment one (1) or more individuals, regardless of whether the same individuals were employed in each day, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment; (v) Has not, if an agricultural employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment ten (10) or more individuals, regardless of whether the same individuals were employed in each day, and there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment; or (vi) If a domestic employer, has no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment. (B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer. (2) (A) Except as otherwise provided in this section, an employing unit that became an employer through the application of § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of such year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed four (4) or more individuals in employment subject to this chapter. During any calendar year, if the administrator deems advisable, the administrator on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for contributions or reimbursement of benefits paid and charged to the employer's account under the terms of this chapter, but who has: (i) Removed from the state; (ii) Discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter; (iii) Been adjudged bankrupt or insolvent; or (iv) Not for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment four (4) or more individuals, regardless of whether the same individuals were employed in each day. (B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer.
(1) (A) Except as otherwise provided in this section, an employing unit other than one covered under § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of the year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed one (1) or more individuals in employment subject to this chapter, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment, or if an agricultural employer, the administrator finds there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed ten (10) or more individuals in employment subject to this chapter, and that there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment, or, if a domestic employer, the administrator finds there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment. During any calendar year, if the administrator deems advisable, the administrator, on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for premiums under the terms of this chapter but who: (i) Has removed from the state; (ii) Has discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter; (iii) Has been adjudged bankrupt or insolvent; (iv) Has not, if other than an agricultural or domestic employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment one (1) or more individuals, regardless of whether the same individuals were employed in each day, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment; (v) Has not, if an agricultural employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment ten (10) or more individuals, regardless of whether the same individuals were employed in each day, and there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment; or (vi) If a domestic employer, has no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment. (B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer.
(A) Except as otherwise provided in this section, an employing unit other than one covered under § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of the year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed one (1) or more individuals in employment subject to this chapter, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment, or if an agricultural employer, the administrator finds there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed ten (10) or more individuals in employment subject to this chapter, and that there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment, or, if a domestic employer, the administrator finds there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment. During any calendar year, if the administrator deems advisable, the administrator, on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for premiums under the terms of this chapter but who: (i) Has removed from the state; (ii) Has discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter; (iii) Has been adjudged bankrupt or insolvent; (iv) Has not, if other than an agricultural or domestic employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment one (1) or more individuals, regardless of whether the same individuals were employed in each day, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment; (v) Has not, if an agricultural employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment ten (10) or more individuals, regardless of whether the same individuals were employed in each day, and there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment; or (vi) If a domestic employer, has no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment.
(i) Has removed from the state;
(ii) Has discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter;
(iii) Has been adjudged bankrupt or insolvent;
(iv) Has not, if other than an agricultural or domestic employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment one (1) or more individuals, regardless of whether the same individuals were employed in each day, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment;
(v) Has not, if an agricultural employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment ten (10) or more individuals, regardless of whether the same individuals were employed in each day, and there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment; or
(vi) If a domestic employer, has no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment.
(B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer.
(2) (A) Except as otherwise provided in this section, an employing unit that became an employer through the application of § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of such year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed four (4) or more individuals in employment subject to this chapter. During any calendar year, if the administrator deems advisable, the administrator on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for contributions or reimbursement of benefits paid and charged to the employer's account under the terms of this chapter, but who has: (i) Removed from the state; (ii) Discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter; (iii) Been adjudged bankrupt or insolvent; or (iv) Not for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment four (4) or more individuals, regardless of whether the same individuals were employed in each day. (B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer.
(A) Except as otherwise provided in this section, an employing unit that became an employer through the application of § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of such year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed four (4) or more individuals in employment subject to this chapter. During any calendar year, if the administrator deems advisable, the administrator on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for contributions or reimbursement of benefits paid and charged to the employer's account under the terms of this chapter, but who has: (i) Removed from the state; (ii) Discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter; (iii) Been adjudged bankrupt or insolvent; or (iv) Not for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment four (4) or more individuals, regardless of whether the same individuals were employed in each day.
(i) Removed from the state;
(ii) Discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter;
(iii) Been adjudged bankrupt or insolvent; or
(iv) Not for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment four (4) or more individuals, regardless of whether the same individuals were employed in each day.
(B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer.
(c) Any employing unit that is, or becomes, an employer only by virtue of § 50-7-205(3) shall, in addition to the foregoing requirements of this section, cease to become an employer subject to this chapter only as of January 1 of any calendar year, only if the administrator finds, in addition to the findings prescribed by this section, that within the preceding calendar year no services in employment were performed for the employer with respect to which the employer was liable for any federal tax against which credit may be taken for contributions required to be paid to a state unemployment compensation fund.
(d) (1) An employing unit, not otherwise subject to this chapter, that files with the administrator its written election to become an employer subject to this chapter for not less than two (2) calendar years, shall, with the written approval of the election by the administrator, become an employer subject to this chapter to the same extent as all other employers, as of the date stated in the approval, and shall cease to be subject to this chapter as of January 1 of any calendar year, subsequent to the two (2) calendar years, only if it files with the administrator, prior to April 1 of that year, a written notice to that effect, except as otherwise provided by this section. (2) Any employing unit, for which services that do not constitute employment, as defined in this chapter, are performed, may file with the administrator a written election that all the services performed by individuals in its employ in one (1) or more distinct establishments or places of business shall be deemed to constitute employment for all the purposes of this chapter for not less than two (2) calendar years. Upon the written approval of the election by the administrator, the services shall be deemed to constitute employment subject to this chapter from and after the date stated in the approval. The services shall cease to be deemed employment subject to this chapter as of January 1 of any calendar year subsequent to the two (2) calendar years, only if the employing unit files with the administrator, prior to April 1 of that year, a written notice to that effect, except as otherwise provided by this section. (3) Elective coverage by political subdivisions: (A) Any political subdivision of this state may elect to cover, under this chapter, service performed by employees in all of the hospitals and institutions of higher education, as defined in § 50-7-207(f)(6) and (7) , operated by the political subdivision. Election is to be made by filing with the administrator a notice of the election at least thirty (30) days prior to the effective date of the election. The election may exclude any services described in § 50-7-207(c)(5) . Any political subdivision electing coverage under this subdivision (d)(3) shall make payments in lieu of premiums with respect to benefits attributable to the employment as provided with respect to nonprofit organizations in § 50-7-403(h) ; (B) Section 50-7-207(c)(9) with respect to benefit rights based on service for state and nonprofit institutions of higher education shall be applicable also to service covered by an election under this section; (C) The amounts required to be paid in lieu of premiums by any political subdivision under this section shall be billed and payment made as provided in § 50-7-403(h) with respect to similar payments by nonprofit organizations; and (D) An election under this section may be terminated by filing with the administrator written notice not later than thirty (30) days preceding the last day of the calendar year in which the termination is to be effective. The termination becomes effective as of the first day of the next ensuing calendar year with respect to services performed after that date.
(1) An employing unit, not otherwise subject to this chapter, that files with the administrator its written election to become an employer subject to this chapter for not less than two (2) calendar years, shall, with the written approval of the election by the administrator, become an employer subject to this chapter to the same extent as all other employers, as of the date stated in the approval, and shall cease to be subject to this chapter as of January 1 of any calendar year, subsequent to the two (2) calendar years, only if it files with the administrator, prior to April 1 of that year, a written notice to that effect, except as otherwise provided by this section.
(2) Any employing unit, for which services that do not constitute employment, as defined in this chapter, are performed, may file with the administrator a written election that all the services performed by individuals in its employ in one (1) or more distinct establishments or places of business shall be deemed to constitute employment for all the purposes of this chapter for not less than two (2) calendar years. Upon the written approval of the election by the administrator, the services shall be deemed to constitute employment subject to this chapter from and after the date stated in the approval. The services shall cease to be deemed employment subject to this chapter as of January 1 of any calendar year subsequent to the two (2) calendar years, only if the employing unit files with the administrator, prior to April 1 of that year, a written notice to that effect, except as otherwise provided by this section.
(3) Elective coverage by political subdivisions: (A) Any political subdivision of this state may elect to cover, under this chapter, service performed by employees in all of the hospitals and institutions of higher education, as defined in § 50-7-207(f)(6) and (7) , operated by the political subdivision. Election is to be made by filing with the administrator a notice of the election at least thirty (30) days prior to the effective date of the election. The election may exclude any services described in § 50-7-207(c)(5) . Any political subdivision electing coverage under this subdivision (d)(3) shall make payments in lieu of premiums with respect to benefits attributable to the employment as provided with respect to nonprofit organizations in § 50-7-403(h) ; (B) Section 50-7-207(c)(9) with respect to benefit rights based on service for state and nonprofit institutions of higher education shall be applicable also to service covered by an election under this section; (C) The amounts required to be paid in lieu of premiums by any political subdivision under this section shall be billed and payment made as provided in § 50-7-403(h) with respect to similar payments by nonprofit organizations; and (D) An election under this section may be terminated by filing with the administrator written notice not later than thirty (30) days preceding the last day of the calendar year in which the termination is to be effective. The termination becomes effective as of the first day of the next ensuing calendar year with respect to services performed after that date.
(A) Any political subdivision of this state may elect to cover, under this chapter, service performed by employees in all of the hospitals and institutions of higher education, as defined in § 50-7-207(f)(6) and (7) , operated by the political subdivision. Election is to be made by filing with the administrator a notice of the election at least thirty (30) days prior to the effective date of the election. The election may exclude any services described in § 50-7-207(c)(5) . Any political subdivision electing coverage under this subdivision (d)(3) shall make payments in lieu of premiums with respect to benefits attributable to the employment as provided with respect to nonprofit organizations in § 50-7-403(h) ;
(B) Section 50-7-207(c)(9) with respect to benefit rights based on service for state and nonprofit institutions of higher education shall be applicable also to service covered by an election under this section;
(C) The amounts required to be paid in lieu of premiums by any political subdivision under this section shall be billed and payment made as provided in § 50-7-403(h) with respect to similar payments by nonprofit organizations; and
(D) An election under this section may be terminated by filing with the administrator written notice not later than thirty (30) days preceding the last day of the calendar year in which the termination is to be effective. The termination becomes effective as of the first day of the next ensuing calendar year with respect to services performed after that date.
Acts 1947, ch. 29, § 8; 1949, ch. 226, § 6; C. Supp. 1950, § 6901.8 (Williams, § 6901.32); Acts 1951, ch. 139, § 9; 1955, ch. 21, § 2; 1955, ch. 115, § 12; 1971, ch. 204, §§ 10, 11; 1980, ch. 641, § 8; T.C.A. (orig. ed.), § 50-1330; Acts 1985, ch. 318, §§ 65-68.
Tenn. Code Ann. § 50-7-452 — TN Code / Title 50 / Chapter 7 / Section 50-7-452
Including with employer's annual premium rate notice a statement of benefits charged to employer's experience rating account
Status: in_force

By January 1, 2013, at the request of the employer, the department shall begin including with an employer's annual premium rate notice the statement of benefits charged to the employer's experience rating account that affected that annual premium rate. The department shall include on the annual premium rate notice how an employer may opt in to having that additional information included with the notice. Acts 2012, ch. 904, § 2.
By January 1, 2013, at the request of the employer, the department shall begin including with an employer's annual premium rate notice the statement of benefits charged to the employer's experience rating account that affected that annual premium rate. The department shall include on the annual premium rate notice how an employer may opt in to having that additional information included with the notice.
Acts 2012, ch. 904, § 2.
Tenn. Code Ann. § 50-3-806 — TN Code / Title 50 / Chapter 3 / Section 50-3-806
Appeals
Status: in_force

(a) An appeal may be taken from any final order or other final determination of the commission by any person, including the commissioner, who is or may be adversely affected by the final order or other final determination. (b) The appeal shall be processed in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Acts 1972, ch. 561, § 16; 1974, ch. 585, §§ 24, 25, 37; 1977, ch. 111, §§ 31, 32; T.C.A., §§ 50-559, 50-560.
(a) An appeal may be taken from any final order or other final determination of the commission by any person, including the commissioner, who is or may be adversely affected by the final order or other final determination.
(b) The appeal shall be processed in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 1972, ch. 561, § 16; 1974, ch. 585, §§ 24, 25, 37; 1977, ch. 111, §§ 31, 32; T.C.A., §§ 50-559, 50-560.
Tenn. Code Ann. § 50-6-411 — TN Code / Title 50 / Chapter 6 / Section 50-6-411
[Effective until 7/1/2029] Workers' compensation insurance compliance investigations - Subpoenas and other process
Status: in_force

(a) (1) In order to carry out the purposes of this chapter, the administrator or the administrator's designee, upon receipt of sufficient information to give reasonable cause that an employer may be in violation of the insurance requirements of this chapter and upon the compliance specialist presenting appropriate credentials to the owner, operator, or agent in charge, is authorized: (A) To inspect and investigate the places of employment and pertinent conditions; business records, including complete payroll and tax information; certificates of insurance; sign in and sign out sheets for jobsites; and vendor lists; and (B) To question privately an employer, owner, operator, agent, worker, or employee. (2) The administrator or the administrator's designee may request, and the general contractor shall provide, a list of amounts paid by the general contractor to subcontractors on the jobsite. (b) The administrator or the administrator's designee shall designate representatives who may serve subpoenas and other process of the bureau issued under this chapter. (c) (1) For the purposes of workers' compensation insurance compliance investigations, the administrator or administrator's designee may issue and serve subpoenas: (A) For the attendance of witnesses at administrative hearings; and (B) For the production of books, documents, or other tangible things that may be relevant, or reasonably calculated, to lead to the discovery of relevant information necessary to determine whether the employer is subject to this chapter held by the employer or third parties, including, but not limited to, general contractors, subcontractors, intermediate contractors, accountants and tax preparers, insurance agents and carriers, and banking institutions. (2) (A) Information requested in a subpoena under subdivision (c)(1)(B) must be submitted to the bureau within twenty-one (21) calendar days of service of the subpoena. (B) If an employer or entity wishes to dispute the subpoena, then the employer or entity shall submit that dispute with particularity, in writing, to the administrator or the administrator's designee within ten (10) calendar days of service of the subpoena. (C) Failure to timely comply with the subpoena issued and served under subdivision (c)(1)(B) may result in an assessment by the bureau of civil penalties against the employer and third-party holder of information relevant to the bureau's investigation. The penalties, if assessed by the bureau, may be in an amount not less than fifty dollars ($50.00) per day per subpoena until the requested information is provided, or five thousand dollars ($5,000) per subpoena, whichever is less. (3) (A) In addition to civil penalties, if a person refuses to obey a subpoena to appear for an administrative hearing or to produce evidence requested by the administrator or the administrator's designee, then the administrator or the administrator's designee may seek an order requiring compliance with the subpoena in the chancery court where the person named in the subpoena resides. The chancery court may find a person who refuses to obey an order requiring compliance with a subpoena in contempt. (B) In addition to civil penalties, the person who refuses to comply with a subpoena under this section shall pay costs, including reasonable attorneys' fees, court costs, and court reporter attendance and transcription costs, incurred by the administrator or the administrator's designee in obtaining an order to enforce the subpoena. (4) An employer or entity who is aggrieved pursuant to this section may appeal under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (d) Penalties assessed pursuant to this section must be deposited in the employee misclassification education and enforcement fund established by § 50-6-913 to be administered by the administrator. Amended by 2024 Tenn. Acts, ch. 532,s 5, eff. 7/1//2024. Amended by 2021 Tenn. Acts, ch. 189, s 1, eff. 7/1/2021; Section 10 of the Act as amended by 2024 Tenn. Acts, ch. 532 provides: "This act ceases to exist July 1, 2029, at which time the provisions of law changed by this act that were in effect on June 30, 2021, will be revived." Amended by 2020 Tenn. Acts, ch. 682, Secs.s 4, s 5 eff. 6/15/2020. Added by 2013 Tenn. Acts, ch. 424, s 1, eff. 7/1/2013. Acts 2013 , ch. 282, § 1; 2013 , ch. 424, § 1; 2020 , ch. 682, §§ 4, 5.
(a) (1) In order to carry out the purposes of this chapter, the administrator or the administrator's designee, upon receipt of sufficient information to give reasonable cause that an employer may be in violation of the insurance requirements of this chapter and upon the compliance specialist presenting appropriate credentials to the owner, operator, or agent in charge, is authorized: (A) To inspect and investigate the places of employment and pertinent conditions; business records, including complete payroll and tax information; certificates of insurance; sign in and sign out sheets for jobsites; and vendor lists; and (B) To question privately an employer, owner, operator, agent, worker, or employee. (2) The administrator or the administrator's designee may request, and the general contractor shall provide, a list of amounts paid by the general contractor to subcontractors on the jobsite.
(1) In order to carry out the purposes of this chapter, the administrator or the administrator's designee, upon receipt of sufficient information to give reasonable cause that an employer may be in violation of the insurance requirements of this chapter and upon the compliance specialist presenting appropriate credentials to the owner, operator, or agent in charge, is authorized: (A) To inspect and investigate the places of employment and pertinent conditions; business records, including complete payroll and tax information; certificates of insurance; sign in and sign out sheets for jobsites; and vendor lists; and (B) To question privately an employer, owner, operator, agent, worker, or employee.
(A) To inspect and investigate the places of employment and pertinent conditions; business records, including complete payroll and tax information; certificates of insurance; sign in and sign out sheets for jobsites; and vendor lists; and
(B) To question privately an employer, owner, operator, agent, worker, or employee.
(2) The administrator or the administrator's designee may request, and the general contractor shall provide, a list of amounts paid by the general contractor to subcontractors on the jobsite.
(b) The administrator or the administrator's designee shall designate representatives who may serve subpoenas and other process of the bureau issued under this chapter.
(c) (1) For the purposes of workers' compensation insurance compliance investigations, the administrator or administrator's designee may issue and serve subpoenas: (A) For the attendance of witnesses at administrative hearings; and (B) For the production of books, documents, or other tangible things that may be relevant, or reasonably calculated, to lead to the discovery of relevant information necessary to determine whether the employer is subject to this chapter held by the employer or third parties, including, but not limited to, general contractors, subcontractors, intermediate contractors, accountants and tax preparers, insurance agents and carriers, and banking institutions. (2) (A) Information requested in a subpoena under subdivision (c)(1)(B) must be submitted to the bureau within twenty-one (21) calendar days of service of the subpoena. (B) If an employer or entity wishes to dispute the subpoena, then the employer or entity shall submit that dispute with particularity, in writing, to the administrator or the administrator's designee within ten (10) calendar days of service of the subpoena. (C) Failure to timely comply with the subpoena issued and served under subdivision (c)(1)(B) may result in an assessment by the bureau of civil penalties against the employer and third-party holder of information relevant to the bureau's investigation. The penalties, if assessed by the bureau, may be in an amount not less than fifty dollars ($50.00) per day per subpoena until the requested information is provided, or five thousand dollars ($5,000) per subpoena, whichever is less. (3) (A) In addition to civil penalties, if a person refuses to obey a subpoena to appear for an administrative hearing or to produce evidence requested by the administrator or the administrator's designee, then the administrator or the administrator's designee may seek an order requiring compliance with the subpoena in the chancery court where the person named in the subpoena resides. The chancery court may find a person who refuses to obey an order requiring compliance with a subpoena in contempt. (B) In addition to civil penalties, the person who refuses to comply with a subpoena under this section shall pay costs, including reasonable attorneys' fees, court costs, and court reporter attendance and transcription costs, incurred by the administrator or the administrator's designee in obtaining an order to enforce the subpoena. (4) An employer or entity who is aggrieved pursuant to this section may appeal under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(1) For the purposes of workers' compensation insurance compliance investigations, the administrator or administrator's designee may issue and serve subpoenas: (A) For the attendance of witnesses at administrative hearings; and (B) For the production of books, documents, or other tangible things that may be relevant, or reasonably calculated, to lead to the discovery of relevant information necessary to determine whether the employer is subject to this chapter held by the employer or third parties, including, but not limited to, general contractors, subcontractors, intermediate contractors, accountants and tax preparers, insurance agents and carriers, and banking institutions.
(A) For the attendance of witnesses at administrative hearings; and
(B) For the production of books, documents, or other tangible things that may be relevant, or reasonably calculated, to lead to the discovery of relevant information necessary to determine whether the employer is subject to this chapter held by the employer or third parties, including, but not limited to, general contractors, subcontractors, intermediate contractors, accountants and tax preparers, insurance agents and carriers, and banking institutions.
(2) (A) Information requested in a subpoena under subdivision (c)(1)(B) must be submitted to the bureau within twenty-one (21) calendar days of service of the subpoena. (B) If an employer or entity wishes to dispute the subpoena, then the employer or entity shall submit that dispute with particularity, in writing, to the administrator or the administrator's designee within ten (10) calendar days of service of the subpoena. (C) Failure to timely comply with the subpoena issued and served under subdivision (c)(1)(B) may result in an assessment by the bureau of civil penalties against the employer and third-party holder of information relevant to the bureau's investigation. The penalties, if assessed by the bureau, may be in an amount not less than fifty dollars ($50.00) per day per subpoena until the requested information is provided, or five thousand dollars ($5,000) per subpoena, whichever is less.
(A) Information requested in a subpoena under subdivision (c)(1)(B) must be submitted to the bureau within twenty-one (21) calendar days of service of the subpoena.
(B) If an employer or entity wishes to dispute the subpoena, then the employer or entity shall submit that dispute with particularity, in writing, to the administrator or the administrator's designee within ten (10) calendar days of service of the subpoena.
(C) Failure to timely comply with the subpoena issued and served under subdivision (c)(1)(B) may result in an assessment by the bureau of civil penalties against the employer and third-party holder of information relevant to the bureau's investigation. The penalties, if assessed by the bureau, may be in an amount not less than fifty dollars ($50.00) per day per subpoena until the requested information is provided, or five thousand dollars ($5,000) per subpoena, whichever is less.
(3) (A) In addition to civil penalties, if a person refuses to obey a subpoena to appear for an administrative hearing or to produce evidence requested by the administrator or the administrator's designee, then the administrator or the administrator's designee may seek an order requiring compliance with the subpoena in the chancery court where the person named in the subpoena resides. The chancery court may find a person who refuses to obey an order requiring compliance with a subpoena in contempt. (B) In addition to civil penalties, the person who refuses to comply with a subpoena under this section shall pay costs, including reasonable attorneys' fees, court costs, and court reporter attendance and transcription costs, incurred by the administrator or the administrator's designee in obtaining an order to enforce the subpoena.
(A) In addition to civil penalties, if a person refuses to obey a subpoena to appear for an administrative hearing or to produce evidence requested by the administrator or the administrator's designee, then the administrator or the administrator's designee may seek an order requiring compliance with the subpoena in the chancery court where the person named in the subpoena resides. The chancery court may find a person who refuses to obey an order requiring compliance with a subpoena in contempt.
(B) In addition to civil penalties, the person who refuses to comply with a subpoena under this section shall pay costs, including reasonable attorneys' fees, court costs, and court reporter attendance and transcription costs, incurred by the administrator or the administrator's designee in obtaining an order to enforce the subpoena.
(4) An employer or entity who is aggrieved pursuant to this section may appeal under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(d) Penalties assessed pursuant to this section must be deposited in the employee misclassification education and enforcement fund established by § 50-6-913 to be administered by the administrator.
Amended by 2024 Tenn. Acts, ch. 532,s 5, eff. 7/1//2024.
Amended by 2021 Tenn. Acts, ch. 189, s 1, eff. 7/1/2021; Section 10 of the Act as amended by 2024 Tenn. Acts, ch. 532 provides: "This act ceases to exist July 1, 2029, at which time the provisions of law changed by this act that were in effect on June 30, 2021, will be revived."
Amended by 2020 Tenn. Acts, ch. 682, Secs.s 4, s 5 eff. 6/15/2020.
Added by 2013 Tenn. Acts, ch. 424, s 1, eff. 7/1/2013.
Acts 2013 , ch. 282, § 1; 2013 , ch. 424, § 1; 2020 , ch. 682, §§ 4, 5.