Tenn. Code Ann. § 56-9-338 — TN Code / Title 56 / Chapter 9 / Section 56-9-338
Netting agreements and qualified financial contracts with insurers
Status: in_force

(a) (1) Notwithstanding any other provision of this chapter, including any other provision of this chapter permitting the modification of contracts, or any other state law to the contrary, no person shall be stayed or prohibited from exercising: (A) A contractual right to cause the termination, liquidation, acceleration, or close-out of obligations under or in connection with any netting agreement or qualified financial contract with an insurer because of: (i) The insolvency, financial condition, or default of the insurer at any time; provided, that, the right is enforceable under another law other than this chapter; or (ii) The commencement of a formal delinquency proceeding under this chapter; (B) Any right under a pledge, security, collateral, reimbursement or guarantee agreement or arrangement or any other similar security arrangement, or arrangement or other credit enhancement relating to one (1) or more netting agreements or qualified financial contracts; or (C) Subject to § 56-9-319 , any right to set off or net out any termination value, payment amount, or other transfer obligation arising under or in connection with one (1) or more qualified financial contracts where the counterparty or its guarantor is organized under the laws of the United States or a state or a foreign jurisdiction approved by the Securities Valuation Office of the National Association of Insurance Commissioners as eligible for netting. (2) Notwithstanding any other provision of this chapter, including any other provision of this chapter permitting the modification of contracts, or any other state law to the contrary, if a counterparty to a master netting agreement or a qualified financial contract with an insurer subject to a proceeding under this chapter terminates, liquidates, closes out, or accelerates the agreement or contract, damages shall be measured as of the date or dates of termination, liquidation, close-out, or acceleration; the amount of a claim for damages shall be actual direct compensatory damages calculated in accordance with subsection (f). (b) (1) Upon termination of a netting agreement or qualified financial contract, the net or settlement amount, if any, owed by a nondefaulting party to an insurer against which an application or petition has been filed under this chapter shall be transferred to, or on the order of, the receiver for the insurer, even if the insurer is the defaulting party, notwithstanding any walkaway clause in the netting agreement or qualified financial contract. (2) For purposes of this subsection (b), "walkaway clause" means a provision in a netting agreement or a qualified financial contract that, after calculation of a value of a party's position or an amount due to or from one of the parties in accordance with its terms upon termination, liquidation, or acceleration of the netting agreement or qualified financial contract, either does not create a payment obligation of a party or extinguishes a payment obligation of a party in whole or in part solely because of the party's status as a nondefaulting party. (3) Any limited two-way payment or first method provision in a netting agreement or qualified financial contract with an insurer that has defaulted shall be deemed to be a full two-way payment or second method provision as against the defaulting insurer. Any such property or amount shall, except to the extent it is subject to one or more secondary liens or encumbrances, or rights of netting or setoff, be a general asset of the insurer. (c) In making any transfer of a netting agreement or qualified financial contract of an insurer subject to a proceeding under this chapter, the receiver shall either: (1) Transfer to one party, other than an insurer subject to a proceeding under this chapter, all netting agreements and qualified financial contracts between a counterparty or any affiliate of the counterparty and the insurer that is the subject of the proceeding, including: (A) All rights and obligations of each party under each netting agreement and qualified financial contract; and (B) All property, including any guarantees or other credit enhancement, securing any claims of each party under each netting agreement and qualified financial contract; or (2) Transfer none of the netting agreements, qualified financial contracts, rights, obligations, or property referred to in subdivision (c)(1), with respect to the counterparty and any affiliate of the counterparty. (d) (1) If a receiver for an insurer makes a transfer of one (1) or more netting agreements or qualified financial contracts, then the receiver shall use its best efforts to notify any person who is party to the netting agreements or qualified financial contracts of the transfer by twelve o'clock (12:00) noon, the receiver's local time, on the business day following the transfer. (2) For purposes of this subsection (d), "business day" means a day other than a Saturday, Sunday, or any day on which either the New York Stock Exchange or the federal reserve bank of New York is closed. (e) Notwithstanding any other provision of this chapter, a receiver may not avoid a transfer of money or other property arising under or in connection with a netting agreement or qualified financial contract, or any pledge, security, collateral, or guarantee agreement or any other similar security arrangement or credit support document relating to a netting agreement or qualified financial contract, that is made before the commencement of a formal delinquency proceeding under this chapter. However, a transfer may be avoided under § 56-9-315 if the transfer was made with actual intent to hinder, delay, or defraud the insurer, a receiver appointed for the insurer, or existing or future creditors. (f) (1) In exercising the receiver's rights of disaffirmance or repudiation with respect to any netting agreement or qualified financial contract to which an insurer is a party, the receiver for the insurer shall either: (A) Disaffirm or repudiate all netting agreements and qualified financial contracts between a counterparty or any affiliate of the counterparty and the insurer that is the subject of the proceeding; or (B) Disaffirm or repudiate none of the netting agreements and qualified financial contracts referred to in subdivision (f)(1)(A), with respect to the person or any affiliate of the person. (2) (A) Notwithstanding any other provision of this chapter, any claim of a counterparty against the estate arising from the receiver's disaffirmance or repudiation of a netting agreement or qualified financial contract that has not been previously affirmed in the liquidation or immediately preceding conservation or rehabilitation case shall be determined and shall be allowed or disallowed as if the claim had arisen before the date of the filing of the petition for liquidation or, if a conservation or rehabilitation proceeding is converted to a liquidation proceeding, as if the claim had arisen before the date of the filing of the petition for conservation or rehabilitation. The amount of the claim shall be the actual direct compensatory damages determined as of the date of the disaffirmance or repudiation of the netting agreement or qualified financial contract. (B) "Actual direct compensatory damages" does not include punitive or exemplary damages, damages for lost profit or lost opportunity, or damages for pain and suffering, but does include normal and reasonable costs of cover or other reasonable measures of damages utilized in the derivatives, securities, or other market for the contract and agreement claims. (g) As used in this section, "contractual right" includes any right set forth in a rule or bylaw of a derivatives clearing organization as defined in the Commodity Exchange Act ( 7 U.S.C. § 1a ), as amended from time to time, a multilateral clearing organization as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991 ( 12 U.S.C. § 4421 ), as amended from time to time, a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act ( 7 U.S.C. § 7b-1 ), as amended from time to time, a derivatives transaction execution facility registered under the Commodity Exchange Act ( 7 U.S.C. § 7a ), as amended from time to time, or a board of trade as defined in the Commodity Exchange Act ( 7 U.S.C. § 1a ), as amended from time to time, or in a resolution of the governing board thereof and any right, whether or not evidenced in writing, arising under statutory or common law, or under law merchant, or by reason of normal business practice. (h) This section shall not apply to persons who are affiliates of the insurer that is the subject of the proceeding. (i) All rights of counterparties under this chapter shall apply to netting agreements and qualified financial contracts entered into on behalf of the general account or separate accounts if the assets of each separate account are available only to counterparties to netting agreements and qualified financial contracts entered into on behalf of such separate account. Acts 2012 , ch. 540, § 2.
(a) (1) Notwithstanding any other provision of this chapter, including any other provision of this chapter permitting the modification of contracts, or any other state law to the contrary, no person shall be stayed or prohibited from exercising: (A) A contractual right to cause the termination, liquidation, acceleration, or close-out of obligations under or in connection with any netting agreement or qualified financial contract with an insurer because of: (i) The insolvency, financial condition, or default of the insurer at any time; provided, that, the right is enforceable under another law other than this chapter; or (ii) The commencement of a formal delinquency proceeding under this chapter; (B) Any right under a pledge, security, collateral, reimbursement or guarantee agreement or arrangement or any other similar security arrangement, or arrangement or other credit enhancement relating to one (1) or more netting agreements or qualified financial contracts; or (C) Subject to § 56-9-319 , any right to set off or net out any termination value, payment amount, or other transfer obligation arising under or in connection with one (1) or more qualified financial contracts where the counterparty or its guarantor is organized under the laws of the United States or a state or a foreign jurisdiction approved by the Securities Valuation Office of the National Association of Insurance Commissioners as eligible for netting. (2) Notwithstanding any other provision of this chapter, including any other provision of this chapter permitting the modification of contracts, or any other state law to the contrary, if a counterparty to a master netting agreement or a qualified financial contract with an insurer subject to a proceeding under this chapter terminates, liquidates, closes out, or accelerates the agreement or contract, damages shall be measured as of the date or dates of termination, liquidation, close-out, or acceleration; the amount of a claim for damages shall be actual direct compensatory damages calculated in accordance with subsection (f).
(1) Notwithstanding any other provision of this chapter, including any other provision of this chapter permitting the modification of contracts, or any other state law to the contrary, no person shall be stayed or prohibited from exercising: (A) A contractual right to cause the termination, liquidation, acceleration, or close-out of obligations under or in connection with any netting agreement or qualified financial contract with an insurer because of: (i) The insolvency, financial condition, or default of the insurer at any time; provided, that, the right is enforceable under another law other than this chapter; or (ii) The commencement of a formal delinquency proceeding under this chapter; (B) Any right under a pledge, security, collateral, reimbursement or guarantee agreement or arrangement or any other similar security arrangement, or arrangement or other credit enhancement relating to one (1) or more netting agreements or qualified financial contracts; or (C) Subject to § 56-9-319 , any right to set off or net out any termination value, payment amount, or other transfer obligation arising under or in connection with one (1) or more qualified financial contracts where the counterparty or its guarantor is organized under the laws of the United States or a state or a foreign jurisdiction approved by the Securities Valuation Office of the National Association of Insurance Commissioners as eligible for netting.
(A) A contractual right to cause the termination, liquidation, acceleration, or close-out of obligations under or in connection with any netting agreement or qualified financial contract with an insurer because of: (i) The insolvency, financial condition, or default of the insurer at any time; provided, that, the right is enforceable under another law other than this chapter; or (ii) The commencement of a formal delinquency proceeding under this chapter;
(i) The insolvency, financial condition, or default of the insurer at any time; provided, that, the right is enforceable under another law other than this chapter; or
(ii) The commencement of a formal delinquency proceeding under this chapter;
(B) Any right under a pledge, security, collateral, reimbursement or guarantee agreement or arrangement or any other similar security arrangement, or arrangement or other credit enhancement relating to one (1) or more netting agreements or qualified financial contracts; or
(C) Subject to § 56-9-319 , any right to set off or net out any termination value, payment amount, or other transfer obligation arising under or in connection with one (1) or more qualified financial contracts where the counterparty or its guarantor is organized under the laws of the United States or a state or a foreign jurisdiction approved by the Securities Valuation Office of the National Association of Insurance Commissioners as eligible for netting.
(2) Notwithstanding any other provision of this chapter, including any other provision of this chapter permitting the modification of contracts, or any other state law to the contrary, if a counterparty to a master netting agreement or a qualified financial contract with an insurer subject to a proceeding under this chapter terminates, liquidates, closes out, or accelerates the agreement or contract, damages shall be measured as of the date or dates of termination, liquidation, close-out, or acceleration; the amount of a claim for damages shall be actual direct compensatory damages calculated in accordance with subsection (f).
(b) (1) Upon termination of a netting agreement or qualified financial contract, the net or settlement amount, if any, owed by a nondefaulting party to an insurer against which an application or petition has been filed under this chapter shall be transferred to, or on the order of, the receiver for the insurer, even if the insurer is the defaulting party, notwithstanding any walkaway clause in the netting agreement or qualified financial contract. (2) For purposes of this subsection (b), "walkaway clause" means a provision in a netting agreement or a qualified financial contract that, after calculation of a value of a party's position or an amount due to or from one of the parties in accordance with its terms upon termination, liquidation, or acceleration of the netting agreement or qualified financial contract, either does not create a payment obligation of a party or extinguishes a payment obligation of a party in whole or in part solely because of the party's status as a nondefaulting party. (3) Any limited two-way payment or first method provision in a netting agreement or qualified financial contract with an insurer that has defaulted shall be deemed to be a full two-way payment or second method provision as against the defaulting insurer. Any such property or amount shall, except to the extent it is subject to one or more secondary liens or encumbrances, or rights of netting or setoff, be a general asset of the insurer.
(1) Upon termination of a netting agreement or qualified financial contract, the net or settlement amount, if any, owed by a nondefaulting party to an insurer against which an application or petition has been filed under this chapter shall be transferred to, or on the order of, the receiver for the insurer, even if the insurer is the defaulting party, notwithstanding any walkaway clause in the netting agreement or qualified financial contract.
(2) For purposes of this subsection (b), "walkaway clause" means a provision in a netting agreement or a qualified financial contract that, after calculation of a value of a party's position or an amount due to or from one of the parties in accordance with its terms upon termination, liquidation, or acceleration of the netting agreement or qualified financial contract, either does not create a payment obligation of a party or extinguishes a payment obligation of a party in whole or in part solely because of the party's status as a nondefaulting party.
(3) Any limited two-way payment or first method provision in a netting agreement or qualified financial contract with an insurer that has defaulted shall be deemed to be a full two-way payment or second method provision as against the defaulting insurer. Any such property or amount shall, except to the extent it is subject to one or more secondary liens or encumbrances, or rights of netting or setoff, be a general asset of the insurer.
(c) In making any transfer of a netting agreement or qualified financial contract of an insurer subject to a proceeding under this chapter, the receiver shall either: (1) Transfer to one party, other than an insurer subject to a proceeding under this chapter, all netting agreements and qualified financial contracts between a counterparty or any affiliate of the counterparty and the insurer that is the subject of the proceeding, including: (A) All rights and obligations of each party under each netting agreement and qualified financial contract; and (B) All property, including any guarantees or other credit enhancement, securing any claims of each party under each netting agreement and qualified financial contract; or (2) Transfer none of the netting agreements, qualified financial contracts, rights, obligations, or property referred to in subdivision (c)(1), with respect to the counterparty and any affiliate of the counterparty.
(1) Transfer to one party, other than an insurer subject to a proceeding under this chapter, all netting agreements and qualified financial contracts between a counterparty or any affiliate of the counterparty and the insurer that is the subject of the proceeding, including: (A) All rights and obligations of each party under each netting agreement and qualified financial contract; and (B) All property, including any guarantees or other credit enhancement, securing any claims of each party under each netting agreement and qualified financial contract; or
(A) All rights and obligations of each party under each netting agreement and qualified financial contract; and
(B) All property, including any guarantees or other credit enhancement, securing any claims of each party under each netting agreement and qualified financial contract; or
(2) Transfer none of the netting agreements, qualified financial contracts, rights, obligations, or property referred to in subdivision (c)(1), with respect to the counterparty and any affiliate of the counterparty.
(d) (1) If a receiver for an insurer makes a transfer of one (1) or more netting agreements or qualified financial contracts, then the receiver shall use its best efforts to notify any person who is party to the netting agreements or qualified financial contracts of the transfer by twelve o'clock (12:00) noon, the receiver's local time, on the business day following the transfer. (2) For purposes of this subsection (d), "business day" means a day other than a Saturday, Sunday, or any day on which either the New York Stock Exchange or the federal reserve bank of New York is closed.
(1) If a receiver for an insurer makes a transfer of one (1) or more netting agreements or qualified financial contracts, then the receiver shall use its best efforts to notify any person who is party to the netting agreements or qualified financial contracts of the transfer by twelve o'clock (12:00) noon, the receiver's local time, on the business day following the transfer.
(2) For purposes of this subsection (d), "business day" means a day other than a Saturday, Sunday, or any day on which either the New York Stock Exchange or the federal reserve bank of New York is closed.
(e) Notwithstanding any other provision of this chapter, a receiver may not avoid a transfer of money or other property arising under or in connection with a netting agreement or qualified financial contract, or any pledge, security, collateral, or guarantee agreement or any other similar security arrangement or credit support document relating to a netting agreement or qualified financial contract, that is made before the commencement of a formal delinquency proceeding under this chapter. However, a transfer may be avoided under § 56-9-315 if the transfer was made with actual intent to hinder, delay, or defraud the insurer, a receiver appointed for the insurer, or existing or future creditors.
(f) (1) In exercising the receiver's rights of disaffirmance or repudiation with respect to any netting agreement or qualified financial contract to which an insurer is a party, the receiver for the insurer shall either: (A) Disaffirm or repudiate all netting agreements and qualified financial contracts between a counterparty or any affiliate of the counterparty and the insurer that is the subject of the proceeding; or (B) Disaffirm or repudiate none of the netting agreements and qualified financial contracts referred to in subdivision (f)(1)(A), with respect to the person or any affiliate of the person. (2) (A) Notwithstanding any other provision of this chapter, any claim of a counterparty against the estate arising from the receiver's disaffirmance or repudiation of a netting agreement or qualified financial contract that has not been previously affirmed in the liquidation or immediately preceding conservation or rehabilitation case shall be determined and shall be allowed or disallowed as if the claim had arisen before the date of the filing of the petition for liquidation or, if a conservation or rehabilitation proceeding is converted to a liquidation proceeding, as if the claim had arisen before the date of the filing of the petition for conservation or rehabilitation. The amount of the claim shall be the actual direct compensatory damages determined as of the date of the disaffirmance or repudiation of the netting agreement or qualified financial contract. (B) "Actual direct compensatory damages" does not include punitive or exemplary damages, damages for lost profit or lost opportunity, or damages for pain and suffering, but does include normal and reasonable costs of cover or other reasonable measures of damages utilized in the derivatives, securities, or other market for the contract and agreement claims.
(1) In exercising the receiver's rights of disaffirmance or repudiation with respect to any netting agreement or qualified financial contract to which an insurer is a party, the receiver for the insurer shall either: (A) Disaffirm or repudiate all netting agreements and qualified financial contracts between a counterparty or any affiliate of the counterparty and the insurer that is the subject of the proceeding; or (B) Disaffirm or repudiate none of the netting agreements and qualified financial contracts referred to in subdivision (f)(1)(A), with respect to the person or any affiliate of the person.
(A) Disaffirm or repudiate all netting agreements and qualified financial contracts between a counterparty or any affiliate of the counterparty and the insurer that is the subject of the proceeding; or
(B) Disaffirm or repudiate none of the netting agreements and qualified financial contracts referred to in subdivision (f)(1)(A), with respect to the person or any affiliate of the person.
(2) (A) Notwithstanding any other provision of this chapter, any claim of a counterparty against the estate arising from the receiver's disaffirmance or repudiation of a netting agreement or qualified financial contract that has not been previously affirmed in the liquidation or immediately preceding conservation or rehabilitation case shall be determined and shall be allowed or disallowed as if the claim had arisen before the date of the filing of the petition for liquidation or, if a conservation or rehabilitation proceeding is converted to a liquidation proceeding, as if the claim had arisen before the date of the filing of the petition for conservation or rehabilitation. The amount of the claim shall be the actual direct compensatory damages determined as of the date of the disaffirmance or repudiation of the netting agreement or qualified financial contract. (B) "Actual direct compensatory damages" does not include punitive or exemplary damages, damages for lost profit or lost opportunity, or damages for pain and suffering, but does include normal and reasonable costs of cover or other reasonable measures of damages utilized in the derivatives, securities, or other market for the contract and agreement claims.
(A) Notwithstanding any other provision of this chapter, any claim of a counterparty against the estate arising from the receiver's disaffirmance or repudiation of a netting agreement or qualified financial contract that has not been previously affirmed in the liquidation or immediately preceding conservation or rehabilitation case shall be determined and shall be allowed or disallowed as if the claim had arisen before the date of the filing of the petition for liquidation or, if a conservation or rehabilitation proceeding is converted to a liquidation proceeding, as if the claim had arisen before the date of the filing of the petition for conservation or rehabilitation. The amount of the claim shall be the actual direct compensatory damages determined as of the date of the disaffirmance or repudiation of the netting agreement or qualified financial contract.
(B) "Actual direct compensatory damages" does not include punitive or exemplary damages, damages for lost profit or lost opportunity, or damages for pain and suffering, but does include normal and reasonable costs of cover or other reasonable measures of damages utilized in the derivatives, securities, or other market for the contract and agreement claims.
(g) As used in this section, "contractual right" includes any right set forth in a rule or bylaw of a derivatives clearing organization as defined in the Commodity Exchange Act ( 7 U.S.C. § 1a ), as amended from time to time, a multilateral clearing organization as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991 ( 12 U.S.C. § 4421 ), as amended from time to time, a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act ( 7 U.S.C. § 7b-1 ), as amended from time to time, a derivatives transaction execution facility registered under the Commodity Exchange Act ( 7 U.S.C. § 7a ), as amended from time to time, or a board of trade as defined in the Commodity Exchange Act ( 7 U.S.C. § 1a ), as amended from time to time, or in a resolution of the governing board thereof and any right, whether or not evidenced in writing, arising under statutory or common law, or under law merchant, or by reason of normal business practice.
(h) This section shall not apply to persons who are affiliates of the insurer that is the subject of the proceeding.
(i) All rights of counterparties under this chapter shall apply to netting agreements and qualified financial contracts entered into on behalf of the general account or separate accounts if the assets of each separate account are available only to counterparties to netting agreements and qualified financial contracts entered into on behalf of such separate account.
Acts 2012 , ch. 540, § 2.
Tenn. Code Ann. § 56-2-104 — TN Code / Title 56 / Chapter 2 / Section 56-2-104
Contents of statement - Deposits
Status: in_force

(a) Any domestic company shall satisfy the commissioner that: (1) It is fully and legally organized under the laws of this state to do the business it proposes to transact; (2) (A) If it is a stock life insurance company or a mutual life insurance company, it has and will maintain on deposit with the state treasurer, or with such other officer designated by law, at least two hundred thousand dollars ($200,000) in cash or its equivalent; but the commissioner may, in the commissioner's discretion, accept as an equivalent bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms; (B) Notwithstanding subdivision (a)(2)(A), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States; (C) (i) The company shall likewise be required to file with the commissioner the certificate of the official with whom the securities are deposited, stating the time and amount of bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state, which have been included in the three (3) highest grades by any of the recognized securities rating firms, and that the commissioner is satisfied they are worth two hundred thousand dollars ($200,000), and that the deposit was made with the commissioner by the company for the protection of all policyholders and creditors in the United States; (ii) Notwithstanding subdivision (a)(2)(C)(i), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States; (D) (i) If the applicant is an insurance company other than a stock or mutual life insurance company, each company shall maintain on deposit at least one hundred thousand dollars ($100,000) in cash or its equivalent for each kind or class of insurance as defined in § 56-2-201 ; but the commissioner, in the commissioner's discretion, may accept as an equivalent bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state, which have been included in the three (3) highest grades by any of the recognized securities rating firms; (ii) Notwithstanding subdivision (a)(2)(D)(i), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States. The deposits shall be subject to the same conditions as required in the case of stock or mutual life insurance companies; and (3) (A) The insurer's principal place of business is or will be located and maintained in this state. This subdivision (a)(3)(A) also applies to domestic health maintenance organizations. This subdivision (a)(3)(A) does not apply to: (i) Any insurer that was a domestic insurer prior to July 1, 1993, and whose primary executive, administrative and home offices were located outside of the state prior to July 1, 1993; or (ii) Any domestic reciprocal whose primary executive, administrative and home offices, and original books and records, were located and maintained outside the state prior to January 1, 1996; (B) The commissioner may suspend or revoke, after notice and hearing, the certificate of authority of a domestic company found to be in violation of subdivision (a)(3)(A); (C) The commissioner, in the commissioner's sole discretion, may waive the requirement in subdivision (a)(3)(A) for any company. (b) (1) The deposit required by this section is not applicable to foreign stock or mutual life insurance companies, or to domestic or foreign insurance companies writing workers' compensation insurance or fidelity and surety bonds. Companies writing that type or form of insurance shall make deposits in accordance with the requirements of existing laws. (2) The provisions of this section applicable to domestic insurance companies shall apply to all insurance companies and associations except those specifically exempted in this section, whether the companies are stock or mutual, and it is specifically provided that §§ 56-2-101 - 56-2-103, this section, §§ 56-2-113 - 56-2-115, 56-2-201 , and 56-2-301 fully apply to all such companies or associations regardless of what law or statute of this state under which the companies or associations may have been organized. (3) No requirement in this section not in effect on January 1, 1967, shall be considered applicable to any insurance company properly licensed to transact business in this state as of that date, except that any stock casualty company, foreign or domestic, not having at least one hundred thousand dollars ($100,000) in cash or equivalent on deposit for each kind of insurance as defined in § 56-2-201, shall meet the requirement by December 31, 1978. Domestic stock casualty companies not maintaining capital paid up of at least one hundred thousand dollars ($100,000) shall make a deposit equal to their capital paid up by December 31, 1977. (4) This section shall not apply to, or affect, or be construed as in anywise applying to, or affecting, domestic state and county mutual fire insurance companies, the organization of which was and is authorized by chapters 19-21 of this title. Amended by 2015 Tenn. Acts, ch. 155,Secs.s1, s2 eff. 4/17/2015. Amended by 2013 Tenn. Acts, ch. 5,s 1, 2, eff. 3/7/2013. Acts 1935, ch. 183, §§ 2, 3; 1935 (E.S.), ch. 51, § 1; C. Supp. 1950, §§ 6130.1-6130.3 (Williams, §§ 6130.2, 6130.3, 6130.5); T.C.A. (orig. ed.), §§ 56-202 -- 56-204; Acts 1955, ch. 13, § 2; 1967, ch. 31, §§ 1, 2; 1977, ch. 29, § 1; T.C.A., § 56-204; Acts 1980, ch. 503, § 2; 1984, ch. 617, §§ 2-4; 1993, ch. 253, § 19; 1999, ch. 89, § 1; 2012, ch. 680, § 1.
(a) Any domestic company shall satisfy the commissioner that: (1) It is fully and legally organized under the laws of this state to do the business it proposes to transact; (2) (A) If it is a stock life insurance company or a mutual life insurance company, it has and will maintain on deposit with the state treasurer, or with such other officer designated by law, at least two hundred thousand dollars ($200,000) in cash or its equivalent; but the commissioner may, in the commissioner's discretion, accept as an equivalent bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms; (B) Notwithstanding subdivision (a)(2)(A), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States; (C) (i) The company shall likewise be required to file with the commissioner the certificate of the official with whom the securities are deposited, stating the time and amount of bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state, which have been included in the three (3) highest grades by any of the recognized securities rating firms, and that the commissioner is satisfied they are worth two hundred thousand dollars ($200,000), and that the deposit was made with the commissioner by the company for the protection of all policyholders and creditors in the United States; (ii) Notwithstanding subdivision (a)(2)(C)(i), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States; (D) (i) If the applicant is an insurance company other than a stock or mutual life insurance company, each company shall maintain on deposit at least one hundred thousand dollars ($100,000) in cash or its equivalent for each kind or class of insurance as defined in § 56-2-201 ; but the commissioner, in the commissioner's discretion, may accept as an equivalent bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state, which have been included in the three (3) highest grades by any of the recognized securities rating firms; (ii) Notwithstanding subdivision (a)(2)(D)(i), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States. The deposits shall be subject to the same conditions as required in the case of stock or mutual life insurance companies; and (3) (A) The insurer's principal place of business is or will be located and maintained in this state. This subdivision (a)(3)(A) also applies to domestic health maintenance organizations. This subdivision (a)(3)(A) does not apply to: (i) Any insurer that was a domestic insurer prior to July 1, 1993, and whose primary executive, administrative and home offices were located outside of the state prior to July 1, 1993; or (ii) Any domestic reciprocal whose primary executive, administrative and home offices, and original books and records, were located and maintained outside the state prior to January 1, 1996; (B) The commissioner may suspend or revoke, after notice and hearing, the certificate of authority of a domestic company found to be in violation of subdivision (a)(3)(A); (C) The commissioner, in the commissioner's sole discretion, may waive the requirement in subdivision (a)(3)(A) for any company.
(1) It is fully and legally organized under the laws of this state to do the business it proposes to transact;
(2) (A) If it is a stock life insurance company or a mutual life insurance company, it has and will maintain on deposit with the state treasurer, or with such other officer designated by law, at least two hundred thousand dollars ($200,000) in cash or its equivalent; but the commissioner may, in the commissioner's discretion, accept as an equivalent bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms; (B) Notwithstanding subdivision (a)(2)(A), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States; (C) (i) The company shall likewise be required to file with the commissioner the certificate of the official with whom the securities are deposited, stating the time and amount of bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state, which have been included in the three (3) highest grades by any of the recognized securities rating firms, and that the commissioner is satisfied they are worth two hundred thousand dollars ($200,000), and that the deposit was made with the commissioner by the company for the protection of all policyholders and creditors in the United States; (ii) Notwithstanding subdivision (a)(2)(C)(i), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States; (D) (i) If the applicant is an insurance company other than a stock or mutual life insurance company, each company shall maintain on deposit at least one hundred thousand dollars ($100,000) in cash or its equivalent for each kind or class of insurance as defined in § 56-2-201 ; but the commissioner, in the commissioner's discretion, may accept as an equivalent bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state, which have been included in the three (3) highest grades by any of the recognized securities rating firms; (ii) Notwithstanding subdivision (a)(2)(D)(i), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States. The deposits shall be subject to the same conditions as required in the case of stock or mutual life insurance companies; and
(A) If it is a stock life insurance company or a mutual life insurance company, it has and will maintain on deposit with the state treasurer, or with such other officer designated by law, at least two hundred thousand dollars ($200,000) in cash or its equivalent; but the commissioner may, in the commissioner's discretion, accept as an equivalent bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms;
(B) Notwithstanding subdivision (a)(2)(A), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States;
(C) (i) The company shall likewise be required to file with the commissioner the certificate of the official with whom the securities are deposited, stating the time and amount of bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state, which have been included in the three (3) highest grades by any of the recognized securities rating firms, and that the commissioner is satisfied they are worth two hundred thousand dollars ($200,000), and that the deposit was made with the commissioner by the company for the protection of all policyholders and creditors in the United States; (ii) Notwithstanding subdivision (a)(2)(C)(i), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States;
(i) The company shall likewise be required to file with the commissioner the certificate of the official with whom the securities are deposited, stating the time and amount of bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state, which have been included in the three (3) highest grades by any of the recognized securities rating firms, and that the commissioner is satisfied they are worth two hundred thousand dollars ($200,000), and that the deposit was made with the commissioner by the company for the protection of all policyholders and creditors in the United States;
(ii) Notwithstanding subdivision (a)(2)(C)(i), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States;
(D) (i) If the applicant is an insurance company other than a stock or mutual life insurance company, each company shall maintain on deposit at least one hundred thousand dollars ($100,000) in cash or its equivalent for each kind or class of insurance as defined in § 56-2-201 ; but the commissioner, in the commissioner's discretion, may accept as an equivalent bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state, which have been included in the three (3) highest grades by any of the recognized securities rating firms; (ii) Notwithstanding subdivision (a)(2)(D)(i), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States. The deposits shall be subject to the same conditions as required in the case of stock or mutual life insurance companies; and
(i) If the applicant is an insurance company other than a stock or mutual life insurance company, each company shall maintain on deposit at least one hundred thousand dollars ($100,000) in cash or its equivalent for each kind or class of insurance as defined in § 56-2-201 ; but the commissioner, in the commissioner's discretion, may accept as an equivalent bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, bonds of the state of domicile, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state, which have been included in the three (3) highest grades by any of the recognized securities rating firms;
(ii) Notwithstanding subdivision (a)(2)(D)(i), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors in the United States. The deposits shall be subject to the same conditions as required in the case of stock or mutual life insurance companies; and
(3) (A) The insurer's principal place of business is or will be located and maintained in this state. This subdivision (a)(3)(A) also applies to domestic health maintenance organizations. This subdivision (a)(3)(A) does not apply to: (i) Any insurer that was a domestic insurer prior to July 1, 1993, and whose primary executive, administrative and home offices were located outside of the state prior to July 1, 1993; or (ii) Any domestic reciprocal whose primary executive, administrative and home offices, and original books and records, were located and maintained outside the state prior to January 1, 1996; (B) The commissioner may suspend or revoke, after notice and hearing, the certificate of authority of a domestic company found to be in violation of subdivision (a)(3)(A); (C) The commissioner, in the commissioner's sole discretion, may waive the requirement in subdivision (a)(3)(A) for any company.
(A) The insurer's principal place of business is or will be located and maintained in this state. This subdivision (a)(3)(A) also applies to domestic health maintenance organizations. This subdivision (a)(3)(A) does not apply to: (i) Any insurer that was a domestic insurer prior to July 1, 1993, and whose primary executive, administrative and home offices were located outside of the state prior to July 1, 1993; or (ii) Any domestic reciprocal whose primary executive, administrative and home offices, and original books and records, were located and maintained outside the state prior to January 1, 1996;
(i) Any insurer that was a domestic insurer prior to July 1, 1993, and whose primary executive, administrative and home offices were located outside of the state prior to July 1, 1993; or
(ii) Any domestic reciprocal whose primary executive, administrative and home offices, and original books and records, were located and maintained outside the state prior to January 1, 1996;
(B) The commissioner may suspend or revoke, after notice and hearing, the certificate of authority of a domestic company found to be in violation of subdivision (a)(3)(A);
(C) The commissioner, in the commissioner's sole discretion, may waive the requirement in subdivision (a)(3)(A) for any company.
(b) (1) The deposit required by this section is not applicable to foreign stock or mutual life insurance companies, or to domestic or foreign insurance companies writing workers' compensation insurance or fidelity and surety bonds. Companies writing that type or form of insurance shall make deposits in accordance with the requirements of existing laws. (2) The provisions of this section applicable to domestic insurance companies shall apply to all insurance companies and associations except those specifically exempted in this section, whether the companies are stock or mutual, and it is specifically provided that §§ 56-2-101 - 56-2-103, this section, §§ 56-2-113 - 56-2-115, 56-2-201 , and 56-2-301 fully apply to all such companies or associations regardless of what law or statute of this state under which the companies or associations may have been organized. (3) No requirement in this section not in effect on January 1, 1967, shall be considered applicable to any insurance company properly licensed to transact business in this state as of that date, except that any stock casualty company, foreign or domestic, not having at least one hundred thousand dollars ($100,000) in cash or equivalent on deposit for each kind of insurance as defined in § 56-2-201, shall meet the requirement by December 31, 1978. Domestic stock casualty companies not maintaining capital paid up of at least one hundred thousand dollars ($100,000) shall make a deposit equal to their capital paid up by December 31, 1977. (4) This section shall not apply to, or affect, or be construed as in anywise applying to, or affecting, domestic state and county mutual fire insurance companies, the organization of which was and is authorized by chapters 19-21 of this title.
(1) The deposit required by this section is not applicable to foreign stock or mutual life insurance companies, or to domestic or foreign insurance companies writing workers' compensation insurance or fidelity and surety bonds. Companies writing that type or form of insurance shall make deposits in accordance with the requirements of existing laws.
(2) The provisions of this section applicable to domestic insurance companies shall apply to all insurance companies and associations except those specifically exempted in this section, whether the companies are stock or mutual, and it is specifically provided that §§ 56-2-101 - 56-2-103, this section, §§ 56-2-113 - 56-2-115, 56-2-201 , and 56-2-301 fully apply to all such companies or associations regardless of what law or statute of this state under which the companies or associations may have been organized.
(3) No requirement in this section not in effect on January 1, 1967, shall be considered applicable to any insurance company properly licensed to transact business in this state as of that date, except that any stock casualty company, foreign or domestic, not having at least one hundred thousand dollars ($100,000) in cash or equivalent on deposit for each kind of insurance as defined in § 56-2-201, shall meet the requirement by December 31, 1978. Domestic stock casualty companies not maintaining capital paid up of at least one hundred thousand dollars ($100,000) shall make a deposit equal to their capital paid up by December 31, 1977.
(4) This section shall not apply to, or affect, or be construed as in anywise applying to, or affecting, domestic state and county mutual fire insurance companies, the organization of which was and is authorized by chapters 19-21 of this title.
Amended by 2015 Tenn. Acts, ch. 155,Secs.s1, s2 eff. 4/17/2015.
Amended by 2013 Tenn. Acts, ch. 5,s 1, 2, eff. 3/7/2013.
Acts 1935, ch. 183, §§ 2, 3; 1935 (E.S.), ch. 51, § 1; C. Supp. 1950, §§ 6130.1-6130.3 (Williams, §§ 6130.2, 6130.3, 6130.5); T.C.A. (orig. ed.), §§ 56-202 -- 56-204; Acts 1955, ch. 13, § 2; 1967, ch. 31, §§ 1, 2; 1977, ch. 29, § 1; T.C.A., § 56-204; Acts 1980, ch. 503, § 2; 1984, ch. 617, §§ 2-4; 1993, ch. 253, § 19; 1999, ch. 89, § 1; 2012, ch. 680, § 1.
Tenn. Code Ann. § 56-26-201 — TN Code / Title 56 / Chapter 26 / Section 56-26-201
Part definitions
Status: in_force

As used in this part: (1) "Employees" includes the officers, managers and employees of the employer, the individual proprietor or partner if the employer is an individual proprietor or partnership, the officers, managers and employees of subsidiary or affiliated corporations, and the individual proprietors, partners and employees of individuals and firms, if the business of the employer and the individual or firm is under common control through stock ownership, contract, or otherwise. "Employees" may include retired employees. A policy issued to insure employees of a public body may provide that "employees" include elected or appointed officials. The policy may provide that "employees" include the trustees or their employees, or both, if their duties are principally connected with the trusteeship of the policy; and (2) "Group accident and health insurance" means that form of accident and health insurance covering groups of persons as defined in the policy, with or without one (1) or more members of their families or one (1) or more of their dependents, or covering one (1) or more members of the families or one (1) or more dependents, under a policy issued to an employer or trustees of a fund established by an employer, or to an association or other organization that qualifies under § 56-26-204(a) to establish a liability pool, a labor union or the trustees of a fund established by a labor union or an association, or the trustees of a fund established by two (2) or more employers in the same or related industry, or by one (1) or more labor unions or by one (1) or more employers and one (1) or more labor unions, or to a creditor or vendor in connection with a credit transaction (except for insurance regulated by or provided for in § 56-7-901 ), who shall be deemed the policyholder, insuring employees of the employer for the benefit of persons other than the employer, or insuring members or employees of the association or labor union for the benefit of persons other than officers of the association or labor union, or insuring employees of the employers or members of the unions, for the benefit of persons other than the employers or the unions, or insuring the debtors of the creditor or vendor to reduce the unpaid indebtedness of the debtor or vendee to the extent of payment of the benefits under the policy (except for insurance regulated by or provided for in § 56-7-901 ). Amended by 2020 Tenn. Acts, ch. 515, s 3, eff. 7/1/2020. Acts 1976, ch. 397, § 7; 1978, ch. 514, § 1; T.C.A., § 56-3330; Acts 1980, ch. 784, § 1.
As used in this part:
(1) "Employees" includes the officers, managers and employees of the employer, the individual proprietor or partner if the employer is an individual proprietor or partnership, the officers, managers and employees of subsidiary or affiliated corporations, and the individual proprietors, partners and employees of individuals and firms, if the business of the employer and the individual or firm is under common control through stock ownership, contract, or otherwise. "Employees" may include retired employees. A policy issued to insure employees of a public body may provide that "employees" include elected or appointed officials. The policy may provide that "employees" include the trustees or their employees, or both, if their duties are principally connected with the trusteeship of the policy; and
(2) "Group accident and health insurance" means that form of accident and health insurance covering groups of persons as defined in the policy, with or without one (1) or more members of their families or one (1) or more of their dependents, or covering one (1) or more members of the families or one (1) or more dependents, under a policy issued to an employer or trustees of a fund established by an employer, or to an association or other organization that qualifies under § 56-26-204(a) to establish a liability pool, a labor union or the trustees of a fund established by a labor union or an association, or the trustees of a fund established by two (2) or more employers in the same or related industry, or by one (1) or more labor unions or by one (1) or more employers and one (1) or more labor unions, or to a creditor or vendor in connection with a credit transaction (except for insurance regulated by or provided for in § 56-7-901 ), who shall be deemed the policyholder, insuring employees of the employer for the benefit of persons other than the employer, or insuring members or employees of the association or labor union for the benefit of persons other than officers of the association or labor union, or insuring employees of the employers or members of the unions, for the benefit of persons other than the employers or the unions, or insuring the debtors of the creditor or vendor to reduce the unpaid indebtedness of the debtor or vendee to the extent of payment of the benefits under the policy (except for insurance regulated by or provided for in § 56-7-901 ).
Amended by 2020 Tenn. Acts, ch. 515, s 3, eff. 7/1/2020.
Acts 1976, ch. 397, § 7; 1978, ch. 514, § 1; T.C.A., § 56-3330; Acts 1980, ch. 784, § 1.
Tenn. Code Ann. § 56-7-311 — TN Code / Title 56 / Chapter 7 / Section 56-7-311
"Company" defined
Status: in_force

As used in §§ 56-7-308 , 56-7-309 , 56-7-2307 , 56-7-2308 and 56-7-2311 , "company" includes corporations and associations. Acts 1907, ch. 457, § 7; Shan., § 3348a14; Code 1932, § 6185; T.C.A. (orig. ed.), § 56-1122.
As used in §§ 56-7-308 , 56-7-309 , 56-7-2307 , 56-7-2308 and 56-7-2311 , "company" includes corporations and associations.
Acts 1907, ch. 457, § 7; Shan., § 3348a14; Code 1932, § 6185; T.C.A. (orig. ed.), § 56-1122.
Tenn. Code Ann. § 56-7-3113 — TN Code / Title 56 / Chapter 7 / Section 56-7-3113
Licensure as pharmacy benefits manager
Status: in_force

(a) No person or entity shall administer the medication or device portion of pharmacy benefits coverage provided by a covered entity or otherwise act as a pharmacy benefits manager in this state unless the person or entity has obtained licensure through the department of commerce and insurance. (b) To obtain licensure as a pharmacy benefits manager, the person or entity must demonstrate to the department that the person or entity: (1) Is authorized to transact business in this state; (2) Is financially responsible, as determined by the department; and (3) Has not had a prior license to be a pharmacy benefits manager denied for cause or revoked by the department within five (5) years of the date on which licensure is sought. (c) (1) In addition to the showing required by subsection (b), a person or entity seeking licensure as a pharmacy benefits manager shall also provide the following information to the department: (A) The person or entity's name, address, telephone number, email address, and website address; and (B) If the licensure is sought for an entity, the name, address, telephone number, and email address for a contact person. (2) Any material changes in the information described in this subsection (c) shall be filed with the department within sixty (60) days of the change. (d) A person or entity's license as a pharmacy benefits manager shall be renewed biennially. (e) (1) Any person or entity seeking licensure as a pharmacy benefits manager shall pay a fee in the amount of one hundred dollars ($100) to the department to obtain the license. Any person or entity seeking renewal of a license as a pharmacy benefits manager shall pay a fee in the amount of fifty dollars ($50) to renew the license. (2) All fees paid pursuant to this section shall be used by the department for purposes of administering this section. (f) (1) Failure to obtain licensure or renew a license pursuant to this section while acting as a pharmacy benefits manager in this state shall constitute a violation of this section and shall be punishable by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500). (2) Any person or entity assessed a fine pursuant to this section or denied a license or renewal of a license may appeal the fine or denial pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Acts 2018, ch. 838, § 1.
(a) No person or entity shall administer the medication or device portion of pharmacy benefits coverage provided by a covered entity or otherwise act as a pharmacy benefits manager in this state unless the person or entity has obtained licensure through the department of commerce and insurance.
(b) To obtain licensure as a pharmacy benefits manager, the person or entity must demonstrate to the department that the person or entity: (1) Is authorized to transact business in this state; (2) Is financially responsible, as determined by the department; and (3) Has not had a prior license to be a pharmacy benefits manager denied for cause or revoked by the department within five (5) years of the date on which licensure is sought.
(1) Is authorized to transact business in this state;
(2) Is financially responsible, as determined by the department; and
(3) Has not had a prior license to be a pharmacy benefits manager denied for cause or revoked by the department within five (5) years of the date on which licensure is sought.
(c) (1) In addition to the showing required by subsection (b), a person or entity seeking licensure as a pharmacy benefits manager shall also provide the following information to the department: (A) The person or entity's name, address, telephone number, email address, and website address; and (B) If the licensure is sought for an entity, the name, address, telephone number, and email address for a contact person. (2) Any material changes in the information described in this subsection (c) shall be filed with the department within sixty (60) days of the change.
(1) In addition to the showing required by subsection (b), a person or entity seeking licensure as a pharmacy benefits manager shall also provide the following information to the department: (A) The person or entity's name, address, telephone number, email address, and website address; and (B) If the licensure is sought for an entity, the name, address, telephone number, and email address for a contact person.
(A) The person or entity's name, address, telephone number, email address, and website address; and
(B) If the licensure is sought for an entity, the name, address, telephone number, and email address for a contact person.
(2) Any material changes in the information described in this subsection (c) shall be filed with the department within sixty (60) days of the change.
(d) A person or entity's license as a pharmacy benefits manager shall be renewed biennially.
(e) (1) Any person or entity seeking licensure as a pharmacy benefits manager shall pay a fee in the amount of one hundred dollars ($100) to the department to obtain the license. Any person or entity seeking renewal of a license as a pharmacy benefits manager shall pay a fee in the amount of fifty dollars ($50) to renew the license. (2) All fees paid pursuant to this section shall be used by the department for purposes of administering this section.
(1) Any person or entity seeking licensure as a pharmacy benefits manager shall pay a fee in the amount of one hundred dollars ($100) to the department to obtain the license. Any person or entity seeking renewal of a license as a pharmacy benefits manager shall pay a fee in the amount of fifty dollars ($50) to renew the license.
(2) All fees paid pursuant to this section shall be used by the department for purposes of administering this section.
(f) (1) Failure to obtain licensure or renew a license pursuant to this section while acting as a pharmacy benefits manager in this state shall constitute a violation of this section and shall be punishable by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500). (2) Any person or entity assessed a fine pursuant to this section or denied a license or renewal of a license may appeal the fine or denial pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(1) Failure to obtain licensure or renew a license pursuant to this section while acting as a pharmacy benefits manager in this state shall constitute a violation of this section and shall be punishable by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
(2) Any person or entity assessed a fine pursuant to this section or denied a license or renewal of a license may appeal the fine or denial pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 2018, ch. 838, § 1.
Tenn. Code Ann. § 56-50-103 — TN Code / Title 56 / Chapter 50 / Section 56-50-103
License and bond requirements
Status: in_force

(a) (1) A person shall not operate as a viatical settlement provider or viatical settlement broker without first obtaining a license from the commissioner of the state of residence of the viator. (2) A person shall not operate as a viatical settlement investment agent without first obtaining a license from the commissioner of the state of residence of the viatical settlement purchaser. If there is more than one (1) purchaser of a single policy and the purchasers are residents of different states, the viatical settlement purchase agreement shall be governed by the law of the state in which the purchaser having the largest percentage ownership resides or, if the purchasers hold equal ownership, the state of residence of one (1) purchaser agreed upon in writing by all purchasers. (3) (A) A life insurance producer who has been duly licensed as a resident insurance producer with a life line of authority in this state or the life insurance producer's home state for at least one (1) year and is licensed as a nonresident producer in this state shall be deemed to meet the licensing requirements of this section and shall be permitted to operate as a viatical settlement broker. (B) Not later than thirty (30) days from the first day of operating as a viatical settlement broker, the life insurance producer shall notify the commissioner that the life insurance producer is acting as a viatical settlement broker on a form prescribed by the commissioner, and shall pay any applicable fee to be determined by the commissioner. Notification shall include an acknowledgement by the life insurance producer that the life insurance producer will operate as a viatical settlement broker in accordance with this chapter. (C) The insurer that issued the policy being viaticated shall not be responsible for any act or omission of a viatical settlement broker or viatical settlement provider arising out of or in connection with the viatical settlement transaction, unless the insurer receives compensation for the placement of a viatical settlement contract from the viatical settlement provider or viatical settlement broker in connection with the viatical settlement contract. (4) A person licensed as an attorney, certified public accountant or financial planner accredited by a nationally recognized accreditation agency, who is retained to represent the viator, whose compensation is not paid directly or indirectly by the viatical settlement provider, may negotiate viatical settlement contracts on behalf of the viator without having to obtain a license as a viatical settlement broker. (b) Application for a viatical settlement provider, viatical settlement broker or viatical settlement investment agent license shall be made to the commissioner by the applicant on a form prescribed by the commissioner, and these applications shall be accompanied by the fees promulgated by rule. (c) Licenses may be renewed from year to year on the anniversary date upon payment of the annual renewal fees promulgated by rule. Failure to pay the fees by the renewal date results in expiration of the license. (d) The applicant shall provide information on forms required by the commissioner. The commissioner shall have the authority, at any time, to require the applicant to fully disclose the identity of all stockholders, partners, officers, members and employees. The commissioner may, in the exercise of the commissioner's discretion, refuse to issue a license in the name of a legal entity if not satisfied that any officer, employee, stockholder, partner or member of the entity who may materially influence the applicant's conduct meets the standards of this chapter. (e) A license issued to a legal entity authorizes all partners, officers, members and designated employees to act as viatical settlement providers, viatical settlement brokers or viatical settlement investment agents, as applicable, under the license; and all those persons shall be named in the application and any supplements to the application. (f) (1) Upon the filing of an application and the payment of the license fee, the commissioner shall make an investigation of each applicant and issue a license if the commissioner finds that the applicant: (A) If a viatical settlement provider: (i) Has provided a detailed plan of operation; (ii) Is competent and trustworthy and intends to act in good faith in the capacity involved by the license applied for; and (iii) Has a good business reputation and intends to act in good faith in the capacity involved by the license applied for; (B) If a viatical settlement provider, has demonstrated evidence of financial responsibility in a format prescribed by the commissioner through a surety bond executed and issued by an insurer authorized to issue surety bonds in this state, an errors and omissions insurance policy issued by an insurance company licensed to sell such insurance in this state, or a deposit of cash, certificates of deposit or securities or any combination thereof in the amount of two hundred fifty thousand dollars ($250,000); (C) If a viatical settlement broker, has demonstrated evidence of financial responsibility in a format prescribed by the commissioner through a surety bond executed and issued by an insurer authorized to issue surety bonds in this state, an errors and omissions insurance policy issued by an insurance company licensed to sell such insurance in this state, including a policy issued to a viatical settlement provider, that also covers the actions of the broker, or a deposit of cash, certificates of deposit or securities or any combination thereof in the amount of two hundred fifty thousand dollars ($250,000); (D) If a legal entity, provides a certificate of good standing from the state of its domicile; and (E) If a viatical settlement provider or viatical settlement broker, has provided an anti-fraud plan that meets the requirements of § 56-50-114(g) . (2) The commissioner may ask for evidence of financial responsibility at any time the commissioner deems necessary. (3) Any surety bond issued pursuant to subdivision (f)(1) shall be in the favor of this state and shall specifically authorize recovery by the commissioner on behalf of any person in this state who sustains damages as the result of erroneous acts, failure to act, conviction of fraud or conviction of unfair practices by the viatical settlement provider or viatical settlement broker. (4) Notwithstanding any provision of this section to contrary, the commissioner shall accept, as evidence of financial responsibility, proof that financial instruments in accordance with the requirements in this subsection (f) have been filed with one (1) state where the applicant is licensed as a viatical settlement provider or viatical settlement broker. (g) The commissioner shall not issue a license to a nonresident applicant, unless a written designation of an agent for service of process is filed and maintained with the commissioner or the applicant has filed with the commissioner the applicant's written irrevocable consent that any action against the applicant may be commenced against the applicant by service of process on the commissioner. (h) A viatical settlement provider, viatical settlement broker or viatical settlement investment agent shall provide to the commissioner new or revised information about officers, ten percent (10%) or more stockholders, partners, directors, members or designated employees within thirty (30) days of the change. (i) An individual licensed as a viatical settlement broker shall complete on a biennial basis fifteen (15) hours of training related to viatical settlements and viatical settlement transactions, as required by the commissioner; provided, however, that a life insurance producer who is operating as a viatical settlement broker pursuant to subdivision (a)(3) shall not be subject to the requirements of this subsection (i). Any person failing to meet the requirements of this subsection (i) shall be subject to the penalties imposed by the commissioner. Acts 2009, ch. 604, § 4.
(a) (1) A person shall not operate as a viatical settlement provider or viatical settlement broker without first obtaining a license from the commissioner of the state of residence of the viator. (2) A person shall not operate as a viatical settlement investment agent without first obtaining a license from the commissioner of the state of residence of the viatical settlement purchaser. If there is more than one (1) purchaser of a single policy and the purchasers are residents of different states, the viatical settlement purchase agreement shall be governed by the law of the state in which the purchaser having the largest percentage ownership resides or, if the purchasers hold equal ownership, the state of residence of one (1) purchaser agreed upon in writing by all purchasers. (3) (A) A life insurance producer who has been duly licensed as a resident insurance producer with a life line of authority in this state or the life insurance producer's home state for at least one (1) year and is licensed as a nonresident producer in this state shall be deemed to meet the licensing requirements of this section and shall be permitted to operate as a viatical settlement broker. (B) Not later than thirty (30) days from the first day of operating as a viatical settlement broker, the life insurance producer shall notify the commissioner that the life insurance producer is acting as a viatical settlement broker on a form prescribed by the commissioner, and shall pay any applicable fee to be determined by the commissioner. Notification shall include an acknowledgement by the life insurance producer that the life insurance producer will operate as a viatical settlement broker in accordance with this chapter. (C) The insurer that issued the policy being viaticated shall not be responsible for any act or omission of a viatical settlement broker or viatical settlement provider arising out of or in connection with the viatical settlement transaction, unless the insurer receives compensation for the placement of a viatical settlement contract from the viatical settlement provider or viatical settlement broker in connection with the viatical settlement contract. (4) A person licensed as an attorney, certified public accountant or financial planner accredited by a nationally recognized accreditation agency, who is retained to represent the viator, whose compensation is not paid directly or indirectly by the viatical settlement provider, may negotiate viatical settlement contracts on behalf of the viator without having to obtain a license as a viatical settlement broker.
(1) A person shall not operate as a viatical settlement provider or viatical settlement broker without first obtaining a license from the commissioner of the state of residence of the viator.
(2) A person shall not operate as a viatical settlement investment agent without first obtaining a license from the commissioner of the state of residence of the viatical settlement purchaser. If there is more than one (1) purchaser of a single policy and the purchasers are residents of different states, the viatical settlement purchase agreement shall be governed by the law of the state in which the purchaser having the largest percentage ownership resides or, if the purchasers hold equal ownership, the state of residence of one (1) purchaser agreed upon in writing by all purchasers.
(3) (A) A life insurance producer who has been duly licensed as a resident insurance producer with a life line of authority in this state or the life insurance producer's home state for at least one (1) year and is licensed as a nonresident producer in this state shall be deemed to meet the licensing requirements of this section and shall be permitted to operate as a viatical settlement broker. (B) Not later than thirty (30) days from the first day of operating as a viatical settlement broker, the life insurance producer shall notify the commissioner that the life insurance producer is acting as a viatical settlement broker on a form prescribed by the commissioner, and shall pay any applicable fee to be determined by the commissioner. Notification shall include an acknowledgement by the life insurance producer that the life insurance producer will operate as a viatical settlement broker in accordance with this chapter. (C) The insurer that issued the policy being viaticated shall not be responsible for any act or omission of a viatical settlement broker or viatical settlement provider arising out of or in connection with the viatical settlement transaction, unless the insurer receives compensation for the placement of a viatical settlement contract from the viatical settlement provider or viatical settlement broker in connection with the viatical settlement contract.
(A) A life insurance producer who has been duly licensed as a resident insurance producer with a life line of authority in this state or the life insurance producer's home state for at least one (1) year and is licensed as a nonresident producer in this state shall be deemed to meet the licensing requirements of this section and shall be permitted to operate as a viatical settlement broker.
(B) Not later than thirty (30) days from the first day of operating as a viatical settlement broker, the life insurance producer shall notify the commissioner that the life insurance producer is acting as a viatical settlement broker on a form prescribed by the commissioner, and shall pay any applicable fee to be determined by the commissioner. Notification shall include an acknowledgement by the life insurance producer that the life insurance producer will operate as a viatical settlement broker in accordance with this chapter.
(C) The insurer that issued the policy being viaticated shall not be responsible for any act or omission of a viatical settlement broker or viatical settlement provider arising out of or in connection with the viatical settlement transaction, unless the insurer receives compensation for the placement of a viatical settlement contract from the viatical settlement provider or viatical settlement broker in connection with the viatical settlement contract.
(4) A person licensed as an attorney, certified public accountant or financial planner accredited by a nationally recognized accreditation agency, who is retained to represent the viator, whose compensation is not paid directly or indirectly by the viatical settlement provider, may negotiate viatical settlement contracts on behalf of the viator without having to obtain a license as a viatical settlement broker.
(b) Application for a viatical settlement provider, viatical settlement broker or viatical settlement investment agent license shall be made to the commissioner by the applicant on a form prescribed by the commissioner, and these applications shall be accompanied by the fees promulgated by rule.
(c) Licenses may be renewed from year to year on the anniversary date upon payment of the annual renewal fees promulgated by rule. Failure to pay the fees by the renewal date results in expiration of the license.
(d) The applicant shall provide information on forms required by the commissioner. The commissioner shall have the authority, at any time, to require the applicant to fully disclose the identity of all stockholders, partners, officers, members and employees. The commissioner may, in the exercise of the commissioner's discretion, refuse to issue a license in the name of a legal entity if not satisfied that any officer, employee, stockholder, partner or member of the entity who may materially influence the applicant's conduct meets the standards of this chapter.
(e) A license issued to a legal entity authorizes all partners, officers, members and designated employees to act as viatical settlement providers, viatical settlement brokers or viatical settlement investment agents, as applicable, under the license; and all those persons shall be named in the application and any supplements to the application.
(f) (1) Upon the filing of an application and the payment of the license fee, the commissioner shall make an investigation of each applicant and issue a license if the commissioner finds that the applicant: (A) If a viatical settlement provider: (i) Has provided a detailed plan of operation; (ii) Is competent and trustworthy and intends to act in good faith in the capacity involved by the license applied for; and (iii) Has a good business reputation and intends to act in good faith in the capacity involved by the license applied for; (B) If a viatical settlement provider, has demonstrated evidence of financial responsibility in a format prescribed by the commissioner through a surety bond executed and issued by an insurer authorized to issue surety bonds in this state, an errors and omissions insurance policy issued by an insurance company licensed to sell such insurance in this state, or a deposit of cash, certificates of deposit or securities or any combination thereof in the amount of two hundred fifty thousand dollars ($250,000); (C) If a viatical settlement broker, has demonstrated evidence of financial responsibility in a format prescribed by the commissioner through a surety bond executed and issued by an insurer authorized to issue surety bonds in this state, an errors and omissions insurance policy issued by an insurance company licensed to sell such insurance in this state, including a policy issued to a viatical settlement provider, that also covers the actions of the broker, or a deposit of cash, certificates of deposit or securities or any combination thereof in the amount of two hundred fifty thousand dollars ($250,000); (D) If a legal entity, provides a certificate of good standing from the state of its domicile; and (E) If a viatical settlement provider or viatical settlement broker, has provided an anti-fraud plan that meets the requirements of § 56-50-114(g) . (2) The commissioner may ask for evidence of financial responsibility at any time the commissioner deems necessary. (3) Any surety bond issued pursuant to subdivision (f)(1) shall be in the favor of this state and shall specifically authorize recovery by the commissioner on behalf of any person in this state who sustains damages as the result of erroneous acts, failure to act, conviction of fraud or conviction of unfair practices by the viatical settlement provider or viatical settlement broker. (4) Notwithstanding any provision of this section to contrary, the commissioner shall accept, as evidence of financial responsibility, proof that financial instruments in accordance with the requirements in this subsection (f) have been filed with one (1) state where the applicant is licensed as a viatical settlement provider or viatical settlement broker.
(1) Upon the filing of an application and the payment of the license fee, the commissioner shall make an investigation of each applicant and issue a license if the commissioner finds that the applicant: (A) If a viatical settlement provider: (i) Has provided a detailed plan of operation; (ii) Is competent and trustworthy and intends to act in good faith in the capacity involved by the license applied for; and (iii) Has a good business reputation and intends to act in good faith in the capacity involved by the license applied for; (B) If a viatical settlement provider, has demonstrated evidence of financial responsibility in a format prescribed by the commissioner through a surety bond executed and issued by an insurer authorized to issue surety bonds in this state, an errors and omissions insurance policy issued by an insurance company licensed to sell such insurance in this state, or a deposit of cash, certificates of deposit or securities or any combination thereof in the amount of two hundred fifty thousand dollars ($250,000); (C) If a viatical settlement broker, has demonstrated evidence of financial responsibility in a format prescribed by the commissioner through a surety bond executed and issued by an insurer authorized to issue surety bonds in this state, an errors and omissions insurance policy issued by an insurance company licensed to sell such insurance in this state, including a policy issued to a viatical settlement provider, that also covers the actions of the broker, or a deposit of cash, certificates of deposit or securities or any combination thereof in the amount of two hundred fifty thousand dollars ($250,000); (D) If a legal entity, provides a certificate of good standing from the state of its domicile; and (E) If a viatical settlement provider or viatical settlement broker, has provided an anti-fraud plan that meets the requirements of § 56-50-114(g) .
(A) If a viatical settlement provider: (i) Has provided a detailed plan of operation; (ii) Is competent and trustworthy and intends to act in good faith in the capacity involved by the license applied for; and (iii) Has a good business reputation and intends to act in good faith in the capacity involved by the license applied for;
(i) Has provided a detailed plan of operation;
(ii) Is competent and trustworthy and intends to act in good faith in the capacity involved by the license applied for; and
(iii) Has a good business reputation and intends to act in good faith in the capacity involved by the license applied for;
(B) If a viatical settlement provider, has demonstrated evidence of financial responsibility in a format prescribed by the commissioner through a surety bond executed and issued by an insurer authorized to issue surety bonds in this state, an errors and omissions insurance policy issued by an insurance company licensed to sell such insurance in this state, or a deposit of cash, certificates of deposit or securities or any combination thereof in the amount of two hundred fifty thousand dollars ($250,000);
(C) If a viatical settlement broker, has demonstrated evidence of financial responsibility in a format prescribed by the commissioner through a surety bond executed and issued by an insurer authorized to issue surety bonds in this state, an errors and omissions insurance policy issued by an insurance company licensed to sell such insurance in this state, including a policy issued to a viatical settlement provider, that also covers the actions of the broker, or a deposit of cash, certificates of deposit or securities or any combination thereof in the amount of two hundred fifty thousand dollars ($250,000);
(D) If a legal entity, provides a certificate of good standing from the state of its domicile; and
(E) If a viatical settlement provider or viatical settlement broker, has provided an anti-fraud plan that meets the requirements of § 56-50-114(g) .
(2) The commissioner may ask for evidence of financial responsibility at any time the commissioner deems necessary.
(3) Any surety bond issued pursuant to subdivision (f)(1) shall be in the favor of this state and shall specifically authorize recovery by the commissioner on behalf of any person in this state who sustains damages as the result of erroneous acts, failure to act, conviction of fraud or conviction of unfair practices by the viatical settlement provider or viatical settlement broker.
(4) Notwithstanding any provision of this section to contrary, the commissioner shall accept, as evidence of financial responsibility, proof that financial instruments in accordance with the requirements in this subsection (f) have been filed with one (1) state where the applicant is licensed as a viatical settlement provider or viatical settlement broker.
(g) The commissioner shall not issue a license to a nonresident applicant, unless a written designation of an agent for service of process is filed and maintained with the commissioner or the applicant has filed with the commissioner the applicant's written irrevocable consent that any action against the applicant may be commenced against the applicant by service of process on the commissioner.
(h) A viatical settlement provider, viatical settlement broker or viatical settlement investment agent shall provide to the commissioner new or revised information about officers, ten percent (10%) or more stockholders, partners, directors, members or designated employees within thirty (30) days of the change.
(i) An individual licensed as a viatical settlement broker shall complete on a biennial basis fifteen (15) hours of training related to viatical settlements and viatical settlement transactions, as required by the commissioner; provided, however, that a life insurance producer who is operating as a viatical settlement broker pursuant to subdivision (a)(3) shall not be subject to the requirements of this subsection (i). Any person failing to meet the requirements of this subsection (i) shall be subject to the penalties imposed by the commissioner.
Acts 2009, ch. 604, § 4.
Tenn. Code Ann. § 56-47-104 — TN Code / Title 56 / Chapter 47 / Section 56-47-104
Unlawful insurance acts
Status: in_force

(a) Any person who commits, or participates in, or permits its employees or its agents to commit any of the following acts with an intent to induce reliance, has committed an unlawful insurance act: (1) Presents, causes to be presented or prepares with knowledge or belief that it will be presented, by or on behalf of an insured, insurer, claimant or applicant to an insurer or insurance professional in connection with an insurance transaction, any information that the person knows to contain false representations, or representations, the falsity of which the person has recklessly disregarded, as to any material fact, or that withholds or conceals a material fact, concerning any of the following: (i) The application for, rating of or renewal of, any insurance policy; (ii) A claim for payment or benefit pursuant to any insurance policy; or (iii) Payments made in accordance with the terms of any insurance policy; (2) Presents, causes to be presented, or prepares with knowledge or belief that it will be presented, to or by an insurer, insurance professional in connection with an insurance transaction, any information that the person knows to contain false representations, or representations, the falsity of which the person has recklessly disregarded, as to any material fact, or that withholds or conceals a material fact, concerning any of the following: (i) The solicitation for sale of any insurance policy or purported insurance policy; (ii) An application for certificate of authority; or (iii) The financial condition of any insurer; (3) Solicits or accepts new or renewal insurance risks by or for an insurer that the person knows was insolvent or the insolvency of which the person recklessly disregards; (4) Presents, causes to be presented, or prepares with knowledge or belief that it will be presented, by or on behalf of an insured or insurer, or insurance professional or any other person to a claimant in connection with an insurance transaction, any information that the person knows to contain false representations, or representations, the falsity of which the person has recklessly disregarded, as to any material fact, or that withholds or conceals a material fact, concerning any of the following: (i) A claim for payment for benefit pursuant to any insurance policy; or (ii) Payments made in accordance with the terms of any insurance policy. (b) It is unlawful for any person to commit, or to attempt to commit, or to aid, assist, abet or solicit another to commit, or to conspire to commit an unlawful insurance act. (c) A practitioner violates this section only if the practitioner has been engaged in conduct that constitutes a pattern or practice of violation of this section. Acts 1996, ch. 944, § 48.
(a) Any person who commits, or participates in, or permits its employees or its agents to commit any of the following acts with an intent to induce reliance, has committed an unlawful insurance act: (1) Presents, causes to be presented or prepares with knowledge or belief that it will be presented, by or on behalf of an insured, insurer, claimant or applicant to an insurer or insurance professional in connection with an insurance transaction, any information that the person knows to contain false representations, or representations, the falsity of which the person has recklessly disregarded, as to any material fact, or that withholds or conceals a material fact, concerning any of the following: (i) The application for, rating of or renewal of, any insurance policy; (ii) A claim for payment or benefit pursuant to any insurance policy; or (iii) Payments made in accordance with the terms of any insurance policy; (2) Presents, causes to be presented, or prepares with knowledge or belief that it will be presented, to or by an insurer, insurance professional in connection with an insurance transaction, any information that the person knows to contain false representations, or representations, the falsity of which the person has recklessly disregarded, as to any material fact, or that withholds or conceals a material fact, concerning any of the following: (i) The solicitation for sale of any insurance policy or purported insurance policy; (ii) An application for certificate of authority; or (iii) The financial condition of any insurer; (3) Solicits or accepts new or renewal insurance risks by or for an insurer that the person knows was insolvent or the insolvency of which the person recklessly disregards; (4) Presents, causes to be presented, or prepares with knowledge or belief that it will be presented, by or on behalf of an insured or insurer, or insurance professional or any other person to a claimant in connection with an insurance transaction, any information that the person knows to contain false representations, or representations, the falsity of which the person has recklessly disregarded, as to any material fact, or that withholds or conceals a material fact, concerning any of the following: (i) A claim for payment for benefit pursuant to any insurance policy; or (ii) Payments made in accordance with the terms of any insurance policy.
(1) Presents, causes to be presented or prepares with knowledge or belief that it will be presented, by or on behalf of an insured, insurer, claimant or applicant to an insurer or insurance professional in connection with an insurance transaction, any information that the person knows to contain false representations, or representations, the falsity of which the person has recklessly disregarded, as to any material fact, or that withholds or conceals a material fact, concerning any of the following: (i) The application for, rating of or renewal of, any insurance policy; (ii) A claim for payment or benefit pursuant to any insurance policy; or (iii) Payments made in accordance with the terms of any insurance policy;
(i) The application for, rating of or renewal of, any insurance policy;
(ii) A claim for payment or benefit pursuant to any insurance policy; or
(iii) Payments made in accordance with the terms of any insurance policy;
(2) Presents, causes to be presented, or prepares with knowledge or belief that it will be presented, to or by an insurer, insurance professional in connection with an insurance transaction, any information that the person knows to contain false representations, or representations, the falsity of which the person has recklessly disregarded, as to any material fact, or that withholds or conceals a material fact, concerning any of the following: (i) The solicitation for sale of any insurance policy or purported insurance policy; (ii) An application for certificate of authority; or (iii) The financial condition of any insurer;
(i) The solicitation for sale of any insurance policy or purported insurance policy;
(ii) An application for certificate of authority; or
(iii) The financial condition of any insurer;
(3) Solicits or accepts new or renewal insurance risks by or for an insurer that the person knows was insolvent or the insolvency of which the person recklessly disregards;
(4) Presents, causes to be presented, or prepares with knowledge or belief that it will be presented, by or on behalf of an insured or insurer, or insurance professional or any other person to a claimant in connection with an insurance transaction, any information that the person knows to contain false representations, or representations, the falsity of which the person has recklessly disregarded, as to any material fact, or that withholds or conceals a material fact, concerning any of the following: (i) A claim for payment for benefit pursuant to any insurance policy; or (ii) Payments made in accordance with the terms of any insurance policy.
(i) A claim for payment for benefit pursuant to any insurance policy; or
(ii) Payments made in accordance with the terms of any insurance policy.
(b) It is unlawful for any person to commit, or to attempt to commit, or to aid, assist, abet or solicit another to commit, or to conspire to commit an unlawful insurance act.
(c) A practitioner violates this section only if the practitioner has been engaged in conduct that constitutes a pattern or practice of violation of this section.
Acts 1996, ch. 944, § 48.
Tenn. Code Ann. § 56-7-1016 — TN Code / Title 56 / Chapter 7 / Section 56-7-1016
Tennessee Health Freedom Act
Status: in_force

(a) This section shall be known and may be cited as the "Tennessee Health Freedom Act." (b) As used in this section: (1) "Healthcare services" means any service, treatment, or provision of product for the care of physical or mental disease, illness, injury, defect or condition, or to otherwise maintain or improve physical or mental health, subject to all laws and rules regulating health service providers and products within this state; (2) "Mode of securing" means to purchase directly or on credit or by trade, or to contract for third-party payment by insurance or other legal means authorized by the state, or to apply for or accept employer or government-sponsored healthcare benefits under such conditions as may legally be required as a condition of such benefits, or any combination of the same; (3) "Penalty" means any civil or criminal fine, tax, salary or wage withholding, surcharge, fee or any other imposed consequence established by law or rule of a government or its subdivision or agency that is used to punish or discourage the exercise of rights protected under this chapter. (c) (1) The power to require or regulate a person's choice in the mode of securing healthcare services, or to impose a penalty related thereto, is not found in the Constitution of the United States, and is therefore a power reserved to the people pursuant to the ninth amendment, and to the several states pursuant to the tenth amendment. This state hereby exercises its sovereign power to declare the public policy of this state regarding the right of all persons residing in this state in choosing the mode of securing healthcare services. (2) It is declared that the public policy of this state, consistent with our constitutionally-recognized and inalienable right of liberty, is that every person within this state is and shall be free to choose or to decline to choose any mode of securing healthcare services without penalty or threat of penalty; provided, however, that this title and title 36 concerning requirements for healthcare coverage of children in child support cases shall not be altered in any manner by this section. (3) It is declared that the public policy of this state, consistent with our constitutionally-recognized and inalienable right of liberty, is that every person within this state has the right to purchase health insurance or to refuse to purchase health insurance, unless purchase of health insurance is otherwise a condition of employment. The government may not interfere with a citizen's right to purchase health insurance or with a citizen's right to refuse to purchase health insurance. The government may not enact a law that would restrict these rights or that would impose a form of punishment for exercising either of these rights. Any law to the contrary shall be void ab initio. (4) The policy stated in this section shall not be applied to impair any right of contract related to the provision of healthcare services to any person or group. (d) No public official, employee, or agent of this state or any of its political subdivisions shall act to impose, collect, enforce, or effectuate any penalty in this state that violates the public policy set forth in this section. Acts 2011, ch. 9, § 1.
(a) This section shall be known and may be cited as the "Tennessee Health Freedom Act."
(b) As used in this section: (1) "Healthcare services" means any service, treatment, or provision of product for the care of physical or mental disease, illness, injury, defect or condition, or to otherwise maintain or improve physical or mental health, subject to all laws and rules regulating health service providers and products within this state; (2) "Mode of securing" means to purchase directly or on credit or by trade, or to contract for third-party payment by insurance or other legal means authorized by the state, or to apply for or accept employer or government-sponsored healthcare benefits under such conditions as may legally be required as a condition of such benefits, or any combination of the same; (3) "Penalty" means any civil or criminal fine, tax, salary or wage withholding, surcharge, fee or any other imposed consequence established by law or rule of a government or its subdivision or agency that is used to punish or discourage the exercise of rights protected under this chapter.
(1) "Healthcare services" means any service, treatment, or provision of product for the care of physical or mental disease, illness, injury, defect or condition, or to otherwise maintain or improve physical or mental health, subject to all laws and rules regulating health service providers and products within this state;
(2) "Mode of securing" means to purchase directly or on credit or by trade, or to contract for third-party payment by insurance or other legal means authorized by the state, or to apply for or accept employer or government-sponsored healthcare benefits under such conditions as may legally be required as a condition of such benefits, or any combination of the same;
(3) "Penalty" means any civil or criminal fine, tax, salary or wage withholding, surcharge, fee or any other imposed consequence established by law or rule of a government or its subdivision or agency that is used to punish or discourage the exercise of rights protected under this chapter.
(c) (1) The power to require or regulate a person's choice in the mode of securing healthcare services, or to impose a penalty related thereto, is not found in the Constitution of the United States, and is therefore a power reserved to the people pursuant to the ninth amendment, and to the several states pursuant to the tenth amendment. This state hereby exercises its sovereign power to declare the public policy of this state regarding the right of all persons residing in this state in choosing the mode of securing healthcare services. (2) It is declared that the public policy of this state, consistent with our constitutionally-recognized and inalienable right of liberty, is that every person within this state is and shall be free to choose or to decline to choose any mode of securing healthcare services without penalty or threat of penalty; provided, however, that this title and title 36 concerning requirements for healthcare coverage of children in child support cases shall not be altered in any manner by this section. (3) It is declared that the public policy of this state, consistent with our constitutionally-recognized and inalienable right of liberty, is that every person within this state has the right to purchase health insurance or to refuse to purchase health insurance, unless purchase of health insurance is otherwise a condition of employment. The government may not interfere with a citizen's right to purchase health insurance or with a citizen's right to refuse to purchase health insurance. The government may not enact a law that would restrict these rights or that would impose a form of punishment for exercising either of these rights. Any law to the contrary shall be void ab initio. (4) The policy stated in this section shall not be applied to impair any right of contract related to the provision of healthcare services to any person or group.
(1) The power to require or regulate a person's choice in the mode of securing healthcare services, or to impose a penalty related thereto, is not found in the Constitution of the United States, and is therefore a power reserved to the people pursuant to the ninth amendment, and to the several states pursuant to the tenth amendment. This state hereby exercises its sovereign power to declare the public policy of this state regarding the right of all persons residing in this state in choosing the mode of securing healthcare services.
(2) It is declared that the public policy of this state, consistent with our constitutionally-recognized and inalienable right of liberty, is that every person within this state is and shall be free to choose or to decline to choose any mode of securing healthcare services without penalty or threat of penalty; provided, however, that this title and title 36 concerning requirements for healthcare coverage of children in child support cases shall not be altered in any manner by this section.
(3) It is declared that the public policy of this state, consistent with our constitutionally-recognized and inalienable right of liberty, is that every person within this state has the right to purchase health insurance or to refuse to purchase health insurance, unless purchase of health insurance is otherwise a condition of employment. The government may not interfere with a citizen's right to purchase health insurance or with a citizen's right to refuse to purchase health insurance. The government may not enact a law that would restrict these rights or that would impose a form of punishment for exercising either of these rights. Any law to the contrary shall be void ab initio.
(4) The policy stated in this section shall not be applied to impair any right of contract related to the provision of healthcare services to any person or group.
(d) No public official, employee, or agent of this state or any of its political subdivisions shall act to impose, collect, enforce, or effectuate any penalty in this state that violates the public policy set forth in this section.
Acts 2011, ch. 9, § 1.
Tenn. Code Ann. § 56-27-129 — TN Code / Title 56 / Chapter 27 / Section 56-27-129
Settlement of dispute or controversy by commissioner - Review of decision
Status: in_force

Any dispute or controversy arising between a medical service plan corporation and any participating physician or any physician desiring to become a participating physician, or any subscriber, or any other person whose subscription certificate has been cancelled, or to whom the corporation has refused to issue a certificate, may, within thirty (30) days after the dispute or controversy arises, be appealed by the person allegedly aggrieved to the commissioner, or a person or persons designated by the commissioner. After proper notice and hearing, the commissioner shall render a decision, which shall be binding on any medical service plan corporation or agent of the corporation, subject to judicial review. Acts 1945, ch. 113, § 26; C. Supp. 1950, § 4186.42 (Williams, § 4186.43); T.C.A. (orig. ed.), § 56-2929.
Any dispute or controversy arising between a medical service plan corporation and any participating physician or any physician desiring to become a participating physician, or any subscriber, or any other person whose subscription certificate has been cancelled, or to whom the corporation has refused to issue a certificate, may, within thirty (30) days after the dispute or controversy arises, be appealed by the person allegedly aggrieved to the commissioner, or a person or persons designated by the commissioner. After proper notice and hearing, the commissioner shall render a decision, which shall be binding on any medical service plan corporation or agent of the corporation, subject to judicial review.
Acts 1945, ch. 113, § 26; C. Supp. 1950, § 4186.42 (Williams, § 4186.43); T.C.A. (orig. ed.), § 56-2929.
Tenn. Code Ann. § 56-1-407 — TN Code / Title 56 / Chapter 1 / Section 56-1-407
Valuation of bonds held by insurance companies - Basis
Status: in_force

(a) All bonds or other evidences of debt having a fixed term and rate held by any life insurance company, assessment life association, or fraternal beneficiary association, authorized to do business in this state, may, if amply secured and not in default as to principal and interest, be valued as follows: (1) If purchased at par, at par value; or (2) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made. (b) The purchase shall in no case be taken at a higher figure than the actual market value at the time of purchase. (c) The commissioner shall have full discretion in determining the method of calculating values according to subsection (a). Acts 1921, ch. 128, § 1; Shan. Supp., § 3281a1; Code 1932, § 6096; T.C.A. (orig. ed.), § 56-119.
(a) All bonds or other evidences of debt having a fixed term and rate held by any life insurance company, assessment life association, or fraternal beneficiary association, authorized to do business in this state, may, if amply secured and not in default as to principal and interest, be valued as follows: (1) If purchased at par, at par value; or (2) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made.
(1) If purchased at par, at par value; or
(2) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made.
(b) The purchase shall in no case be taken at a higher figure than the actual market value at the time of purchase.
(c) The commissioner shall have full discretion in determining the method of calculating values according to subsection (a).
Acts 1921, ch. 128, § 1; Shan. Supp., § 3281a1; Code 1932, § 6096; T.C.A. (orig. ed.), § 56-119.
Tenn. Code Ann. § 56-19-124 — TN Code / Title 56 / Chapter 19 / Section 56-19-124
Requirements as to deposits and surplus
Status: in_force

Each and every requirement and provision of §§ 56-2-101 - 56-2-104, 56-2-113 - 56-2-115, 56-2-201 and 56-2-301 relating to the kinds of business as defined in those sections, required deposits with the commissioner, and required surplus of insurance companies, shall be fully and specifically applicable to all insurance companies organized under this chapter. Acts 1955, ch. 13, § 4; T.C.A., § 56-1724.
Each and every requirement and provision of §§ 56-2-101 - 56-2-104, 56-2-113 - 56-2-115, 56-2-201 and 56-2-301 relating to the kinds of business as defined in those sections, required deposits with the commissioner, and required surplus of insurance companies, shall be fully and specifically applicable to all insurance companies organized under this chapter.
Acts 1955, ch. 13, § 4; T.C.A., § 56-1724.
Tenn. Code Ann. § 56-7-124 — TN Code / Title 56 / Chapter 7 / Section 56-7-124
Release of information relating to physical or mental health of patient
Status: in_force

(a) (1) It is unlawful for an insurer or carrier that provides accident or health insurance, a nonprofit hospital or medical service corporation, a health, hospital or medical service corporation, a health maintenance organization, including any that participates in TennCare or any successor program, a Multiple Employer Welfare Arrangement (MEWA), a preferred provider organization, a pharmacy benefit management organization, or other network providing health benefits, to market or sell information that directly identifies the patient who is the subject of the information and that relates to the physical or mental health of that patient or to the provision of health care to that patient, unless the patient has authorized the release in written, electronic or other form that indicates the patient's consent. (2) (A) This section does not apply to: (i) The release of such information to an agent, contractor or corporate affiliate of the entity holding the information to perform a permitted function or use of the information; or (ii) The release of information for which the patient, enrollee or insured has executed a voluntary waiver or release. (B) This section does not apply to release of information that does not readily identify the patient for bona fide research or audit purposes. Nothing in this section shall prohibit: (i) The transfer of information as part of arrangements to assure the delivery of health care, health care payment, health care management, disease state management, health care oversight; (ii) The transfer of responsibility for identifiable health information to a successor in interest; or (iii) The release of medical information, medical services utilization data and any other necessary patient identifying information by an insurer or carrier that provides accident or health insurance, a nonprofit hospital or medical service corporation, a health, hospital or medical service corporation, a health maintenance organization, including any that participates in TennCare or any successor program, a MEWA, or a pharmacy benefit management organization to the TennCare Bureau or its contractors or other appropriate state agencies, appropriate providers of medical services, outreach workers, researchers, outside vendors or contractors, universities or any other appropriate third parties for the purpose of performing case management, drug utilization review (DUR), disease management, quality reviews, health management, or outcomes research that is designed to monitor utilization patterns, improve the quality of health care and health care delivery, assure compliance, control fraud, waste and abuse or contain costs. Any third party vendor or contractor, as well as any other entity that gains access to this information to perform the analysis and intervention activities described in this subdivision (a)(2)(B)(iii), will be bound to comply with all applicable state and federal laws and regulations regarding vigilant protection of the confidential information. (3) A violation of this subsection (a) shall be punished as a Class C misdemeanor. (b) In lieu of, or in addition to, any other remedy that may be available under this title, the commissioner may assess a civil penalty against any entity violating this section in an amount not to exceed one thousand dollars ($1,000) for each separate violation, or the amount realized by the entity, whichever is greater. The civil penalty shall only be levied by the department after a hearing, conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. In any civil action brought to enforce this subsection (b), costs for the prevailing party, including the department, shall include reasonable expenses, including attorney fees. (c) The commissioner is authorized to promulgate rules and regulations pursuant to the Uniform Administrative Procedures Act to enforce this section. (d) Nothing in this section shall be construed to prohibit an insurer, a hospital and medical service corporation, a health maintenance organization or an employer from sharing or using consumer information with its affiliates, subsidiaries, agents or joint venture partners, for activities consistent with this title, including, but not limited to, data processing, utilization review, underwriting claims and anti-fraud purposes. An insurer shall be permitted to share personal information such as name, address and other nonmedical specific data with subsidiaries, agents, or joint venture partners. Acts 2000, ch. 769, § 1.
(a) (1) It is unlawful for an insurer or carrier that provides accident or health insurance, a nonprofit hospital or medical service corporation, a health, hospital or medical service corporation, a health maintenance organization, including any that participates in TennCare or any successor program, a Multiple Employer Welfare Arrangement (MEWA), a preferred provider organization, a pharmacy benefit management organization, or other network providing health benefits, to market or sell information that directly identifies the patient who is the subject of the information and that relates to the physical or mental health of that patient or to the provision of health care to that patient, unless the patient has authorized the release in written, electronic or other form that indicates the patient's consent. (2) (A) This section does not apply to: (i) The release of such information to an agent, contractor or corporate affiliate of the entity holding the information to perform a permitted function or use of the information; or (ii) The release of information for which the patient, enrollee or insured has executed a voluntary waiver or release. (B) This section does not apply to release of information that does not readily identify the patient for bona fide research or audit purposes. Nothing in this section shall prohibit: (i) The transfer of information as part of arrangements to assure the delivery of health care, health care payment, health care management, disease state management, health care oversight; (ii) The transfer of responsibility for identifiable health information to a successor in interest; or (iii) The release of medical information, medical services utilization data and any other necessary patient identifying information by an insurer or carrier that provides accident or health insurance, a nonprofit hospital or medical service corporation, a health, hospital or medical service corporation, a health maintenance organization, including any that participates in TennCare or any successor program, a MEWA, or a pharmacy benefit management organization to the TennCare Bureau or its contractors or other appropriate state agencies, appropriate providers of medical services, outreach workers, researchers, outside vendors or contractors, universities or any other appropriate third parties for the purpose of performing case management, drug utilization review (DUR), disease management, quality reviews, health management, or outcomes research that is designed to monitor utilization patterns, improve the quality of health care and health care delivery, assure compliance, control fraud, waste and abuse or contain costs. Any third party vendor or contractor, as well as any other entity that gains access to this information to perform the analysis and intervention activities described in this subdivision (a)(2)(B)(iii), will be bound to comply with all applicable state and federal laws and regulations regarding vigilant protection of the confidential information. (3) A violation of this subsection (a) shall be punished as a Class C misdemeanor.
(1) It is unlawful for an insurer or carrier that provides accident or health insurance, a nonprofit hospital or medical service corporation, a health, hospital or medical service corporation, a health maintenance organization, including any that participates in TennCare or any successor program, a Multiple Employer Welfare Arrangement (MEWA), a preferred provider organization, a pharmacy benefit management organization, or other network providing health benefits, to market or sell information that directly identifies the patient who is the subject of the information and that relates to the physical or mental health of that patient or to the provision of health care to that patient, unless the patient has authorized the release in written, electronic or other form that indicates the patient's consent.
(2) (A) This section does not apply to: (i) The release of such information to an agent, contractor or corporate affiliate of the entity holding the information to perform a permitted function or use of the information; or (ii) The release of information for which the patient, enrollee or insured has executed a voluntary waiver or release. (B) This section does not apply to release of information that does not readily identify the patient for bona fide research or audit purposes. Nothing in this section shall prohibit: (i) The transfer of information as part of arrangements to assure the delivery of health care, health care payment, health care management, disease state management, health care oversight; (ii) The transfer of responsibility for identifiable health information to a successor in interest; or (iii) The release of medical information, medical services utilization data and any other necessary patient identifying information by an insurer or carrier that provides accident or health insurance, a nonprofit hospital or medical service corporation, a health, hospital or medical service corporation, a health maintenance organization, including any that participates in TennCare or any successor program, a MEWA, or a pharmacy benefit management organization to the TennCare Bureau or its contractors or other appropriate state agencies, appropriate providers of medical services, outreach workers, researchers, outside vendors or contractors, universities or any other appropriate third parties for the purpose of performing case management, drug utilization review (DUR), disease management, quality reviews, health management, or outcomes research that is designed to monitor utilization patterns, improve the quality of health care and health care delivery, assure compliance, control fraud, waste and abuse or contain costs. Any third party vendor or contractor, as well as any other entity that gains access to this information to perform the analysis and intervention activities described in this subdivision (a)(2)(B)(iii), will be bound to comply with all applicable state and federal laws and regulations regarding vigilant protection of the confidential information.
(A) This section does not apply to: (i) The release of such information to an agent, contractor or corporate affiliate of the entity holding the information to perform a permitted function or use of the information; or (ii) The release of information for which the patient, enrollee or insured has executed a voluntary waiver or release.
(i) The release of such information to an agent, contractor or corporate affiliate of the entity holding the information to perform a permitted function or use of the information; or
(ii) The release of information for which the patient, enrollee or insured has executed a voluntary waiver or release.
(B) This section does not apply to release of information that does not readily identify the patient for bona fide research or audit purposes. Nothing in this section shall prohibit: (i) The transfer of information as part of arrangements to assure the delivery of health care, health care payment, health care management, disease state management, health care oversight; (ii) The transfer of responsibility for identifiable health information to a successor in interest; or (iii) The release of medical information, medical services utilization data and any other necessary patient identifying information by an insurer or carrier that provides accident or health insurance, a nonprofit hospital or medical service corporation, a health, hospital or medical service corporation, a health maintenance organization, including any that participates in TennCare or any successor program, a MEWA, or a pharmacy benefit management organization to the TennCare Bureau or its contractors or other appropriate state agencies, appropriate providers of medical services, outreach workers, researchers, outside vendors or contractors, universities or any other appropriate third parties for the purpose of performing case management, drug utilization review (DUR), disease management, quality reviews, health management, or outcomes research that is designed to monitor utilization patterns, improve the quality of health care and health care delivery, assure compliance, control fraud, waste and abuse or contain costs. Any third party vendor or contractor, as well as any other entity that gains access to this information to perform the analysis and intervention activities described in this subdivision (a)(2)(B)(iii), will be bound to comply with all applicable state and federal laws and regulations regarding vigilant protection of the confidential information.
(i) The transfer of information as part of arrangements to assure the delivery of health care, health care payment, health care management, disease state management, health care oversight;
(ii) The transfer of responsibility for identifiable health information to a successor in interest; or
(iii) The release of medical information, medical services utilization data and any other necessary patient identifying information by an insurer or carrier that provides accident or health insurance, a nonprofit hospital or medical service corporation, a health, hospital or medical service corporation, a health maintenance organization, including any that participates in TennCare or any successor program, a MEWA, or a pharmacy benefit management organization to the TennCare Bureau or its contractors or other appropriate state agencies, appropriate providers of medical services, outreach workers, researchers, outside vendors or contractors, universities or any other appropriate third parties for the purpose of performing case management, drug utilization review (DUR), disease management, quality reviews, health management, or outcomes research that is designed to monitor utilization patterns, improve the quality of health care and health care delivery, assure compliance, control fraud, waste and abuse or contain costs. Any third party vendor or contractor, as well as any other entity that gains access to this information to perform the analysis and intervention activities described in this subdivision (a)(2)(B)(iii), will be bound to comply with all applicable state and federal laws and regulations regarding vigilant protection of the confidential information.
(3) A violation of this subsection (a) shall be punished as a Class C misdemeanor.
(b) In lieu of, or in addition to, any other remedy that may be available under this title, the commissioner may assess a civil penalty against any entity violating this section in an amount not to exceed one thousand dollars ($1,000) for each separate violation, or the amount realized by the entity, whichever is greater. The civil penalty shall only be levied by the department after a hearing, conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. In any civil action brought to enforce this subsection (b), costs for the prevailing party, including the department, shall include reasonable expenses, including attorney fees.
(c) The commissioner is authorized to promulgate rules and regulations pursuant to the Uniform Administrative Procedures Act to enforce this section.
(d) Nothing in this section shall be construed to prohibit an insurer, a hospital and medical service corporation, a health maintenance organization or an employer from sharing or using consumer information with its affiliates, subsidiaries, agents or joint venture partners, for activities consistent with this title, including, but not limited to, data processing, utilization review, underwriting claims and anti-fraud purposes. An insurer shall be permitted to share personal information such as name, address and other nonmedical specific data with subsidiaries, agents, or joint venture partners.
Acts 2000, ch. 769, § 1.
Tenn. Code Ann. § 56-2-501 — TN Code / Title 56 / Chapter 2 / Section 56-2-501
Service and acknowledgment of service of process against incorporated domestic insurance companies
Status: in_force

(a) Every insurance company incorporated under the laws of this state shall, by a duly executed instrument, constitute and appoint the commissioner, the commissioner's deputy and their successors in office its true and lawful attorneys, upon whom all lawful processes in any action or legal proceeding against it may be served and who may acknowledge any such lawful processes. (b) Every insurance company incorporated under the laws of this state shall agree that any lawful process against it that may be served upon its attorneys or upon which they may acknowledge service, shall be of the same force and validity as if served on the company, and that the authority thereof shall continue in force irrevocably as long as any liability of the company remains outstanding. (c) Any process issued by any court of record in this state and acknowledged by or served upon the commissioner or the commissioner's deputy by the proper officer of the county in which the office of commissioner or deputy is located shall be deemed a sufficient process on the company. It is the duty of the commissioner and deputy, immediately after service of process, to forward by registered return receipt mail to the company an exact copy of the process. (d) A record of each service of process shall be kept in the office of the commissioner, showing the date of service, the name of the company on whose behalf service was acknowledged, the name of the plaintiff or complainant, the date the defendant is required to answer, the court issuing the process, and the county in which the suit is brought. (e) The power of attorney shall be filed and kept in the office of the commissioner. Acts 1909, ch. 265, § 1; Shan., § 3292a2; mod. Code 1932, § 6108; T.C.A. (orig. ed.), §§ 56-237, 56-242.
(a) Every insurance company incorporated under the laws of this state shall, by a duly executed instrument, constitute and appoint the commissioner, the commissioner's deputy and their successors in office its true and lawful attorneys, upon whom all lawful processes in any action or legal proceeding against it may be served and who may acknowledge any such lawful processes.
(b) Every insurance company incorporated under the laws of this state shall agree that any lawful process against it that may be served upon its attorneys or upon which they may acknowledge service, shall be of the same force and validity as if served on the company, and that the authority thereof shall continue in force irrevocably as long as any liability of the company remains outstanding.
(c) Any process issued by any court of record in this state and acknowledged by or served upon the commissioner or the commissioner's deputy by the proper officer of the county in which the office of commissioner or deputy is located shall be deemed a sufficient process on the company. It is the duty of the commissioner and deputy, immediately after service of process, to forward by registered return receipt mail to the company an exact copy of the process.
(d) A record of each service of process shall be kept in the office of the commissioner, showing the date of service, the name of the company on whose behalf service was acknowledged, the name of the plaintiff or complainant, the date the defendant is required to answer, the court issuing the process, and the county in which the suit is brought.
(e) The power of attorney shall be filed and kept in the office of the commissioner.
Acts 1909, ch. 265, § 1; Shan., § 3292a2; mod. Code 1932, § 6108; T.C.A. (orig. ed.), §§ 56-237, 56-242.
Tenn. Code Ann. § 56-1-604 — TN Code / Title 56 / Chapter 1 / Section 56-1-604
Documents to be recorded by commissioner or the commissioner's chief deputy - Certified copies of records to be evidence
Status: in_force

Every certificate, assignment, or conveyance executed by the commissioner or the commissioner's chief deputy, relating to the business of insurance companies, in pursuance of authority conferred by law, and sealed with the seal of office, shall be recorded in the proper recording office in the same manner and with the same effect as a deed regularly acknowledged or proved before an officer authorized by law to take the proof or acknowledgment of deeds, and all copies of papers in the office of the department, certified by the commissioner or the chief deputy, and authenticated by the seal, shall in all cases be evidence equally and in like manner with the original. Acts 1873, ch. 58, § 13; Shan., § 3344; Code 1932, § 6169; modified; Acts 1957, ch. 7, § 1; T.C.A. (orig. ed.), § 56-137.
Every certificate, assignment, or conveyance executed by the commissioner or the commissioner's chief deputy, relating to the business of insurance companies, in pursuance of authority conferred by law, and sealed with the seal of office, shall be recorded in the proper recording office in the same manner and with the same effect as a deed regularly acknowledged or proved before an officer authorized by law to take the proof or acknowledgment of deeds, and all copies of papers in the office of the department, certified by the commissioner or the chief deputy, and authenticated by the seal, shall in all cases be evidence equally and in like manner with the original.
Acts 1873, ch. 58, § 13; Shan., § 3344; Code 1932, § 6169; modified; Acts 1957, ch. 7, § 1; T.C.A. (orig. ed.), § 56-137.
Tenn. Code Ann. § 56-9-101 — TN Code / Title 56 / Chapter 9 / Section 56-9-101
Short title - Liberal construction - Purpose
Status: in_force

(a) This chapter shall be known and may be cited as the "Insurers Rehabilitation and Liquidation Act." (b) This chapter shall not be interpreted to limit the powers granted the commissioner by other provisions of the law. (c) This chapter shall be liberally construed to effect the purpose stated in subsection (d). (d) The purpose of this chapter is the protection of the interests of insureds, claimants, creditors and the public generally, with minimum interference with the normal prerogatives of the owners and managers of insurers, through: (1) Early detection of any potentially dangerous condition in an insurer, and prompt application of appropriate corrective measures; (2) Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry; (3) Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation; (4) Equitable apportionment of any unavoidable loss; (5) Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process, and by extending the scope of personal jurisdiction over debtors of the insurer outside this state; (6) Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business; and (7) Providing for a comprehensive scheme for the rehabilitation and liquidation of insurance companies and those subject to this chapter as part of the regulation of the business of insurance, insurance industry and insurers in this state. Proceedings in cases of insurer insolvency and delinquency are deemed an integral aspect of the business of insurance and are of vital public interest and concern. Acts 1991, ch. 142, § 4.
(a) This chapter shall be known and may be cited as the "Insurers Rehabilitation and Liquidation Act."
(b) This chapter shall not be interpreted to limit the powers granted the commissioner by other provisions of the law.
(c) This chapter shall be liberally construed to effect the purpose stated in subsection (d).
(d) The purpose of this chapter is the protection of the interests of insureds, claimants, creditors and the public generally, with minimum interference with the normal prerogatives of the owners and managers of insurers, through: (1) Early detection of any potentially dangerous condition in an insurer, and prompt application of appropriate corrective measures; (2) Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry; (3) Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation; (4) Equitable apportionment of any unavoidable loss; (5) Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process, and by extending the scope of personal jurisdiction over debtors of the insurer outside this state; (6) Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business; and (7) Providing for a comprehensive scheme for the rehabilitation and liquidation of insurance companies and those subject to this chapter as part of the regulation of the business of insurance, insurance industry and insurers in this state. Proceedings in cases of insurer insolvency and delinquency are deemed an integral aspect of the business of insurance and are of vital public interest and concern.
(1) Early detection of any potentially dangerous condition in an insurer, and prompt application of appropriate corrective measures;
(2) Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry;
(3) Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation;
(4) Equitable apportionment of any unavoidable loss;
(5) Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process, and by extending the scope of personal jurisdiction over debtors of the insurer outside this state;
(6) Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business; and
(7) Providing for a comprehensive scheme for the rehabilitation and liquidation of insurance companies and those subject to this chapter as part of the regulation of the business of insurance, insurance industry and insurers in this state. Proceedings in cases of insurer insolvency and delinquency are deemed an integral aspect of the business of insurance and are of vital public interest and concern.
Acts 1991, ch. 142, § 4.
Tenn. Code Ann. § 56-6-101 — TN Code / Title 56 / Chapter 6 / Section 56-6-101
Short title - Purpose and scope
Status: in_force

(a) This part shall be known and may be cited as the "Tennessee Insurance Producer Licensing Act of 2002." (b) This part governs the qualifications and procedures for the licensing of insurance producers. It simplifies and organizes some statutory language to improve efficiency, permits the use of new technology and reduces costs associated with issuing and renewing insurance licenses. (c) This part does not apply to surplus lines agents licensed pursuant to the Surplus Lines Insurance Act, compiled in chapter 14 of this title, except as provided in §§ 56-6-108 and 56-6-118(b) . Acts 2002, ch. 798, § 2.
(a) This part shall be known and may be cited as the "Tennessee Insurance Producer Licensing Act of 2002."
(b) This part governs the qualifications and procedures for the licensing of insurance producers. It simplifies and organizes some statutory language to improve efficiency, permits the use of new technology and reduces costs associated with issuing and renewing insurance licenses.
(c) This part does not apply to surplus lines agents licensed pursuant to the Surplus Lines Insurance Act, compiled in chapter 14 of this title, except as provided in §§ 56-6-108 and 56-6-118(b) .
Acts 2002, ch. 798, § 2.
Tenn. Code Ann. § 56-27-101 — TN Code / Title 56 / Chapter 27 / Section 56-27-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Medical Service Plan Law, 1945." Acts 1945, ch. 113, § 28; C. Supp. 1950, § 4186.17 (Williams, § 4186.45); T.C.A. (orig. ed.), § 56-2901.
This chapter shall be known and may be cited as the "Medical Service Plan Law, 1945."
Acts 1945, ch. 113, § 28; C. Supp. 1950, § 4186.17 (Williams, § 4186.45); T.C.A. (orig. ed.), § 56-2901.
Tenn. Code Ann. § 56-13-110 — TN Code / Title 56 / Chapter 13 / Section 56-13-110
License suspension or revocation
Status: in_force

(a) The license of a captive insurance company may be suspended or revoked by the commissioner for any of the following reasons: (1) Insolvency or impairment of capital or surplus; (2) Failure to meet the requirements of § 56-13-105 ; (3) Refusal or failure to submit an annual report, as required by this chapter, or any other report or statement required by law or by lawful order of the commissioner; (4) Failure to comply with its own charter, bylaws or other organizational document; (5) Failure to submit to or pay the cost of examination or any legal obligation relative to an examination, as required by this chapter; (6) Use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or (7) Failure otherwise to comply with the laws of this state. (b) If the commissioner finds, upon examination, hearing, or other evidence, that any captive insurance company has violated subsection (a), then the commissioner may suspend or revoke such company's license if the commissioner deems it in the best interest of the public and the policyholders of such captive insurance company, notwithstanding any other provision of this title. Acts 2011, ch. 468, § 1.
(a) The license of a captive insurance company may be suspended or revoked by the commissioner for any of the following reasons: (1) Insolvency or impairment of capital or surplus; (2) Failure to meet the requirements of § 56-13-105 ; (3) Refusal or failure to submit an annual report, as required by this chapter, or any other report or statement required by law or by lawful order of the commissioner; (4) Failure to comply with its own charter, bylaws or other organizational document; (5) Failure to submit to or pay the cost of examination or any legal obligation relative to an examination, as required by this chapter; (6) Use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or (7) Failure otherwise to comply with the laws of this state.
(1) Insolvency or impairment of capital or surplus;
(2) Failure to meet the requirements of § 56-13-105 ;
(3) Refusal or failure to submit an annual report, as required by this chapter, or any other report or statement required by law or by lawful order of the commissioner;
(4) Failure to comply with its own charter, bylaws or other organizational document;
(5) Failure to submit to or pay the cost of examination or any legal obligation relative to an examination, as required by this chapter;
(6) Use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or
(7) Failure otherwise to comply with the laws of this state.
(b) If the commissioner finds, upon examination, hearing, or other evidence, that any captive insurance company has violated subsection (a), then the commissioner may suspend or revoke such company's license if the commissioner deems it in the best interest of the public and the policyholders of such captive insurance company, notwithstanding any other provision of this title.
Acts 2011, ch. 468, § 1.
Tenn. Code Ann. § 56-7-2311 — TN Code / Title 56 / Chapter 7 / Section 56-7-2311
Life insurance policy forms
Status: in_force

(a) Filing and Approval. No policy of life insurance shall be delivered or issued for delivery in this state, nor shall any endorsement, rider, or application that becomes a part of the policy be used in connection with the policy until a copy of the form has been filed with the commissioner; nor shall any policy, endorsement, rider, or application be so used until the expiration of thirty (30) days after the form has been filed, unless the commissioner sooner gives written approval. The commissioner shall notify, in writing, the insurer that has filed the form if it does not comply with this chapter, specifying the reasons for the opinion. It shall thereafter be unlawful for the insurer to issue the form in this state. In the notice, the commissioner shall state that a hearing will be granted within twenty (20) days upon written request of the insurer. (b) Withdrawal of Approval - Notice of Hearings. The commissioner may, at any time after a hearing, of which not less than twenty (20) days' written notice has been given to the insurer, withdraw approval of the form if the form contains a provision for benefits that is misleading or deceptive or that would encourage misrepresentation of the policy. It is unlawful for the insurer to issue the form or use it in connection with any policy after the effective date of the withdrawal of approval. A notice of any hearing called under this section shall specify the matters to be considered at the hearing, and any decision affirming disapproval or directing withdrawal of approval under this section shall be in writing and shall specify the reasons for the decision. (c) Disapproval - Substantial Compliance. The commissioner shall not disapprove or withdraw approval of any policy on the ground that its provisions do not comply with this chapter, if it is shown that the rights of the insured or the beneficiary under the policy as a whole are not less favorable than the rights provided by this chapter. (d) Review - Certiorari. Any order or decision of the commissioner under this section shall be subject to review in the manner provided by title 27, chapter 9, pertaining to the statutory writ of certiorari. (e) Policy Deliverable in Another State. If any policy is issued by an insurer domiciled in this state for delivery to a person residing in another state, and if the official having responsibility for the administration of the insurance laws of the other state has advised the commissioner that the policy is not subject to approval or disapproval by the official, the commissioner may by ruling require that the policy meet the standards set forth in this chapter. (f) Application to Annuity Contracts and Life Policies. This section applies to individual annuity contracts, but not to group annuity contracts, to individual and group life insurance policies and to industrial life insurance policies. (g) Filing Procedure. The commissioner may make reasonable rules and regulations concerning the procedure for the filing or submission of policies subject to this section as are necessary, proper or advisable to the administration of this section. Acts 1907, ch. 457, § 4; Shan., § 3348a11; Code 1932, § 6182; Acts 1971, ch. 296, § 1; 1976, ch. 417, § 8; T.C.A. (orig. ed.), § 56-1118; Acts 1992, ch. 984, § 1; T.C.A., § 56-7-307 .
(a) Filing and Approval. No policy of life insurance shall be delivered or issued for delivery in this state, nor shall any endorsement, rider, or application that becomes a part of the policy be used in connection with the policy until a copy of the form has been filed with the commissioner; nor shall any policy, endorsement, rider, or application be so used until the expiration of thirty (30) days after the form has been filed, unless the commissioner sooner gives written approval. The commissioner shall notify, in writing, the insurer that has filed the form if it does not comply with this chapter, specifying the reasons for the opinion. It shall thereafter be unlawful for the insurer to issue the form in this state. In the notice, the commissioner shall state that a hearing will be granted within twenty (20) days upon written request of the insurer.
(b) Withdrawal of Approval - Notice of Hearings. The commissioner may, at any time after a hearing, of which not less than twenty (20) days' written notice has been given to the insurer, withdraw approval of the form if the form contains a provision for benefits that is misleading or deceptive or that would encourage misrepresentation of the policy. It is unlawful for the insurer to issue the form or use it in connection with any policy after the effective date of the withdrawal of approval. A notice of any hearing called under this section shall specify the matters to be considered at the hearing, and any decision affirming disapproval or directing withdrawal of approval under this section shall be in writing and shall specify the reasons for the decision.
(c) Disapproval - Substantial Compliance. The commissioner shall not disapprove or withdraw approval of any policy on the ground that its provisions do not comply with this chapter, if it is shown that the rights of the insured or the beneficiary under the policy as a whole are not less favorable than the rights provided by this chapter.
(d) Review - Certiorari. Any order or decision of the commissioner under this section shall be subject to review in the manner provided by title 27, chapter 9, pertaining to the statutory writ of certiorari.
(e) Policy Deliverable in Another State. If any policy is issued by an insurer domiciled in this state for delivery to a person residing in another state, and if the official having responsibility for the administration of the insurance laws of the other state has advised the commissioner that the policy is not subject to approval or disapproval by the official, the commissioner may by ruling require that the policy meet the standards set forth in this chapter.
(f) Application to Annuity Contracts and Life Policies. This section applies to individual annuity contracts, but not to group annuity contracts, to individual and group life insurance policies and to industrial life insurance policies.
(g) Filing Procedure. The commissioner may make reasonable rules and regulations concerning the procedure for the filing or submission of policies subject to this section as are necessary, proper or advisable to the administration of this section.
Acts 1907, ch. 457, § 4; Shan., § 3348a11; Code 1932, § 6182; Acts 1971, ch. 296, § 1; 1976, ch. 417, § 8; T.C.A. (orig. ed.), § 56-1118; Acts 1992, ch. 984, § 1; T.C.A., § 56-7-307 .
Tenn. Code Ann. § 56-51-114 — TN Code / Title 56 / Chapter 51 / Section 56-51-114
Changes in rates and benefits - Material modifications - Addition of limited health services
Status: in_force

(a) (1) No prepaid limited health services contract, certificate of coverage, application, enrollment form, rider, endorsement, and applicable rates to be charged may be delivered in this state unless the forms and rates have been filed with the department by or on behalf of the prepaid limited health service organization and have been approved by the department. Every form filed shall be identified by a unique form number placed in the lower left corner of each form. If a prepaid limited health service organization desires to amend any contract with its subscribers or any certificate or member handbook, or desires to change any rate charged for the contract or to change any basic prepaid limited health services contract, certificate, grievance procedure, or member handbook form, or application form where written application is required and is to be made a part of the contract, or printed amendment, addendum, rider, or endorsement form or form renewal certificate, it must file the changes thirty (30) days prior to the effective date of the proposed change. At least thirty (30) days' written notice must be provided to the subscriber before application of any approved change in rates. In the case of a group enrollee, there may be a contractual agreement with the prepaid limited health service organization to have the contract holder provide the required notice to the individual enrollees of the group. Any proposed change must contain information as required by this section. (2) The prepaid limited health service organization's certification must be prepared by an independent actuary. The chief executive officer of the prepaid limited health service organization must review and sign the certification indicating the officer's agreement with its conclusions. Following receipt of notice of any disapproval or withdrawal of approval, no prepaid limited health service organization may issue or use any form disapproved by the department or as to which the department has withdrawn approval. (b) If the filings are not disapproved by the department within thirty (30) days of the receipt of complete filings, the filings shall be deemed approved. Acts 2000, ch. 948, § 14.
(a) (1) No prepaid limited health services contract, certificate of coverage, application, enrollment form, rider, endorsement, and applicable rates to be charged may be delivered in this state unless the forms and rates have been filed with the department by or on behalf of the prepaid limited health service organization and have been approved by the department. Every form filed shall be identified by a unique form number placed in the lower left corner of each form. If a prepaid limited health service organization desires to amend any contract with its subscribers or any certificate or member handbook, or desires to change any rate charged for the contract or to change any basic prepaid limited health services contract, certificate, grievance procedure, or member handbook form, or application form where written application is required and is to be made a part of the contract, or printed amendment, addendum, rider, or endorsement form or form renewal certificate, it must file the changes thirty (30) days prior to the effective date of the proposed change. At least thirty (30) days' written notice must be provided to the subscriber before application of any approved change in rates. In the case of a group enrollee, there may be a contractual agreement with the prepaid limited health service organization to have the contract holder provide the required notice to the individual enrollees of the group. Any proposed change must contain information as required by this section. (2) The prepaid limited health service organization's certification must be prepared by an independent actuary. The chief executive officer of the prepaid limited health service organization must review and sign the certification indicating the officer's agreement with its conclusions. Following receipt of notice of any disapproval or withdrawal of approval, no prepaid limited health service organization may issue or use any form disapproved by the department or as to which the department has withdrawn approval.
(1) No prepaid limited health services contract, certificate of coverage, application, enrollment form, rider, endorsement, and applicable rates to be charged may be delivered in this state unless the forms and rates have been filed with the department by or on behalf of the prepaid limited health service organization and have been approved by the department. Every form filed shall be identified by a unique form number placed in the lower left corner of each form. If a prepaid limited health service organization desires to amend any contract with its subscribers or any certificate or member handbook, or desires to change any rate charged for the contract or to change any basic prepaid limited health services contract, certificate, grievance procedure, or member handbook form, or application form where written application is required and is to be made a part of the contract, or printed amendment, addendum, rider, or endorsement form or form renewal certificate, it must file the changes thirty (30) days prior to the effective date of the proposed change. At least thirty (30) days' written notice must be provided to the subscriber before application of any approved change in rates. In the case of a group enrollee, there may be a contractual agreement with the prepaid limited health service organization to have the contract holder provide the required notice to the individual enrollees of the group. Any proposed change must contain information as required by this section.
(2) The prepaid limited health service organization's certification must be prepared by an independent actuary. The chief executive officer of the prepaid limited health service organization must review and sign the certification indicating the officer's agreement with its conclusions. Following receipt of notice of any disapproval or withdrawal of approval, no prepaid limited health service organization may issue or use any form disapproved by the department or as to which the department has withdrawn approval.
(b) If the filings are not disapproved by the department within thirty (30) days of the receipt of complete filings, the filings shall be deemed approved.
Acts 2000, ch. 948, § 14.
Tenn. Code Ann. § 56-15-105 — TN Code / Title 56 / Chapter 15 / Section 56-15-105
Conditions of doing business - Deposit to be made with commissioner
Status: in_force

(a) Before any surety company is authorized to execute the bonds referred to in this chapter, it shall deposit in the office of the commissioner one hundred thousand dollars ($100,000) in lawful money of the United States, or an equal amount in the bonds of the United States, or of this state, the bonds to be estimated at their actual value, and the deposit shall be continually kept at that amount during the time the corporation or company remains bound upon any bond or obligation as contemplated in this chapter. (b) The deposit shall be held by the commissioner as security for any liability incurred by the company making the deposit by reason of the breach of any bond or obligation referred to in this chapter; provided, that: (1) The surety or guaranty company organized under the laws of any other state or government, and having a general deposit in some state of the United States of a sum not less than one hundred thousand dollars ($100,000) consisting of lawful money of the United States, or of an equal amount in the bonds of the United States, or of any state, the value of which shall be at or above par, as security for any liability incurred under this chapter, shall be required to keep on deposit only the sum of twenty-five thousand dollars ($25,000) in the state, consisting of lawful money of the United States, or an equal amount in the bonds of the United States, or of this state; (2) No deposit in this state shall be required of any company organized under the laws of any other state or government that has an actual paid-up cash capital of three hundred thousand dollars ($300,000), of which at least two hundred thousand dollars ($200,000) is invested in the bonds of the United States, or other good securities, to be itemized and certified as such by the commissioner of insurance of the state in which the sum is deposited, reckoning the same at their current market value, and to be approved by the commissioner of commerce and insurance, which two hundred thousand dollars ($200,000) shall be deposited with and held by the commissioner of insurance or other proper officer of some state of the United States as security for the protection of all policyholders and creditors in the United States; (3) The surety company organized under the laws of any other state, and having the general deposit, shall file with the commissioner of commerce and insurance a certificate from the officer of the state with whom the general deposit has been made, showing that the company has deposited with the officer the sums required in the lawful money of the United States, or an equal amount in the securities provided for in this section, for the benefit of all liabilities of the company in any or all states; and (4) The commissioner of commerce and insurance is authorized and directed to return to the surety company organized under the laws of any other state or government that has filed, or hereafter files, with the commissioner the certificates provided for in subdivision (b)(3), all securities that were deposited by the surety company with the state treasurer, and which funds or securities have, under § 56-15-106 , been transferred to the commissioner of commerce and insurance, under this section. Acts 1895, ch. 175, § 9; 1905, ch. 360, § 1; 1913 (1st E.S.), ch. 33, §§ 1, 3; Shan., §2222; Code 1932, § 3954; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-1405.
(a) Before any surety company is authorized to execute the bonds referred to in this chapter, it shall deposit in the office of the commissioner one hundred thousand dollars ($100,000) in lawful money of the United States, or an equal amount in the bonds of the United States, or of this state, the bonds to be estimated at their actual value, and the deposit shall be continually kept at that amount during the time the corporation or company remains bound upon any bond or obligation as contemplated in this chapter.
(b) The deposit shall be held by the commissioner as security for any liability incurred by the company making the deposit by reason of the breach of any bond or obligation referred to in this chapter; provided, that: (1) The surety or guaranty company organized under the laws of any other state or government, and having a general deposit in some state of the United States of a sum not less than one hundred thousand dollars ($100,000) consisting of lawful money of the United States, or of an equal amount in the bonds of the United States, or of any state, the value of which shall be at or above par, as security for any liability incurred under this chapter, shall be required to keep on deposit only the sum of twenty-five thousand dollars ($25,000) in the state, consisting of lawful money of the United States, or an equal amount in the bonds of the United States, or of this state; (2) No deposit in this state shall be required of any company organized under the laws of any other state or government that has an actual paid-up cash capital of three hundred thousand dollars ($300,000), of which at least two hundred thousand dollars ($200,000) is invested in the bonds of the United States, or other good securities, to be itemized and certified as such by the commissioner of insurance of the state in which the sum is deposited, reckoning the same at their current market value, and to be approved by the commissioner of commerce and insurance, which two hundred thousand dollars ($200,000) shall be deposited with and held by the commissioner of insurance or other proper officer of some state of the United States as security for the protection of all policyholders and creditors in the United States; (3) The surety company organized under the laws of any other state, and having the general deposit, shall file with the commissioner of commerce and insurance a certificate from the officer of the state with whom the general deposit has been made, showing that the company has deposited with the officer the sums required in the lawful money of the United States, or an equal amount in the securities provided for in this section, for the benefit of all liabilities of the company in any or all states; and (4) The commissioner of commerce and insurance is authorized and directed to return to the surety company organized under the laws of any other state or government that has filed, or hereafter files, with the commissioner the certificates provided for in subdivision (b)(3), all securities that were deposited by the surety company with the state treasurer, and which funds or securities have, under § 56-15-106 , been transferred to the commissioner of commerce and insurance, under this section.
(1) The surety or guaranty company organized under the laws of any other state or government, and having a general deposit in some state of the United States of a sum not less than one hundred thousand dollars ($100,000) consisting of lawful money of the United States, or of an equal amount in the bonds of the United States, or of any state, the value of which shall be at or above par, as security for any liability incurred under this chapter, shall be required to keep on deposit only the sum of twenty-five thousand dollars ($25,000) in the state, consisting of lawful money of the United States, or an equal amount in the bonds of the United States, or of this state;
(2) No deposit in this state shall be required of any company organized under the laws of any other state or government that has an actual paid-up cash capital of three hundred thousand dollars ($300,000), of which at least two hundred thousand dollars ($200,000) is invested in the bonds of the United States, or other good securities, to be itemized and certified as such by the commissioner of insurance of the state in which the sum is deposited, reckoning the same at their current market value, and to be approved by the commissioner of commerce and insurance, which two hundred thousand dollars ($200,000) shall be deposited with and held by the commissioner of insurance or other proper officer of some state of the United States as security for the protection of all policyholders and creditors in the United States;
(3) The surety company organized under the laws of any other state, and having the general deposit, shall file with the commissioner of commerce and insurance a certificate from the officer of the state with whom the general deposit has been made, showing that the company has deposited with the officer the sums required in the lawful money of the United States, or an equal amount in the securities provided for in this section, for the benefit of all liabilities of the company in any or all states; and
(4) The commissioner of commerce and insurance is authorized and directed to return to the surety company organized under the laws of any other state or government that has filed, or hereafter files, with the commissioner the certificates provided for in subdivision (b)(3), all securities that were deposited by the surety company with the state treasurer, and which funds or securities have, under § 56-15-106 , been transferred to the commissioner of commerce and insurance, under this section.
Acts 1895, ch. 175, § 9; 1905, ch. 360, § 1; 1913 (1st E.S.), ch. 33, §§ 1, 3; Shan., §2222; Code 1932, § 3954; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-1405.
Tenn. Code Ann. § 56-6-1101 — TN Code / Title 56 / Chapter 6 / Section 56-6-1101
Part definitions
Status: in_force

For purposes of this part: (1) "Commissioner" means the commissioner of commerce and insurance; (2) "Customer" means a person who purchases portable electronics or services; (3) "Department" means the department of commerce and insurance; (4) "Enrolled customer" means a customer who elects coverage under a portable electronics insurance policy issued to a vendor of portable electronics; (5) "Location" means any physical location in this state or any web site, call center site, or similar location directed to residents of this state; (6) "Portable electronics" means electronic devices that are portable in nature, the devices' accessories, and services related to the use of the devices; (7) (A) "Portable electronics insurance" means insurance providing coverage for the repair or replacement of portable electronics which may provide coverage for portable electronics against any one (1) or more of the following causes of loss: (i) Loss; (ii) Theft; (iii) Inoperability due to mechanical failure; (iv) Inoperability due to malfunction; (v) Damage; or (vi) Other similar causes of loss. (B) "Portable electronics insurance" does not include: (i) A service contract or extended warranty providing coverage limited to the repair, replacement, or maintenance of property for the operational or structural failure of property due to a defect in materials, workmanship, accidental damage from handling, power surges, or normal wear and tear; (ii) A policy of insurance covering a seller's or a manufacturer's obligations under a warranty; or (iii) A homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar policy; (8) "Portable electronics transaction" means: (A) The sale or lease of portable electronics by a vendor to a customer; or (B) The sale of a service related to the use of portable electronics by a vendor to a customer; (9) "Supervising entity" means a business entity that is a licensed insurance producer or insurer; and (10) "Vendor" means a person in the business of engaging in portable electronics transactions directly or indirectly. Acts 2011, ch. 312, § 2.
For purposes of this part:
(1) "Commissioner" means the commissioner of commerce and insurance;
(2) "Customer" means a person who purchases portable electronics or services;
(3) "Department" means the department of commerce and insurance;
(4) "Enrolled customer" means a customer who elects coverage under a portable electronics insurance policy issued to a vendor of portable electronics;
(5) "Location" means any physical location in this state or any web site, call center site, or similar location directed to residents of this state;
(6) "Portable electronics" means electronic devices that are portable in nature, the devices' accessories, and services related to the use of the devices;
(7) (A) "Portable electronics insurance" means insurance providing coverage for the repair or replacement of portable electronics which may provide coverage for portable electronics against any one (1) or more of the following causes of loss: (i) Loss; (ii) Theft; (iii) Inoperability due to mechanical failure; (iv) Inoperability due to malfunction; (v) Damage; or (vi) Other similar causes of loss. (B) "Portable electronics insurance" does not include: (i) A service contract or extended warranty providing coverage limited to the repair, replacement, or maintenance of property for the operational or structural failure of property due to a defect in materials, workmanship, accidental damage from handling, power surges, or normal wear and tear; (ii) A policy of insurance covering a seller's or a manufacturer's obligations under a warranty; or (iii) A homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar policy;
(A) "Portable electronics insurance" means insurance providing coverage for the repair or replacement of portable electronics which may provide coverage for portable electronics against any one (1) or more of the following causes of loss: (i) Loss; (ii) Theft; (iii) Inoperability due to mechanical failure; (iv) Inoperability due to malfunction; (v) Damage; or (vi) Other similar causes of loss.
(i) Loss;
(ii) Theft;
(iii) Inoperability due to mechanical failure;
(iv) Inoperability due to malfunction;
(v) Damage; or
(vi) Other similar causes of loss.
(B) "Portable electronics insurance" does not include: (i) A service contract or extended warranty providing coverage limited to the repair, replacement, or maintenance of property for the operational or structural failure of property due to a defect in materials, workmanship, accidental damage from handling, power surges, or normal wear and tear; (ii) A policy of insurance covering a seller's or a manufacturer's obligations under a warranty; or (iii) A homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar policy;
(i) A service contract or extended warranty providing coverage limited to the repair, replacement, or maintenance of property for the operational or structural failure of property due to a defect in materials, workmanship, accidental damage from handling, power surges, or normal wear and tear;
(ii) A policy of insurance covering a seller's or a manufacturer's obligations under a warranty; or
(iii) A homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar policy;
(8) "Portable electronics transaction" means: (A) The sale or lease of portable electronics by a vendor to a customer; or (B) The sale of a service related to the use of portable electronics by a vendor to a customer;
(A) The sale or lease of portable electronics by a vendor to a customer; or
(B) The sale of a service related to the use of portable electronics by a vendor to a customer;
(9) "Supervising entity" means a business entity that is a licensed insurance producer or insurer; and
(10) "Vendor" means a person in the business of engaging in portable electronics transactions directly or indirectly.
Acts 2011, ch. 312, § 2.
Tenn. Code Ann. § 56-30-126 — TN Code / Title 56 / Chapter 30 / Section 56-30-126
Subscription contract - Form - Certificate furnished subscriber - Provisions
Status: in_force

Every contract entered into by a dental service plan corporation with a subscriber shall be in writing, and a certificate stating the terms and conditions of the contract shall be furnished the subscriber. No subscription certificate shall be issued unless it contains the following provisions, and any other applicable provisions that may be required by this chapter or other applicable laws of this state: (1) A statement of the amounts payable to the corporation by the subscribers and the times at which the amounts shall be paid; (2) A statement of the nature of the dental services to be paid for and the period during which the certificate is effective; and if there are any types of dental services to be excepted, with the approval of the commissioner, a detailed statement of the exceptions printed as specified in this section; (3) A statement of the terms or conditions, if any, upon which the certificate may be cancelled or otherwise terminated at the option of either party; (4) A statement that the subscription and certificate constitute the contract between the corporation and the subscriber, and include the endorsements thereon and attached papers, if any, and contain the entire contract; (5) A statement that no statement by the subscriber in the subscriber's application for a certificate shall void the contract or be used in any legal proceedings under the contract, unless the application or an exact copy of the application is included in or attached to the certificate, and that no agent or representative of the corporation, other than an officer or officers designated in the certificate, is authorized to change the contract or waive any of its provisions; (6) A statement that if the subscriber defaults in making any payment under the certificate, the subsequent acceptance of a payment by the corporation or by its duly authorized agent shall reinstate the certificate, but the reinstatement shall not cover the costs of dental services incurred during the period of ten (10) days, after date of the acceptance; (7) A statement of the period of grace that will be allowed a subscriber for making any payment due under the contract. The period shall not be less than ten (10) days during the first contract year, and thereafter shall not be less than thirty (30) days; (8) A statement authorizing dental service by dentists other than participating dentists in cases of emergency or when consented to by the dental service plan corporation, or when the subscriber requires dental services outside the county or counties or area served by the dental service plan corporation, in which case money benefits shall be provided as optional and as specified in the subscriber's contract and approved by the commissioner. Otherwise, a statement that indemnity in the form of cash will not be paid to any subscriber, except in reimbursements paid by the subscriber to a dentist for which the corporation was liable at the time of the payment; and (9) Other statements that may be required by published regulations of the commissioner. Acts 1961, ch. 340, § 25; T.C.A., § 56-3526.
Every contract entered into by a dental service plan corporation with a subscriber shall be in writing, and a certificate stating the terms and conditions of the contract shall be furnished the subscriber. No subscription certificate shall be issued unless it contains the following provisions, and any other applicable provisions that may be required by this chapter or other applicable laws of this state:
(1) A statement of the amounts payable to the corporation by the subscribers and the times at which the amounts shall be paid;
(2) A statement of the nature of the dental services to be paid for and the period during which the certificate is effective; and if there are any types of dental services to be excepted, with the approval of the commissioner, a detailed statement of the exceptions printed as specified in this section;
(3) A statement of the terms or conditions, if any, upon which the certificate may be cancelled or otherwise terminated at the option of either party;
(4) A statement that the subscription and certificate constitute the contract between the corporation and the subscriber, and include the endorsements thereon and attached papers, if any, and contain the entire contract;
(5) A statement that no statement by the subscriber in the subscriber's application for a certificate shall void the contract or be used in any legal proceedings under the contract, unless the application or an exact copy of the application is included in or attached to the certificate, and that no agent or representative of the corporation, other than an officer or officers designated in the certificate, is authorized to change the contract or waive any of its provisions;
(6) A statement that if the subscriber defaults in making any payment under the certificate, the subsequent acceptance of a payment by the corporation or by its duly authorized agent shall reinstate the certificate, but the reinstatement shall not cover the costs of dental services incurred during the period of ten (10) days, after date of the acceptance;
(7) A statement of the period of grace that will be allowed a subscriber for making any payment due under the contract. The period shall not be less than ten (10) days during the first contract year, and thereafter shall not be less than thirty (30) days;
(8) A statement authorizing dental service by dentists other than participating dentists in cases of emergency or when consented to by the dental service plan corporation, or when the subscriber requires dental services outside the county or counties or area served by the dental service plan corporation, in which case money benefits shall be provided as optional and as specified in the subscriber's contract and approved by the commissioner. Otherwise, a statement that indemnity in the form of cash will not be paid to any subscriber, except in reimbursements paid by the subscriber to a dentist for which the corporation was liable at the time of the payment; and
(9) Other statements that may be required by published regulations of the commissioner.
Acts 1961, ch. 340, § 25; T.C.A., § 56-3526.
Tenn. Code Ann. § 56-48-101 — TN Code / Title 56 / Chapter 48 / Section 56-48-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Provider-Sponsored Organization Act of 1998." Acts 1998, ch. 896, § 2.
This chapter shall be known and may be cited as the "Provider-Sponsored Organization Act of 1998."
Acts 1998, ch. 896, § 2.
Tenn. Code Ann. § 56-35-125 — TN Code / Title 56 / Chapter 35 / Section 56-35-125
Cessation of business - Procedure
Status: in_force

Any title insurance company desiring to retire from business in Tennessee shall furnish the commissioner satisfactory evidence that it no longer has any liability outstanding upon any title insurance policy made by it in the conduct of its business in Tennessee, or that it has reinsured its outstanding policies in a solvent corporation, or corporations authorized to do a title insurance business in Tennessee, and the commissioner shall, thereupon, return to the title insurance company all deposits made by it under this chapter. Acts 1955, ch. 173, § 16; T.C.A., § 56-3425.
Any title insurance company desiring to retire from business in Tennessee shall furnish the commissioner satisfactory evidence that it no longer has any liability outstanding upon any title insurance policy made by it in the conduct of its business in Tennessee, or that it has reinsured its outstanding policies in a solvent corporation, or corporations authorized to do a title insurance business in Tennessee, and the commissioner shall, thereupon, return to the title insurance company all deposits made by it under this chapter.
Acts 1955, ch. 173, § 16; T.C.A., § 56-3425.
Tenn. Code Ann. § 56-5-108 — TN Code / Title 56 / Chapter 5 / Section 56-5-108
Basis and procedure for disapproval - Interim rates
Status: in_force

(a) Basis for Disapproval. The commissioner shall disapprove a rate if: (1) The commissioner finds that the rate is excessive, inadequate or unfairly discriminatory; or (2) In the case of an advisory prospective loss costs filing, the commissioner finds the filing does not reasonably reflect projected losses, including loss adjustment expenses. For an advisory prospective loss costs filing the commissioner may also modify the filing as permitted by § 50-6-402(b) . (b) Disapproval Procedure. (1) If the commissioner disapproves or modifies a filing, the commissioner shall issue a written order specifying in what respect that the rate proposed in the filing is excessive, inadequate or unfairly discriminatory or otherwise fails to meet the requirements of this part. The person making the filing shall be given a hearing upon written request made within thirty (30) days after the disapproval or modification order. (2) If the commissioner disapproves rates already in effect, the commissioner shall issue the order only after a hearing held on not less than twenty (20) days' written notice to the insurer or rate service organization that made the filing. The order shall be issued within fifteen (15) days after the close of the hearing and shall specify in what respects the rates fail to meet the requirements of this part. The order shall also state when, within a reasonable period of time, but not less than forty-five (45) days, the further use of the rate in contracts of insurance made thereafter shall be prohibited. The order may include a provision for premium adjustment for policies issued, renewed or nonrenewed after the effective date of the order. In disputes concerning a multiplier, the insurer shall have the burden of persuasion that the commissioner's disapproval, modification, or failure to approve was inappropriate. (c) Interim Rates. Whenever an insurer has no legally effective rates as a result of the commissioner's disapproval of rates or other act, the commissioner shall on request of the insurer specify interim rates for the insurer that are high enough to protect the interests of all parties, and may order that a specified portion of the premiums be placed in an escrow account approved by the commissioner. When new rates become legally effective, the commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds to policyholders that are de minimis shall not be required. Acts 1983, ch. 66, § 9; 1996, ch. 944, § 38; 1997 , ch. 533, § 11; 1998, ch. 1024, § 16.
(a) Basis for Disapproval. The commissioner shall disapprove a rate if: (1) The commissioner finds that the rate is excessive, inadequate or unfairly discriminatory; or (2) In the case of an advisory prospective loss costs filing, the commissioner finds the filing does not reasonably reflect projected losses, including loss adjustment expenses. For an advisory prospective loss costs filing the commissioner may also modify the filing as permitted by § 50-6-402(b) .
(1) The commissioner finds that the rate is excessive, inadequate or unfairly discriminatory; or
(2) In the case of an advisory prospective loss costs filing, the commissioner finds the filing does not reasonably reflect projected losses, including loss adjustment expenses. For an advisory prospective loss costs filing the commissioner may also modify the filing as permitted by § 50-6-402(b) .
(b) Disapproval Procedure. (1) If the commissioner disapproves or modifies a filing, the commissioner shall issue a written order specifying in what respect that the rate proposed in the filing is excessive, inadequate or unfairly discriminatory or otherwise fails to meet the requirements of this part. The person making the filing shall be given a hearing upon written request made within thirty (30) days after the disapproval or modification order. (2) If the commissioner disapproves rates already in effect, the commissioner shall issue the order only after a hearing held on not less than twenty (20) days' written notice to the insurer or rate service organization that made the filing. The order shall be issued within fifteen (15) days after the close of the hearing and shall specify in what respects the rates fail to meet the requirements of this part. The order shall also state when, within a reasonable period of time, but not less than forty-five (45) days, the further use of the rate in contracts of insurance made thereafter shall be prohibited. The order may include a provision for premium adjustment for policies issued, renewed or nonrenewed after the effective date of the order. In disputes concerning a multiplier, the insurer shall have the burden of persuasion that the commissioner's disapproval, modification, or failure to approve was inappropriate.
(1) If the commissioner disapproves or modifies a filing, the commissioner shall issue a written order specifying in what respect that the rate proposed in the filing is excessive, inadequate or unfairly discriminatory or otherwise fails to meet the requirements of this part. The person making the filing shall be given a hearing upon written request made within thirty (30) days after the disapproval or modification order.
(2) If the commissioner disapproves rates already in effect, the commissioner shall issue the order only after a hearing held on not less than twenty (20) days' written notice to the insurer or rate service organization that made the filing. The order shall be issued within fifteen (15) days after the close of the hearing and shall specify in what respects the rates fail to meet the requirements of this part. The order shall also state when, within a reasonable period of time, but not less than forty-five (45) days, the further use of the rate in contracts of insurance made thereafter shall be prohibited. The order may include a provision for premium adjustment for policies issued, renewed or nonrenewed after the effective date of the order. In disputes concerning a multiplier, the insurer shall have the burden of persuasion that the commissioner's disapproval, modification, or failure to approve was inappropriate.
(c) Interim Rates. Whenever an insurer has no legally effective rates as a result of the commissioner's disapproval of rates or other act, the commissioner shall on request of the insurer specify interim rates for the insurer that are high enough to protect the interests of all parties, and may order that a specified portion of the premiums be placed in an escrow account approved by the commissioner. When new rates become legally effective, the commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds to policyholders that are de minimis shall not be required.
Acts 1983, ch. 66, § 9; 1996, ch. 944, § 38; 1997 , ch. 533, § 11; 1998, ch. 1024, § 16.
Tenn. Code Ann. § 56-7-3121 — TN Code / Title 56 / Chapter 7 / Section 56-7-3121
Utilization of any pharmacy in state - Preferred network of pharmacies and nonpreferred network of pharmacies
Status: in_force

(a) A pharmacy benefits manager shall allow patients, participants, and beneficiaries of the pharmacy benefits plans and programs that the pharmacy benefits manager serves to utilize any pharmacy within this state that is licensed to dispense the prescription pharmaceutical product that the patient, participant, or beneficiary seeks to fill, as long as the pharmacy is willing to accept the same terms and conditions that the pharmacy benefits manager has established for at least one (1) of the networks of pharmacies that the pharmacy benefits manager has established to serve patients, participants, and beneficiaries within this state. (b) A pharmacy benefits manager may establish a preferred network of pharmacies and a non-preferred network of pharmacies. The pharmacy benefits manager shall not prohibit a pharmacy from participating in either type of network within this state as long as the pharmacy is licensed by this state and the federal government and willing to accept the same terms and conditions that the pharmacy benefits manager has established for other pharmacies participating within the network that the pharmacy wishes to join. (c) A pharmacy benefits manager shall not charge a patient, participant, or beneficiary of a pharmacy benefits plan or program that the pharmacy benefits manager serves a different copayment obligation or additional fee, or provide any inducement or financial incentive, for using any pharmacy within a given network of pharmacies established by the pharmacy benefits manager to serve patients, participants, and beneficiaries within this state. Acts 2022, ch. 1070, § 6.
(a) A pharmacy benefits manager shall allow patients, participants, and beneficiaries of the pharmacy benefits plans and programs that the pharmacy benefits manager serves to utilize any pharmacy within this state that is licensed to dispense the prescription pharmaceutical product that the patient, participant, or beneficiary seeks to fill, as long as the pharmacy is willing to accept the same terms and conditions that the pharmacy benefits manager has established for at least one (1) of the networks of pharmacies that the pharmacy benefits manager has established to serve patients, participants, and beneficiaries within this state.
(b) A pharmacy benefits manager may establish a preferred network of pharmacies and a non-preferred network of pharmacies. The pharmacy benefits manager shall not prohibit a pharmacy from participating in either type of network within this state as long as the pharmacy is licensed by this state and the federal government and willing to accept the same terms and conditions that the pharmacy benefits manager has established for other pharmacies participating within the network that the pharmacy wishes to join.
(c) A pharmacy benefits manager shall not charge a patient, participant, or beneficiary of a pharmacy benefits plan or program that the pharmacy benefits manager serves a different copayment obligation or additional fee, or provide any inducement or financial incentive, for using any pharmacy within a given network of pharmacies established by the pharmacy benefits manager to serve patients, participants, and beneficiaries within this state.
Acts 2022, ch. 1070, § 6.