Tenn. Code Ann. § 56-7-906 — TN Code / Title 56 / Chapter 7 / Section 56-7-906
Evidence of insurance - Contents - Exclusions - Notice of termination - Text - Dividends
Status: in_force

(a) When credit life insurance is effected on a debtor, it shall be evidenced by an individual policy or, in the case of group insurance, by a certificate of group insurance, which policy or certificate shall be delivered to the debtor at the time the indebtedness is incurred or within thirty (30) days after the debtor becomes insured with respect to the indebtedness. (b) (1) Each such individual policy or certificate of group insurance shall, in addition to other requirements of law, set forth: (A) The name and home office address of the insurer; (B) The identity of the debtor by name or otherwise and the debtor's age at issue or date of birth, if the age is material to claim payment, premium calculation or reserve calculation; (C) The amount and term of the coverage, if possible, or otherwise a clear description of the means of determining the amount and time of expiry; (D) The amount of premium or identifiable charge, if any, separately in connection with credit life insurance, unless, in the case of group insurance, the premium or identifiable charge has been disclosed to the debtor as provided in subsection (c). A copy of the document bearing the information required by this subdivision (b)(1)(D) shall be forwarded to the insurer or retained by the creditor in a manner that facilitates the good faith examination required in § 56-7-910(c) ; (E) The circumstances and formula under which refunds of premiums or identifiable charges are payable pursuant to § 56-7-909 ; (F) A description of the insurance coverage, including any exceptions, limitations or restrictions; and (G) A provision that: (i) The benefits shall be paid to the creditor to reduce or extinguish any unpaid indebtedness of the debtor to the creditor; and (ii) Where the amount of insurance exceeds any unpaid indebtedness that excess shall be payable to the debtor or to the debtor's designated beneficiary, other than the creditor, or, if the debtor has designated none, to the estate of the debtor or under the provision of a facility of payment clause in the policy. (2) A certificate of group insurance is not required to contain the information described in subdivisions (b)(1)(B)-(D) if the information is otherwise provided in the disclosure statement provided to the debtor under the federal Truth-In-Lending Act ( 15 U.S.C. § 1601 et seq.). (c) (1) If an individual policy or certificate of group insurance is not delivered to the debtor at the time the indebtedness is incurred, a copy of the application for the policy signed by the debtor and the creditor/agent or a notice of proposed group insurance shall be delivered to the debtor at the time the indebtedness is incurred. The application or notice shall set forth the following: (A) The name and home office address of the insurer; (B) The identity of the debtor, by name or otherwise; (C) The amounts or rates of premium or identifiable charge to the debtor, if any, separately in connection with credit life insurance and credit health and accident insurance; (D) The amount and term of the coverage provided, or description as provided in subdivision (b)(1)(C); and (E) A brief description of the coverage provided. (2) The application or notice of giving insurance is not required to contain the information described in subdivisions (c)(1)(B)-(D) if the information is provided in the disclosure statement provided to the debtor under the federal Truth-In-Lending Act ( 15 U.S.C. § 1601 et seq.). (3) If no identifiable charge is made to the debtor, the notice of proposed group insurance need not set forth the debtor's name. An application for an individual policy or notice of proposed group insurance shall include a statement that, if the insurance is declined by the insurer or otherwise does not become effective, any premium or identifiable charge will be refunded or credited to the debtor. The copy of the application for an individual policy and the notice of proposed group insurance shall refer exclusively to insurance coverage, and shall be separate and apart from the loan, sale or other credit statement of account, instrument or agreement, unless set forth in the policy in a separate provision with an appropriate and prominent caption on the face or reverse thereof in type at least equal in size to the type used for the other provisions. The insurer shall be responsible for establishment of procedures for delivery of the individual policy or certificate of group insurance to the debtor as provided in subsection (a). The application or notice of proposed group insurance shall provide that, upon acceptance by the insurer, the insurance coverage provided shall become effective as specified in § 56-7-907(b) . (d) A credit life insurance policy may exclude from those persons eligible for insurance classes of debtors determined by age and provide for the cessation of insurance or reduction in the amount of insurance upon attainment of specified ages. In the event of misstatement of age, where age is material to the acceptance or rejection of the risk, the insurer may provide for rescission of the policy or certificate issued under the policy and a refund of all premiums paid for the policy by the debtor. (e) A group credit life insurance policy under which premiums are paid to the insurer monthly on outstanding balances shall contain a provision that, in the event of termination of the policy by the insurer or creditor, thirty-one (31) days' notice of the termination shall be given to each debtor insured under the policy by the creditor, unless there is immediate replacement of the coverage by the same or another insurer. (f) A group credit life insurance policy shall contain in substance the following provisions: (1) A provision that the policyholder is entitled to a grace period of thirty-one (31) days for the payment of any premium except the first, during which grace period the coverage shall continue in force, unless the policyholder has given the insurer written notice of termination in advance of the date of termination and in accordance with the terms of the policy. The policy may provide that the policyholder shall be liable to the insurer for the payment of a pro rata premium for the time the policy was in force during the grace period; (2) A provision that the validity of the policy shall not be contested, except for nonpayment of premiums, after it has been in force for two (2) years from its date of issue; and that no statement made by or on behalf of any person insured under the policy relating to the person's age or insurability shall be used in contesting the validity of the insurance with respect to which the statement was made after the insurance has been in force prior to the contest for a period of two (2) years during the person's lifetime, unless it is contained in a written instrument and the written instrument is signed by the person. The instrument shall not be in a form that encourages misrepresentation or discourages disclosure of relevant facts; (3) A provision that a copy of the application of the policyholder shall be attached to the policy when issued, that all statements made by the policyholder or by the persons insured shall be deemed representations and not warranties, and that no statement made by any person insured shall be used in any contest unless a copy of the instrument containing the statement is or has been furnished to the person or to the person's beneficiary; (4) A provision setting forth the conditions, if any, under which the insurer reserves the right to require a person eligible for insurance to furnish evidence of individual insurability satisfactory to the insurer as to a part or all of the person's coverage; and (5) A provision specifying an equitable adjustment of premiums or of benefits or of both in the event the age of a person insured has been misstated, and the misstatement would have affected the premium or amount of benefit, the provision to contain a clear statement of the method of adjustment to be used. (g) Disability provisions in credit life insurance policies shall be so worded as to the payment of benefits that they are at least as favorable to the debtor as policies containing only disability provisions. (h) Individual policies of credit life insurance shall include, in addition to the provisions set forth in this section, the provisions of § 56-7-2307 that are not inconsistent with the coverage under the credit life policy. (i) (1) No policy or certificate of credit life insurance shall be delivered or issued for delivery to any person in this state, unless the style, arrangement and overall appearance of the policy give no undue prominence to any portion of the text, and unless every printed portion of the text of the policy and of any endorsements or attached papers are plainly printed in light-face type of a style in general use, the size of which shall be uniform and not less than ten (10) point with a lower case unspaced alphabet length not less than one hundred twenty (120) point. (2) As used in subdivision (i)(1), "text" includes all printed matter except the name and address of the insurer, name or title of the policy, a brief description of the coverage and the limitations or exclusions, if any, captions and subcaptions, and any overprint or statement of limitation of risk required by this or any other state to be more prominently displayed. (j) (1) Dividends on participating individual policies of credit life insurance shall be payable to the individual insureds. Payment of the dividends may be deferred until such time as the policy is terminated. Dividends, or retrospective rate credits in the case of nonparticipating group policies, on group policies may be paid or credited to the creditor policyholder, subject to the restrictions contained in this subsection (j). The policies may provide that dividends or retrospective rate credits that are in excess of the contribution of the creditor may be paid or credited to the individual debtors or applied in some manner for the sole benefit of debtors generally. Insurers may be required to demonstrate to the commissioner that the dividends or retrospective rate credits are in fact equitably determined. (2) Dividends or retrospective rate credits shall be based on premiums earned and claims incurred. Payment of dividends or retrospective rate credits based on any other assumption shall not be allowed. (3) Nonparticipating individual policies of credit life insurance shall not be the subject of experience rating, and no agent or creditor shall receive retrospective commissions or other compensation, direct or indirect, based on the experience of policies sold through the agent or creditor or on the lives of the person's debtors, except as provided in this section. (4) For the purposes of §§ 56-4-204 and 56-4-205 , retrospective rate credits shall be treated in the same manner as dividends in the computation of the tax on gross premiums. (k) (1) When life insurance is requested by a creditor, the debtor shall have the option, upon notice to the creditor, of furnishing existing policies of insurance, or procuring and furnishing new policies of insurance, owned or controlled by the debtor and issued by any insurer authorized to transact an insurance business in this state for an amount not less than the indebtedness, and for the term and type of insurance coverage requested by the creditor. Any policy furnished by the debtor shall not be subject to §§ 56-7-903 - 56-7-912, unless procured through or administered by the creditor or an agent or broker designated by or associated with the creditor. (2) Insurers writing credit insurance shall be responsible for establishment of procedures by which creditors are furnished a sufficient number of printed notices informing their debtors of the option. Creditors shall prominently display the notices. Acts 1985, ch. 107, § 3.
(a) When credit life insurance is effected on a debtor, it shall be evidenced by an individual policy or, in the case of group insurance, by a certificate of group insurance, which policy or certificate shall be delivered to the debtor at the time the indebtedness is incurred or within thirty (30) days after the debtor becomes insured with respect to the indebtedness.
(b) (1) Each such individual policy or certificate of group insurance shall, in addition to other requirements of law, set forth: (A) The name and home office address of the insurer; (B) The identity of the debtor by name or otherwise and the debtor's age at issue or date of birth, if the age is material to claim payment, premium calculation or reserve calculation; (C) The amount and term of the coverage, if possible, or otherwise a clear description of the means of determining the amount and time of expiry; (D) The amount of premium or identifiable charge, if any, separately in connection with credit life insurance, unless, in the case of group insurance, the premium or identifiable charge has been disclosed to the debtor as provided in subsection (c). A copy of the document bearing the information required by this subdivision (b)(1)(D) shall be forwarded to the insurer or retained by the creditor in a manner that facilitates the good faith examination required in § 56-7-910(c) ; (E) The circumstances and formula under which refunds of premiums or identifiable charges are payable pursuant to § 56-7-909 ; (F) A description of the insurance coverage, including any exceptions, limitations or restrictions; and (G) A provision that: (i) The benefits shall be paid to the creditor to reduce or extinguish any unpaid indebtedness of the debtor to the creditor; and (ii) Where the amount of insurance exceeds any unpaid indebtedness that excess shall be payable to the debtor or to the debtor's designated beneficiary, other than the creditor, or, if the debtor has designated none, to the estate of the debtor or under the provision of a facility of payment clause in the policy. (2) A certificate of group insurance is not required to contain the information described in subdivisions (b)(1)(B)-(D) if the information is otherwise provided in the disclosure statement provided to the debtor under the federal Truth-In-Lending Act ( 15 U.S.C. § 1601 et seq.).
(1) Each such individual policy or certificate of group insurance shall, in addition to other requirements of law, set forth: (A) The name and home office address of the insurer; (B) The identity of the debtor by name or otherwise and the debtor's age at issue or date of birth, if the age is material to claim payment, premium calculation or reserve calculation; (C) The amount and term of the coverage, if possible, or otherwise a clear description of the means of determining the amount and time of expiry; (D) The amount of premium or identifiable charge, if any, separately in connection with credit life insurance, unless, in the case of group insurance, the premium or identifiable charge has been disclosed to the debtor as provided in subsection (c). A copy of the document bearing the information required by this subdivision (b)(1)(D) shall be forwarded to the insurer or retained by the creditor in a manner that facilitates the good faith examination required in § 56-7-910(c) ; (E) The circumstances and formula under which refunds of premiums or identifiable charges are payable pursuant to § 56-7-909 ; (F) A description of the insurance coverage, including any exceptions, limitations or restrictions; and (G) A provision that: (i) The benefits shall be paid to the creditor to reduce or extinguish any unpaid indebtedness of the debtor to the creditor; and (ii) Where the amount of insurance exceeds any unpaid indebtedness that excess shall be payable to the debtor or to the debtor's designated beneficiary, other than the creditor, or, if the debtor has designated none, to the estate of the debtor or under the provision of a facility of payment clause in the policy.
(A) The name and home office address of the insurer;
(B) The identity of the debtor by name or otherwise and the debtor's age at issue or date of birth, if the age is material to claim payment, premium calculation or reserve calculation;
(C) The amount and term of the coverage, if possible, or otherwise a clear description of the means of determining the amount and time of expiry;
(D) The amount of premium or identifiable charge, if any, separately in connection with credit life insurance, unless, in the case of group insurance, the premium or identifiable charge has been disclosed to the debtor as provided in subsection (c). A copy of the document bearing the information required by this subdivision (b)(1)(D) shall be forwarded to the insurer or retained by the creditor in a manner that facilitates the good faith examination required in § 56-7-910(c) ;
(E) The circumstances and formula under which refunds of premiums or identifiable charges are payable pursuant to § 56-7-909 ;
(F) A description of the insurance coverage, including any exceptions, limitations or restrictions; and
(G) A provision that: (i) The benefits shall be paid to the creditor to reduce or extinguish any unpaid indebtedness of the debtor to the creditor; and (ii) Where the amount of insurance exceeds any unpaid indebtedness that excess shall be payable to the debtor or to the debtor's designated beneficiary, other than the creditor, or, if the debtor has designated none, to the estate of the debtor or under the provision of a facility of payment clause in the policy.
(i) The benefits shall be paid to the creditor to reduce or extinguish any unpaid indebtedness of the debtor to the creditor; and
(ii) Where the amount of insurance exceeds any unpaid indebtedness that excess shall be payable to the debtor or to the debtor's designated beneficiary, other than the creditor, or, if the debtor has designated none, to the estate of the debtor or under the provision of a facility of payment clause in the policy.
(2) A certificate of group insurance is not required to contain the information described in subdivisions (b)(1)(B)-(D) if the information is otherwise provided in the disclosure statement provided to the debtor under the federal Truth-In-Lending Act ( 15 U.S.C. § 1601 et seq.).
(c) (1) If an individual policy or certificate of group insurance is not delivered to the debtor at the time the indebtedness is incurred, a copy of the application for the policy signed by the debtor and the creditor/agent or a notice of proposed group insurance shall be delivered to the debtor at the time the indebtedness is incurred. The application or notice shall set forth the following: (A) The name and home office address of the insurer; (B) The identity of the debtor, by name or otherwise; (C) The amounts or rates of premium or identifiable charge to the debtor, if any, separately in connection with credit life insurance and credit health and accident insurance; (D) The amount and term of the coverage provided, or description as provided in subdivision (b)(1)(C); and (E) A brief description of the coverage provided. (2) The application or notice of giving insurance is not required to contain the information described in subdivisions (c)(1)(B)-(D) if the information is provided in the disclosure statement provided to the debtor under the federal Truth-In-Lending Act ( 15 U.S.C. § 1601 et seq.). (3) If no identifiable charge is made to the debtor, the notice of proposed group insurance need not set forth the debtor's name. An application for an individual policy or notice of proposed group insurance shall include a statement that, if the insurance is declined by the insurer or otherwise does not become effective, any premium or identifiable charge will be refunded or credited to the debtor. The copy of the application for an individual policy and the notice of proposed group insurance shall refer exclusively to insurance coverage, and shall be separate and apart from the loan, sale or other credit statement of account, instrument or agreement, unless set forth in the policy in a separate provision with an appropriate and prominent caption on the face or reverse thereof in type at least equal in size to the type used for the other provisions. The insurer shall be responsible for establishment of procedures for delivery of the individual policy or certificate of group insurance to the debtor as provided in subsection (a). The application or notice of proposed group insurance shall provide that, upon acceptance by the insurer, the insurance coverage provided shall become effective as specified in § 56-7-907(b) .
(1) If an individual policy or certificate of group insurance is not delivered to the debtor at the time the indebtedness is incurred, a copy of the application for the policy signed by the debtor and the creditor/agent or a notice of proposed group insurance shall be delivered to the debtor at the time the indebtedness is incurred. The application or notice shall set forth the following: (A) The name and home office address of the insurer; (B) The identity of the debtor, by name or otherwise; (C) The amounts or rates of premium or identifiable charge to the debtor, if any, separately in connection with credit life insurance and credit health and accident insurance; (D) The amount and term of the coverage provided, or description as provided in subdivision (b)(1)(C); and (E) A brief description of the coverage provided.
(A) The name and home office address of the insurer;
(B) The identity of the debtor, by name or otherwise;
(C) The amounts or rates of premium or identifiable charge to the debtor, if any, separately in connection with credit life insurance and credit health and accident insurance;
(D) The amount and term of the coverage provided, or description as provided in subdivision (b)(1)(C); and
(E) A brief description of the coverage provided.
(2) The application or notice of giving insurance is not required to contain the information described in subdivisions (c)(1)(B)-(D) if the information is provided in the disclosure statement provided to the debtor under the federal Truth-In-Lending Act ( 15 U.S.C. § 1601 et seq.).
(3) If no identifiable charge is made to the debtor, the notice of proposed group insurance need not set forth the debtor's name. An application for an individual policy or notice of proposed group insurance shall include a statement that, if the insurance is declined by the insurer or otherwise does not become effective, any premium or identifiable charge will be refunded or credited to the debtor. The copy of the application for an individual policy and the notice of proposed group insurance shall refer exclusively to insurance coverage, and shall be separate and apart from the loan, sale or other credit statement of account, instrument or agreement, unless set forth in the policy in a separate provision with an appropriate and prominent caption on the face or reverse thereof in type at least equal in size to the type used for the other provisions. The insurer shall be responsible for establishment of procedures for delivery of the individual policy or certificate of group insurance to the debtor as provided in subsection (a). The application or notice of proposed group insurance shall provide that, upon acceptance by the insurer, the insurance coverage provided shall become effective as specified in § 56-7-907(b) .
(d) A credit life insurance policy may exclude from those persons eligible for insurance classes of debtors determined by age and provide for the cessation of insurance or reduction in the amount of insurance upon attainment of specified ages. In the event of misstatement of age, where age is material to the acceptance or rejection of the risk, the insurer may provide for rescission of the policy or certificate issued under the policy and a refund of all premiums paid for the policy by the debtor.
(e) A group credit life insurance policy under which premiums are paid to the insurer monthly on outstanding balances shall contain a provision that, in the event of termination of the policy by the insurer or creditor, thirty-one (31) days' notice of the termination shall be given to each debtor insured under the policy by the creditor, unless there is immediate replacement of the coverage by the same or another insurer.
(f) A group credit life insurance policy shall contain in substance the following provisions: (1) A provision that the policyholder is entitled to a grace period of thirty-one (31) days for the payment of any premium except the first, during which grace period the coverage shall continue in force, unless the policyholder has given the insurer written notice of termination in advance of the date of termination and in accordance with the terms of the policy. The policy may provide that the policyholder shall be liable to the insurer for the payment of a pro rata premium for the time the policy was in force during the grace period; (2) A provision that the validity of the policy shall not be contested, except for nonpayment of premiums, after it has been in force for two (2) years from its date of issue; and that no statement made by or on behalf of any person insured under the policy relating to the person's age or insurability shall be used in contesting the validity of the insurance with respect to which the statement was made after the insurance has been in force prior to the contest for a period of two (2) years during the person's lifetime, unless it is contained in a written instrument and the written instrument is signed by the person. The instrument shall not be in a form that encourages misrepresentation or discourages disclosure of relevant facts; (3) A provision that a copy of the application of the policyholder shall be attached to the policy when issued, that all statements made by the policyholder or by the persons insured shall be deemed representations and not warranties, and that no statement made by any person insured shall be used in any contest unless a copy of the instrument containing the statement is or has been furnished to the person or to the person's beneficiary; (4) A provision setting forth the conditions, if any, under which the insurer reserves the right to require a person eligible for insurance to furnish evidence of individual insurability satisfactory to the insurer as to a part or all of the person's coverage; and (5) A provision specifying an equitable adjustment of premiums or of benefits or of both in the event the age of a person insured has been misstated, and the misstatement would have affected the premium or amount of benefit, the provision to contain a clear statement of the method of adjustment to be used.
(1) A provision that the policyholder is entitled to a grace period of thirty-one (31) days for the payment of any premium except the first, during which grace period the coverage shall continue in force, unless the policyholder has given the insurer written notice of termination in advance of the date of termination and in accordance with the terms of the policy. The policy may provide that the policyholder shall be liable to the insurer for the payment of a pro rata premium for the time the policy was in force during the grace period;
(2) A provision that the validity of the policy shall not be contested, except for nonpayment of premiums, after it has been in force for two (2) years from its date of issue; and that no statement made by or on behalf of any person insured under the policy relating to the person's age or insurability shall be used in contesting the validity of the insurance with respect to which the statement was made after the insurance has been in force prior to the contest for a period of two (2) years during the person's lifetime, unless it is contained in a written instrument and the written instrument is signed by the person. The instrument shall not be in a form that encourages misrepresentation or discourages disclosure of relevant facts;
(3) A provision that a copy of the application of the policyholder shall be attached to the policy when issued, that all statements made by the policyholder or by the persons insured shall be deemed representations and not warranties, and that no statement made by any person insured shall be used in any contest unless a copy of the instrument containing the statement is or has been furnished to the person or to the person's beneficiary;
(4) A provision setting forth the conditions, if any, under which the insurer reserves the right to require a person eligible for insurance to furnish evidence of individual insurability satisfactory to the insurer as to a part or all of the person's coverage; and
(5) A provision specifying an equitable adjustment of premiums or of benefits or of both in the event the age of a person insured has been misstated, and the misstatement would have affected the premium or amount of benefit, the provision to contain a clear statement of the method of adjustment to be used.
(g) Disability provisions in credit life insurance policies shall be so worded as to the payment of benefits that they are at least as favorable to the debtor as policies containing only disability provisions.
(h) Individual policies of credit life insurance shall include, in addition to the provisions set forth in this section, the provisions of § 56-7-2307 that are not inconsistent with the coverage under the credit life policy.
(i) (1) No policy or certificate of credit life insurance shall be delivered or issued for delivery to any person in this state, unless the style, arrangement and overall appearance of the policy give no undue prominence to any portion of the text, and unless every printed portion of the text of the policy and of any endorsements or attached papers are plainly printed in light-face type of a style in general use, the size of which shall be uniform and not less than ten (10) point with a lower case unspaced alphabet length not less than one hundred twenty (120) point. (2) As used in subdivision (i)(1), "text" includes all printed matter except the name and address of the insurer, name or title of the policy, a brief description of the coverage and the limitations or exclusions, if any, captions and subcaptions, and any overprint or statement of limitation of risk required by this or any other state to be more prominently displayed.
(1) No policy or certificate of credit life insurance shall be delivered or issued for delivery to any person in this state, unless the style, arrangement and overall appearance of the policy give no undue prominence to any portion of the text, and unless every printed portion of the text of the policy and of any endorsements or attached papers are plainly printed in light-face type of a style in general use, the size of which shall be uniform and not less than ten (10) point with a lower case unspaced alphabet length not less than one hundred twenty (120) point.
(2) As used in subdivision (i)(1), "text" includes all printed matter except the name and address of the insurer, name or title of the policy, a brief description of the coverage and the limitations or exclusions, if any, captions and subcaptions, and any overprint or statement of limitation of risk required by this or any other state to be more prominently displayed.
(j) (1) Dividends on participating individual policies of credit life insurance shall be payable to the individual insureds. Payment of the dividends may be deferred until such time as the policy is terminated. Dividends, or retrospective rate credits in the case of nonparticipating group policies, on group policies may be paid or credited to the creditor policyholder, subject to the restrictions contained in this subsection (j). The policies may provide that dividends or retrospective rate credits that are in excess of the contribution of the creditor may be paid or credited to the individual debtors or applied in some manner for the sole benefit of debtors generally. Insurers may be required to demonstrate to the commissioner that the dividends or retrospective rate credits are in fact equitably determined. (2) Dividends or retrospective rate credits shall be based on premiums earned and claims incurred. Payment of dividends or retrospective rate credits based on any other assumption shall not be allowed. (3) Nonparticipating individual policies of credit life insurance shall not be the subject of experience rating, and no agent or creditor shall receive retrospective commissions or other compensation, direct or indirect, based on the experience of policies sold through the agent or creditor or on the lives of the person's debtors, except as provided in this section. (4) For the purposes of §§ 56-4-204 and 56-4-205 , retrospective rate credits shall be treated in the same manner as dividends in the computation of the tax on gross premiums.
(1) Dividends on participating individual policies of credit life insurance shall be payable to the individual insureds. Payment of the dividends may be deferred until such time as the policy is terminated. Dividends, or retrospective rate credits in the case of nonparticipating group policies, on group policies may be paid or credited to the creditor policyholder, subject to the restrictions contained in this subsection (j). The policies may provide that dividends or retrospective rate credits that are in excess of the contribution of the creditor may be paid or credited to the individual debtors or applied in some manner for the sole benefit of debtors generally. Insurers may be required to demonstrate to the commissioner that the dividends or retrospective rate credits are in fact equitably determined.
(2) Dividends or retrospective rate credits shall be based on premiums earned and claims incurred. Payment of dividends or retrospective rate credits based on any other assumption shall not be allowed.
(3) Nonparticipating individual policies of credit life insurance shall not be the subject of experience rating, and no agent or creditor shall receive retrospective commissions or other compensation, direct or indirect, based on the experience of policies sold through the agent or creditor or on the lives of the person's debtors, except as provided in this section.
(4) For the purposes of §§ 56-4-204 and 56-4-205 , retrospective rate credits shall be treated in the same manner as dividends in the computation of the tax on gross premiums.
(k) (1) When life insurance is requested by a creditor, the debtor shall have the option, upon notice to the creditor, of furnishing existing policies of insurance, or procuring and furnishing new policies of insurance, owned or controlled by the debtor and issued by any insurer authorized to transact an insurance business in this state for an amount not less than the indebtedness, and for the term and type of insurance coverage requested by the creditor. Any policy furnished by the debtor shall not be subject to §§ 56-7-903 - 56-7-912, unless procured through or administered by the creditor or an agent or broker designated by or associated with the creditor. (2) Insurers writing credit insurance shall be responsible for establishment of procedures by which creditors are furnished a sufficient number of printed notices informing their debtors of the option. Creditors shall prominently display the notices.
(1) When life insurance is requested by a creditor, the debtor shall have the option, upon notice to the creditor, of furnishing existing policies of insurance, or procuring and furnishing new policies of insurance, owned or controlled by the debtor and issued by any insurer authorized to transact an insurance business in this state for an amount not less than the indebtedness, and for the term and type of insurance coverage requested by the creditor. Any policy furnished by the debtor shall not be subject to §§ 56-7-903 - 56-7-912, unless procured through or administered by the creditor or an agent or broker designated by or associated with the creditor.
(2) Insurers writing credit insurance shall be responsible for establishment of procedures by which creditors are furnished a sufficient number of printed notices informing their debtors of the option. Creditors shall prominently display the notices.
Acts 1985, ch. 107, § 3.
Tenn. Code Ann. § 56-6-806 — TN Code / Title 56 / Chapter 6 / Section 56-6-806
Use of reinsurance intermediary brokers restricted - Financial statements
Status: in_force

(a) An insurer shall not engage the services of any person, firm, association or corporation to act as an RB on its behalf unless the person is licensed as required by § 56-6-803(a) . (b) An insurer may not employ an individual who is employed by an RB with which it transacts business, unless the RB is under common control with the insurer and subject to chapter 11 of this title. (c) The insurer shall annually obtain a copy of a statement of the financial condition of each RB with which it transacts business. Acts 1993, ch. 253, § 9.
(a) An insurer shall not engage the services of any person, firm, association or corporation to act as an RB on its behalf unless the person is licensed as required by § 56-6-803(a) .
(b) An insurer may not employ an individual who is employed by an RB with which it transacts business, unless the RB is under common control with the insurer and subject to chapter 11 of this title.
(c) The insurer shall annually obtain a copy of a statement of the financial condition of each RB with which it transacts business.
Acts 1993, ch. 253, § 9.
Tenn. Code Ann. § 56-2-609 — TN Code / Title 56 / Chapter 2 / Section 56-2-609
Motions to quash or set aside service
Status: in_force

Nothing in § 56-2-607 is to be construed to prevent an unauthorized foreign or alien insurer from filing a motion to quash a writ or to set aside service of the motion made in the manner provided in § 56-2-603 or § 56-2-604 on the ground either that: (1) The unauthorized insurer has not done any of the acts enumerated in § 56-2-602 ; or (2) The person on whom service was made pursuant to § 56-2-604 was not doing any of the acts enumerated in § 56-2-604 . Acts 1955, ch. 2, § 3; T.C.A., §§ 56-335, 56-254.
Nothing in § 56-2-607 is to be construed to prevent an unauthorized foreign or alien insurer from filing a motion to quash a writ or to set aside service of the motion made in the manner provided in § 56-2-603 or § 56-2-604 on the ground either that:
(1) The unauthorized insurer has not done any of the acts enumerated in § 56-2-602 ; or
(2) The person on whom service was made pursuant to § 56-2-604 was not doing any of the acts enumerated in § 56-2-604 .
Acts 1955, ch. 2, § 3; T.C.A., §§ 56-335, 56-254.
Tenn. Code Ann. § 56-2-1004 — TN Code / Title 56 / Chapter 2 / Section 56-2-1004
Information security program
Status: in_force

By July 1, 2022, unless provided otherwise in this section: (1) Commensurate with the size and complexity of the licensee and the nature and scope of its activities, including its use of third-party service providers, and the sensitivity of the nonpublic information used by or in the possession, custody, or control of the licensee, each licensee shall develop, implement, and maintain a comprehensive, written information security program based on the licensee's risk assessment that contains administrative, technical, and physical safeguards for the protection of the nonpublic information and the licensee's information system; (2) A licensee's information security program must be designed to: (A) Protect the security and confidentiality of nonpublic information and the security of the information system; (B) Protect against threats or hazards to the security or integrity of nonpublic information and the information system; (C) Protect against unauthorized access to or use of nonpublic information and minimize the likelihood of harm to a consumer as a result of unauthorized access or use; and (D) Define and periodically reevaluate a schedule for retaining nonpublic information and a mechanism for the destruction of nonpublic information when the information is no longer needed; (3) A licensee shall conduct a risk assessment as follows: (A) Designate one (1) or more employees, an affiliate, or an outside vendor acting on behalf of the licensee who is responsible for the licensee's information security program; (B) Identify reasonably foreseeable internal or external threats that could result in unauthorized access, transmission, disclosure, misuse, alteration, or destruction of nonpublic information, including threats to the security of information systems and nonpublic information accessible to or held by third-party service providers; (C) Assess the likelihood and potential damage of reasonably foreseeable internal or external threats, taking into consideration the sensitivity of the nonpublic information involved; (D) Assess the sufficiency of policies, procedures, information systems, and other safeguards in place to manage threats throughout the licensee's operations, including in: (i) Employee training and management; (ii) Information systems, including network and software design, as well as information classification, governance, processing, storage, transmission, and disposal; and (iii) Detection, prevention, and response to attacks, intrusions, or other information systems failures; and (E) Implement information safeguards to manage the threats identified in the licensee's risk assessment and, no less than annually, assess the effectiveness of the safeguards' key controls, systems, and procedures; (4) Based on a licensee's risk assessment, the licensee shall: (A) Design an information security program to mitigate the identified risks, commensurate with the size and complexity of the licensee and the nature and scope of its activities, including its use of third-party service providers, and the sensitivity of the nonpublic information used by or in the possession, custody, or control of the licensee; (B) Determine which of the following security measures are appropriate for the licensee and implement those security measures: (i) Place access controls on information systems, including controls to authenticate and restrict access to authorized individuals to protect against the unauthorized acquisition of nonpublic information; (ii) Identify and manage the data, personnel, devices, systems, and facilities that enable the licensee to achieve the licensee's business objectives in accordance with the relative importance of the data, personnel, devices, systems, and facilities to the licensee's business objectives and risk strategy; (iii) Restrict physical access to nonpublic information to authorized individuals; (iv) Protect by encryption or other appropriate means nonpublic information being transmitted over an external network and nonpublic information stored on a laptop computer or other portable computing or storage device or media; (v) Adopt secure development practices for internally developed applications utilized by the licensee and procedures for evaluating, assessing, or testing the security of externally developed applications utilized by the licensee; (vi) Modify the licensee's information system in accordance with the licensee's information security program; (vii) Utilize effective controls that may include multi-factor authentication procedures for authorized individuals accessing nonpublic information; (viii) Regularly test and monitor systems and procedures to detect actual and attempted attacks on, or intrusions into, information systems; (ix) Include audit trails within the information security program designed to detect and respond to cybersecurity events and to reconstruct material financial transactions sufficient to support normal operations and obligations of the licensee; (x) Implement measures to protect against destruction, loss, or damage of nonpublic information due to environmental hazards, such as fire and water damage, technological failures, or other catastrophic events; and (xi) Develop, implement, and maintain procedures for the secure disposal of nonpublic information in any format; (C) Include cybersecurity risks in the licensee's enterprise risk management process; (D) Remain informed regarding emerging threats or vulnerabilities to the licensee and utilize reasonable security measures when sharing information, relative to the nature of the sharing and the type of information being shared; or (E) Provide personnel with cybersecurity awareness training that is updated as necessary to reflect risks identified by the licensee in the risk assessment; (5) If the licensee has a board of directors, then the board or an appropriate committee of the board shall, at a minimum: (A) Require the licensee's executive management or delegates to develop, implement, and maintain the licensee's information security program; (B) Require the licensee's executive management or delegates to report in writing, at least annually: (i) The status of the licensee's information security program and compliance with this part; and (ii) Material matters related to the licensee's information security program, including risk assessment, risk management and control decisions, third-party service provider arrangements, results of testing, cybersecurity events or violations and the licensee's responses thereto, and recommendations for changes to the information security program; and (C) If the licensee's executive management delegates any of the executive management's responsibilities under this section, then the executive management must oversee the development, implementation, and maintenance of the licensee's information security program prepared by the delegates and must either prepare the report or receive a copy of the report prepared by the delegates pursuant to subdivision (5)(B); (6) A licensee shall exercise due diligence in selecting a third-party service provider and, by July 1, 2023, require that each third-party service provider implement appropriate administrative, technical, and physical measures to protect and secure the information systems and nonpublic information accessible to, or held by, the third-party service provider; (7) The licensee shall monitor, evaluate, and adjust, as appropriate, its information security program, consistent with relevant changes in technology, the sensitivity of its nonpublic information, internal or external threats to its information, and its changing business arrangements, such as mergers and acquisitions, alliances and joint ventures, outsourcing arrangements, and changes to information systems; (8) (A) As part of a licensee's information security program, a licensee must establish a written incident response plan designed to promptly respond to, and recover from, a cybersecurity event that compromises the confidentiality, integrity, or availability of the licensee's nonpublic information or information systems or the continuing functionality of the licensee's operations; (B) The incident response plan must address: (i) The licensee's internal process for responding to a cybersecurity event; (ii) The goals of the licensee's incident response plan; (iii) The definition of roles, responsibilities, and levels of decision-making authority relating to a cybersecurity event; (iv) External and internal communications and information sharing; (v) The requirements for remediating identified weaknesses in information systems and associated controls; (vi) Documentation and reporting regarding cybersecurity events and related incident response activities; and (vii) The evaluation and revision, as necessary, of the incident response plan following a cybersecurity event; and (9) (A) Each insurer domiciled in this state shall submit to the commissioner by April 15 of each year written certification that the insurer is in compliance with this section. Each insurer shall maintain for examination by the department all records, schedules, and data supporting the certification for a period of five (5) years from the date of the corresponding certification. (B) If an insurer identifies areas, systems, or processes requiring material improvement, updating, or redesign, then the insurer must document planned and ongoing remedial efforts to address those areas, systems, or processes, and the documentation must be made available for inspection by the commissioner upon request. Added by 2021 Tenn. Acts, ch. 345, s 1, eff. 7/1/2021.
By July 1, 2022, unless provided otherwise in this section:
(1) Commensurate with the size and complexity of the licensee and the nature and scope of its activities, including its use of third-party service providers, and the sensitivity of the nonpublic information used by or in the possession, custody, or control of the licensee, each licensee shall develop, implement, and maintain a comprehensive, written information security program based on the licensee's risk assessment that contains administrative, technical, and physical safeguards for the protection of the nonpublic information and the licensee's information system;
(2) A licensee's information security program must be designed to: (A) Protect the security and confidentiality of nonpublic information and the security of the information system; (B) Protect against threats or hazards to the security or integrity of nonpublic information and the information system; (C) Protect against unauthorized access to or use of nonpublic information and minimize the likelihood of harm to a consumer as a result of unauthorized access or use; and (D) Define and periodically reevaluate a schedule for retaining nonpublic information and a mechanism for the destruction of nonpublic information when the information is no longer needed;
(A) Protect the security and confidentiality of nonpublic information and the security of the information system;
(B) Protect against threats or hazards to the security or integrity of nonpublic information and the information system;
(C) Protect against unauthorized access to or use of nonpublic information and minimize the likelihood of harm to a consumer as a result of unauthorized access or use; and
(D) Define and periodically reevaluate a schedule for retaining nonpublic information and a mechanism for the destruction of nonpublic information when the information is no longer needed;
(3) A licensee shall conduct a risk assessment as follows: (A) Designate one (1) or more employees, an affiliate, or an outside vendor acting on behalf of the licensee who is responsible for the licensee's information security program; (B) Identify reasonably foreseeable internal or external threats that could result in unauthorized access, transmission, disclosure, misuse, alteration, or destruction of nonpublic information, including threats to the security of information systems and nonpublic information accessible to or held by third-party service providers; (C) Assess the likelihood and potential damage of reasonably foreseeable internal or external threats, taking into consideration the sensitivity of the nonpublic information involved; (D) Assess the sufficiency of policies, procedures, information systems, and other safeguards in place to manage threats throughout the licensee's operations, including in: (i) Employee training and management; (ii) Information systems, including network and software design, as well as information classification, governance, processing, storage, transmission, and disposal; and (iii) Detection, prevention, and response to attacks, intrusions, or other information systems failures; and (E) Implement information safeguards to manage the threats identified in the licensee's risk assessment and, no less than annually, assess the effectiveness of the safeguards' key controls, systems, and procedures;
(A) Designate one (1) or more employees, an affiliate, or an outside vendor acting on behalf of the licensee who is responsible for the licensee's information security program;
(B) Identify reasonably foreseeable internal or external threats that could result in unauthorized access, transmission, disclosure, misuse, alteration, or destruction of nonpublic information, including threats to the security of information systems and nonpublic information accessible to or held by third-party service providers;
(C) Assess the likelihood and potential damage of reasonably foreseeable internal or external threats, taking into consideration the sensitivity of the nonpublic information involved;
(D) Assess the sufficiency of policies, procedures, information systems, and other safeguards in place to manage threats throughout the licensee's operations, including in: (i) Employee training and management; (ii) Information systems, including network and software design, as well as information classification, governance, processing, storage, transmission, and disposal; and (iii) Detection, prevention, and response to attacks, intrusions, or other information systems failures; and
(i) Employee training and management;
(ii) Information systems, including network and software design, as well as information classification, governance, processing, storage, transmission, and disposal; and
(iii) Detection, prevention, and response to attacks, intrusions, or other information systems failures; and
(E) Implement information safeguards to manage the threats identified in the licensee's risk assessment and, no less than annually, assess the effectiveness of the safeguards' key controls, systems, and procedures;
(4) Based on a licensee's risk assessment, the licensee shall: (A) Design an information security program to mitigate the identified risks, commensurate with the size and complexity of the licensee and the nature and scope of its activities, including its use of third-party service providers, and the sensitivity of the nonpublic information used by or in the possession, custody, or control of the licensee; (B) Determine which of the following security measures are appropriate for the licensee and implement those security measures: (i) Place access controls on information systems, including controls to authenticate and restrict access to authorized individuals to protect against the unauthorized acquisition of nonpublic information; (ii) Identify and manage the data, personnel, devices, systems, and facilities that enable the licensee to achieve the licensee's business objectives in accordance with the relative importance of the data, personnel, devices, systems, and facilities to the licensee's business objectives and risk strategy; (iii) Restrict physical access to nonpublic information to authorized individuals; (iv) Protect by encryption or other appropriate means nonpublic information being transmitted over an external network and nonpublic information stored on a laptop computer or other portable computing or storage device or media; (v) Adopt secure development practices for internally developed applications utilized by the licensee and procedures for evaluating, assessing, or testing the security of externally developed applications utilized by the licensee; (vi) Modify the licensee's information system in accordance with the licensee's information security program; (vii) Utilize effective controls that may include multi-factor authentication procedures for authorized individuals accessing nonpublic information; (viii) Regularly test and monitor systems and procedures to detect actual and attempted attacks on, or intrusions into, information systems; (ix) Include audit trails within the information security program designed to detect and respond to cybersecurity events and to reconstruct material financial transactions sufficient to support normal operations and obligations of the licensee; (x) Implement measures to protect against destruction, loss, or damage of nonpublic information due to environmental hazards, such as fire and water damage, technological failures, or other catastrophic events; and (xi) Develop, implement, and maintain procedures for the secure disposal of nonpublic information in any format; (C) Include cybersecurity risks in the licensee's enterprise risk management process; (D) Remain informed regarding emerging threats or vulnerabilities to the licensee and utilize reasonable security measures when sharing information, relative to the nature of the sharing and the type of information being shared; or (E) Provide personnel with cybersecurity awareness training that is updated as necessary to reflect risks identified by the licensee in the risk assessment;
(A) Design an information security program to mitigate the identified risks, commensurate with the size and complexity of the licensee and the nature and scope of its activities, including its use of third-party service providers, and the sensitivity of the nonpublic information used by or in the possession, custody, or control of the licensee;
(B) Determine which of the following security measures are appropriate for the licensee and implement those security measures: (i) Place access controls on information systems, including controls to authenticate and restrict access to authorized individuals to protect against the unauthorized acquisition of nonpublic information; (ii) Identify and manage the data, personnel, devices, systems, and facilities that enable the licensee to achieve the licensee's business objectives in accordance with the relative importance of the data, personnel, devices, systems, and facilities to the licensee's business objectives and risk strategy; (iii) Restrict physical access to nonpublic information to authorized individuals; (iv) Protect by encryption or other appropriate means nonpublic information being transmitted over an external network and nonpublic information stored on a laptop computer or other portable computing or storage device or media; (v) Adopt secure development practices for internally developed applications utilized by the licensee and procedures for evaluating, assessing, or testing the security of externally developed applications utilized by the licensee; (vi) Modify the licensee's information system in accordance with the licensee's information security program; (vii) Utilize effective controls that may include multi-factor authentication procedures for authorized individuals accessing nonpublic information; (viii) Regularly test and monitor systems and procedures to detect actual and attempted attacks on, or intrusions into, information systems; (ix) Include audit trails within the information security program designed to detect and respond to cybersecurity events and to reconstruct material financial transactions sufficient to support normal operations and obligations of the licensee; (x) Implement measures to protect against destruction, loss, or damage of nonpublic information due to environmental hazards, such as fire and water damage, technological failures, or other catastrophic events; and (xi) Develop, implement, and maintain procedures for the secure disposal of nonpublic information in any format;
(i) Place access controls on information systems, including controls to authenticate and restrict access to authorized individuals to protect against the unauthorized acquisition of nonpublic information;
(ii) Identify and manage the data, personnel, devices, systems, and facilities that enable the licensee to achieve the licensee's business objectives in accordance with the relative importance of the data, personnel, devices, systems, and facilities to the licensee's business objectives and risk strategy;
(iii) Restrict physical access to nonpublic information to authorized individuals;
(iv) Protect by encryption or other appropriate means nonpublic information being transmitted over an external network and nonpublic information stored on a laptop computer or other portable computing or storage device or media;
(v) Adopt secure development practices for internally developed applications utilized by the licensee and procedures for evaluating, assessing, or testing the security of externally developed applications utilized by the licensee;
(vi) Modify the licensee's information system in accordance with the licensee's information security program;
(vii) Utilize effective controls that may include multi-factor authentication procedures for authorized individuals accessing nonpublic information;
(viii) Regularly test and monitor systems and procedures to detect actual and attempted attacks on, or intrusions into, information systems;
(ix) Include audit trails within the information security program designed to detect and respond to cybersecurity events and to reconstruct material financial transactions sufficient to support normal operations and obligations of the licensee;
(x) Implement measures to protect against destruction, loss, or damage of nonpublic information due to environmental hazards, such as fire and water damage, technological failures, or other catastrophic events; and
(xi) Develop, implement, and maintain procedures for the secure disposal of nonpublic information in any format;
(C) Include cybersecurity risks in the licensee's enterprise risk management process;
(D) Remain informed regarding emerging threats or vulnerabilities to the licensee and utilize reasonable security measures when sharing information, relative to the nature of the sharing and the type of information being shared; or
(E) Provide personnel with cybersecurity awareness training that is updated as necessary to reflect risks identified by the licensee in the risk assessment;
(5) If the licensee has a board of directors, then the board or an appropriate committee of the board shall, at a minimum: (A) Require the licensee's executive management or delegates to develop, implement, and maintain the licensee's information security program; (B) Require the licensee's executive management or delegates to report in writing, at least annually: (i) The status of the licensee's information security program and compliance with this part; and (ii) Material matters related to the licensee's information security program, including risk assessment, risk management and control decisions, third-party service provider arrangements, results of testing, cybersecurity events or violations and the licensee's responses thereto, and recommendations for changes to the information security program; and (C) If the licensee's executive management delegates any of the executive management's responsibilities under this section, then the executive management must oversee the development, implementation, and maintenance of the licensee's information security program prepared by the delegates and must either prepare the report or receive a copy of the report prepared by the delegates pursuant to subdivision (5)(B);
(A) Require the licensee's executive management or delegates to develop, implement, and maintain the licensee's information security program;
(B) Require the licensee's executive management or delegates to report in writing, at least annually: (i) The status of the licensee's information security program and compliance with this part; and (ii) Material matters related to the licensee's information security program, including risk assessment, risk management and control decisions, third-party service provider arrangements, results of testing, cybersecurity events or violations and the licensee's responses thereto, and recommendations for changes to the information security program; and
(i) The status of the licensee's information security program and compliance with this part; and
(ii) Material matters related to the licensee's information security program, including risk assessment, risk management and control decisions, third-party service provider arrangements, results of testing, cybersecurity events or violations and the licensee's responses thereto, and recommendations for changes to the information security program; and
(C) If the licensee's executive management delegates any of the executive management's responsibilities under this section, then the executive management must oversee the development, implementation, and maintenance of the licensee's information security program prepared by the delegates and must either prepare the report or receive a copy of the report prepared by the delegates pursuant to subdivision (5)(B);
(6) A licensee shall exercise due diligence in selecting a third-party service provider and, by July 1, 2023, require that each third-party service provider implement appropriate administrative, technical, and physical measures to protect and secure the information systems and nonpublic information accessible to, or held by, the third-party service provider;
(7) The licensee shall monitor, evaluate, and adjust, as appropriate, its information security program, consistent with relevant changes in technology, the sensitivity of its nonpublic information, internal or external threats to its information, and its changing business arrangements, such as mergers and acquisitions, alliances and joint ventures, outsourcing arrangements, and changes to information systems;
(8) (A) As part of a licensee's information security program, a licensee must establish a written incident response plan designed to promptly respond to, and recover from, a cybersecurity event that compromises the confidentiality, integrity, or availability of the licensee's nonpublic information or information systems or the continuing functionality of the licensee's operations; (B) The incident response plan must address: (i) The licensee's internal process for responding to a cybersecurity event; (ii) The goals of the licensee's incident response plan; (iii) The definition of roles, responsibilities, and levels of decision-making authority relating to a cybersecurity event; (iv) External and internal communications and information sharing; (v) The requirements for remediating identified weaknesses in information systems and associated controls; (vi) Documentation and reporting regarding cybersecurity events and related incident response activities; and (vii) The evaluation and revision, as necessary, of the incident response plan following a cybersecurity event; and
(A) As part of a licensee's information security program, a licensee must establish a written incident response plan designed to promptly respond to, and recover from, a cybersecurity event that compromises the confidentiality, integrity, or availability of the licensee's nonpublic information or information systems or the continuing functionality of the licensee's operations;
(B) The incident response plan must address: (i) The licensee's internal process for responding to a cybersecurity event; (ii) The goals of the licensee's incident response plan; (iii) The definition of roles, responsibilities, and levels of decision-making authority relating to a cybersecurity event; (iv) External and internal communications and information sharing; (v) The requirements for remediating identified weaknesses in information systems and associated controls; (vi) Documentation and reporting regarding cybersecurity events and related incident response activities; and (vii) The evaluation and revision, as necessary, of the incident response plan following a cybersecurity event; and
(i) The licensee's internal process for responding to a cybersecurity event;
(ii) The goals of the licensee's incident response plan;
(iii) The definition of roles, responsibilities, and levels of decision-making authority relating to a cybersecurity event;
(iv) External and internal communications and information sharing;
(v) The requirements for remediating identified weaknesses in information systems and associated controls;
(vi) Documentation and reporting regarding cybersecurity events and related incident response activities; and
(vii) The evaluation and revision, as necessary, of the incident response plan following a cybersecurity event; and
(9) (A) Each insurer domiciled in this state shall submit to the commissioner by April 15 of each year written certification that the insurer is in compliance with this section. Each insurer shall maintain for examination by the department all records, schedules, and data supporting the certification for a period of five (5) years from the date of the corresponding certification. (B) If an insurer identifies areas, systems, or processes requiring material improvement, updating, or redesign, then the insurer must document planned and ongoing remedial efforts to address those areas, systems, or processes, and the documentation must be made available for inspection by the commissioner upon request.
(A) Each insurer domiciled in this state shall submit to the commissioner by April 15 of each year written certification that the insurer is in compliance with this section. Each insurer shall maintain for examination by the department all records, schedules, and data supporting the certification for a period of five (5) years from the date of the corresponding certification.
(B) If an insurer identifies areas, systems, or processes requiring material improvement, updating, or redesign, then the insurer must document planned and ongoing remedial efforts to address those areas, systems, or processes, and the documentation must be made available for inspection by the commissioner upon request.
Added by 2021 Tenn. Acts, ch. 345, s 1, eff. 7/1/2021.
Tenn. Code Ann. § 56-7-1102 — TN Code / Title 56 / Chapter 7 / Section 56-7-1102
Automobile liability insurance - Noncancellable and guaranteed renewable policies
Status: in_force

(a) Any insurer licensed to write automobile liability insurance in this state may issue a noncancellable and guaranteed renewable automobile liability insurance policy, which shall not be cancelled by the insurer and may be renewed at the option of the insured for so long as: (1) The insurer remains licensed to write automobile liability insurance in this state; (2) The insured and all other operators of the insured motor vehicle maintain valid operator's licenses; (3) All premiums, premium balances and renewal premiums are paid when due; and (4) The insured motor vehicle is used for any purpose for which the insurer has a valid rate approved by the commissioner. (b) If membership in any organization is a prerequisite for the issuance of all policies by an insurer, then the insurer may require active membership and continuation of active membership for the issuance of the policy or renewal of the policy issued by the insurer. (c) Any insurer who issues an automobile liability insurance policy with noncancellable or guaranteed renewable restrictions, using rates or rating plans filed with and approved by the commissioner, may not be bound by the restrictions if any rates or rating plans that have been filed for the specific use of the policies are subsequently rejected by the commissioner. Acts 1972, ch. 723, § 1; T.C.A., § 56-1161.
(a) Any insurer licensed to write automobile liability insurance in this state may issue a noncancellable and guaranteed renewable automobile liability insurance policy, which shall not be cancelled by the insurer and may be renewed at the option of the insured for so long as: (1) The insurer remains licensed to write automobile liability insurance in this state; (2) The insured and all other operators of the insured motor vehicle maintain valid operator's licenses; (3) All premiums, premium balances and renewal premiums are paid when due; and (4) The insured motor vehicle is used for any purpose for which the insurer has a valid rate approved by the commissioner.
(1) The insurer remains licensed to write automobile liability insurance in this state;
(2) The insured and all other operators of the insured motor vehicle maintain valid operator's licenses;
(3) All premiums, premium balances and renewal premiums are paid when due; and
(4) The insured motor vehicle is used for any purpose for which the insurer has a valid rate approved by the commissioner.
(b) If membership in any organization is a prerequisite for the issuance of all policies by an insurer, then the insurer may require active membership and continuation of active membership for the issuance of the policy or renewal of the policy issued by the insurer.
(c) Any insurer who issues an automobile liability insurance policy with noncancellable or guaranteed renewable restrictions, using rates or rating plans filed with and approved by the commissioner, may not be bound by the restrictions if any rates or rating plans that have been filed for the specific use of the policies are subsequently rejected by the commissioner.
Acts 1972, ch. 723, § 1; T.C.A., § 56-1161.
Tenn. Code Ann. § 56-45-104 — TN Code / Title 56 / Chapter 45 / Section 56-45-104
Out-of-state risk retention groups - Requirements for doing business in Tennessee - Documents filed with the commissioner - Compliance with laws - Prohibited acts
Status: in_force

(a) Risk retention groups chartered and licensed in states other than this state, and seeking to do business as a risk retention group in this state, shall comply with the laws of this state as follows: (1) Before offering insurance in this state, a risk retention group shall submit to the commissioner: (A) A statement identifying the state or states in which the risk retention group is chartered and licensed as a liability insurance company, charter date, its principal place of business, and other information, including information on its membership, the commissioner may require to verify that the risk retention group is qualified under § 56-45-102(11) ; and (B) A copy of its plan of operations or feasibility study and revisions of the plan or study submitted to the state in which the risk retention group is chartered and licensed; provided, that the provision relating to the submission of a plan of operation or feasibility study shall not apply with respect to any line or classification of liability insurance that was: (i) Defined in the Product Liability Risk Retention Act of 1981 ( 15 U.S.C. § 3901 et seq.), before October 27, 1986; and (ii) Offered before October 27, 1986, by any risk retention group that had been chartered and operating for not less than three (3) years before that date; (2) The risk retention group shall submit a copy of any material revision to its plan of operation or feasibility study required by § 56-45-103(b) within thirty (30) days of the date of the approval of such revision by the commissioner of its chartering state, or if no such approval is required, within thirty (30) days of the filing; and (3) A statement of registration, for which a filing fee shall be determined by the commissioner, that designates the commissioner as its agent for the purpose of receiving service of legal documents or process. (b) Any risk retention group doing business in this state shall submit to the commissioner: (1) A copy of the group's financial statement submitted to the state in which the risk retention group is chartered and licensed, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist under criteria established by the National Association of Insurance Commissioners; (2) A copy of each examination of the risk retention group as certified by the commissioner or public official conducting the examination; (3) Upon request by the commissioner, a copy of any information or document pertaining to any outside audit performed with respect to the risk retention group; and (4) Other information that may be required to verify its continuing qualification as a risk retention group under § 56-45-102(11) . (c) (1) Each risk retention group is liable for the payment of premium taxes and taxes on premiums of direct business for risks resident or located within this state, and shall report to the commissioner the net premiums written for risks resident or located within this state. The risk retention group is subject to taxation, and any applicable fines and penalties related to the taxation, on the same basis as a foreign admitted insurer. (2) To the extent licensed agents or brokers are utilized pursuant to § 56-45-112 , they shall report to the commissioner the premiums for direct business for risks resident or located within this state that the licensees have placed with, or on behalf of, a risk retention group not chartered in this state. (3) To the extent that insurance agents or brokers are utilized pursuant to § 56-45-112 , the agent or broker shall keep a complete and separate record of all policies procured from each such risk retention group, which record shall be open to examination by the commissioner upon request. These records shall, for each policy and each kind of insurance provided under the policy, include: (A) The limit of liability; (B) The time period covered; (C) The effective date; (D) The name of the risk retention group that issued the policy; (E) The gross premium charged; and (F) The amount of return premiums, if any. (d) Any risk retention group, its agents and representatives shall comply with the Unfair Claims Settlement Practices Act, compiled in § 56-8-104 . (e) Any risk retention group shall comply with § 56-8-104 , regarding deceptive, false or fraudulent acts or practices. If the commissioner seeks an injunction regarding the conduct, the injunction must be obtained from a court of competent jurisdiction. (f) Any risk retention group must submit to an examination by the commissioner to determine its financial condition, if the commissioner of the jurisdiction in which the group is chartered and licensed has not initiated an examination or does not initiate an examination within sixty (60) days after a request by the commissioner of commerce and insurance. The examination shall be coordinated to avoid unjustified repetition, and conducted in an expeditious manner and in accordance with the National Association of Insurance Commissioners (NAIC) examiner handbook. (g) Every application form for insurance from a risk retention group, and every policy, on its front and declaration pages, issued by a risk retention group, shall contain in ten (10) point type the following notice: NOTICE This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group. (h) The following acts by a risk retention group are prohibited: (1) The solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in the group; and (2) The solicitation or sale of insurance by, or operation of, a risk retention group that is in hazardous financial condition or financially impaired. (i) No risk retention group is allowed to do business in this state if an insurance company is directly or indirectly a member or owner of the risk retention group, other than in the case of a risk retention group all of whose members are insurance companies. (j) The terms of any insurance policy issued by any risk retention group shall not provide, or be construed to provide, coverage prohibited generally by statutes of this state or declared unlawful by the highest court of the state whose law applies to the policy. (k) A risk retention group not chartered in this state and doing business in this state shall comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by a state insurance commissioner if there has been a finding of financial impairment after an examination under subsection (f). (l) A risk retention group that violates this chapter will be subject to fines and penalties, including revocation of its right to do business in this state, applicable to licensed insurers generally. Amended by 2016 Tenn. Acts, ch. 735, s 2, eff. 4/7/2016. Acts 1991, ch. 142, § 6.
(a) Risk retention groups chartered and licensed in states other than this state, and seeking to do business as a risk retention group in this state, shall comply with the laws of this state as follows: (1) Before offering insurance in this state, a risk retention group shall submit to the commissioner: (A) A statement identifying the state or states in which the risk retention group is chartered and licensed as a liability insurance company, charter date, its principal place of business, and other information, including information on its membership, the commissioner may require to verify that the risk retention group is qualified under § 56-45-102(11) ; and (B) A copy of its plan of operations or feasibility study and revisions of the plan or study submitted to the state in which the risk retention group is chartered and licensed; provided, that the provision relating to the submission of a plan of operation or feasibility study shall not apply with respect to any line or classification of liability insurance that was: (i) Defined in the Product Liability Risk Retention Act of 1981 ( 15 U.S.C. § 3901 et seq.), before October 27, 1986; and (ii) Offered before October 27, 1986, by any risk retention group that had been chartered and operating for not less than three (3) years before that date; (2) The risk retention group shall submit a copy of any material revision to its plan of operation or feasibility study required by § 56-45-103(b) within thirty (30) days of the date of the approval of such revision by the commissioner of its chartering state, or if no such approval is required, within thirty (30) days of the filing; and (3) A statement of registration, for which a filing fee shall be determined by the commissioner, that designates the commissioner as its agent for the purpose of receiving service of legal documents or process.
(1) Before offering insurance in this state, a risk retention group shall submit to the commissioner: (A) A statement identifying the state or states in which the risk retention group is chartered and licensed as a liability insurance company, charter date, its principal place of business, and other information, including information on its membership, the commissioner may require to verify that the risk retention group is qualified under § 56-45-102(11) ; and (B) A copy of its plan of operations or feasibility study and revisions of the plan or study submitted to the state in which the risk retention group is chartered and licensed; provided, that the provision relating to the submission of a plan of operation or feasibility study shall not apply with respect to any line or classification of liability insurance that was: (i) Defined in the Product Liability Risk Retention Act of 1981 ( 15 U.S.C. § 3901 et seq.), before October 27, 1986; and (ii) Offered before October 27, 1986, by any risk retention group that had been chartered and operating for not less than three (3) years before that date;
(A) A statement identifying the state or states in which the risk retention group is chartered and licensed as a liability insurance company, charter date, its principal place of business, and other information, including information on its membership, the commissioner may require to verify that the risk retention group is qualified under § 56-45-102(11) ; and
(B) A copy of its plan of operations or feasibility study and revisions of the plan or study submitted to the state in which the risk retention group is chartered and licensed; provided, that the provision relating to the submission of a plan of operation or feasibility study shall not apply with respect to any line or classification of liability insurance that was: (i) Defined in the Product Liability Risk Retention Act of 1981 ( 15 U.S.C. § 3901 et seq.), before October 27, 1986; and (ii) Offered before October 27, 1986, by any risk retention group that had been chartered and operating for not less than three (3) years before that date;
(i) Defined in the Product Liability Risk Retention Act of 1981 ( 15 U.S.C. § 3901 et seq.), before October 27, 1986; and
(ii) Offered before October 27, 1986, by any risk retention group that had been chartered and operating for not less than three (3) years before that date;
(2) The risk retention group shall submit a copy of any material revision to its plan of operation or feasibility study required by § 56-45-103(b) within thirty (30) days of the date of the approval of such revision by the commissioner of its chartering state, or if no such approval is required, within thirty (30) days of the filing; and
(3) A statement of registration, for which a filing fee shall be determined by the commissioner, that designates the commissioner as its agent for the purpose of receiving service of legal documents or process.
(b) Any risk retention group doing business in this state shall submit to the commissioner: (1) A copy of the group's financial statement submitted to the state in which the risk retention group is chartered and licensed, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist under criteria established by the National Association of Insurance Commissioners; (2) A copy of each examination of the risk retention group as certified by the commissioner or public official conducting the examination; (3) Upon request by the commissioner, a copy of any information or document pertaining to any outside audit performed with respect to the risk retention group; and (4) Other information that may be required to verify its continuing qualification as a risk retention group under § 56-45-102(11) .
(1) A copy of the group's financial statement submitted to the state in which the risk retention group is chartered and licensed, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist under criteria established by the National Association of Insurance Commissioners;
(2) A copy of each examination of the risk retention group as certified by the commissioner or public official conducting the examination;
(3) Upon request by the commissioner, a copy of any information or document pertaining to any outside audit performed with respect to the risk retention group; and
(4) Other information that may be required to verify its continuing qualification as a risk retention group under § 56-45-102(11) .
(c) (1) Each risk retention group is liable for the payment of premium taxes and taxes on premiums of direct business for risks resident or located within this state, and shall report to the commissioner the net premiums written for risks resident or located within this state. The risk retention group is subject to taxation, and any applicable fines and penalties related to the taxation, on the same basis as a foreign admitted insurer. (2) To the extent licensed agents or brokers are utilized pursuant to § 56-45-112 , they shall report to the commissioner the premiums for direct business for risks resident or located within this state that the licensees have placed with, or on behalf of, a risk retention group not chartered in this state. (3) To the extent that insurance agents or brokers are utilized pursuant to § 56-45-112 , the agent or broker shall keep a complete and separate record of all policies procured from each such risk retention group, which record shall be open to examination by the commissioner upon request. These records shall, for each policy and each kind of insurance provided under the policy, include: (A) The limit of liability; (B) The time period covered; (C) The effective date; (D) The name of the risk retention group that issued the policy; (E) The gross premium charged; and (F) The amount of return premiums, if any.
(1) Each risk retention group is liable for the payment of premium taxes and taxes on premiums of direct business for risks resident or located within this state, and shall report to the commissioner the net premiums written for risks resident or located within this state. The risk retention group is subject to taxation, and any applicable fines and penalties related to the taxation, on the same basis as a foreign admitted insurer.
(2) To the extent licensed agents or brokers are utilized pursuant to § 56-45-112 , they shall report to the commissioner the premiums for direct business for risks resident or located within this state that the licensees have placed with, or on behalf of, a risk retention group not chartered in this state.
(3) To the extent that insurance agents or brokers are utilized pursuant to § 56-45-112 , the agent or broker shall keep a complete and separate record of all policies procured from each such risk retention group, which record shall be open to examination by the commissioner upon request. These records shall, for each policy and each kind of insurance provided under the policy, include: (A) The limit of liability; (B) The time period covered; (C) The effective date; (D) The name of the risk retention group that issued the policy; (E) The gross premium charged; and (F) The amount of return premiums, if any.
(A) The limit of liability;
(B) The time period covered;
(C) The effective date;
(D) The name of the risk retention group that issued the policy;
(E) The gross premium charged; and
(F) The amount of return premiums, if any.
(d) Any risk retention group, its agents and representatives shall comply with the Unfair Claims Settlement Practices Act, compiled in § 56-8-104 .
(e) Any risk retention group shall comply with § 56-8-104 , regarding deceptive, false or fraudulent acts or practices. If the commissioner seeks an injunction regarding the conduct, the injunction must be obtained from a court of competent jurisdiction.
(f) Any risk retention group must submit to an examination by the commissioner to determine its financial condition, if the commissioner of the jurisdiction in which the group is chartered and licensed has not initiated an examination or does not initiate an examination within sixty (60) days after a request by the commissioner of commerce and insurance. The examination shall be coordinated to avoid unjustified repetition, and conducted in an expeditious manner and in accordance with the National Association of Insurance Commissioners (NAIC) examiner handbook.
(g) Every application form for insurance from a risk retention group, and every policy, on its front and declaration pages, issued by a risk retention group, shall contain in ten (10) point type the following notice: NOTICE This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
(h) The following acts by a risk retention group are prohibited: (1) The solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in the group; and (2) The solicitation or sale of insurance by, or operation of, a risk retention group that is in hazardous financial condition or financially impaired.
(1) The solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in the group; and
(2) The solicitation or sale of insurance by, or operation of, a risk retention group that is in hazardous financial condition or financially impaired.
(i) No risk retention group is allowed to do business in this state if an insurance company is directly or indirectly a member or owner of the risk retention group, other than in the case of a risk retention group all of whose members are insurance companies.
(j) The terms of any insurance policy issued by any risk retention group shall not provide, or be construed to provide, coverage prohibited generally by statutes of this state or declared unlawful by the highest court of the state whose law applies to the policy.
(k) A risk retention group not chartered in this state and doing business in this state shall comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by a state insurance commissioner if there has been a finding of financial impairment after an examination under subsection (f).
(l) A risk retention group that violates this chapter will be subject to fines and penalties, including revocation of its right to do business in this state, applicable to licensed insurers generally.
Amended by 2016 Tenn. Acts, ch. 735, s 2, eff. 4/7/2016.
Acts 1991, ch. 142, § 6.