Tenn. Code Ann. § 56-7-2356 — TN Code / Title 56 / Chapter 7 / Section 56-7-2356
Sufficient network of providers - Determining compliance - Timeliness
Status: in_force

(a) (1) Each managed health insurance issuer that offers a plan that limits its enrollees' choice of providers shall maintain a network that is sufficient in numbers and types of providers to assure that all covered benefits to covered persons will be accessible without unreasonable delay. In the case of emergency services, covered persons shall have access to health care services twenty-four (24) hours per day, seven (7) days per week. Sufficiency shall be determined in accordance with the requirements of this section and may be established by reference to network adequacy standards established by the managed health insurance issuer, specifically: (A) Primary care provider-covered person ratios; and (B) Geographic accessibility; (2) (A) Each managed health insurance issuer shall: (i) File a network adequacy standards description with the commissioner, review the description for adequacy and compliance with this section, and update the description annually; and (ii) Report to the commissioner each material change to an approved network plan at least fifteen (15) days before such change, including each change that would result in a failure to satisfy the requirements of this section. Upon receiving the report, the commissioner shall reevaluate the issuer's network plan for compliance with the network adequacy standards of this section. (B) As used in this subdivision (a)(2), "material change" means a significant reduction in the number of providers available in a network plan, including, but not limited to, a reduction of ten percent (10%) or more of a specific type of provider in a geographic market, the removal of a major health system that causes a network to be significantly different from the network when the beneficiary enrolled in the network plan, or a change that would cause the network to no longer satisfy the requirements of this section or the commissioner's rules for network adequacy. (3) In an effort to ensure that consumers within a geographic region have an adequate opportunity to select an in-network provider, including specialty providers and facilities, and to avoid unanticipated out-of-network costs, the network adequacy standards description must include a report for each network hospital that provides the percentage of providers in each of the specialties of emergency medicine, anesthesiology, radiology, radiation oncology, pathology, and hospitalists practicing in the hospital who are in the health benefit plan's network. (b) In addition to establishing the standards required pursuant to subsection (a), the managed health insurance issuer's network shall demonstrate the following: (1) An adequate number of acute care hospital services, within a reasonable distance or travel time; (2) An adequate number of primary care providers within not more than thirty (30) miles distance or thirty (30) minutes travel time at a reasonable speed; (3) An adequate number of specialists and subspecialists, within a reasonable distance or travel time; (4) A comprehensive listing, made available to covered persons and health care providers, of the plan's network participating providers and facilities, and the listing shall be supplemented to show additions and deletions, if any exist, at least quarterly; (5) The procedures for making referrals within and outside its network that, at a minimum, shall include the following: (A) A process for expediting the referral process when indicated by a medical condition; and (B) A provision that referrals approved by the plan cannot be retrospectively denied except for fraud or abuse, subject to the eligibility and coverage provisions of the contract; (6) The process for monitoring and assuring on an ongoing basis the sufficiency of the network to meet the health care needs of populations that enroll in plans; (7) The quality assurance standards, adequate to identify, evaluate, and remedy problems relating to access, continuity, and quality of care; (8) The system for ensuring the coordination of care for covered persons receiving approved care from specialty providers; (9) A sufficient number of contracted providers practicing at the same in-network facilities with which the managed health insurance issuer has contracted to reasonably ensure enrollees have complete and comprehensive in-network access for covered services delivered at those in-network facilities; and (10) Other information required by the commissioner to determine compliance with this part. (c) In any case where the managed health insurance issuer has no participating providers to provide a covered benefit, the managed health insurance issuer shall arrange for a referral to a provider with the necessary expertise and ensure that the covered person obtains the covered benefit at no greater cost to the covered person than if the benefit were obtained from a network provider. (d) In determining whether a managed health insurance issuer has complied with this section, consideration shall be given to the relative availability of health care providers, specialists and subspecialists in the service area under consideration. Relative availability includes the acceptance by the health care providers, specialists or subspecialists of the terms, conditions and fees offered under the contract or plan. A network shall not be deemed inadequate solely because the network does not include a provider, specialist or subspecialist who is the sole provider in the community, if the provider, specialist or subspecialist refuses to contract with the managed health insurance issuer on terms and conditions substantially similar to providers, specialists or subspecialists in contiguous communities. (e) Health care providers who participate in a managed health insurance issuer's plan shall provide timely appointments to patients and shall see the patients on a timely basis after arrival for an appointment. A managed health insurance issuer may include in its contracts with health care providers provisions that establish the meaning of timeliness. (f) Providers who do not participate in a managed health insurance issuer's plan but seek reimbursement through the point of service option mandated in § 56-32-128 shall have the obligation to provide appointments on a timely basis and, upon arrival for appointments, the provider shall see the patient on a timely basis; provided, that timeliness shall be consistent with usual and customary standards for the community in which the provider is located. Frequent and repetitive failure to comply with this subsection (f) may be cause for the managed health insurance issuer to withhold reimbursement from the nonparticipating provider. (g) If the commissioner determines that a managed health insurance issuer has not met the sufficiency standards established by this section, then the commissioner shall require a modification to the network or may institute a corrective action plan to ensure access for enrollees. The commissioner may take other disciplinary action for violations of this section as permitted pursuant to § 56-2-305 , and in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (h) The commissioner shall develop an appeals procedure and forms where an enrollee of the managed health insurance issuer, contractor of a managed health insurance issuer, or a healthcare provider or facility may file a request for review of network adequacy and sufficiency of the managed health insurance issuer network. The department shall complete such review within ninety (90) days of submission to the department. Amended by 2023 Tenn. Acts, ch. 352, s 5, eff. 1/1/2024. Amended by 2023 Tenn. Acts, ch. 352, s 4, eff. 1/1/2024. Amended by 2023 Tenn. Acts, ch. 352, s 3, eff. 1/1/2024. Amended by 2023 Tenn. Acts, ch. 352, s 2, eff. 1/1/2024. Acts 1998, ch. 1033, § 5.
(a) (1) Each managed health insurance issuer that offers a plan that limits its enrollees' choice of providers shall maintain a network that is sufficient in numbers and types of providers to assure that all covered benefits to covered persons will be accessible without unreasonable delay. In the case of emergency services, covered persons shall have access to health care services twenty-four (24) hours per day, seven (7) days per week. Sufficiency shall be determined in accordance with the requirements of this section and may be established by reference to network adequacy standards established by the managed health insurance issuer, specifically: (A) Primary care provider-covered person ratios; and (B) Geographic accessibility; (2) (A) Each managed health insurance issuer shall: (i) File a network adequacy standards description with the commissioner, review the description for adequacy and compliance with this section, and update the description annually; and (ii) Report to the commissioner each material change to an approved network plan at least fifteen (15) days before such change, including each change that would result in a failure to satisfy the requirements of this section. Upon receiving the report, the commissioner shall reevaluate the issuer's network plan for compliance with the network adequacy standards of this section. (B) As used in this subdivision (a)(2), "material change" means a significant reduction in the number of providers available in a network plan, including, but not limited to, a reduction of ten percent (10%) or more of a specific type of provider in a geographic market, the removal of a major health system that causes a network to be significantly different from the network when the beneficiary enrolled in the network plan, or a change that would cause the network to no longer satisfy the requirements of this section or the commissioner's rules for network adequacy. (3) In an effort to ensure that consumers within a geographic region have an adequate opportunity to select an in-network provider, including specialty providers and facilities, and to avoid unanticipated out-of-network costs, the network adequacy standards description must include a report for each network hospital that provides the percentage of providers in each of the specialties of emergency medicine, anesthesiology, radiology, radiation oncology, pathology, and hospitalists practicing in the hospital who are in the health benefit plan's network.
(1) Each managed health insurance issuer that offers a plan that limits its enrollees' choice of providers shall maintain a network that is sufficient in numbers and types of providers to assure that all covered benefits to covered persons will be accessible without unreasonable delay. In the case of emergency services, covered persons shall have access to health care services twenty-four (24) hours per day, seven (7) days per week. Sufficiency shall be determined in accordance with the requirements of this section and may be established by reference to network adequacy standards established by the managed health insurance issuer, specifically: (A) Primary care provider-covered person ratios; and (B) Geographic accessibility;
(A) Primary care provider-covered person ratios; and
(B) Geographic accessibility;
(2) (A) Each managed health insurance issuer shall: (i) File a network adequacy standards description with the commissioner, review the description for adequacy and compliance with this section, and update the description annually; and (ii) Report to the commissioner each material change to an approved network plan at least fifteen (15) days before such change, including each change that would result in a failure to satisfy the requirements of this section. Upon receiving the report, the commissioner shall reevaluate the issuer's network plan for compliance with the network adequacy standards of this section. (B) As used in this subdivision (a)(2), "material change" means a significant reduction in the number of providers available in a network plan, including, but not limited to, a reduction of ten percent (10%) or more of a specific type of provider in a geographic market, the removal of a major health system that causes a network to be significantly different from the network when the beneficiary enrolled in the network plan, or a change that would cause the network to no longer satisfy the requirements of this section or the commissioner's rules for network adequacy.
(A) Each managed health insurance issuer shall: (i) File a network adequacy standards description with the commissioner, review the description for adequacy and compliance with this section, and update the description annually; and (ii) Report to the commissioner each material change to an approved network plan at least fifteen (15) days before such change, including each change that would result in a failure to satisfy the requirements of this section. Upon receiving the report, the commissioner shall reevaluate the issuer's network plan for compliance with the network adequacy standards of this section.
(i) File a network adequacy standards description with the commissioner, review the description for adequacy and compliance with this section, and update the description annually; and
(ii) Report to the commissioner each material change to an approved network plan at least fifteen (15) days before such change, including each change that would result in a failure to satisfy the requirements of this section. Upon receiving the report, the commissioner shall reevaluate the issuer's network plan for compliance with the network adequacy standards of this section.
(B) As used in this subdivision (a)(2), "material change" means a significant reduction in the number of providers available in a network plan, including, but not limited to, a reduction of ten percent (10%) or more of a specific type of provider in a geographic market, the removal of a major health system that causes a network to be significantly different from the network when the beneficiary enrolled in the network plan, or a change that would cause the network to no longer satisfy the requirements of this section or the commissioner's rules for network adequacy.
(3) In an effort to ensure that consumers within a geographic region have an adequate opportunity to select an in-network provider, including specialty providers and facilities, and to avoid unanticipated out-of-network costs, the network adequacy standards description must include a report for each network hospital that provides the percentage of providers in each of the specialties of emergency medicine, anesthesiology, radiology, radiation oncology, pathology, and hospitalists practicing in the hospital who are in the health benefit plan's network.
(b) In addition to establishing the standards required pursuant to subsection (a), the managed health insurance issuer's network shall demonstrate the following: (1) An adequate number of acute care hospital services, within a reasonable distance or travel time; (2) An adequate number of primary care providers within not more than thirty (30) miles distance or thirty (30) minutes travel time at a reasonable speed; (3) An adequate number of specialists and subspecialists, within a reasonable distance or travel time; (4) A comprehensive listing, made available to covered persons and health care providers, of the plan's network participating providers and facilities, and the listing shall be supplemented to show additions and deletions, if any exist, at least quarterly; (5) The procedures for making referrals within and outside its network that, at a minimum, shall include the following: (A) A process for expediting the referral process when indicated by a medical condition; and (B) A provision that referrals approved by the plan cannot be retrospectively denied except for fraud or abuse, subject to the eligibility and coverage provisions of the contract; (6) The process for monitoring and assuring on an ongoing basis the sufficiency of the network to meet the health care needs of populations that enroll in plans; (7) The quality assurance standards, adequate to identify, evaluate, and remedy problems relating to access, continuity, and quality of care; (8) The system for ensuring the coordination of care for covered persons receiving approved care from specialty providers; (9) A sufficient number of contracted providers practicing at the same in-network facilities with which the managed health insurance issuer has contracted to reasonably ensure enrollees have complete and comprehensive in-network access for covered services delivered at those in-network facilities; and (10) Other information required by the commissioner to determine compliance with this part.
(1) An adequate number of acute care hospital services, within a reasonable distance or travel time;
(2) An adequate number of primary care providers within not more than thirty (30) miles distance or thirty (30) minutes travel time at a reasonable speed;
(3) An adequate number of specialists and subspecialists, within a reasonable distance or travel time;
(4) A comprehensive listing, made available to covered persons and health care providers, of the plan's network participating providers and facilities, and the listing shall be supplemented to show additions and deletions, if any exist, at least quarterly;
(5) The procedures for making referrals within and outside its network that, at a minimum, shall include the following: (A) A process for expediting the referral process when indicated by a medical condition; and (B) A provision that referrals approved by the plan cannot be retrospectively denied except for fraud or abuse, subject to the eligibility and coverage provisions of the contract;
(A) A process for expediting the referral process when indicated by a medical condition; and
(B) A provision that referrals approved by the plan cannot be retrospectively denied except for fraud or abuse, subject to the eligibility and coverage provisions of the contract;
(6) The process for monitoring and assuring on an ongoing basis the sufficiency of the network to meet the health care needs of populations that enroll in plans;
(7) The quality assurance standards, adequate to identify, evaluate, and remedy problems relating to access, continuity, and quality of care;
(8) The system for ensuring the coordination of care for covered persons receiving approved care from specialty providers;
(9) A sufficient number of contracted providers practicing at the same in-network facilities with which the managed health insurance issuer has contracted to reasonably ensure enrollees have complete and comprehensive in-network access for covered services delivered at those in-network facilities; and
(10) Other information required by the commissioner to determine compliance with this part.
(c) In any case where the managed health insurance issuer has no participating providers to provide a covered benefit, the managed health insurance issuer shall arrange for a referral to a provider with the necessary expertise and ensure that the covered person obtains the covered benefit at no greater cost to the covered person than if the benefit were obtained from a network provider.
(d) In determining whether a managed health insurance issuer has complied with this section, consideration shall be given to the relative availability of health care providers, specialists and subspecialists in the service area under consideration. Relative availability includes the acceptance by the health care providers, specialists or subspecialists of the terms, conditions and fees offered under the contract or plan. A network shall not be deemed inadequate solely because the network does not include a provider, specialist or subspecialist who is the sole provider in the community, if the provider, specialist or subspecialist refuses to contract with the managed health insurance issuer on terms and conditions substantially similar to providers, specialists or subspecialists in contiguous communities.
(e) Health care providers who participate in a managed health insurance issuer's plan shall provide timely appointments to patients and shall see the patients on a timely basis after arrival for an appointment. A managed health insurance issuer may include in its contracts with health care providers provisions that establish the meaning of timeliness.
(f) Providers who do not participate in a managed health insurance issuer's plan but seek reimbursement through the point of service option mandated in § 56-32-128 shall have the obligation to provide appointments on a timely basis and, upon arrival for appointments, the provider shall see the patient on a timely basis; provided, that timeliness shall be consistent with usual and customary standards for the community in which the provider is located. Frequent and repetitive failure to comply with this subsection (f) may be cause for the managed health insurance issuer to withhold reimbursement from the nonparticipating provider.
(g) If the commissioner determines that a managed health insurance issuer has not met the sufficiency standards established by this section, then the commissioner shall require a modification to the network or may institute a corrective action plan to ensure access for enrollees. The commissioner may take other disciplinary action for violations of this section as permitted pursuant to § 56-2-305 , and in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(h) The commissioner shall develop an appeals procedure and forms where an enrollee of the managed health insurance issuer, contractor of a managed health insurance issuer, or a healthcare provider or facility may file a request for review of network adequacy and sufficiency of the managed health insurance issuer network. The department shall complete such review within ninety (90) days of submission to the department.
Amended by 2023 Tenn. Acts, ch. 352, s 5, eff. 1/1/2024.
Amended by 2023 Tenn. Acts, ch. 352, s 4, eff. 1/1/2024.
Amended by 2023 Tenn. Acts, ch. 352, s 3, eff. 1/1/2024.
Amended by 2023 Tenn. Acts, ch. 352, s 2, eff. 1/1/2024.
Acts 1998, ch. 1033, § 5.
Tenn. Code Ann. § 56-1-406 — TN Code / Title 56 / Chapter 1 / Section 56-1-406
Commissioner is custodian of collateral deposited
Status: in_force

The commissioner shall be the custodian of all collateral in the form of stock certificates, bonds, debentures, notes and other evidences of indebtedness deposited or pledged with the commissioner under any existing law, and it shall be the commissioner's official duty safely to keep, surrender and account for the collateral deposited as provided by law, and for the safekeeping of that collateral both the commissioner and the sureties on the commissioner's official bond are liable. Acts 1937, ch. 203, § 1; C. Supp. 1950, § 6088.1; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-118.
The commissioner shall be the custodian of all collateral in the form of stock certificates, bonds, debentures, notes and other evidences of indebtedness deposited or pledged with the commissioner under any existing law, and it shall be the commissioner's official duty safely to keep, surrender and account for the collateral deposited as provided by law, and for the safekeeping of that collateral both the commissioner and the sureties on the commissioner's official bond are liable.
Acts 1937, ch. 203, § 1; C. Supp. 1950, § 6088.1; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-118.
Tenn. Code Ann. § 56-29-105 — TN Code / Title 56 / Chapter 29 / Section 56-29-105
Board of directors - contracts between board member and corporation
Status: in_force

(a) Any corporation organized and governed by this chapter prior to July 1, 1981, should have the board of directors of the corporation composed of the following groups in equal numbers: (1) Administrators or trustees of hospitals that have contracted with the corporation to render hospital service to the subscribers; (2) Physicians, exclusive of group one (1); and (3) The general public, exclusive of groups one (1) and two (2). (b) As the terms of board members of corporations organized prior to July 1, 1981, and governed by this chapter terminate, the positions shall be refilled in the manner enumerated in subsection (c), and any corporation organized on or after July 1, 1981, and governed by this chapter shall likewise comply with the composition of board members provided in subsection (c). (c) The board of directors of the corporations should at all times be composed of the following groups: (1) Administrators of hospitals that have contracted with the corporation to render hospital service to the subscribers; (2) Physicians, exclusive of group one (1); and (3) The general public, exclusive of groups one (1) and two (2); provided, that in all cases over fifty percent (50%) of the board members shall be composed of members of group three (3), and the remaining board members shall be divided equally between members of group one (1) and of group two (2). (d) (1) No contract for equipment or supplies may be entered into between a corporation subject to this chapter and one (1) or more board members unless the contract has been competitively bid. (2) The compensation of a board member shall not exceed ten thousand dollars ($10,000) per year; provided, that, in addition to the compensation, a board member may receive payment for particular services actually rendered, such as legal counsel, medical service, accounting or other required services, upon specific approval of the board of directors, the approval being made a part of the minutes of the board of directors. Any such payment to members of the board shall be reported annually to the secretary of state on forms provided by the secretary of state. The reports shall be retained by the secretary of state for three (3) years. (3) Each director shall identify and report any conflict of interest the director has due to serving as a member of the board. The written report must be filed annually with the secretary of state by January 10. (4) Each director must fully disclose and report all income received from any corporation, partnership or other business interest that transacts business with or receives funds from a hospital and medical service corporation organized and governed under this chapter. (5) The board of directors of any corporation organized and governed by this chapter shall collectively represent the customers served by the corporation. Acts 1949, ch. 234, § 3; C. Supp. 1950, § 4186.45 (Williams, § 4186.48); T.C.A. (orig. ed.), § 56-3105; Acts 1981, ch. 67, § 1; 1995, ch. 143, § 1; 1995, ch. 477, §§ 1, 3.
(a) Any corporation organized and governed by this chapter prior to July 1, 1981, should have the board of directors of the corporation composed of the following groups in equal numbers: (1) Administrators or trustees of hospitals that have contracted with the corporation to render hospital service to the subscribers; (2) Physicians, exclusive of group one (1); and (3) The general public, exclusive of groups one (1) and two (2).
(1) Administrators or trustees of hospitals that have contracted with the corporation to render hospital service to the subscribers;
(2) Physicians, exclusive of group one (1); and
(3) The general public, exclusive of groups one (1) and two (2).
(b) As the terms of board members of corporations organized prior to July 1, 1981, and governed by this chapter terminate, the positions shall be refilled in the manner enumerated in subsection (c), and any corporation organized on or after July 1, 1981, and governed by this chapter shall likewise comply with the composition of board members provided in subsection (c).
(c) The board of directors of the corporations should at all times be composed of the following groups: (1) Administrators of hospitals that have contracted with the corporation to render hospital service to the subscribers; (2) Physicians, exclusive of group one (1); and (3) The general public, exclusive of groups one (1) and two (2); provided, that in all cases over fifty percent (50%) of the board members shall be composed of members of group three (3), and the remaining board members shall be divided equally between members of group one (1) and of group two (2).
(1) Administrators of hospitals that have contracted with the corporation to render hospital service to the subscribers;
(2) Physicians, exclusive of group one (1); and
(3) The general public, exclusive of groups one (1) and two (2); provided, that in all cases over fifty percent (50%) of the board members shall be composed of members of group three (3), and the remaining board members shall be divided equally between members of group one (1) and of group two (2).
(d) (1) No contract for equipment or supplies may be entered into between a corporation subject to this chapter and one (1) or more board members unless the contract has been competitively bid. (2) The compensation of a board member shall not exceed ten thousand dollars ($10,000) per year; provided, that, in addition to the compensation, a board member may receive payment for particular services actually rendered, such as legal counsel, medical service, accounting or other required services, upon specific approval of the board of directors, the approval being made a part of the minutes of the board of directors. Any such payment to members of the board shall be reported annually to the secretary of state on forms provided by the secretary of state. The reports shall be retained by the secretary of state for three (3) years. (3) Each director shall identify and report any conflict of interest the director has due to serving as a member of the board. The written report must be filed annually with the secretary of state by January 10. (4) Each director must fully disclose and report all income received from any corporation, partnership or other business interest that transacts business with or receives funds from a hospital and medical service corporation organized and governed under this chapter. (5) The board of directors of any corporation organized and governed by this chapter shall collectively represent the customers served by the corporation.
(1) No contract for equipment or supplies may be entered into between a corporation subject to this chapter and one (1) or more board members unless the contract has been competitively bid.
(2) The compensation of a board member shall not exceed ten thousand dollars ($10,000) per year; provided, that, in addition to the compensation, a board member may receive payment for particular services actually rendered, such as legal counsel, medical service, accounting or other required services, upon specific approval of the board of directors, the approval being made a part of the minutes of the board of directors. Any such payment to members of the board shall be reported annually to the secretary of state on forms provided by the secretary of state. The reports shall be retained by the secretary of state for three (3) years.
(3) Each director shall identify and report any conflict of interest the director has due to serving as a member of the board. The written report must be filed annually with the secretary of state by January 10.
(4) Each director must fully disclose and report all income received from any corporation, partnership or other business interest that transacts business with or receives funds from a hospital and medical service corporation organized and governed under this chapter.
(5) The board of directors of any corporation organized and governed by this chapter shall collectively represent the customers served by the corporation.
Acts 1949, ch. 234, § 3; C. Supp. 1950, § 4186.45 (Williams, § 4186.48); T.C.A. (orig. ed.), § 56-3105; Acts 1981, ch. 67, § 1; 1995, ch. 143, § 1; 1995, ch. 477, §§ 1, 3.
Tenn. Code Ann. § 56-46-111 — TN Code / Title 56 / Chapter 46 / Section 56-46-111
Foreign insurers
Status: in_force

(a) Any foreign insurer shall, upon the written request of the commissioner, submit to the commissioner an RBC Report as of the end of the calendar year just ended the later of: (1) The date an RBC Report would be required to be filed by a domestic insurer under this part; or (2) Fifteen (15) days after the request is received by the foreign insurer. (b) Any foreign insurer shall, at the written request of the commissioner, promptly submit to the commissioner a copy of any RBC Plan that is filed with the insurance commissioner of any other state. (c) In the event of a Company Action Level Event, Regulatory Action Level Event or Authorized Control Level Event with respect to any foreign insurer as determined under the RBC statute applicable in the state of domicile of the insurer, or, if no RBC statute is in force in that state, under this part, if the insurance commissioner of the state of domicile of the foreign insurer fails to require the foreign insurer to file an RBC Plan in the manner specified under that state's RBC statute, or, if no RBC statute is in force in that state, under § 56-46-104 , the commissioner may require the foreign insurer to file an RBC Plan with the commissioner. In this event, the failure of the foreign insurer to file an RBC Plan with the commissioner shall be grounds to order the insurer to cease and desist from writing new insurance business in this state. (d) In the event of a Mandatory Control Level Event with respect to any foreign insurer, if no domiciliary receiver has been appointed with respect to the foreign insurer under the rehabilitation and liquidation statute applicable in the state of domicile of the foreign insurer, the commissioner may make application to the chancery court of Davidson County pursuant to chapter 9 of this title with respect to the liquidation of property of foreign insurers found in this state, and the occurrence of the Mandatory Control Level Event shall be considered adequate grounds for the application. Amended by 2014 Tenn. Acts, ch. 559,s 2, eff. 3/21/2014. Acts 1996, ch. 750, § 12.
(a) Any foreign insurer shall, upon the written request of the commissioner, submit to the commissioner an RBC Report as of the end of the calendar year just ended the later of: (1) The date an RBC Report would be required to be filed by a domestic insurer under this part; or (2) Fifteen (15) days after the request is received by the foreign insurer.
(1) The date an RBC Report would be required to be filed by a domestic insurer under this part; or
(2) Fifteen (15) days after the request is received by the foreign insurer.
(b) Any foreign insurer shall, at the written request of the commissioner, promptly submit to the commissioner a copy of any RBC Plan that is filed with the insurance commissioner of any other state.
(c) In the event of a Company Action Level Event, Regulatory Action Level Event or Authorized Control Level Event with respect to any foreign insurer as determined under the RBC statute applicable in the state of domicile of the insurer, or, if no RBC statute is in force in that state, under this part, if the insurance commissioner of the state of domicile of the foreign insurer fails to require the foreign insurer to file an RBC Plan in the manner specified under that state's RBC statute, or, if no RBC statute is in force in that state, under § 56-46-104 , the commissioner may require the foreign insurer to file an RBC Plan with the commissioner. In this event, the failure of the foreign insurer to file an RBC Plan with the commissioner shall be grounds to order the insurer to cease and desist from writing new insurance business in this state.
(d) In the event of a Mandatory Control Level Event with respect to any foreign insurer, if no domiciliary receiver has been appointed with respect to the foreign insurer under the rehabilitation and liquidation statute applicable in the state of domicile of the foreign insurer, the commissioner may make application to the chancery court of Davidson County pursuant to chapter 9 of this title with respect to the liquidation of property of foreign insurers found in this state, and the occurrence of the Mandatory Control Level Event shall be considered adequate grounds for the application.
Amended by 2014 Tenn. Acts, ch. 559,s 2, eff. 3/21/2014.
Acts 1996, ch. 750, § 12.
Tenn. Code Ann. § 56-6-305 — TN Code / Title 56 / Chapter 6 / Section 56-6-305
Willful violation a misdemeanor - Penalty
Status: in_force

No agent shall make time-price differential charges in excess of the schedule provided in this part, and willful violation of this part is a Class C misdemeanor. Acts 1965, ch. 356, § 5; T.C.A., § 56-718; Acts 1989, ch. 591, § 113.
No agent shall make time-price differential charges in excess of the schedule provided in this part, and willful violation of this part is a Class C misdemeanor.
Acts 1965, ch. 356, § 5; T.C.A., § 56-718; Acts 1989, ch. 591, § 113.
Tenn. Code Ann. § 56-6-810 — TN Code / Title 56 / Chapter 6 / Section 56-6-810
Examinations by commissioner
Status: in_force

A reinsurance intermediary shall be subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts and records of the reinsurance intermediary in a form usable to the commissioner. Acts 1993, ch. 253, § 9.
A reinsurance intermediary shall be subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts and records of the reinsurance intermediary in a form usable to the commissioner.
Acts 1993, ch. 253, § 9.
Tenn. Code Ann. § 56-7-2323 — TN Code / Title 56 / Chapter 7 / Section 56-7-2323
Reduction of benefits for school insurance benefits prohibited
Status: in_force

No group policy of accident and sickness insurance offered for sale in this state shall be issued or renewed by any insurer or hospital service corporation or medical service corporation transacting business in this state that, by the terms of the policy, excludes or reduces the benefits payable or services to be rendered to or on behalf of any insured because benefits have been paid or are also payable under any blanket group or franchise school accident policy regardless of who makes the premium contribution, or under any individually underwritten and individually issued contract or plan of insurance that provides exclusively for accident and sickness benefits and for which one hundred percent (100%) of the premiums have been paid by the insured or a member of the insured's family or the insured's guardian, regardless of the mode or channel of premium payment to the insurer or of any discount received on the premium by virtue of the insured's membership in any organization or of the insured's status as an employee. Acts 1976, ch. 412, § 1; T.C.A., § 56-3332; Acts 1992, ch. 984, § 1; T.C.A., § 56-26-130.
No group policy of accident and sickness insurance offered for sale in this state shall be issued or renewed by any insurer or hospital service corporation or medical service corporation transacting business in this state that, by the terms of the policy, excludes or reduces the benefits payable or services to be rendered to or on behalf of any insured because benefits have been paid or are also payable under any blanket group or franchise school accident policy regardless of who makes the premium contribution, or under any individually underwritten and individually issued contract or plan of insurance that provides exclusively for accident and sickness benefits and for which one hundred percent (100%) of the premiums have been paid by the insured or a member of the insured's family or the insured's guardian, regardless of the mode or channel of premium payment to the insurer or of any discount received on the premium by virtue of the insured's membership in any organization or of the insured's status as an employee.
Acts 1976, ch. 412, § 1; T.C.A., § 56-3332; Acts 1992, ch. 984, § 1; T.C.A., § 56-26-130.
Tenn. Code Ann. § 56-7-1110 — TN Code / Title 56 / Chapter 7 / Section 56-7-1110
Insurance coverage or collision damages waivers for rental cars
Status: in_force

Any rental car company, offering for sale insurance coverage or collision damage waivers, shall state clearly on the front page of the rental contract that the purchaser of the insurance coverage or collision damage waiver offered may be covered for such claims on the purchaser's personal motor vehicle insurance policy, and that if such insurance coverage exists under the renter's personal insurance policy, and the coverage is confirmed, the renter may require the rental car company to submit any claims to the renter's personal insurance carrier as the renter's agent. The rental car company shall not make any written or oral representations that it will not present claims or negotiate with the renter's insurance carrier. As used in this section, "confirmation of coverage" includes telephone confirmation from an insurance company representative. Acts 1988, ch. 838, § 1.
Any rental car company, offering for sale insurance coverage or collision damage waivers, shall state clearly on the front page of the rental contract that the purchaser of the insurance coverage or collision damage waiver offered may be covered for such claims on the purchaser's personal motor vehicle insurance policy, and that if such insurance coverage exists under the renter's personal insurance policy, and the coverage is confirmed, the renter may require the rental car company to submit any claims to the renter's personal insurance carrier as the renter's agent. The rental car company shall not make any written or oral representations that it will not present claims or negotiate with the renter's insurance carrier. As used in this section, "confirmation of coverage" includes telephone confirmation from an insurance company representative.
Acts 1988, ch. 838, § 1.
Tenn. Code Ann. § 56-2-1003 — TN Code / Title 56 / Chapter 2 / Section 56-2-1003
Part definitions
Status: in_force

As used in this part: (1) "Authorized individual" means an individual known to and screened by the licensee and determined to be necessary and appropriate to have access to the nonpublic information held by the licensee and the licensee's information systems; (2) "Commissioner" means the commissioner of commerce and insurance, or the commissioner's designee; (3) "Consumer" means an individual, including an applicant, policyholder, insured, beneficiary, claimant, or certificate holder, who is a resident of this state and whose nonpublic information is in a licensee's possession, custody, or control; (4) "Cybersecurity event": (A) Means an event resulting in unauthorized access to, or disruption or misuse of, an information system or nonpublic information stored on an information system; and (B) Does not include: (i) The unauthorized acquisition of encrypted nonpublic information if the encryption, process, or key is not also acquired, released, or used without authorization; or (ii) An event in which the licensee determines that the nonpublic information accessed by an unauthorized person has not been used or released and has been returned or destroyed; (5) "Department" means the department of commerce and insurance; (6) "Encrypted" means the transformation of data into a form that results in a low probability that its meaning is discernible without the use of a protective process or key; (7) "Immediate family" means a spouse; child or grandchild by blood, adoption, or marriage; sibling; parent; or grandparent; (8) "Information security program" means the administrative, technical, and physical safeguards that a licensee uses to access, collect, distribute, process, protect, store, use, transmit, dispose of, or otherwise handle nonpublic information; (9) "Information system" means: (A) A discrete set of electronic information resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of electronic nonpublic information; or (B) A specialized system, including an industrial or process control system, a telephone switching and private branch exchange system, and an environmental control system; (10) "Licensee": (A) Means a person: (i) Licensed, authorized to operate, or registered pursuant to this title; or (ii) Required to be licensed, authorized to operate, or registered pursuant to this title; and (B) Does not include a purchasing group or risk retention group chartered and licensed in another state or a person acting as an assuming insurer and domiciled in another state or jurisdiction; (11) "Multi-factor authentication" means authentication through verification of at least two (2) of the following types of authentication factors: (A) Knowledge factors, such as by a password; (B) Possession factors, such as by a token or text message on a mobile phone; or (C) Inherence factors, such as by a biometric characteristic; (12) "Nonpublic information" means information that is not publicly available and that is: (A) Business-related information of a licensee, in which the tampering with, unauthorized disclosure of, access to, or use of, would cause a material adverse impact to the business, operations, or security of the licensee; (B) Information concerning a consumer that, because of a name, number, personal mark, or other identifier, can be used to identify that consumer, in combination with the following: (i) A social security number; (ii) A driver license number or non-driver identification card number; (iii) A financial account number or credit or debit card number; (iv) A security code, access code, or password that would permit access to the consumer's financial accounts; or (v) Biometric records; or (C) Information or data, except a person's age or sex, created by or derived from a healthcare provider or a consumer that relates to: (i) The past, present, or future physical, mental, or behavioral health or health condition of a consumer or a member of a consumer's immediate family; (ii) The provision of health care to a consumer; or (iii) Payment for the provision of health care to a consumer; (13) "Person" means an individual or non-governmental entity, including a sole proprietorship, corporation, limited liability company, partnership, trust, religious organization, association, nonprofit organization described in § 501(c) of the Internal Revenue Code that is exempt from federal income taxation under § 501(a) of the Internal Revenue Code ( 26 U.S.C. § 501(a) ), or another legal entity, whether formed as a for-profit or not-for-profit entity; (14) "Publicly available information" means information that a licensee has a reasonable basis to believe is lawfully made available to the public. For purposes of this subdivision (14), a licensee has a reasonable basis to believe that information is lawfully made available to the public if the licensee has taken steps reasonably necessary to determine: (A) That the information is of a type that is available to the public through government records, widely distributed media, or public disclosures required by law; or (B) That a consumer can direct that the information not be made available to the public and, if so, that the consumer has not made that direction; (15) "Risk assessment" means the risk assessment that each licensee must conduct under § 56-2-1004(3) ; and (16) "Third-party service provider" means a person, not otherwise defined as a licensee, that contracts with a licensee to maintain, process, or store, or is otherwise permitted access to maintain, process, or store, nonpublic information through its provision of services to the licensee. Added by 2021 Tenn. Acts, ch. 345, s 1, eff. 7/1/2021.
As used in this part:
(1) "Authorized individual" means an individual known to and screened by the licensee and determined to be necessary and appropriate to have access to the nonpublic information held by the licensee and the licensee's information systems;
(2) "Commissioner" means the commissioner of commerce and insurance, or the commissioner's designee;
(3) "Consumer" means an individual, including an applicant, policyholder, insured, beneficiary, claimant, or certificate holder, who is a resident of this state and whose nonpublic information is in a licensee's possession, custody, or control;
(4) "Cybersecurity event": (A) Means an event resulting in unauthorized access to, or disruption or misuse of, an information system or nonpublic information stored on an information system; and (B) Does not include: (i) The unauthorized acquisition of encrypted nonpublic information if the encryption, process, or key is not also acquired, released, or used without authorization; or (ii) An event in which the licensee determines that the nonpublic information accessed by an unauthorized person has not been used or released and has been returned or destroyed;
(A) Means an event resulting in unauthorized access to, or disruption or misuse of, an information system or nonpublic information stored on an information system; and
(B) Does not include: (i) The unauthorized acquisition of encrypted nonpublic information if the encryption, process, or key is not also acquired, released, or used without authorization; or (ii) An event in which the licensee determines that the nonpublic information accessed by an unauthorized person has not been used or released and has been returned or destroyed;
(i) The unauthorized acquisition of encrypted nonpublic information if the encryption, process, or key is not also acquired, released, or used without authorization; or
(ii) An event in which the licensee determines that the nonpublic information accessed by an unauthorized person has not been used or released and has been returned or destroyed;
(5) "Department" means the department of commerce and insurance;
(6) "Encrypted" means the transformation of data into a form that results in a low probability that its meaning is discernible without the use of a protective process or key;
(7) "Immediate family" means a spouse; child or grandchild by blood, adoption, or marriage; sibling; parent; or grandparent;
(8) "Information security program" means the administrative, technical, and physical safeguards that a licensee uses to access, collect, distribute, process, protect, store, use, transmit, dispose of, or otherwise handle nonpublic information;
(9) "Information system" means: (A) A discrete set of electronic information resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of electronic nonpublic information; or (B) A specialized system, including an industrial or process control system, a telephone switching and private branch exchange system, and an environmental control system;
(A) A discrete set of electronic information resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of electronic nonpublic information; or
(B) A specialized system, including an industrial or process control system, a telephone switching and private branch exchange system, and an environmental control system;
(10) "Licensee": (A) Means a person: (i) Licensed, authorized to operate, or registered pursuant to this title; or (ii) Required to be licensed, authorized to operate, or registered pursuant to this title; and (B) Does not include a purchasing group or risk retention group chartered and licensed in another state or a person acting as an assuming insurer and domiciled in another state or jurisdiction;
(A) Means a person: (i) Licensed, authorized to operate, or registered pursuant to this title; or (ii) Required to be licensed, authorized to operate, or registered pursuant to this title; and
(i) Licensed, authorized to operate, or registered pursuant to this title; or
(ii) Required to be licensed, authorized to operate, or registered pursuant to this title; and
(B) Does not include a purchasing group or risk retention group chartered and licensed in another state or a person acting as an assuming insurer and domiciled in another state or jurisdiction;
(11) "Multi-factor authentication" means authentication through verification of at least two (2) of the following types of authentication factors: (A) Knowledge factors, such as by a password; (B) Possession factors, such as by a token or text message on a mobile phone; or (C) Inherence factors, such as by a biometric characteristic;
(A) Knowledge factors, such as by a password;
(B) Possession factors, such as by a token or text message on a mobile phone; or
(C) Inherence factors, such as by a biometric characteristic;
(12) "Nonpublic information" means information that is not publicly available and that is: (A) Business-related information of a licensee, in which the tampering with, unauthorized disclosure of, access to, or use of, would cause a material adverse impact to the business, operations, or security of the licensee; (B) Information concerning a consumer that, because of a name, number, personal mark, or other identifier, can be used to identify that consumer, in combination with the following: (i) A social security number; (ii) A driver license number or non-driver identification card number; (iii) A financial account number or credit or debit card number; (iv) A security code, access code, or password that would permit access to the consumer's financial accounts; or (v) Biometric records; or (C) Information or data, except a person's age or sex, created by or derived from a healthcare provider or a consumer that relates to: (i) The past, present, or future physical, mental, or behavioral health or health condition of a consumer or a member of a consumer's immediate family; (ii) The provision of health care to a consumer; or (iii) Payment for the provision of health care to a consumer;
(A) Business-related information of a licensee, in which the tampering with, unauthorized disclosure of, access to, or use of, would cause a material adverse impact to the business, operations, or security of the licensee;
(B) Information concerning a consumer that, because of a name, number, personal mark, or other identifier, can be used to identify that consumer, in combination with the following: (i) A social security number; (ii) A driver license number or non-driver identification card number; (iii) A financial account number or credit or debit card number; (iv) A security code, access code, or password that would permit access to the consumer's financial accounts; or (v) Biometric records; or
(i) A social security number;
(ii) A driver license number or non-driver identification card number;
(iii) A financial account number or credit or debit card number;
(iv) A security code, access code, or password that would permit access to the consumer's financial accounts; or
(v) Biometric records; or
(C) Information or data, except a person's age or sex, created by or derived from a healthcare provider or a consumer that relates to: (i) The past, present, or future physical, mental, or behavioral health or health condition of a consumer or a member of a consumer's immediate family; (ii) The provision of health care to a consumer; or (iii) Payment for the provision of health care to a consumer;
(i) The past, present, or future physical, mental, or behavioral health or health condition of a consumer or a member of a consumer's immediate family;
(ii) The provision of health care to a consumer; or
(iii) Payment for the provision of health care to a consumer;
(13) "Person" means an individual or non-governmental entity, including a sole proprietorship, corporation, limited liability company, partnership, trust, religious organization, association, nonprofit organization described in § 501(c) of the Internal Revenue Code that is exempt from federal income taxation under § 501(a) of the Internal Revenue Code ( 26 U.S.C. § 501(a) ), or another legal entity, whether formed as a for-profit or not-for-profit entity;
(14) "Publicly available information" means information that a licensee has a reasonable basis to believe is lawfully made available to the public. For purposes of this subdivision (14), a licensee has a reasonable basis to believe that information is lawfully made available to the public if the licensee has taken steps reasonably necessary to determine: (A) That the information is of a type that is available to the public through government records, widely distributed media, or public disclosures required by law; or (B) That a consumer can direct that the information not be made available to the public and, if so, that the consumer has not made that direction;
(A) That the information is of a type that is available to the public through government records, widely distributed media, or public disclosures required by law; or
(B) That a consumer can direct that the information not be made available to the public and, if so, that the consumer has not made that direction;
(15) "Risk assessment" means the risk assessment that each licensee must conduct under § 56-2-1004(3) ; and
(16) "Third-party service provider" means a person, not otherwise defined as a licensee, that contracts with a licensee to maintain, process, or store, or is otherwise permitted access to maintain, process, or store, nonpublic information through its provision of services to the licensee.
Added by 2021 Tenn. Acts, ch. 345, s 1, eff. 7/1/2021.
Tenn. Code Ann. § 56-1-208 — TN Code / Title 56 / Chapter 1 / Section 56-1-208
Actuaries to compute net value of policies - Other duties
Status: in_force

(a) The commissioner shall require the actuaries employed pursuant to § 56-1-207 to compute the net value of outstanding policies of life insurance in companies, associations or fraternal orders authorized to transact business in this state as required by law. (b) The commissioner may assign other duties to the actuaries that the commissioner deems necessary or proper. Acts 1943, ch. 97, § 2; C. Supp. 1950, § 6459.41 (Williams, § 6459.44); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-111.
(a) The commissioner shall require the actuaries employed pursuant to § 56-1-207 to compute the net value of outstanding policies of life insurance in companies, associations or fraternal orders authorized to transact business in this state as required by law.
(b) The commissioner may assign other duties to the actuaries that the commissioner deems necessary or proper.
Acts 1943, ch. 97, § 2; C. Supp. 1950, § 6459.41 (Williams, § 6459.44); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-111.
Tenn. Code Ann. § 56-2-113 — TN Code / Title 56 / Chapter 2 / Section 56-2-113
Period of organization before admission of foreign companies - Exceptions
Status: in_force

(a) No foreign insurance company transacting any of the kinds of insurance as defined in § 56-2-201 shall be admitted and authorized to do business in this state until it can satisfy the commissioner that it has been organized and actively engaged in the insurance business in the state of its incorporation for a period of three (3) years prior to the date of its application to be admitted and authorized to do business in this state. (b) Subsection (a) does not apply to a foreign insurance company that is: (1) The wholly-owned subsidiary of an insurance company or health maintenance organization admitted and authorized to do business in this state; (2) The continuing corporation resulting from a merger or consolidation of insurance companies at least one (1) of which, prior to the merger or consolidation, met all the requirements for admission and authorization to do business in this state, including the requirement of having been actively engaged in the insurance business in its state of incorporation for three (3) years; (3) The wholly-owned subsidiary of a holding company that also owns one hundred percent (100%) of the common capital stock, excluding qualifying shares required to be held by directors, of an insurance company or health maintenance organization admitted and authorized to do business in this state; or (4) A foreign insurance company originally chartered and licensed to transact business in this state, and making application to redomesticate to this state upon furnishing the following from the commissioner of commerce and insurance of its state of domicile: (A) Letter of approval to redomesticate; (B) Letter of intent to permit the company to transfer its business and assets to this state; and (C) A certificate of good standing. (c) "Owned" and "owns," as used in subsection (b), mean ownership either directly or indirectly through one (1) or more intermediaries. (d) The commissioner, in the commissioner's sole discretion, may waive the requirement in subsection (a) for any company, if the commissioner determines it is in the public interest. Acts 1955, ch. 13, § 1, T.C.A., § 56-307; Acts 1959, ch. 201, § 1; 1967, ch. 25, § 1; 1972, ch. 585, § 1; 1975, ch. 167, § 1; T.C.A., § 56-213; Acts 1984, ch. 667, § 1; 1987, ch. 68, § 1; 2005, ch. 319, §§ 1, 2; 2010, ch. 780, § 1.
(a) No foreign insurance company transacting any of the kinds of insurance as defined in § 56-2-201 shall be admitted and authorized to do business in this state until it can satisfy the commissioner that it has been organized and actively engaged in the insurance business in the state of its incorporation for a period of three (3) years prior to the date of its application to be admitted and authorized to do business in this state.
(b) Subsection (a) does not apply to a foreign insurance company that is: (1) The wholly-owned subsidiary of an insurance company or health maintenance organization admitted and authorized to do business in this state; (2) The continuing corporation resulting from a merger or consolidation of insurance companies at least one (1) of which, prior to the merger or consolidation, met all the requirements for admission and authorization to do business in this state, including the requirement of having been actively engaged in the insurance business in its state of incorporation for three (3) years; (3) The wholly-owned subsidiary of a holding company that also owns one hundred percent (100%) of the common capital stock, excluding qualifying shares required to be held by directors, of an insurance company or health maintenance organization admitted and authorized to do business in this state; or (4) A foreign insurance company originally chartered and licensed to transact business in this state, and making application to redomesticate to this state upon furnishing the following from the commissioner of commerce and insurance of its state of domicile: (A) Letter of approval to redomesticate; (B) Letter of intent to permit the company to transfer its business and assets to this state; and (C) A certificate of good standing.
(1) The wholly-owned subsidiary of an insurance company or health maintenance organization admitted and authorized to do business in this state;
(2) The continuing corporation resulting from a merger or consolidation of insurance companies at least one (1) of which, prior to the merger or consolidation, met all the requirements for admission and authorization to do business in this state, including the requirement of having been actively engaged in the insurance business in its state of incorporation for three (3) years;
(3) The wholly-owned subsidiary of a holding company that also owns one hundred percent (100%) of the common capital stock, excluding qualifying shares required to be held by directors, of an insurance company or health maintenance organization admitted and authorized to do business in this state; or
(4) A foreign insurance company originally chartered and licensed to transact business in this state, and making application to redomesticate to this state upon furnishing the following from the commissioner of commerce and insurance of its state of domicile: (A) Letter of approval to redomesticate; (B) Letter of intent to permit the company to transfer its business and assets to this state; and (C) A certificate of good standing.
(A) Letter of approval to redomesticate;
(B) Letter of intent to permit the company to transfer its business and assets to this state; and
(C) A certificate of good standing.
(c) "Owned" and "owns," as used in subsection (b), mean ownership either directly or indirectly through one (1) or more intermediaries.
(d) The commissioner, in the commissioner's sole discretion, may waive the requirement in subsection (a) for any company, if the commissioner determines it is in the public interest.
Acts 1955, ch. 13, § 1, T.C.A., § 56-307; Acts 1959, ch. 201, § 1; 1967, ch. 25, § 1; 1972, ch. 585, § 1; 1975, ch. 167, § 1; T.C.A., § 56-213; Acts 1984, ch. 667, § 1; 1987, ch. 68, § 1; 2005, ch. 319, §§ 1, 2; 2010, ch. 780, § 1.
Tenn. Code Ann. § 56-50-112 — TN Code / Title 56 / Chapter 50 / Section 56-50-112
Prohibited practices and conflicts of interest
Status: in_force

(a) With respect to any viatical settlement contract or insurance policy, no viatical settlement broker knowingly shall solicit an offer from, effectuate a viatical settlement with or make a sale to any viatical settlement provider, viatical settlement purchaser, viatical settlement investment agent, financing entity or related provider trust that is controlling, controlled by or under common control with such viatical settlement broker unless disclosed to the viator pursuant to this chapter. (b) With respect to any viatical settlement contract or insurance policy, no viatical settlement provider knowingly may enter into a viatical settlement contract with a viator, if, in connection with such viatical settlement contract, anything of value will be paid to a viatical settlement broker that is controlling, controlled by or under common control with such viatical settlement provider or the viatical settlement purchaser, viatical settlement investment agent, financing entity or related provider trust that is involved in such viatical settlement contract unless disclosed to the viator pursuant to this chapter. (c) A viatical settlement provider shall not enter into a premium finance agreement with any person or agency, or any person affiliated with such person or agency, pursuant to which such person or agency shall receive any proceeds, fees or other consideration, directly or indirectly, from the policy or owner of the policy or any other person with respect to the premium finance agreement or any viatical settlement contract or other transaction related to such policy that are in addition to the amounts required to pay the principal, interest and service charges related to policy premiums pursuant to the premium finance agreement or subsequent sale of such agreement. Any payments, charges, fees, normal insurance commissions or other amounts, in addition to the amounts required to pay the principal, interest, and service charges related to policy premiums paid under the premium finance agreement, shall be remitted to the original owner of the policy or to the original owner's estate if the original owner is not living at the time of the determination of the overpayment. (d) A violation of subsection (a) or (b) shall be deemed a fraudulent viatical settlement act. (e) A person shall not issue, solicit, market or otherwise promote the purchase of an insurance policy for the sole purpose of or with a primary emphasis on settling the policy. (f) A person, including, without limitation, a viatical settlement provider providing premium financing, shall not receive any proceeds, fees or other consideration from the policy or owner of the policy that is in addition to the amounts required to pay principal, interest and any costs or expenses incurred by the lender or borrower in connection with the premium finance agreement, except for the event of a default, unless either the default on such loan or transfer of the policy occurs pursuant to an agreement or understanding with any other person for the purpose of evading regulation under this chapter. Any payments, charges, fees or other amounts received by a person, including, without limitation, a viatical settlement provider providing premium financing in violation of this subsection (f), shall be remitted to the original owner of the policy or to the original owner's estate if the original owner is not living at the time of the determination of overpayment. (g) In the solicitation, application for or issuance of a life insurance policy, a person shall not employ any device, scheme or artifice to create an insurable interest in the life of a person except as allowed by law. (h) No viatical settlement provider shall enter into a viatical settlement contract unless the viatical settlement promotional, advertising and marketing materials, as may be prescribed by regulation, have been filed with the commissioner. In no event shall any marketing materials expressly reference that the insurance is free for any period of time. The inclusion of any reference in the marketing materials that would cause a viator to reasonably believe that the insurance is free for any period of time shall be considered a violation of this chapter. (i) No life insurance producer, insurance company, viatical settlement broker, viatical settlement provider or viatical settlement investment agent shall make any statement or representation to the applicant or policyholder in connection with the sale or financing of a life insurance policy to the effect that the insurance is free or without cost to the policyholder for any period of time unless provided in the policy. Acts 2009, ch. 604, § 13.
(a) With respect to any viatical settlement contract or insurance policy, no viatical settlement broker knowingly shall solicit an offer from, effectuate a viatical settlement with or make a sale to any viatical settlement provider, viatical settlement purchaser, viatical settlement investment agent, financing entity or related provider trust that is controlling, controlled by or under common control with such viatical settlement broker unless disclosed to the viator pursuant to this chapter.
(b) With respect to any viatical settlement contract or insurance policy, no viatical settlement provider knowingly may enter into a viatical settlement contract with a viator, if, in connection with such viatical settlement contract, anything of value will be paid to a viatical settlement broker that is controlling, controlled by or under common control with such viatical settlement provider or the viatical settlement purchaser, viatical settlement investment agent, financing entity or related provider trust that is involved in such viatical settlement contract unless disclosed to the viator pursuant to this chapter.
(c) A viatical settlement provider shall not enter into a premium finance agreement with any person or agency, or any person affiliated with such person or agency, pursuant to which such person or agency shall receive any proceeds, fees or other consideration, directly or indirectly, from the policy or owner of the policy or any other person with respect to the premium finance agreement or any viatical settlement contract or other transaction related to such policy that are in addition to the amounts required to pay the principal, interest and service charges related to policy premiums pursuant to the premium finance agreement or subsequent sale of such agreement. Any payments, charges, fees, normal insurance commissions or other amounts, in addition to the amounts required to pay the principal, interest, and service charges related to policy premiums paid under the premium finance agreement, shall be remitted to the original owner of the policy or to the original owner's estate if the original owner is not living at the time of the determination of the overpayment.
(d) A violation of subsection (a) or (b) shall be deemed a fraudulent viatical settlement act.
(e) A person shall not issue, solicit, market or otherwise promote the purchase of an insurance policy for the sole purpose of or with a primary emphasis on settling the policy.
(f) A person, including, without limitation, a viatical settlement provider providing premium financing, shall not receive any proceeds, fees or other consideration from the policy or owner of the policy that is in addition to the amounts required to pay principal, interest and any costs or expenses incurred by the lender or borrower in connection with the premium finance agreement, except for the event of a default, unless either the default on such loan or transfer of the policy occurs pursuant to an agreement or understanding with any other person for the purpose of evading regulation under this chapter. Any payments, charges, fees or other amounts received by a person, including, without limitation, a viatical settlement provider providing premium financing in violation of this subsection (f), shall be remitted to the original owner of the policy or to the original owner's estate if the original owner is not living at the time of the determination of overpayment.
(g) In the solicitation, application for or issuance of a life insurance policy, a person shall not employ any device, scheme or artifice to create an insurable interest in the life of a person except as allowed by law.
(h) No viatical settlement provider shall enter into a viatical settlement contract unless the viatical settlement promotional, advertising and marketing materials, as may be prescribed by regulation, have been filed with the commissioner. In no event shall any marketing materials expressly reference that the insurance is free for any period of time. The inclusion of any reference in the marketing materials that would cause a viator to reasonably believe that the insurance is free for any period of time shall be considered a violation of this chapter.
(i) No life insurance producer, insurance company, viatical settlement broker, viatical settlement provider or viatical settlement investment agent shall make any statement or representation to the applicant or policyholder in connection with the sale or financing of a life insurance policy to the effect that the insurance is free or without cost to the policyholder for any period of time unless provided in the policy.
Acts 2009, ch. 604, § 13.
Tenn. Code Ann. § 56-18-105 — TN Code / Title 56 / Chapter 18 / Section 56-18-105
Election of directors - Annual meeting
Status: in_force

(a) (1) All directors, as provided in § 56-18-104 , shall be elected at an annual meeting of the policyholders of the company, and other questions at the meeting shall be determined, in the manner and subject to the regulations prescribed. (2) (A) For the purposes of the meeting or election, "policyholder" means: (i) A person insured by the corporation under an individual life insurance policy or pure endowment contract; (ii) A person to whom the corporation has issued an individual annuity contract, or a policy of noncancelable and guaranteed renewable accident and health insurance; or (iii) Any employer, including the mutualized corporation itself, or other person, firm, corporation or association, some or all of whose employees or members are covered by the corporation with a group life insurance plan or contract or with a group annuity plan or contract; (B) In all cases, the person shall be qualified as a policyholder under this section only so long as the policy or contract so qualifying the person remains in full force other than as reduced paid-up insurance or extended insurance on the date of the meeting or election, and shall have been so in full force for at least one (1) year prior to that date; and (C) Every policyholder shall be entitled to one (1) vote, or to a number of votes based upon the insurance in force, the number of policies held, or the amount of premiums paid, as may be provided in the bylaws. (b) Any vacancy occurring on the board of directors may be filled by a majority vote of the board for the unexpired term to which the vacancy relates. Acts 1949, ch. 91, § 10; C. Supp. 1950, § 6433.22 (Williams, § 6433.26); T.C.A. (orig. ed.), § 56-1606.
(a) (1) All directors, as provided in § 56-18-104 , shall be elected at an annual meeting of the policyholders of the company, and other questions at the meeting shall be determined, in the manner and subject to the regulations prescribed. (2) (A) For the purposes of the meeting or election, "policyholder" means: (i) A person insured by the corporation under an individual life insurance policy or pure endowment contract; (ii) A person to whom the corporation has issued an individual annuity contract, or a policy of noncancelable and guaranteed renewable accident and health insurance; or (iii) Any employer, including the mutualized corporation itself, or other person, firm, corporation or association, some or all of whose employees or members are covered by the corporation with a group life insurance plan or contract or with a group annuity plan or contract; (B) In all cases, the person shall be qualified as a policyholder under this section only so long as the policy or contract so qualifying the person remains in full force other than as reduced paid-up insurance or extended insurance on the date of the meeting or election, and shall have been so in full force for at least one (1) year prior to that date; and (C) Every policyholder shall be entitled to one (1) vote, or to a number of votes based upon the insurance in force, the number of policies held, or the amount of premiums paid, as may be provided in the bylaws.
(1) All directors, as provided in § 56-18-104 , shall be elected at an annual meeting of the policyholders of the company, and other questions at the meeting shall be determined, in the manner and subject to the regulations prescribed.
(2) (A) For the purposes of the meeting or election, "policyholder" means: (i) A person insured by the corporation under an individual life insurance policy or pure endowment contract; (ii) A person to whom the corporation has issued an individual annuity contract, or a policy of noncancelable and guaranteed renewable accident and health insurance; or (iii) Any employer, including the mutualized corporation itself, or other person, firm, corporation or association, some or all of whose employees or members are covered by the corporation with a group life insurance plan or contract or with a group annuity plan or contract; (B) In all cases, the person shall be qualified as a policyholder under this section only so long as the policy or contract so qualifying the person remains in full force other than as reduced paid-up insurance or extended insurance on the date of the meeting or election, and shall have been so in full force for at least one (1) year prior to that date; and (C) Every policyholder shall be entitled to one (1) vote, or to a number of votes based upon the insurance in force, the number of policies held, or the amount of premiums paid, as may be provided in the bylaws.
(A) For the purposes of the meeting or election, "policyholder" means: (i) A person insured by the corporation under an individual life insurance policy or pure endowment contract; (ii) A person to whom the corporation has issued an individual annuity contract, or a policy of noncancelable and guaranteed renewable accident and health insurance; or (iii) Any employer, including the mutualized corporation itself, or other person, firm, corporation or association, some or all of whose employees or members are covered by the corporation with a group life insurance plan or contract or with a group annuity plan or contract;
(i) A person insured by the corporation under an individual life insurance policy or pure endowment contract;
(ii) A person to whom the corporation has issued an individual annuity contract, or a policy of noncancelable and guaranteed renewable accident and health insurance; or
(iii) Any employer, including the mutualized corporation itself, or other person, firm, corporation or association, some or all of whose employees or members are covered by the corporation with a group life insurance plan or contract or with a group annuity plan or contract;
(B) In all cases, the person shall be qualified as a policyholder under this section only so long as the policy or contract so qualifying the person remains in full force other than as reduced paid-up insurance or extended insurance on the date of the meeting or election, and shall have been so in full force for at least one (1) year prior to that date; and
(C) Every policyholder shall be entitled to one (1) vote, or to a number of votes based upon the insurance in force, the number of policies held, or the amount of premiums paid, as may be provided in the bylaws.
(b) Any vacancy occurring on the board of directors may be filled by a majority vote of the board for the unexpired term to which the vacancy relates.
Acts 1949, ch. 91, § 10; C. Supp. 1950, § 6433.22 (Williams, § 6433.26); T.C.A. (orig. ed.), § 56-1606.
Tenn. Code Ann. § 56-4-203 — TN Code / Title 56 / Chapter 4 / Section 56-4-203
State purposes only
Status: in_force

The tax imposed by this part shall be for state purposes only, and no county or city shall be authorized to levy or collect a like tax. Acts 1953, ch. 49, § 1 (Williams, § 1248.169); T.C.A. (orig. ed.), § 56-407.
The tax imposed by this part shall be for state purposes only, and no county or city shall be authorized to levy or collect a like tax.
Acts 1953, ch. 49, § 1 (Williams, § 1248.169); T.C.A. (orig. ed.), § 56-407.
Tenn. Code Ann. § 56-25-403 — TN Code / Title 56 / Chapter 25 / Section 56-25-403
Exemption from attachment, garnishment or other process
Status: in_force

No money or other benefit, charity, relief or aid to be paid, provided or rendered by any society, shall be liable to attachment, garnishment or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment by the society. Acts 1990, ch. 703, § 1.
No money or other benefit, charity, relief or aid to be paid, provided or rendered by any society, shall be liable to attachment, garnishment or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment by the society.
Acts 1990, ch. 703, § 1.
Tenn. Code Ann. § 56-52-104 — TN Code / Title 56 / Chapter 52 / Section 56-52-104
Charitable gift annuity separate accounts
Status: in_force

(a) A charitable organization authorized by this chapter shall maintain one (1) or more charitable gift annuity separate accounts for its charitable gift annuities. The assets allocated to any such separate account shall not be used to satisfy any debts of the charitable organization other than those incurred pursuant to the issuance of charitable gift annuities to which the account applies. The assets of the separate account shall at least equal either: (1) The total amount of donations for outstanding charitable gift annuities to which the account applies, measured at the time of each annuity donation, later reduced by payments under the annuity and taking into account investment gains and losses; or (2) One hundred ten percent (110%) of the reserves, calculated in a manner consistent with subsection (b) for charitable gift annuities to which the separate account applies. (b) (1) Reserves on the outstanding charitable gift annuities shall not be less than reserves calculated using: (A) The commissioner's annuity reserve valuation method as defined in the charitable organization's domestic state standard valuation law; (B) Any mortality table permitted under the charitable organization's domestic state standard valuation law to be used in determining the minimum standard for the valuation of individual annuities issued during the same calendar year as the charitable gift annuity; and (C) The maximum interest rate permitted under the charitable organization's domestic state standard valuation law to be used in determining the minimum standard for the valuation of individual annuities issued during the same calendar year as the charitable gift annuity; or (2) One hundred ten percent (110%) of reserves determined by using the Annuity 2000 Mortality Table and an interest assumption of five percent (5%), or such other mortality table and interest assumption as may be prescribed from time to time by the commissioner. (c) Any portion of the charitable gift annuity risk that is insured or reinsured by the charitable organization with an authorized insurer or reinsurer shall be exempt from subsection (a). For this purpose, any annuity contract purchased from an authorized insurer or reinsurer by the charitable organization is considered to be "annuity risk reinsured." (d) The general assets of the charitable organization shall be liable for charitable gift annuity agreements to the extent that assets allocated to the charitable gift annuity separate accounts are inadequate. (e) A charitable organization may, but is not required to, maintain a charitable gift annuity separate account solely applicable to its charitable gift annuities issued to Tennessee annuitants. Any charitable gift annuity separate account maintained pursuant to this subsection (e) shall be subject to the requirements of subsection (a). Acts 2008, ch. 831, §§ 1, 5; 2011, ch. 95, §§ 1 - 3; 2012, ch. 743, §§ 1, 2.
(a) A charitable organization authorized by this chapter shall maintain one (1) or more charitable gift annuity separate accounts for its charitable gift annuities. The assets allocated to any such separate account shall not be used to satisfy any debts of the charitable organization other than those incurred pursuant to the issuance of charitable gift annuities to which the account applies. The assets of the separate account shall at least equal either: (1) The total amount of donations for outstanding charitable gift annuities to which the account applies, measured at the time of each annuity donation, later reduced by payments under the annuity and taking into account investment gains and losses; or (2) One hundred ten percent (110%) of the reserves, calculated in a manner consistent with subsection (b) for charitable gift annuities to which the separate account applies.
(1) The total amount of donations for outstanding charitable gift annuities to which the account applies, measured at the time of each annuity donation, later reduced by payments under the annuity and taking into account investment gains and losses; or
(2) One hundred ten percent (110%) of the reserves, calculated in a manner consistent with subsection (b) for charitable gift annuities to which the separate account applies.
(b) (1) Reserves on the outstanding charitable gift annuities shall not be less than reserves calculated using: (A) The commissioner's annuity reserve valuation method as defined in the charitable organization's domestic state standard valuation law; (B) Any mortality table permitted under the charitable organization's domestic state standard valuation law to be used in determining the minimum standard for the valuation of individual annuities issued during the same calendar year as the charitable gift annuity; and (C) The maximum interest rate permitted under the charitable organization's domestic state standard valuation law to be used in determining the minimum standard for the valuation of individual annuities issued during the same calendar year as the charitable gift annuity; or (2) One hundred ten percent (110%) of reserves determined by using the Annuity 2000 Mortality Table and an interest assumption of five percent (5%), or such other mortality table and interest assumption as may be prescribed from time to time by the commissioner.
(1) Reserves on the outstanding charitable gift annuities shall not be less than reserves calculated using: (A) The commissioner's annuity reserve valuation method as defined in the charitable organization's domestic state standard valuation law; (B) Any mortality table permitted under the charitable organization's domestic state standard valuation law to be used in determining the minimum standard for the valuation of individual annuities issued during the same calendar year as the charitable gift annuity; and (C) The maximum interest rate permitted under the charitable organization's domestic state standard valuation law to be used in determining the minimum standard for the valuation of individual annuities issued during the same calendar year as the charitable gift annuity; or
(A) The commissioner's annuity reserve valuation method as defined in the charitable organization's domestic state standard valuation law;
(B) Any mortality table permitted under the charitable organization's domestic state standard valuation law to be used in determining the minimum standard for the valuation of individual annuities issued during the same calendar year as the charitable gift annuity; and
(C) The maximum interest rate permitted under the charitable organization's domestic state standard valuation law to be used in determining the minimum standard for the valuation of individual annuities issued during the same calendar year as the charitable gift annuity; or
(2) One hundred ten percent (110%) of reserves determined by using the Annuity 2000 Mortality Table and an interest assumption of five percent (5%), or such other mortality table and interest assumption as may be prescribed from time to time by the commissioner.
(c) Any portion of the charitable gift annuity risk that is insured or reinsured by the charitable organization with an authorized insurer or reinsurer shall be exempt from subsection (a). For this purpose, any annuity contract purchased from an authorized insurer or reinsurer by the charitable organization is considered to be "annuity risk reinsured."
(d) The general assets of the charitable organization shall be liable for charitable gift annuity agreements to the extent that assets allocated to the charitable gift annuity separate accounts are inadequate.
(e) A charitable organization may, but is not required to, maintain a charitable gift annuity separate account solely applicable to its charitable gift annuities issued to Tennessee annuitants. Any charitable gift annuity separate account maintained pursuant to this subsection (e) shall be subject to the requirements of subsection (a).
Acts 2008, ch. 831, §§ 1, 5; 2011, ch. 95, §§ 1 - 3; 2012, ch. 743, §§ 1, 2.
Tenn. Code Ann. § 56-6-905 — TN Code / Title 56 / Chapter 6 / Section 56-6-905
Requirements for licensure
Status: in_force

(a) Before issuing a public adjuster license to an applicant under this part, the commissioner shall find that the applicant: (1) Is eligible to designate this state as the applicant's home state or is eligible for a license pursuant to § 56-6-908 ; (2) Has not committed any act that is a ground for denial, suspension or revocation of a license as set forth in § 56-6-910 ; (3) Is trustworthy, reliable, and of good reputation; (4) Is financially responsible to exercise the license, and has provided proof of financial responsibility as required in § 56-6-911 ; (5) Has paid the fees set forth by rule or regulation of the commissioner; and (6) Maintains an office in the applicant's home state of residence, with public access by reasonable appointment or regular business hours, or both. (b) In addition to satisfying the requirements of subsection (a), unless exempted pursuant to this part, an individual shall: (1) Be at least eighteen (18) years of age; (2) Have successfully passed the public adjuster examination; (3) Designate a licensed individual public adjuster responsible for the business entity's compliance with the insurance laws, rules, and regulations of this state; and (4) Designate only licensed individual public adjusters to exercise the business entity's license. (c) The commissioner may require any documents reasonably necessary to verify the information contained in the application. Acts 2006, ch. 997, § 6.
(a) Before issuing a public adjuster license to an applicant under this part, the commissioner shall find that the applicant: (1) Is eligible to designate this state as the applicant's home state or is eligible for a license pursuant to § 56-6-908 ; (2) Has not committed any act that is a ground for denial, suspension or revocation of a license as set forth in § 56-6-910 ; (3) Is trustworthy, reliable, and of good reputation; (4) Is financially responsible to exercise the license, and has provided proof of financial responsibility as required in § 56-6-911 ; (5) Has paid the fees set forth by rule or regulation of the commissioner; and (6) Maintains an office in the applicant's home state of residence, with public access by reasonable appointment or regular business hours, or both.
(1) Is eligible to designate this state as the applicant's home state or is eligible for a license pursuant to § 56-6-908 ;
(2) Has not committed any act that is a ground for denial, suspension or revocation of a license as set forth in § 56-6-910 ;
(3) Is trustworthy, reliable, and of good reputation;
(4) Is financially responsible to exercise the license, and has provided proof of financial responsibility as required in § 56-6-911 ;
(5) Has paid the fees set forth by rule or regulation of the commissioner; and
(6) Maintains an office in the applicant's home state of residence, with public access by reasonable appointment or regular business hours, or both.
(b) In addition to satisfying the requirements of subsection (a), unless exempted pursuant to this part, an individual shall: (1) Be at least eighteen (18) years of age; (2) Have successfully passed the public adjuster examination; (3) Designate a licensed individual public adjuster responsible for the business entity's compliance with the insurance laws, rules, and regulations of this state; and (4) Designate only licensed individual public adjusters to exercise the business entity's license.
(1) Be at least eighteen (18) years of age;
(2) Have successfully passed the public adjuster examination;
(3) Designate a licensed individual public adjuster responsible for the business entity's compliance with the insurance laws, rules, and regulations of this state; and
(4) Designate only licensed individual public adjusters to exercise the business entity's license.
(c) The commissioner may require any documents reasonably necessary to verify the information contained in the application.
Acts 2006, ch. 997, § 6.
Tenn. Code Ann. § 56-23-101 — TN Code / Title 56 / Chapter 23 / Section 56-23-101
Property, casualty and surety insurance - Certificate of authority
Status: in_force

(a) Every state stock fire insurance company organized and incorporated under the laws of this state and operating under this chapter, before commencing business, must file or deposit with the commissioner of commerce and insurance the following: (1) A properly certified copy of its charter; (2) Satisfactory evidence that it possesses and maintains capital in the amount of not less than nine hundred fifty thousand dollars ($950,000); (3) A duly executed instrument appointing agent for service of process, as required by § 56-2-103 ; and (4) At least one hundred thousand dollars ($100,000) in cash or its equivalent, but the commissioner has the discretion to accept as the equivalent bonds of this state or bonds of the United States; all deposits required by this subdivision (a)(4) shall be subject to the same conditions as required in the case of stock or mutual life insurance companies. (b) The commissioner shall not approve any charter or issue a certificate of authority to any company under this chapter until the commissioner has found that: (1) The company has submitted a plan of operation; and (2) The incorporators, directors and proposed officers are of known character and there is no good reason to believe that they are affiliated, directly or indirectly, through ownership, control, management, reinsurance transactions or other insurance or business relations with any person or persons known to have been involved in the improper manipulation of assets, accounts, reinsurance or any matter inimical to the business of insurance. (c) The commissioner, if satisfied that all the foregoing conditions have been met, shall issue to the company a certificate of authority to do a property, casualty and surety insurance business, as defined in § 56-2-201 , under this chapter. (d) Subdivision (a)(2) does not apply to companies qualified and authorized as state mutual fire insurance companies under chapter 21 of this title prior to May 7, 1969, which thereafter convert to state stock fire insurance companies under chapter 21; provided, that any such company shall have immediately after its conversion, and shall maintain thereafter at all times, a combined capital and surplus, including both earned surplus and capital (contributed) surplus, of not less than three hundred thousand dollars ($300,000). Acts 1973, ch. 293, § 1; T.C.A., § 56-4201.
(a) Every state stock fire insurance company organized and incorporated under the laws of this state and operating under this chapter, before commencing business, must file or deposit with the commissioner of commerce and insurance the following: (1) A properly certified copy of its charter; (2) Satisfactory evidence that it possesses and maintains capital in the amount of not less than nine hundred fifty thousand dollars ($950,000); (3) A duly executed instrument appointing agent for service of process, as required by § 56-2-103 ; and (4) At least one hundred thousand dollars ($100,000) in cash or its equivalent, but the commissioner has the discretion to accept as the equivalent bonds of this state or bonds of the United States; all deposits required by this subdivision (a)(4) shall be subject to the same conditions as required in the case of stock or mutual life insurance companies.
(1) A properly certified copy of its charter;
(2) Satisfactory evidence that it possesses and maintains capital in the amount of not less than nine hundred fifty thousand dollars ($950,000);
(3) A duly executed instrument appointing agent for service of process, as required by § 56-2-103 ; and
(4) At least one hundred thousand dollars ($100,000) in cash or its equivalent, but the commissioner has the discretion to accept as the equivalent bonds of this state or bonds of the United States; all deposits required by this subdivision (a)(4) shall be subject to the same conditions as required in the case of stock or mutual life insurance companies.
(b) The commissioner shall not approve any charter or issue a certificate of authority to any company under this chapter until the commissioner has found that: (1) The company has submitted a plan of operation; and (2) The incorporators, directors and proposed officers are of known character and there is no good reason to believe that they are affiliated, directly or indirectly, through ownership, control, management, reinsurance transactions or other insurance or business relations with any person or persons known to have been involved in the improper manipulation of assets, accounts, reinsurance or any matter inimical to the business of insurance.
(1) The company has submitted a plan of operation; and
(2) The incorporators, directors and proposed officers are of known character and there is no good reason to believe that they are affiliated, directly or indirectly, through ownership, control, management, reinsurance transactions or other insurance or business relations with any person or persons known to have been involved in the improper manipulation of assets, accounts, reinsurance or any matter inimical to the business of insurance.
(c) The commissioner, if satisfied that all the foregoing conditions have been met, shall issue to the company a certificate of authority to do a property, casualty and surety insurance business, as defined in § 56-2-201 , under this chapter.
(d) Subdivision (a)(2) does not apply to companies qualified and authorized as state mutual fire insurance companies under chapter 21 of this title prior to May 7, 1969, which thereafter convert to state stock fire insurance companies under chapter 21; provided, that any such company shall have immediately after its conversion, and shall maintain thereafter at all times, a combined capital and surplus, including both earned surplus and capital (contributed) surplus, of not less than three hundred thousand dollars ($300,000).
Acts 1973, ch. 293, § 1; T.C.A., § 56-4201.
Tenn. Code Ann. § 56-7-2913 — TN Code / Title 56 / Chapter 7 / Section 56-7-2913
[For postponed repeal effective 6/30/2025, see T.C.A. 56-7-2916] Federal funding
Status: in_force

Notwithstanding any law to the contrary, if the state determines not to apply for or accept federal funding for the purposes of this part, any provisions of this part, including any eligibility requirements regarding federally defined eligible individuals as set forth in § 56-7-2908 of this part, would not be subject to nor would the state or board have to comply with any federal requirements mandated as a result of the acceptance of the federal funds. Acts 2006, ch. 867, §§ 3, 14.
Notwithstanding any law to the contrary, if the state determines not to apply for or accept federal funding for the purposes of this part, any provisions of this part, including any eligibility requirements regarding federally defined eligible individuals as set forth in § 56-7-2908 of this part, would not be subject to nor would the state or board have to comply with any federal requirements mandated as a result of the acceptance of the federal funds.
Acts 2006, ch. 867, §§ 3, 14.
Tenn. Code Ann. § 56-4-403 — TN Code / Title 56 / Chapter 4 / Section 56-4-403
Tax imposed - Computation
Status: in_force

(a) Each production credit association shall pay annually to the commissioner of revenue the specified privilege tax provided under this part, which tax is to be measured by the income of the association, and shall be computed at the rate of three and three fourths percent (3.75%) of the net receipts of the association. (b) (1) Net receipts shall be computed on an accrual basis and are defined to be the gross receipts from the following sources: (A) Interest on loans; (B) Loan service fees; (C) Interest on securities unless by law otherwise tax exempt; (D) Compensation or fees or services performed; (E) Capital gains from the sale of real and personal property; and (F) Other receipts; LESS (2) (A) Patronage refunds; and (B) All expenses of the association, which expenses shall include, in addition to the usual and normal expenses of operation: (i) (a) Bad debts charged off; or (b) Annual additions for valuation reserves against loan assets in an amount equal to one half of one percent (0.5%) of the loans outstanding at the end of the fiscal year, to the extent that earnings in the year in excess of other operating expenses permit, until the reserves are equal to, but are not in excess of, three and one half percent (3.5%) of loans outstanding at the end of the fiscal year, whichever sum is greater; (ii) Interest paid or accrued; (iii) Legal recording and abstract fees; (iv) Depreciation on capital assets; (v) Federal, county and city taxes paid or accrued; (vi) Operating expenses on acquired property; (vii) Capital losses; and (viii) Other ordinary and necessary items of expense. Acts 1951, ch. 45, § 2 (Williams, § 1248.180); Acts 1971, ch. 67, § 1; impl. am. Acts 1971, ch. 137, § 2; Acts 1975, ch. 343, § 1; T.C.A (orig. ed.), §§ 67-4502, 67-4-1303.
(a) Each production credit association shall pay annually to the commissioner of revenue the specified privilege tax provided under this part, which tax is to be measured by the income of the association, and shall be computed at the rate of three and three fourths percent (3.75%) of the net receipts of the association.
(b) (1) Net receipts shall be computed on an accrual basis and are defined to be the gross receipts from the following sources: (A) Interest on loans; (B) Loan service fees; (C) Interest on securities unless by law otherwise tax exempt; (D) Compensation or fees or services performed; (E) Capital gains from the sale of real and personal property; and (F) Other receipts; LESS (2) (A) Patronage refunds; and (B) All expenses of the association, which expenses shall include, in addition to the usual and normal expenses of operation: (i) (a) Bad debts charged off; or (b) Annual additions for valuation reserves against loan assets in an amount equal to one half of one percent (0.5%) of the loans outstanding at the end of the fiscal year, to the extent that earnings in the year in excess of other operating expenses permit, until the reserves are equal to, but are not in excess of, three and one half percent (3.5%) of loans outstanding at the end of the fiscal year, whichever sum is greater; (ii) Interest paid or accrued; (iii) Legal recording and abstract fees; (iv) Depreciation on capital assets; (v) Federal, county and city taxes paid or accrued; (vi) Operating expenses on acquired property; (vii) Capital losses; and (viii) Other ordinary and necessary items of expense.
(1) Net receipts shall be computed on an accrual basis and are defined to be the gross receipts from the following sources: (A) Interest on loans; (B) Loan service fees; (C) Interest on securities unless by law otherwise tax exempt; (D) Compensation or fees or services performed; (E) Capital gains from the sale of real and personal property; and (F) Other receipts; LESS
(A) Interest on loans;
(B) Loan service fees;
(C) Interest on securities unless by law otherwise tax exempt;
(D) Compensation or fees or services performed;
(E) Capital gains from the sale of real and personal property; and
(F) Other receipts; LESS
(2) (A) Patronage refunds; and (B) All expenses of the association, which expenses shall include, in addition to the usual and normal expenses of operation: (i) (a) Bad debts charged off; or (b) Annual additions for valuation reserves against loan assets in an amount equal to one half of one percent (0.5%) of the loans outstanding at the end of the fiscal year, to the extent that earnings in the year in excess of other operating expenses permit, until the reserves are equal to, but are not in excess of, three and one half percent (3.5%) of loans outstanding at the end of the fiscal year, whichever sum is greater; (ii) Interest paid or accrued; (iii) Legal recording and abstract fees; (iv) Depreciation on capital assets; (v) Federal, county and city taxes paid or accrued; (vi) Operating expenses on acquired property; (vii) Capital losses; and (viii) Other ordinary and necessary items of expense.
(A) Patronage refunds; and
(B) All expenses of the association, which expenses shall include, in addition to the usual and normal expenses of operation: (i) (a) Bad debts charged off; or (b) Annual additions for valuation reserves against loan assets in an amount equal to one half of one percent (0.5%) of the loans outstanding at the end of the fiscal year, to the extent that earnings in the year in excess of other operating expenses permit, until the reserves are equal to, but are not in excess of, three and one half percent (3.5%) of loans outstanding at the end of the fiscal year, whichever sum is greater; (ii) Interest paid or accrued; (iii) Legal recording and abstract fees; (iv) Depreciation on capital assets; (v) Federal, county and city taxes paid or accrued; (vi) Operating expenses on acquired property; (vii) Capital losses; and (viii) Other ordinary and necessary items of expense.
(i) (a) Bad debts charged off; or (b) Annual additions for valuation reserves against loan assets in an amount equal to one half of one percent (0.5%) of the loans outstanding at the end of the fiscal year, to the extent that earnings in the year in excess of other operating expenses permit, until the reserves are equal to, but are not in excess of, three and one half percent (3.5%) of loans outstanding at the end of the fiscal year, whichever sum is greater;
(a) Bad debts charged off; or
(b) Annual additions for valuation reserves against loan assets in an amount equal to one half of one percent (0.5%) of the loans outstanding at the end of the fiscal year, to the extent that earnings in the year in excess of other operating expenses permit, until the reserves are equal to, but are not in excess of, three and one half percent (3.5%) of loans outstanding at the end of the fiscal year, whichever sum is greater;
(ii) Interest paid or accrued;
(iii) Legal recording and abstract fees;
(iv) Depreciation on capital assets;
(v) Federal, county and city taxes paid or accrued;
(vi) Operating expenses on acquired property;
(vii) Capital losses; and
(viii) Other ordinary and necessary items of expense.
Acts 1951, ch. 45, § 2 (Williams, § 1248.180); Acts 1971, ch. 67, § 1; impl. am. Acts 1971, ch. 137, § 2; Acts 1975, ch. 343, § 1; T.C.A (orig. ed.), §§ 67-4502, 67-4-1303.
Tenn. Code Ann. § 56-7-3720 — TN Code / Title 56 / Chapter 7 / Section 56-7-3720
Applicability
Status: in_force

(a) Except as provided in subsection (b), this part applies to all: (1) Insurers providing a healthcare plan that pays for the provision of healthcare services to covered persons; and (2) Healthcare plans and state healthcare plans. (b) This part does not apply to: (1) Healthcare plans that are subject to the exclusive jurisdiction of the federal Employee Retirement Income Security Act of 1974 ( 29 U.S.C. § 1001 et seq.); (2) A policy of insurance issued pursuant to a contract with the bureau of TennCare; (3) TennCare or a successor program provided for in title 71, chapter 5; or (4) CoverKids or a successor program provided for in the CoverKids Act of 2006, compiled in title 71, chapter 3, part 11. Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
(a) Except as provided in subsection (b), this part applies to all: (1) Insurers providing a healthcare plan that pays for the provision of healthcare services to covered persons; and (2) Healthcare plans and state healthcare plans.
(1) Insurers providing a healthcare plan that pays for the provision of healthcare services to covered persons; and
(2) Healthcare plans and state healthcare plans.
(b) This part does not apply to: (1) Healthcare plans that are subject to the exclusive jurisdiction of the federal Employee Retirement Income Security Act of 1974 ( 29 U.S.C. § 1001 et seq.); (2) A policy of insurance issued pursuant to a contract with the bureau of TennCare; (3) TennCare or a successor program provided for in title 71, chapter 5; or (4) CoverKids or a successor program provided for in the CoverKids Act of 2006, compiled in title 71, chapter 3, part 11.
(1) Healthcare plans that are subject to the exclusive jurisdiction of the federal Employee Retirement Income Security Act of 1974 ( 29 U.S.C. § 1001 et seq.);
(2) A policy of insurance issued pursuant to a contract with the bureau of TennCare;
(3) TennCare or a successor program provided for in title 71, chapter 5; or
(4) CoverKids or a successor program provided for in the CoverKids Act of 2006, compiled in title 71, chapter 3, part 11.
Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
Tenn. Code Ann. § 56-7-305 — TN Code / Title 56 / Chapter 7 / Section 56-7-305
Submission to commissioner for approval
Status: in_force

Every life insurance company shall submit to the commissioner for approval the words required in § 56-7-2310 , to be printed on each policy, together with sample copy of every kind or class of policies offered for sale in this state, and every life insurance company shall print on each of its policies sold to citizens of this state the words the commissioner approves. Acts 1905, ch. 392, § 2; Shan., § 3348a16; Code 1932, § 6187; T.C.A. (orig. ed.), § 56-1116.
Every life insurance company shall submit to the commissioner for approval the words required in § 56-7-2310 , to be printed on each policy, together with sample copy of every kind or class of policies offered for sale in this state, and every life insurance company shall print on each of its policies sold to citizens of this state the words the commissioner approves.
Acts 1905, ch. 392, § 2; Shan., § 3348a16; Code 1932, § 6187; T.C.A. (orig. ed.), § 56-1116.
Tenn. Code Ann. § 56-7-3201 — TN Code / Title 56 / Chapter 7 / Section 56-7-3201
Part definitions
Status: in_force

As used in this part, unless the context otherwise requires: (1) "Actual reimbursement" means the total amount that a covered entity or pharmacy benefits manager determines that a pharmacy or other dispenser will receive consistent with the provider agreement, and is the sum of the amount the covered entity or pharmacy benefits manager will pay directly to the pharmacy or other dispenser plus any applicable patient out-of-pocket cost paid directly by the patient to the pharmacy or other dispenser, for dispensing of a particular prescription or providing a covered service; (2) "Cost sharing requirement" means a copayment, coinsurance, deductible, or annual limitation on cost sharing, including, but not limited to, a limitation subject to 42 U.S.C. §§ 18022(c) and 300gg -6(b), required by, or on behalf of, an enrollee in order to receive a specific healthcare service covered by a health plan, including a prescription drug, whether under the medical or the pharmacy benefit; (3) "Covered entity" means a covered entity as defined in § 56-7-3102 ; (4) "Generic alternative" means a drug that is designated to be therapeutically equivalent by the United States food and drug administration's Approved Drug Products with Therapeutic Equivalence Evaluations; (5) "Pharmacy benefits manager" means a pharmacy benefits manager as defined in § 56-7-3102 ; and (6) "Prescription drug" means a drug that under federal or state law is required to be dispensed only pursuant to a prescription order or is restricted to use by individuals authorized by law to prescribe drugs. Amended by 2021 Tenn. Acts, ch. 405, s 1, eff. 7/1/2021. Acts 2009 , ch. 355, § 1.
As used in this part, unless the context otherwise requires:
(1) "Actual reimbursement" means the total amount that a covered entity or pharmacy benefits manager determines that a pharmacy or other dispenser will receive consistent with the provider agreement, and is the sum of the amount the covered entity or pharmacy benefits manager will pay directly to the pharmacy or other dispenser plus any applicable patient out-of-pocket cost paid directly by the patient to the pharmacy or other dispenser, for dispensing of a particular prescription or providing a covered service;
(2) "Cost sharing requirement" means a copayment, coinsurance, deductible, or annual limitation on cost sharing, including, but not limited to, a limitation subject to 42 U.S.C. §§ 18022(c) and 300gg -6(b), required by, or on behalf of, an enrollee in order to receive a specific healthcare service covered by a health plan, including a prescription drug, whether under the medical or the pharmacy benefit;
(3) "Covered entity" means a covered entity as defined in § 56-7-3102 ;
(4) "Generic alternative" means a drug that is designated to be therapeutically equivalent by the United States food and drug administration's Approved Drug Products with Therapeutic Equivalence Evaluations;
(5) "Pharmacy benefits manager" means a pharmacy benefits manager as defined in § 56-7-3102 ; and
(6) "Prescription drug" means a drug that under federal or state law is required to be dispensed only pursuant to a prescription order or is restricted to use by individuals authorized by law to prescribe drugs.
Amended by 2021 Tenn. Acts, ch. 405, s 1, eff. 7/1/2021.
Acts 2009 , ch. 355, § 1.
Tenn. Code Ann. § 56-7-205 — TN Code / Title 56 / Chapter 7 / Section 56-7-205
Life insurance - Restrictions on deposits
Status: in_force

(a) A life insurance company may not accept additional payments under policy provisions that permit deposits to be made in funds that are ancillary to the basic benefits and that are established for the payment of future premiums on individual life policies or annuity contracts, or for the purchase of annuity benefits under the policies or contracts at a future date, unless it meets the following conditions and limitations: (1) (A) In the case of life insurance policies, the maximum amount that may be held by the insurer at any time in the funds is the lesser of: (i) The total amount of the next ten (10) annual premiums payable; or (ii) The difference between the greater of the sum assured or the guaranteed maturity value and the cash value; or (B) In the case of annuity contracts, the maximum amount that may be held by the insurer at any time in the funds is five (5) times the maximum annual amount that may be deposited in the funds as specified in subdivision (a)(2); (2) For both life insurance policies and annuity contracts, the maximum amount that may be deposited in the funds in any one (1) year is two (2) annual premiums currently payable under the policy, or in the case of policies or contracts under which premiums may vary in amount, twice the average amount of annual premiums paid under the policy or contract during the previous five (5) years or the number of years for which the policy or contract has been in force, if fewer than five (5) years; (3) If the insurer guarantees interest rates on the funds in excess of the interest rate permitted for the valuation of annuities and pure endowments, additional reserves in respect of the interest guarantees may be required, based on requirements determined by the commissioner; (4) Unpaid premiums under life insurance policies shall be automatically paid from the deposit fund, unless the policy provides that any automatic premium loan provision shall first become effective; (5) The funds shall be payable upon death or other termination of the policy or contract; (6) Provisions may be included to allow policy owners to withdraw the funds subject to the condition that the policy provision reserves to the insurer the right to defer payment for six (6) months; (7) Any projections of these funds at current interest rates that may be used must be clearly identified as current rate projections, and the current rate projections are restricted to the same policy periods or attained ages as projections made at guaranteed interest rates. Projections at interest rates in excess of the rates guaranteed may not be made for any attained ages greater than sixty-five (65) years of age; (8) Sales promotion literature and contract forms shall not in any way create the impression that the funds are the same as a savings account or deposit in a bank or savings institution and the use of passbooks that bear any resemblance to savings bank passbooks or similar items is prohibited; and (9) (A) The limitations in subdivisions (a)(1) and (2) shall not apply to: (i) A single payment equal to the discounted value of specific premiums paid in advance; and (ii) A policyholder's deposit account established primarily as a premium payment facility, unless the total amount in the account exceeds twice the sum of the annual premiums payable on all policies for which premiums are being paid from the account; (B) (i) The limitations in subdivision (a)(1) shall not apply to a policyholder's deposit account if a penalty is imposed upon the policyholder on funds withdrawn in cash, the penalty to be imposed only when total funds withdrawn exceed an amount equal to the limitations in subdivision (a)(1), the penalty to be equal to interest earnings in excess of the guaranteed rate on the amount of policyholder's withdrawal during the six-month period immediately preceding policyholder's withdrawal request; provided, that the penalty shall be waived by the insurer: (a) During the thirty-day period immediately following each three-year policy period from the effective date of the policy; and (b) At any time after the insured attains sixty (60) years of age; (ii) The penalty shall not be applicable to payment upon death or termination of the policy or contract. (b) This section shall not apply: (1) Except for subdivisions (a)(3), (7) and (8), to policies or contracts issued under pension or profit-sharing plans, including plans that cover self-employed individuals and owner-employees, that qualify for special tax treatment under the Internal Revenue Code, compiled in 26 U.S.C., and are regulated by the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. § 1001 , et seq.); (2) Except for subdivisions (a)(3), (7) and (8), to policies or contracts issued in connection with individual retirement accounts, as defined in the Internal Revenue Code; (3) Except for subdivisions (a)(3), (7) and (8), to annuity contracts purchased by public schools, religious, charitable or other similar organizations; or (4) To variable annuities. Acts 1976, ch. 398, § 1; 1977, ch. 342, § 1; T.C.A., § 56-1170.
(a) A life insurance company may not accept additional payments under policy provisions that permit deposits to be made in funds that are ancillary to the basic benefits and that are established for the payment of future premiums on individual life policies or annuity contracts, or for the purchase of annuity benefits under the policies or contracts at a future date, unless it meets the following conditions and limitations: (1) (A) In the case of life insurance policies, the maximum amount that may be held by the insurer at any time in the funds is the lesser of: (i) The total amount of the next ten (10) annual premiums payable; or (ii) The difference between the greater of the sum assured or the guaranteed maturity value and the cash value; or (B) In the case of annuity contracts, the maximum amount that may be held by the insurer at any time in the funds is five (5) times the maximum annual amount that may be deposited in the funds as specified in subdivision (a)(2); (2) For both life insurance policies and annuity contracts, the maximum amount that may be deposited in the funds in any one (1) year is two (2) annual premiums currently payable under the policy, or in the case of policies or contracts under which premiums may vary in amount, twice the average amount of annual premiums paid under the policy or contract during the previous five (5) years or the number of years for which the policy or contract has been in force, if fewer than five (5) years; (3) If the insurer guarantees interest rates on the funds in excess of the interest rate permitted for the valuation of annuities and pure endowments, additional reserves in respect of the interest guarantees may be required, based on requirements determined by the commissioner; (4) Unpaid premiums under life insurance policies shall be automatically paid from the deposit fund, unless the policy provides that any automatic premium loan provision shall first become effective; (5) The funds shall be payable upon death or other termination of the policy or contract; (6) Provisions may be included to allow policy owners to withdraw the funds subject to the condition that the policy provision reserves to the insurer the right to defer payment for six (6) months; (7) Any projections of these funds at current interest rates that may be used must be clearly identified as current rate projections, and the current rate projections are restricted to the same policy periods or attained ages as projections made at guaranteed interest rates. Projections at interest rates in excess of the rates guaranteed may not be made for any attained ages greater than sixty-five (65) years of age; (8) Sales promotion literature and contract forms shall not in any way create the impression that the funds are the same as a savings account or deposit in a bank or savings institution and the use of passbooks that bear any resemblance to savings bank passbooks or similar items is prohibited; and (9) (A) The limitations in subdivisions (a)(1) and (2) shall not apply to: (i) A single payment equal to the discounted value of specific premiums paid in advance; and (ii) A policyholder's deposit account established primarily as a premium payment facility, unless the total amount in the account exceeds twice the sum of the annual premiums payable on all policies for which premiums are being paid from the account; (B) (i) The limitations in subdivision (a)(1) shall not apply to a policyholder's deposit account if a penalty is imposed upon the policyholder on funds withdrawn in cash, the penalty to be imposed only when total funds withdrawn exceed an amount equal to the limitations in subdivision (a)(1), the penalty to be equal to interest earnings in excess of the guaranteed rate on the amount of policyholder's withdrawal during the six-month period immediately preceding policyholder's withdrawal request; provided, that the penalty shall be waived by the insurer: (a) During the thirty-day period immediately following each three-year policy period from the effective date of the policy; and (b) At any time after the insured attains sixty (60) years of age; (ii) The penalty shall not be applicable to payment upon death or termination of the policy or contract.
(1) (A) In the case of life insurance policies, the maximum amount that may be held by the insurer at any time in the funds is the lesser of: (i) The total amount of the next ten (10) annual premiums payable; or (ii) The difference between the greater of the sum assured or the guaranteed maturity value and the cash value; or (B) In the case of annuity contracts, the maximum amount that may be held by the insurer at any time in the funds is five (5) times the maximum annual amount that may be deposited in the funds as specified in subdivision (a)(2);
(A) In the case of life insurance policies, the maximum amount that may be held by the insurer at any time in the funds is the lesser of: (i) The total amount of the next ten (10) annual premiums payable; or (ii) The difference between the greater of the sum assured or the guaranteed maturity value and the cash value; or
(i) The total amount of the next ten (10) annual premiums payable; or
(ii) The difference between the greater of the sum assured or the guaranteed maturity value and the cash value; or
(B) In the case of annuity contracts, the maximum amount that may be held by the insurer at any time in the funds is five (5) times the maximum annual amount that may be deposited in the funds as specified in subdivision (a)(2);
(2) For both life insurance policies and annuity contracts, the maximum amount that may be deposited in the funds in any one (1) year is two (2) annual premiums currently payable under the policy, or in the case of policies or contracts under which premiums may vary in amount, twice the average amount of annual premiums paid under the policy or contract during the previous five (5) years or the number of years for which the policy or contract has been in force, if fewer than five (5) years;
(3) If the insurer guarantees interest rates on the funds in excess of the interest rate permitted for the valuation of annuities and pure endowments, additional reserves in respect of the interest guarantees may be required, based on requirements determined by the commissioner;
(4) Unpaid premiums under life insurance policies shall be automatically paid from the deposit fund, unless the policy provides that any automatic premium loan provision shall first become effective;
(5) The funds shall be payable upon death or other termination of the policy or contract;
(6) Provisions may be included to allow policy owners to withdraw the funds subject to the condition that the policy provision reserves to the insurer the right to defer payment for six (6) months;
(7) Any projections of these funds at current interest rates that may be used must be clearly identified as current rate projections, and the current rate projections are restricted to the same policy periods or attained ages as projections made at guaranteed interest rates. Projections at interest rates in excess of the rates guaranteed may not be made for any attained ages greater than sixty-five (65) years of age;
(8) Sales promotion literature and contract forms shall not in any way create the impression that the funds are the same as a savings account or deposit in a bank or savings institution and the use of passbooks that bear any resemblance to savings bank passbooks or similar items is prohibited; and
(9) (A) The limitations in subdivisions (a)(1) and (2) shall not apply to: (i) A single payment equal to the discounted value of specific premiums paid in advance; and (ii) A policyholder's deposit account established primarily as a premium payment facility, unless the total amount in the account exceeds twice the sum of the annual premiums payable on all policies for which premiums are being paid from the account; (B) (i) The limitations in subdivision (a)(1) shall not apply to a policyholder's deposit account if a penalty is imposed upon the policyholder on funds withdrawn in cash, the penalty to be imposed only when total funds withdrawn exceed an amount equal to the limitations in subdivision (a)(1), the penalty to be equal to interest earnings in excess of the guaranteed rate on the amount of policyholder's withdrawal during the six-month period immediately preceding policyholder's withdrawal request; provided, that the penalty shall be waived by the insurer: (a) During the thirty-day period immediately following each three-year policy period from the effective date of the policy; and (b) At any time after the insured attains sixty (60) years of age; (ii) The penalty shall not be applicable to payment upon death or termination of the policy or contract.
(A) The limitations in subdivisions (a)(1) and (2) shall not apply to: (i) A single payment equal to the discounted value of specific premiums paid in advance; and (ii) A policyholder's deposit account established primarily as a premium payment facility, unless the total amount in the account exceeds twice the sum of the annual premiums payable on all policies for which premiums are being paid from the account;
(i) A single payment equal to the discounted value of specific premiums paid in advance; and
(ii) A policyholder's deposit account established primarily as a premium payment facility, unless the total amount in the account exceeds twice the sum of the annual premiums payable on all policies for which premiums are being paid from the account;
(B) (i) The limitations in subdivision (a)(1) shall not apply to a policyholder's deposit account if a penalty is imposed upon the policyholder on funds withdrawn in cash, the penalty to be imposed only when total funds withdrawn exceed an amount equal to the limitations in subdivision (a)(1), the penalty to be equal to interest earnings in excess of the guaranteed rate on the amount of policyholder's withdrawal during the six-month period immediately preceding policyholder's withdrawal request; provided, that the penalty shall be waived by the insurer: (a) During the thirty-day period immediately following each three-year policy period from the effective date of the policy; and (b) At any time after the insured attains sixty (60) years of age; (ii) The penalty shall not be applicable to payment upon death or termination of the policy or contract.
(i) The limitations in subdivision (a)(1) shall not apply to a policyholder's deposit account if a penalty is imposed upon the policyholder on funds withdrawn in cash, the penalty to be imposed only when total funds withdrawn exceed an amount equal to the limitations in subdivision (a)(1), the penalty to be equal to interest earnings in excess of the guaranteed rate on the amount of policyholder's withdrawal during the six-month period immediately preceding policyholder's withdrawal request; provided, that the penalty shall be waived by the insurer: (a) During the thirty-day period immediately following each three-year policy period from the effective date of the policy; and (b) At any time after the insured attains sixty (60) years of age;
(a) During the thirty-day period immediately following each three-year policy period from the effective date of the policy; and
(b) At any time after the insured attains sixty (60) years of age;
(ii) The penalty shall not be applicable to payment upon death or termination of the policy or contract.
(b) This section shall not apply: (1) Except for subdivisions (a)(3), (7) and (8), to policies or contracts issued under pension or profit-sharing plans, including plans that cover self-employed individuals and owner-employees, that qualify for special tax treatment under the Internal Revenue Code, compiled in 26 U.S.C., and are regulated by the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. § 1001 , et seq.); (2) Except for subdivisions (a)(3), (7) and (8), to policies or contracts issued in connection with individual retirement accounts, as defined in the Internal Revenue Code; (3) Except for subdivisions (a)(3), (7) and (8), to annuity contracts purchased by public schools, religious, charitable or other similar organizations; or (4) To variable annuities.
(1) Except for subdivisions (a)(3), (7) and (8), to policies or contracts issued under pension or profit-sharing plans, including plans that cover self-employed individuals and owner-employees, that qualify for special tax treatment under the Internal Revenue Code, compiled in 26 U.S.C., and are regulated by the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. § 1001 , et seq.);
(2) Except for subdivisions (a)(3), (7) and (8), to policies or contracts issued in connection with individual retirement accounts, as defined in the Internal Revenue Code;
(3) Except for subdivisions (a)(3), (7) and (8), to annuity contracts purchased by public schools, religious, charitable or other similar organizations; or
(4) To variable annuities.
Acts 1976, ch. 398, § 1; 1977, ch. 342, § 1; T.C.A., § 56-1170.
Tenn. Code Ann. § 56-5-110 — TN Code / Title 56 / Chapter 5 / Section 56-5-110
Licensing of rate service organizations - Activities and services
Status: in_force

(a) License Required. No rate service organization shall provide any service relating to the rates of any insurance subject to this part, and no insurer shall utilize the services of the organization for those purposes unless the organization has obtained a license under subsection (d). (b) Authorized Activities. Any licensed rate service organization may: (1) Collect, compile, and furnish loss or expense statistics; (2) Recommend, make or file rates or supplementary rate information; (3) Advise about rate questions and provide supporting information for rates; (4) Develop, recommend or file policy provisions or forms, coverages, classifications, and statistical plans; (5) Make inspections, surveys and audits; (6) Conduct research and on-the-site inspections in order to prepare classifications of public fire defenses; (7) Provide actuarial, statistical and administrative services to insurers and insurer-supported organizations; (8) Conduct and report on the content of research projects; and (9) Furnish any other services related to those enumerated in this subsection (b). (c) Availability of Services. No rate service organization shall refuse to supply any services for which it is licensed in this state to any insurer authorized to do business in this state and offering to pay the fair and usual compensation for the services, nor shall a rate service organization require the purchase of any specific services as a condition to obtaining the services sought; provided, that the furnishing of the requested services does not place an unreasonable burden on the rate service organization. (d) Licensing. (1) Application. A rate service organization applying for a license shall include with its application: (A) A copy of its constitution, articles of association or incorporation, bylaws, and any other rules or regulations governing the conduct of its business; (B) A list of its members and subscribers; (C) A service and acknowledgment of service of process as provided for insurance companies under § 56-2-501 ; and (D) A statement showing its technical qualifications. (2) Granting of a License. If the commissioner finds that the applicant is qualified, the commissioner shall issue a license specifying the kinds of insurance or subdivisions of kinds of insurance for which the applicant is authorized to act as a rate service organization. Every application shall be granted or denied in whole or in part by the commissioner within sixty (60) days after the date of its filing. Licenses issued pursuant to this section shall remain in effect until suspended or revoked by the commissioner. The fee for the license shall be one hundred dollars ($100). Acts 1983, ch. 66, § 11.
(a) License Required. No rate service organization shall provide any service relating to the rates of any insurance subject to this part, and no insurer shall utilize the services of the organization for those purposes unless the organization has obtained a license under subsection (d).
(b) Authorized Activities. Any licensed rate service organization may: (1) Collect, compile, and furnish loss or expense statistics; (2) Recommend, make or file rates or supplementary rate information; (3) Advise about rate questions and provide supporting information for rates; (4) Develop, recommend or file policy provisions or forms, coverages, classifications, and statistical plans; (5) Make inspections, surveys and audits; (6) Conduct research and on-the-site inspections in order to prepare classifications of public fire defenses; (7) Provide actuarial, statistical and administrative services to insurers and insurer-supported organizations; (8) Conduct and report on the content of research projects; and (9) Furnish any other services related to those enumerated in this subsection (b).
(1) Collect, compile, and furnish loss or expense statistics;
(2) Recommend, make or file rates or supplementary rate information;
(3) Advise about rate questions and provide supporting information for rates;
(4) Develop, recommend or file policy provisions or forms, coverages, classifications, and statistical plans;
(5) Make inspections, surveys and audits;
(6) Conduct research and on-the-site inspections in order to prepare classifications of public fire defenses;
(7) Provide actuarial, statistical and administrative services to insurers and insurer-supported organizations;
(8) Conduct and report on the content of research projects; and
(9) Furnish any other services related to those enumerated in this subsection (b).
(c) Availability of Services. No rate service organization shall refuse to supply any services for which it is licensed in this state to any insurer authorized to do business in this state and offering to pay the fair and usual compensation for the services, nor shall a rate service organization require the purchase of any specific services as a condition to obtaining the services sought; provided, that the furnishing of the requested services does not place an unreasonable burden on the rate service organization.
(d) Licensing. (1) Application. A rate service organization applying for a license shall include with its application: (A) A copy of its constitution, articles of association or incorporation, bylaws, and any other rules or regulations governing the conduct of its business; (B) A list of its members and subscribers; (C) A service and acknowledgment of service of process as provided for insurance companies under § 56-2-501 ; and (D) A statement showing its technical qualifications. (2) Granting of a License. If the commissioner finds that the applicant is qualified, the commissioner shall issue a license specifying the kinds of insurance or subdivisions of kinds of insurance for which the applicant is authorized to act as a rate service organization. Every application shall be granted or denied in whole or in part by the commissioner within sixty (60) days after the date of its filing. Licenses issued pursuant to this section shall remain in effect until suspended or revoked by the commissioner. The fee for the license shall be one hundred dollars ($100).
(1) Application. A rate service organization applying for a license shall include with its application: (A) A copy of its constitution, articles of association or incorporation, bylaws, and any other rules or regulations governing the conduct of its business; (B) A list of its members and subscribers; (C) A service and acknowledgment of service of process as provided for insurance companies under § 56-2-501 ; and (D) A statement showing its technical qualifications.
(A) A copy of its constitution, articles of association or incorporation, bylaws, and any other rules or regulations governing the conduct of its business;
(B) A list of its members and subscribers;
(C) A service and acknowledgment of service of process as provided for insurance companies under § 56-2-501 ; and
(D) A statement showing its technical qualifications.
(2) Granting of a License. If the commissioner finds that the applicant is qualified, the commissioner shall issue a license specifying the kinds of insurance or subdivisions of kinds of insurance for which the applicant is authorized to act as a rate service organization. Every application shall be granted or denied in whole or in part by the commissioner within sixty (60) days after the date of its filing. Licenses issued pursuant to this section shall remain in effect until suspended or revoked by the commissioner. The fee for the license shall be one hundred dollars ($100).
Acts 1983, ch. 66, § 11.
Tenn. Code Ann. § 56-10-202 — TN Code / Title 56 / Chapter 10 / Section 56-10-202
Tender offer or agreement for obtaining control of domestic insurance company - Prerequisites
Status: in_force

(a) No person shall make a tender offer for, enter into any agreement to exchange securities for, or otherwise seek to acquire, any voting security of a domestic insurance company if, as a result of the consummation thereof, the person could, directly or indirectly, acquire control of the insurer, unless, at the time any form of initial offer is made to security holders, or prior to the acquisition of the securities, if no offer is involved, the person has filed with the commissioner and has sent to the insurer a statement containing the following information, and any additional information the commissioner may by rule or regulation prescribe as necessary or appropriate for the protection of policyholders and shareholders of the insurer, or in the public interest: (1) The background and identity of all persons by whom or on whose behalf the acquisition is to be effected; (2) The source and amount of the funds or other considerations used or to be used in making the acquisition; (3) Any plans or proposals which the persons may have to liquidate the insurer, to sell its assets or merge or consolidate it with any person, or to make any other major change in its business or corporate structure or management; (4) The number of shares of the security that the person proposes to acquire, and the terms of the offer or exchange, as the case may be; and (5) Information as to any contracts, arrangements or understandings with any party with respect to any securities of the insurer, including, but not limited to, transfer of any of the securities, option arrangements, puts or calls, or the giving or withholding of proxies, naming the party with whom the contract, arrangements or understandings have been entered into, and giving the details of the activity. (b) If any material change occurs in the facts set forth in the statement filed with the commissioner and sent to the insurer pursuant to this section, an amendment shall be filed immediately with the commissioner and sent immediately to the insurer setting forth the changes. Acts 1969, ch. 271, § 1; impl. am. Acts 1971, ch. 137, § 2; T.C.A., § 56-3612.
(a) No person shall make a tender offer for, enter into any agreement to exchange securities for, or otherwise seek to acquire, any voting security of a domestic insurance company if, as a result of the consummation thereof, the person could, directly or indirectly, acquire control of the insurer, unless, at the time any form of initial offer is made to security holders, or prior to the acquisition of the securities, if no offer is involved, the person has filed with the commissioner and has sent to the insurer a statement containing the following information, and any additional information the commissioner may by rule or regulation prescribe as necessary or appropriate for the protection of policyholders and shareholders of the insurer, or in the public interest: (1) The background and identity of all persons by whom or on whose behalf the acquisition is to be effected; (2) The source and amount of the funds or other considerations used or to be used in making the acquisition; (3) Any plans or proposals which the persons may have to liquidate the insurer, to sell its assets or merge or consolidate it with any person, or to make any other major change in its business or corporate structure or management; (4) The number of shares of the security that the person proposes to acquire, and the terms of the offer or exchange, as the case may be; and (5) Information as to any contracts, arrangements or understandings with any party with respect to any securities of the insurer, including, but not limited to, transfer of any of the securities, option arrangements, puts or calls, or the giving or withholding of proxies, naming the party with whom the contract, arrangements or understandings have been entered into, and giving the details of the activity.
(1) The background and identity of all persons by whom or on whose behalf the acquisition is to be effected;
(2) The source and amount of the funds or other considerations used or to be used in making the acquisition;
(3) Any plans or proposals which the persons may have to liquidate the insurer, to sell its assets or merge or consolidate it with any person, or to make any other major change in its business or corporate structure or management;
(4) The number of shares of the security that the person proposes to acquire, and the terms of the offer or exchange, as the case may be; and
(5) Information as to any contracts, arrangements or understandings with any party with respect to any securities of the insurer, including, but not limited to, transfer of any of the securities, option arrangements, puts or calls, or the giving or withholding of proxies, naming the party with whom the contract, arrangements or understandings have been entered into, and giving the details of the activity.
(b) If any material change occurs in the facts set forth in the statement filed with the commissioner and sent to the insurer pursuant to this section, an amendment shall be filed immediately with the commissioner and sent immediately to the insurer setting forth the changes.
Acts 1969, ch. 271, § 1; impl. am. Acts 1971, ch. 137, § 2; T.C.A., § 56-3612.
Tenn. Code Ann. § 56-4-216 — TN Code / Title 56 / Chapter 4 / Section 56-4-216
Delinquency
Status: in_force

(a) (1) Any foreign or domestic company failing and neglecting to make returns and payments promptly and correctly as provided by § 56-4-205 shall forfeit and pay to the state, in addition to the amount of these taxes, an amount equal to five percent (5%) for the first month or fractional part of the first month of delinquency; provided, that should the period of delinquency exceed one (1) month, the rate of penalty will be an additional five percent (5%) for the second month or fractional part of the second month and penalty thereafter at the rate of one half of one percent (0.5%) per month of the amount of tax due, the maximum penalty not to exceed ten thousand dollars ($10,000) for any company not more than three (3) days delinquent. All delinquencies shall bear interest at the rate of ten percent (10%) per annum from the date the amount was due until paid. The penalty and interest shall apply to any part of the tax unpaid by the due date and no penalty or interest may be waived. (2) The commissioner has the discretion, for good cause shown, upon application made in advance of the delinquency date, to grant an extension of time not to exceed sixty (60) days, to the company to file the premium tax returns and pay the tax imposed in this part, without penalty attached, but the tax shall bear interest as provided in subdivision (a)(1) from the date the amount was due. (3) For good cause shown, the commissioner may grant an exemption from the electronic reporting requirements of § 56-4-205 and permit timely filings and payments by nonelectronic means upon application made in advance of the delinquency date. (b) Any company failing to pay the tax due plus penalty and interest for sixty (60) days beyond the due date shall thereafter be debarred from transacting any business of insurance in the state until these taxes and penalties are fully paid, and the commissioner shall revoke the certificate of authority granted to the agent or agents for that company to transact business in the state. (c) Notwithstanding any other statutes of this state, no grace period for the filing of returns and payments shall be allowed. (d) A premium tax return and payment made to the department shall not be considered as paid on or before the due date unless the premium tax return and payment are received in the office of the commissioner, in the electronic manner approved by the commissioner, on or before the due date. (e) If an exemption is granted pursuant to subdivision (a)(3), a premium tax return and payment made to the department shall not be considered as paid on or before the due date unless: (1) The premium tax return and payment are received in the office of the commissioner on or before the due date; (2) (A) The premium tax return and payment bear a post office cancellation mark stamped by the United States postal service on or before the due date, or are mailed by certified or registered mail, or have a certificate of mailing on or before the due date. A premium tax return and payment received by the department bearing a metered mail stamp and no post office cancellation mark stamped by the United States postal service shall be deemed filed and received on the date the premium tax return arrives at the department; (B) In the event a premium tax return and payment are mailed, but not received by the department, or received, and the cancellation mark is illegible or omitted, the return and payment shall be deemed filed and received, on the date they were mailed, if the sender establishes that the premium tax return and payment were deposited in the United States mail. In order to establish proof of mailing under these circumstances, a record authenticated by the United States postal service that the original mailing was sent registered mail, certified mail, or by certificate of mailing, shall be the only proof accepted by the department; or (3) The premium tax and payment are received in a manner established by the commissioner by rules. The rules may provide for the filing of premium tax returns and payments to be made through electronic means. The commissioner is also authorized to promulgate rules that provide for a convenience fee to cover the cost of accepting electronic premium tax returns and payments. Any fee set by rule under the authority of this subdivision (e)(3) may be assessed in addition to any applicable penalty and interest. In no event shall the convenience fee exceed the actual costs incurred by the department in accepting electronic premium tax returns and payments. Amended by 2015 Tenn. Acts, ch. 155,s 13, eff. 1/1/2016. Amended by 2015 Tenn. Acts, ch. 155,s 12, eff. 1/1/2016. Acts 1975, ch. 114, § 1; 1977, ch. 45, § 1; T.C.A., § 56-420; Acts 1984, ch. 635, § 1; 1991, ch. 291, §§ 2-6; 2006, ch. 1018, § 2.
(a) (1) Any foreign or domestic company failing and neglecting to make returns and payments promptly and correctly as provided by § 56-4-205 shall forfeit and pay to the state, in addition to the amount of these taxes, an amount equal to five percent (5%) for the first month or fractional part of the first month of delinquency; provided, that should the period of delinquency exceed one (1) month, the rate of penalty will be an additional five percent (5%) for the second month or fractional part of the second month and penalty thereafter at the rate of one half of one percent (0.5%) per month of the amount of tax due, the maximum penalty not to exceed ten thousand dollars ($10,000) for any company not more than three (3) days delinquent. All delinquencies shall bear interest at the rate of ten percent (10%) per annum from the date the amount was due until paid. The penalty and interest shall apply to any part of the tax unpaid by the due date and no penalty or interest may be waived. (2) The commissioner has the discretion, for good cause shown, upon application made in advance of the delinquency date, to grant an extension of time not to exceed sixty (60) days, to the company to file the premium tax returns and pay the tax imposed in this part, without penalty attached, but the tax shall bear interest as provided in subdivision (a)(1) from the date the amount was due. (3) For good cause shown, the commissioner may grant an exemption from the electronic reporting requirements of § 56-4-205 and permit timely filings and payments by nonelectronic means upon application made in advance of the delinquency date.
(1) Any foreign or domestic company failing and neglecting to make returns and payments promptly and correctly as provided by § 56-4-205 shall forfeit and pay to the state, in addition to the amount of these taxes, an amount equal to five percent (5%) for the first month or fractional part of the first month of delinquency; provided, that should the period of delinquency exceed one (1) month, the rate of penalty will be an additional five percent (5%) for the second month or fractional part of the second month and penalty thereafter at the rate of one half of one percent (0.5%) per month of the amount of tax due, the maximum penalty not to exceed ten thousand dollars ($10,000) for any company not more than three (3) days delinquent. All delinquencies shall bear interest at the rate of ten percent (10%) per annum from the date the amount was due until paid. The penalty and interest shall apply to any part of the tax unpaid by the due date and no penalty or interest may be waived.
(2) The commissioner has the discretion, for good cause shown, upon application made in advance of the delinquency date, to grant an extension of time not to exceed sixty (60) days, to the company to file the premium tax returns and pay the tax imposed in this part, without penalty attached, but the tax shall bear interest as provided in subdivision (a)(1) from the date the amount was due.
(3) For good cause shown, the commissioner may grant an exemption from the electronic reporting requirements of § 56-4-205 and permit timely filings and payments by nonelectronic means upon application made in advance of the delinquency date.
(b) Any company failing to pay the tax due plus penalty and interest for sixty (60) days beyond the due date shall thereafter be debarred from transacting any business of insurance in the state until these taxes and penalties are fully paid, and the commissioner shall revoke the certificate of authority granted to the agent or agents for that company to transact business in the state.
(c) Notwithstanding any other statutes of this state, no grace period for the filing of returns and payments shall be allowed.
(d) A premium tax return and payment made to the department shall not be considered as paid on or before the due date unless the premium tax return and payment are received in the office of the commissioner, in the electronic manner approved by the commissioner, on or before the due date.
(e) If an exemption is granted pursuant to subdivision (a)(3), a premium tax return and payment made to the department shall not be considered as paid on or before the due date unless: (1) The premium tax return and payment are received in the office of the commissioner on or before the due date; (2) (A) The premium tax return and payment bear a post office cancellation mark stamped by the United States postal service on or before the due date, or are mailed by certified or registered mail, or have a certificate of mailing on or before the due date. A premium tax return and payment received by the department bearing a metered mail stamp and no post office cancellation mark stamped by the United States postal service shall be deemed filed and received on the date the premium tax return arrives at the department; (B) In the event a premium tax return and payment are mailed, but not received by the department, or received, and the cancellation mark is illegible or omitted, the return and payment shall be deemed filed and received, on the date they were mailed, if the sender establishes that the premium tax return and payment were deposited in the United States mail. In order to establish proof of mailing under these circumstances, a record authenticated by the United States postal service that the original mailing was sent registered mail, certified mail, or by certificate of mailing, shall be the only proof accepted by the department; or (3) The premium tax and payment are received in a manner established by the commissioner by rules. The rules may provide for the filing of premium tax returns and payments to be made through electronic means. The commissioner is also authorized to promulgate rules that provide for a convenience fee to cover the cost of accepting electronic premium tax returns and payments. Any fee set by rule under the authority of this subdivision (e)(3) may be assessed in addition to any applicable penalty and interest. In no event shall the convenience fee exceed the actual costs incurred by the department in accepting electronic premium tax returns and payments.
(1) The premium tax return and payment are received in the office of the commissioner on or before the due date;
(2) (A) The premium tax return and payment bear a post office cancellation mark stamped by the United States postal service on or before the due date, or are mailed by certified or registered mail, or have a certificate of mailing on or before the due date. A premium tax return and payment received by the department bearing a metered mail stamp and no post office cancellation mark stamped by the United States postal service shall be deemed filed and received on the date the premium tax return arrives at the department; (B) In the event a premium tax return and payment are mailed, but not received by the department, or received, and the cancellation mark is illegible or omitted, the return and payment shall be deemed filed and received, on the date they were mailed, if the sender establishes that the premium tax return and payment were deposited in the United States mail. In order to establish proof of mailing under these circumstances, a record authenticated by the United States postal service that the original mailing was sent registered mail, certified mail, or by certificate of mailing, shall be the only proof accepted by the department; or
(A) The premium tax return and payment bear a post office cancellation mark stamped by the United States postal service on or before the due date, or are mailed by certified or registered mail, or have a certificate of mailing on or before the due date. A premium tax return and payment received by the department bearing a metered mail stamp and no post office cancellation mark stamped by the United States postal service shall be deemed filed and received on the date the premium tax return arrives at the department;
(B) In the event a premium tax return and payment are mailed, but not received by the department, or received, and the cancellation mark is illegible or omitted, the return and payment shall be deemed filed and received, on the date they were mailed, if the sender establishes that the premium tax return and payment were deposited in the United States mail. In order to establish proof of mailing under these circumstances, a record authenticated by the United States postal service that the original mailing was sent registered mail, certified mail, or by certificate of mailing, shall be the only proof accepted by the department; or
(3) The premium tax and payment are received in a manner established by the commissioner by rules. The rules may provide for the filing of premium tax returns and payments to be made through electronic means. The commissioner is also authorized to promulgate rules that provide for a convenience fee to cover the cost of accepting electronic premium tax returns and payments. Any fee set by rule under the authority of this subdivision (e)(3) may be assessed in addition to any applicable penalty and interest. In no event shall the convenience fee exceed the actual costs incurred by the department in accepting electronic premium tax returns and payments.
Amended by 2015 Tenn. Acts, ch. 155,s 13, eff. 1/1/2016.
Amended by 2015 Tenn. Acts, ch. 155,s 12, eff. 1/1/2016.
Acts 1975, ch. 114, § 1; 1977, ch. 45, § 1; T.C.A., § 56-420; Acts 1984, ch. 635, § 1; 1991, ch. 291, §§ 2-6; 2006, ch. 1018, § 2.
Tenn. Code Ann. § 56-1-902 — TN Code / Title 56 / Chapter 1 / Section 56-1-902
Reserve valuation
Status: in_force

(a) For policies and contracts issued prior to the operative date of the valuation manual: (1) The commissioner shall annually value, or cause to be valued, the reserve liabilities (reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in this state issued on or after January 1, 1962, and prior to the operative date of the valuation manual. In calculating reserves, the commissioner may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves required of a foreign or alien company, the commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this part. (2) Sections 56-1-904 - 56-1-913 shall apply to all policies and contracts, as appropriate, subject to this part issued on or after January 1, 1962, and prior to the operative date of the valuation manual and the provisions set forth in §§ 56-1-914 and 56-1-915 shall not apply to any such policies and contracts. (3) The minimum standard for the valuation of policies and contracts issued prior to January 1, 1962, shall be that provided by the laws in effect immediately prior to that date. (b) For policies and contracts issued on or after the operative date of the valuation manual: (1) The commissioner shall annually value, or cause to be valued, the reserves for all outstanding life insurance contracts, annuity and pure endowment contracts, accident and health contracts, and deposit-type contracts of every company issued on or after the operative date of the valuation manual. In lieu of the valuation of the reserves required of a foreign or alien company, the commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this part; and (2) Sections 56-1-914 and 56-1-915 shall apply to all policies and contracts issued on or after the operative date of the valuation manual. Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
(a) For policies and contracts issued prior to the operative date of the valuation manual: (1) The commissioner shall annually value, or cause to be valued, the reserve liabilities (reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in this state issued on or after January 1, 1962, and prior to the operative date of the valuation manual. In calculating reserves, the commissioner may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves required of a foreign or alien company, the commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this part. (2) Sections 56-1-904 - 56-1-913 shall apply to all policies and contracts, as appropriate, subject to this part issued on or after January 1, 1962, and prior to the operative date of the valuation manual and the provisions set forth in §§ 56-1-914 and 56-1-915 shall not apply to any such policies and contracts. (3) The minimum standard for the valuation of policies and contracts issued prior to January 1, 1962, shall be that provided by the laws in effect immediately prior to that date.
(1) The commissioner shall annually value, or cause to be valued, the reserve liabilities (reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in this state issued on or after January 1, 1962, and prior to the operative date of the valuation manual. In calculating reserves, the commissioner may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves required of a foreign or alien company, the commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this part.
(2) Sections 56-1-904 - 56-1-913 shall apply to all policies and contracts, as appropriate, subject to this part issued on or after January 1, 1962, and prior to the operative date of the valuation manual and the provisions set forth in §§ 56-1-914 and 56-1-915 shall not apply to any such policies and contracts.
(3) The minimum standard for the valuation of policies and contracts issued prior to January 1, 1962, shall be that provided by the laws in effect immediately prior to that date.
(b) For policies and contracts issued on or after the operative date of the valuation manual: (1) The commissioner shall annually value, or cause to be valued, the reserves for all outstanding life insurance contracts, annuity and pure endowment contracts, accident and health contracts, and deposit-type contracts of every company issued on or after the operative date of the valuation manual. In lieu of the valuation of the reserves required of a foreign or alien company, the commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this part; and (2) Sections 56-1-914 and 56-1-915 shall apply to all policies and contracts issued on or after the operative date of the valuation manual.
(1) The commissioner shall annually value, or cause to be valued, the reserves for all outstanding life insurance contracts, annuity and pure endowment contracts, accident and health contracts, and deposit-type contracts of every company issued on or after the operative date of the valuation manual. In lieu of the valuation of the reserves required of a foreign or alien company, the commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this part; and
(2) Sections 56-1-914 and 56-1-915 shall apply to all policies and contracts issued on or after the operative date of the valuation manual.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
Tenn. Code Ann. § 56-19-114 — TN Code / Title 56 / Chapter 19 / Section 56-19-114
Investment of assets
Status: in_force

No such company shall invest any of its assets except in accordance with the laws of this state relating to the investment of the assets of domestic stock insurance companies transacting the same kind of insurance. Acts 1919, ch. 108, § 11; Shan. Supp., § 3369a58b17; Code 1932, § 6329; T.C.A. (orig. ed.), § 56-1714.
No such company shall invest any of its assets except in accordance with the laws of this state relating to the investment of the assets of domestic stock insurance companies transacting the same kind of insurance.
Acts 1919, ch. 108, § 11; Shan. Supp., § 3369a58b17; Code 1932, § 6329; T.C.A. (orig. ed.), § 56-1714.
Tenn. Code Ann. § 56-32-136 — TN Code / Title 56 / Chapter 32 / Section 56-32-136
Violation and penalty
Status: in_force

A violation of this chapter shall subject the violator to the penalty contained in § 56-1-801 . Acts 2000, ch. 708, § 8; T.C.A. § 56-32-236.
A violation of this chapter shall subject the violator to the penalty contained in § 56-1-801 .
Acts 2000, ch. 708, § 8; T.C.A. § 56-32-236.
Tenn. Code Ann. § 56-35-127 — TN Code / Title 56 / Chapter 35 / Section 56-35-127
Administration of chapter - Penalties
Status: in_force

(a) The commissioner is charged with the administration of this chapter. (b) Each violation of this chapter is a Class C misdemeanor. (c) In addition to the criminal penalties, the commissioner may assess a civil penalty not to exceed five hundred dollars ($500) for each and every violation of any provisions of this chapter, or of any rule or regulation duly promulgated under this chapter. Acts 1955, ch. 173, § 18; T.C.A., § 56-3427; Acts 1980, ch. 857, § 7; 1989, ch. 591, § 113.
(a) The commissioner is charged with the administration of this chapter.
(b) Each violation of this chapter is a Class C misdemeanor.
(c) In addition to the criminal penalties, the commissioner may assess a civil penalty not to exceed five hundred dollars ($500) for each and every violation of any provisions of this chapter, or of any rule or regulation duly promulgated under this chapter.
Acts 1955, ch. 173, § 18; T.C.A., § 56-3427; Acts 1980, ch. 857, § 7; 1989, ch. 591, § 113.
Tenn. Code Ann. § 56-7-2604 — TN Code / Title 56 / Chapter 7 / Section 56-7-2604
Health insurance - Newly born children - Coverage - Notification
Status: in_force

(a) After January 1, 1983, every insurer that proposes to issue a group policy or contract in this state and every nonprofit hospital and medical service plan corporation that proposes to issue a group service plan contract in this state that provides maternity benefits shall make available benefits for pediatric nursery care of newly born children. The additional benefit shall be for a specified number of nursery care days and maximum dollar limits as elected by the group policyholder or group contract holder. (b) With respect to policies and contracts, as described in subsection (a), that were delivered or issued for delivery in this state on or before January 1, 1983, each insurer and nonprofit hospital and medical service plan corporation shall notify the group policyholder or group contract holder of the availability of coverage described in subsection (a). Acts 1974, ch. 422, § 1; 1976, ch. 493, § 1; T.C.A., § 56-1165; Acts 1980, ch. 525, § 1; 1982, ch. 710, §§ 1-3; 1992, ch. 984, § 4; T.C.A., § 56-7-1001(e), (f) .
(a) After January 1, 1983, every insurer that proposes to issue a group policy or contract in this state and every nonprofit hospital and medical service plan corporation that proposes to issue a group service plan contract in this state that provides maternity benefits shall make available benefits for pediatric nursery care of newly born children. The additional benefit shall be for a specified number of nursery care days and maximum dollar limits as elected by the group policyholder or group contract holder.
(b) With respect to policies and contracts, as described in subsection (a), that were delivered or issued for delivery in this state on or before January 1, 1983, each insurer and nonprofit hospital and medical service plan corporation shall notify the group policyholder or group contract holder of the availability of coverage described in subsection (a).
Acts 1974, ch. 422, § 1; 1976, ch. 493, § 1; T.C.A., § 56-1165; Acts 1980, ch. 525, § 1; 1982, ch. 710, §§ 1-3; 1992, ch. 984, § 4; T.C.A., § 56-7-1001(e), (f) .
Tenn. Code Ann. § 56-25-303 — TN Code / Title 56 / Chapter 25 / Section 56-25-303
Nonprofit institutions
Status: in_force

A society may create, maintain and operate, or may establish organizations to operate, not-for-profit institutions to further the purposes permitted by § 56-25-105(a)(2) . The institutions may furnish services free or at a reasonable charge. Any real or personal property owned, held or leased by the society for this purpose shall be reported in every annual statement. Acts 1990, ch. 703, § 1.
A society may create, maintain and operate, or may establish organizations to operate, not-for-profit institutions to further the purposes permitted by § 56-25-105(a)(2) . The institutions may furnish services free or at a reasonable charge. Any real or personal property owned, held or leased by the society for this purpose shall be reported in every annual statement.
Acts 1990, ch. 703, § 1.
Tenn. Code Ann. § 56-11-112 — TN Code / Title 56 / Chapter 11 / Section 56-11-112
Assumption of control by commissioner - Insolvency
Status: in_force

Whenever it appears to the commissioner that any person has committed a violation of this part that so impairs the financial condition of a domestic insurer or of a health maintenance organization as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, enrollees, providers, creditors, shareholders or the public, the commissioner may proceed as provided in chapter 9 of this title to take possession of the property of the domestic insurer or health maintenance organization and to conduct its business. Amended by 2014 Tenn. Acts, ch. 583,s 1, eff. 3/28/2014. Acts 1986, ch. 572, § 12; 2000, ch. 708, § 3j; T.C.A. § 56-11-212.
Whenever it appears to the commissioner that any person has committed a violation of this part that so impairs the financial condition of a domestic insurer or of a health maintenance organization as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, enrollees, providers, creditors, shareholders or the public, the commissioner may proceed as provided in chapter 9 of this title to take possession of the property of the domestic insurer or health maintenance organization and to conduct its business.
Amended by 2014 Tenn. Acts, ch. 583,s 1, eff. 3/28/2014.
Acts 1986, ch. 572, § 12; 2000, ch. 708, § 3j; T.C.A. § 56-11-212.
Tenn. Code Ann. § 56-30-133 — TN Code / Title 56 / Chapter 30 / Section 56-30-133
Maintenance of business records by electronic means
Status: in_force

Notwithstanding any other law or regulation to the contrary, a dental service plan corporation may maintain some or all of its business records using commercially acceptable electronic means. Acts 2001, ch. 182, §1; 2008 , ch. 656, § 1.
Notwithstanding any other law or regulation to the contrary, a dental service plan corporation may maintain some or all of its business records using commercially acceptable electronic means.
Acts 2001, ch. 182, §1; 2008 , ch. 656, § 1.
Tenn. Code Ann. § 56-22-110 — TN Code / Title 56 / Chapter 22 / Section 56-22-110
Required aggregate excess of loss reinsurance policy
Status: in_force

All county mutual insurance companies shall be required to carry an aggregate excess of loss reinsurance policy of no less than five percent (5%) of business in force. The amount required for such a policy shall be reduced by the county mutual insurance company's accumulated surplus. Acts 2006, ch. 689, §§ 3, 13.
All county mutual insurance companies shall be required to carry an aggregate excess of loss reinsurance policy of no less than five percent (5%) of business in force. The amount required for such a policy shall be reduced by the county mutual insurance company's accumulated surplus.
Acts 2006, ch. 689, §§ 3, 13.
Tenn. Code Ann. § 56-6-805 — TN Code / Title 56 / Chapter 6 / Section 56-6-805
Recordkeeping - Auditing by insurer
Status: in_force

(a) For at least ten (10) years after expiration of each contract of reinsurance transacted by the RB, the RB will keep a complete record for each transaction showing: (1) The type of contract, limits, underwriting restrictions, classes of risks and territory; (2) Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation; (3) Reporting and settlement requirements of balances; (4) Rate used to compute the reinsurance premium; (5) Names and addresses of assuming reinsurers; (6) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the RB; (7) Related correspondence and memoranda; (8) Proof of placement; (9) Details regarding retrocessions handled by the RB including the identity of retrocessionaires and percentage of each contract assumed or ceded; (10) Financial records, including, but not limited to, premium and loss accounts; and (11) When the RB procures a reinsurance contract on behalf of a licensed ceding insurer: (A) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or (B) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative. (b) The insurer will have access to, and the right to copy and audit, all accounts and records maintained by the RB related to its business in a form usable by the insurer. Acts 1993, ch. 253, § 9.
(a) For at least ten (10) years after expiration of each contract of reinsurance transacted by the RB, the RB will keep a complete record for each transaction showing: (1) The type of contract, limits, underwriting restrictions, classes of risks and territory; (2) Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation; (3) Reporting and settlement requirements of balances; (4) Rate used to compute the reinsurance premium; (5) Names and addresses of assuming reinsurers; (6) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the RB; (7) Related correspondence and memoranda; (8) Proof of placement; (9) Details regarding retrocessions handled by the RB including the identity of retrocessionaires and percentage of each contract assumed or ceded; (10) Financial records, including, but not limited to, premium and loss accounts; and (11) When the RB procures a reinsurance contract on behalf of a licensed ceding insurer: (A) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or (B) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
(1) The type of contract, limits, underwriting restrictions, classes of risks and territory;
(2) Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation;
(3) Reporting and settlement requirements of balances;
(4) Rate used to compute the reinsurance premium;
(5) Names and addresses of assuming reinsurers;
(6) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the RB;
(7) Related correspondence and memoranda;
(8) Proof of placement;
(9) Details regarding retrocessions handled by the RB including the identity of retrocessionaires and percentage of each contract assumed or ceded;
(10) Financial records, including, but not limited to, premium and loss accounts; and
(11) When the RB procures a reinsurance contract on behalf of a licensed ceding insurer: (A) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or (B) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
(A) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(B) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
(b) The insurer will have access to, and the right to copy and audit, all accounts and records maintained by the RB related to its business in a form usable by the insurer.
Acts 1993, ch. 253, § 9.
Tenn. Code Ann. § 56-54-103 — TN Code / Title 56 / Chapter 54 / Section 56-54-103
[Repealed]
Status: repealed

Repealed by 2021 Tenn. Acts, ch. 537, s 8, eff. 5/25/2021. Acts 2008 , ch. 1009, § 4; 2012 , ch. 798, § 29.
Repealed by 2021 Tenn. Acts, ch. 537, s 8, eff. 5/25/2021.
Acts 2008 , ch. 1009, § 4; 2012 , ch. 798, § 29.
Tenn. Code Ann. § 56-7-3711 — TN Code / Title 56 / Chapter 7 / Section 56-7-3711
Medical necessity
Status: in_force

The medical necessity or appropriateness of emergency healthcare services must comply with the Consolidated Appropriations Act of 2021 (Pub. L. 116-260). Restrictions on coverage of emergency healthcare services provided by nonparticipating providers must not be greater than restrictions that apply when participating providers provide those services. Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
The medical necessity or appropriateness of emergency healthcare services must comply with the Consolidated Appropriations Act of 2021 (Pub. L. 116-260). Restrictions on coverage of emergency healthcare services provided by nonparticipating providers must not be greater than restrictions that apply when participating providers provide those services.
Amended by 2023 Tenn. Acts, ch. 395, s 4, eff. 1/1/2025.
Tenn. Code Ann. § 56-7-2348 — TN Code / Title 56 / Chapter 7 / Section 56-7-2348
Eligibility for medicaid
Status: in_force

(a) All entities providing health care benefits, including, but not limited to, insurers, ERISA group health plans, health maintenance organizations and nonprofit hospital and medical service plans, are prohibited from considering the availability or eligibility for medical assistance under 42 U.S.C. § 1396a , which is referred to as "medicaid," when considering eligibility for coverage or calculating payments under their plans for eligible enrollees, subscribers, policyholders, or certificate holders. (b) To the extent that payment for covered expenses has been made under the state medicaid program for health care items or services furnished to an individual, the state is considered to have acquired the rights of the individual to payment by any other party for the health care items or services. Upon presentation of proof that the state medicaid program or any provider who has contracted with the state to provide medicaid services has paid for covered items or services, the insurer, ERISA group health plan, health maintenance organization, or nonprofit hospital and medical service plan shall make payment to the state medicaid program, or contracted provider under the medicaid program according to the coverage provided in the policy or contract on the same basis applicable to an agent or assignee of any other individual so covered. Acts 1994, ch. 881, § 2.
(a) All entities providing health care benefits, including, but not limited to, insurers, ERISA group health plans, health maintenance organizations and nonprofit hospital and medical service plans, are prohibited from considering the availability or eligibility for medical assistance under 42 U.S.C. § 1396a , which is referred to as "medicaid," when considering eligibility for coverage or calculating payments under their plans for eligible enrollees, subscribers, policyholders, or certificate holders.
(b) To the extent that payment for covered expenses has been made under the state medicaid program for health care items or services furnished to an individual, the state is considered to have acquired the rights of the individual to payment by any other party for the health care items or services. Upon presentation of proof that the state medicaid program or any provider who has contracted with the state to provide medicaid services has paid for covered items or services, the insurer, ERISA group health plan, health maintenance organization, or nonprofit hospital and medical service plan shall make payment to the state medicaid program, or contracted provider under the medicaid program according to the coverage provided in the policy or contract on the same basis applicable to an agent or assignee of any other individual so covered.
Acts 1994, ch. 881, § 2.
Tenn. Code Ann. § 56-3-801 — TN Code / Title 56 / Chapter 3 / Section 56-3-801
Voluntary deposit of securities for protection of state policyholders and creditors
Status: in_force

Any insurance company may deposit and maintain on deposit with the state treasurer, securities as defined in § 56-3-303(a)(1)-(4), (7) and (8) , to be held for the exclusive protection of its policyholders and creditors in this state; provided, that the deposit shall not exceed one hundred percent (100%) of that portion of the insurance company's reserves as is fairly allocable to insurance on risks located in this state. Acts 1973, ch. 104, § 1; T.C.A., § 56-355.
Any insurance company may deposit and maintain on deposit with the state treasurer, securities as defined in § 56-3-303(a)(1)-(4), (7) and (8) , to be held for the exclusive protection of its policyholders and creditors in this state; provided, that the deposit shall not exceed one hundred percent (100%) of that portion of the insurance company's reserves as is fairly allocable to insurance on risks located in this state.
Acts 1973, ch. 104, § 1; T.C.A., § 56-355.
Tenn. Code Ann. § 56-22-109 — TN Code / Title 56 / Chapter 22 / Section 56-22-109
Annual statement - Compliance with filing requirements for personal risk insurers - Cancellation of policy of insurance - Dividends
Status: in_force

(a) (1) Every county mutual insurance company operating under this chapter shall file an annual statement with the commissioner on or before March 1 of each year that reports the company's financial condition and business on December 31 of the previous year. The annual statement shall be submitted on a form the commissioner may prescribe and shall be accompanied by a fee as provided for in § 56-4-101(a)(4) . (2) Any county mutual insurance company failing to make and file the annual statements required by this section shall have its authority to do new business suspended until the time that the required annual statement is filed and shall pay a fine of one hundred dollars ($100) a day for the period during which the county mutual insurance company's authority is suspended. Any suspension of a county mutual insurance company's authority to write new business shall not preclude or otherwise bar the commissioner from levying any other penalties or take any other actions allowed under this chapter. (3) The annual statement as filed with the commissioner under this section shall be presented at the annual meeting of the county mutual insurance company and shall be available for examination by any policyholder of the county mutual insurance company during its regular business hours. (4) Every county mutual insurance company operating under this chapter shall prepare its annual statement and any other financial information required under this chapter in accordance with rules promulgated by the commissioner and the National Association of Insurance Commissioners accounting practices and procedures manual in effect for the period covered by the annual statement. (b) (1) Every county mutual insurance company shall comply with the filing requirements for personal risk insurers found in § 56-5-105 . All rates and forms shall be reviewed under the standards set forth in §§ 56-5-103 and 56-5-104 . The commissioner may disapprove the rates or forms pursuant to the process outlined in § 56-5-108 . (2) The cancellation by a county mutual insurance company of a policy of insurance is subject to the same standards as those set forth in chapter 7, part 19 of this title, as may be applicable. (3) Subject to the restrictions provided in this section, a county mutual insurance company may pay a dividend to its policyholders as the board of directors may determine. The amount of dividends paid during any calendar year by a county mutual insurance company shall not exceed ten percent (10%) of the lowest level of accumulated surplus existing on any day during the same calendar year. All proposed dividend payments shall be filed with the commissioner at least thirty (30) days prior to the proposed payment date. The commissioner may promulgate, by rule, standards by which dividends will be reviewed. Any decision by the commissioner to disapprove a proposed dividend of a county mutual insurance company may be reviewed as a contested case pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the county mutual insurance company requests a hearing within thirty (30) days after the denial of the proposed dividend request. Acts 2006, ch. 689, §§ 3, 12.
(a) (1) Every county mutual insurance company operating under this chapter shall file an annual statement with the commissioner on or before March 1 of each year that reports the company's financial condition and business on December 31 of the previous year. The annual statement shall be submitted on a form the commissioner may prescribe and shall be accompanied by a fee as provided for in § 56-4-101(a)(4) . (2) Any county mutual insurance company failing to make and file the annual statements required by this section shall have its authority to do new business suspended until the time that the required annual statement is filed and shall pay a fine of one hundred dollars ($100) a day for the period during which the county mutual insurance company's authority is suspended. Any suspension of a county mutual insurance company's authority to write new business shall not preclude or otherwise bar the commissioner from levying any other penalties or take any other actions allowed under this chapter. (3) The annual statement as filed with the commissioner under this section shall be presented at the annual meeting of the county mutual insurance company and shall be available for examination by any policyholder of the county mutual insurance company during its regular business hours. (4) Every county mutual insurance company operating under this chapter shall prepare its annual statement and any other financial information required under this chapter in accordance with rules promulgated by the commissioner and the National Association of Insurance Commissioners accounting practices and procedures manual in effect for the period covered by the annual statement.
(1) Every county mutual insurance company operating under this chapter shall file an annual statement with the commissioner on or before March 1 of each year that reports the company's financial condition and business on December 31 of the previous year. The annual statement shall be submitted on a form the commissioner may prescribe and shall be accompanied by a fee as provided for in § 56-4-101(a)(4) .
(2) Any county mutual insurance company failing to make and file the annual statements required by this section shall have its authority to do new business suspended until the time that the required annual statement is filed and shall pay a fine of one hundred dollars ($100) a day for the period during which the county mutual insurance company's authority is suspended. Any suspension of a county mutual insurance company's authority to write new business shall not preclude or otherwise bar the commissioner from levying any other penalties or take any other actions allowed under this chapter.
(3) The annual statement as filed with the commissioner under this section shall be presented at the annual meeting of the county mutual insurance company and shall be available for examination by any policyholder of the county mutual insurance company during its regular business hours.
(4) Every county mutual insurance company operating under this chapter shall prepare its annual statement and any other financial information required under this chapter in accordance with rules promulgated by the commissioner and the National Association of Insurance Commissioners accounting practices and procedures manual in effect for the period covered by the annual statement.
(b) (1) Every county mutual insurance company shall comply with the filing requirements for personal risk insurers found in § 56-5-105 . All rates and forms shall be reviewed under the standards set forth in §§ 56-5-103 and 56-5-104 . The commissioner may disapprove the rates or forms pursuant to the process outlined in § 56-5-108 . (2) The cancellation by a county mutual insurance company of a policy of insurance is subject to the same standards as those set forth in chapter 7, part 19 of this title, as may be applicable. (3) Subject to the restrictions provided in this section, a county mutual insurance company may pay a dividend to its policyholders as the board of directors may determine. The amount of dividends paid during any calendar year by a county mutual insurance company shall not exceed ten percent (10%) of the lowest level of accumulated surplus existing on any day during the same calendar year. All proposed dividend payments shall be filed with the commissioner at least thirty (30) days prior to the proposed payment date. The commissioner may promulgate, by rule, standards by which dividends will be reviewed. Any decision by the commissioner to disapprove a proposed dividend of a county mutual insurance company may be reviewed as a contested case pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the county mutual insurance company requests a hearing within thirty (30) days after the denial of the proposed dividend request.
(1) Every county mutual insurance company shall comply with the filing requirements for personal risk insurers found in § 56-5-105 . All rates and forms shall be reviewed under the standards set forth in §§ 56-5-103 and 56-5-104 . The commissioner may disapprove the rates or forms pursuant to the process outlined in § 56-5-108 .
(2) The cancellation by a county mutual insurance company of a policy of insurance is subject to the same standards as those set forth in chapter 7, part 19 of this title, as may be applicable.
(3) Subject to the restrictions provided in this section, a county mutual insurance company may pay a dividend to its policyholders as the board of directors may determine. The amount of dividends paid during any calendar year by a county mutual insurance company shall not exceed ten percent (10%) of the lowest level of accumulated surplus existing on any day during the same calendar year. All proposed dividend payments shall be filed with the commissioner at least thirty (30) days prior to the proposed payment date. The commissioner may promulgate, by rule, standards by which dividends will be reviewed. Any decision by the commissioner to disapprove a proposed dividend of a county mutual insurance company may be reviewed as a contested case pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the county mutual insurance company requests a hearing within thirty (30) days after the denial of the proposed dividend request.
Acts 2006, ch. 689, §§ 3, 12.