Tenn. Code Ann. § 56-11-108 — TN Code / Title 56 / Chapter 11 / Section 56-11-108
Confidentiality of investigations and examinations
Status: in_force

(a) (1) Documents, materials, or other information in the possession or control of the department that are obtained by or disclosed to the commissioner or any other person in the course of an examination or investigation made pursuant to § 56-11-107 , and all information reported or provided to the department pursuant to §§ 56-11-103(b)(13)-(15) , 56-11-105 , 56-11-106 , and 56-11-116(d) , are confidential by law and privileged, are not subject to § 10-7-503 or § 56-1-602 , are not subject to subpoena, and are not subject to discovery or admissible in evidence in any private civil action. However, the commissioner is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner's official duties. The commissioner shall not otherwise make the documents, materials, or other information public without the prior written consent of the insurer or health maintenance organization to which it pertains unless the commissioner, after giving the insurer or health maintenance organization and its affiliates who would be affected thereby notice and opportunity to be heard, determines that the interest of policyholders, enrollees, providers, shareholders, or the public will be served by the publication thereof, in which event the commissioner may publish all or any part thereof, in the manner the commissioner may deem appropriate. (2) For purposes of the information reported and provided to the commissioner pursuant to § 56-11-105 ( l )(2), the group capital calculation and group capital ratio produced within the calculation and group capital information received from an insurance holding company supervised by the federal reserve board or a United States group-wide supervisor are confidential by law and privileged. (3) For purposes of the information reported and provided to the commissioner pursuant to § 56-11-105 ( l )(3), the liquidity stress test results and supporting disclosures and liquidity stress test information received from an insurance holding company supervised by the federal reserve board and non-United States group-wide supervisors are confidential by law and privileged. (b) Neither the commissioner nor any person who received documents, materials or other information while acting under the authority of the commissioner or with whom such documents, materials or other information are shared pursuant to this part shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (a). (c) In order to assist in the performance of the commissioner's duties, the commissioner: (1) May share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subsection (a), with other state, federal and international regulatory agencies, with the National Association of Insurance Commissioners (NAIC) and its affiliates and subsidiaries, and with state, federal, and international law enforcement authorities, including members of any supervisory college described in § 56-11-116 ; provided, that the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material or other information, and has verified in writing the legal authority to maintain confidentiality. (2) Notwithstanding subdivision (c)(1), may only share confidential and privileged documents, material, or information reported pursuant to § 56-11-105 ( l ) with commissioners of states having statutes or regulations substantially similar to subsection (a) and who have agreed in writing not to disclose such information; (3) May receive documents, materials or information, including otherwise confidential and privileged documents, materials or information from the NAIC and its affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and (4) Shall enter into written agreements with the NAIC governing sharing and use of information provided pursuant to this part consistent with this subsection (c) that shall: (A) Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC and its affiliates and subsidiaries pursuant to this part, including procedures and protocols for sharing by the NAIC with other state, federal or international regulators. The agreement must provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the documents, materials, or other information, and has verified in writing the legal authority to maintain such confidentiality; (B) Specify that ownership of information shared with the NAIC and its affiliates and subsidiaries pursuant to this part remains with the commissioner and the NAIC's use of the information is subject to the direction of the commissioner; (C) Require prompt notice to be given to an insurer whose confidential information in the possession of the NAIC pursuant to this part is subject to a request or subpoena to the NAIC for disclosure or production; (D) Require the NAIC and its affiliates and subsidiaries to consent to intervention by an insurer in any judicial or administrative action in which the NAIC and its affiliates and subsidiaries may be required to disclose confidential information about the insurer shared with the NAIC and its affiliates and subsidiaries pursuant to this part; (E) Excluding documents, material, or information reported pursuant to § 56-11-105 ( l )(3), prohibit the NAIC and its affiliates and subsidiaries from storing the information shared pursuant to this part in a permanent database after the underlying analysis is completed; and (F) For documents, material, or information reported pursuant to § 56-11-105 ( l )(3), in the case of an agreement involving an affiliate or subsidiary, provide for notification of the identity of the affiliate or subsidiary to the applicable insurers. (d) The sharing of information by the commissioner pursuant to this part shall not constitute a delegation of regulatory authority or rulemaking, and the commissioner is solely responsible for the administration, execution and enforcement of this part. (e) No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in subsection (c). (f) Documents, materials or other information in the possession or control of the NAIC pursuant to this part shall be confidential by law and privileged, shall not be subject to § 10-7-503 or § 56-1-602 , shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. (g) The group capital calculation and resulting group capital ratio required under § 56-11-105 ( l )(2) and the liquidity stress test, along with its results and supporting disclosures required under § 56-11-105 ( l )(3), are regulatory tools for assessing group risks and capital adequacy and group liquidity risks, respectively, and are not intended as a means to rank insurers or insurance holding company systems generally. Therefore, except as otherwise provided under this part, the making, publishing, disseminating, circulating, or placing before the public, or causing directly or indirectly to be made, published, disseminated, circulated, or placed before the public in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over a radio or television station or an electronic means of communication available to the public, or in another way as an advertisement, announcement, or statement containing a representation or statement with regard to the group capital calculation, group capital ratio, the liquidity stress test results, or supporting disclosures for the liquidity stress test of an insurer or an insurer group, or of a component derived in the calculation by an insurer, broker, or other person engaged in the insurance business would be misleading and is therefore prohibited; provided, however, that if a materially false statement with respect to the group capital calculation, resulting group capital ratio, an inappropriate comparison of an amount to an insurer's or insurance group's group capital calculation or resulting group capital ratio, liquidity stress test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison to an insurer's or insurance group's liquidity stress test result or supporting disclosures is published in a written publication and the insurer is able to demonstrate to the commissioner with substantial proof the falsity of such statement or the inappropriateness of such comparison, then the insurer may publish announcements in a written publication if the sole purpose of the announcement is to rebut the materially false statement or inappropriate comparison. Amended by 2023 Tenn. Acts, ch. 23, Secs.s 7, s 8, s 9 eff. 7/1/2023. Amended by 2023 Tenn. Acts, ch. 23, s 6, eff. 7/1/2023. Amended by 2018 Tenn. Acts, ch. 873, s 14, eff. 5/3/2018. Amended by 2014 Tenn. Acts, ch. 583, s 16, eff. 3/28/2014. Acts 1986, ch. 572, § 8; 2000, ch. 708, § 3g; T.C.A. § 56-11-208 .
(a) (1) Documents, materials, or other information in the possession or control of the department that are obtained by or disclosed to the commissioner or any other person in the course of an examination or investigation made pursuant to § 56-11-107 , and all information reported or provided to the department pursuant to §§ 56-11-103(b)(13)-(15) , 56-11-105 , 56-11-106 , and 56-11-116(d) , are confidential by law and privileged, are not subject to § 10-7-503 or § 56-1-602 , are not subject to subpoena, and are not subject to discovery or admissible in evidence in any private civil action. However, the commissioner is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner's official duties. The commissioner shall not otherwise make the documents, materials, or other information public without the prior written consent of the insurer or health maintenance organization to which it pertains unless the commissioner, after giving the insurer or health maintenance organization and its affiliates who would be affected thereby notice and opportunity to be heard, determines that the interest of policyholders, enrollees, providers, shareholders, or the public will be served by the publication thereof, in which event the commissioner may publish all or any part thereof, in the manner the commissioner may deem appropriate. (2) For purposes of the information reported and provided to the commissioner pursuant to § 56-11-105 ( l )(2), the group capital calculation and group capital ratio produced within the calculation and group capital information received from an insurance holding company supervised by the federal reserve board or a United States group-wide supervisor are confidential by law and privileged. (3) For purposes of the information reported and provided to the commissioner pursuant to § 56-11-105 ( l )(3), the liquidity stress test results and supporting disclosures and liquidity stress test information received from an insurance holding company supervised by the federal reserve board and non-United States group-wide supervisors are confidential by law and privileged.
(1) Documents, materials, or other information in the possession or control of the department that are obtained by or disclosed to the commissioner or any other person in the course of an examination or investigation made pursuant to § 56-11-107 , and all information reported or provided to the department pursuant to §§ 56-11-103(b)(13)-(15) , 56-11-105 , 56-11-106 , and 56-11-116(d) , are confidential by law and privileged, are not subject to § 10-7-503 or § 56-1-602 , are not subject to subpoena, and are not subject to discovery or admissible in evidence in any private civil action. However, the commissioner is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner's official duties. The commissioner shall not otherwise make the documents, materials, or other information public without the prior written consent of the insurer or health maintenance organization to which it pertains unless the commissioner, after giving the insurer or health maintenance organization and its affiliates who would be affected thereby notice and opportunity to be heard, determines that the interest of policyholders, enrollees, providers, shareholders, or the public will be served by the publication thereof, in which event the commissioner may publish all or any part thereof, in the manner the commissioner may deem appropriate.
(2) For purposes of the information reported and provided to the commissioner pursuant to § 56-11-105 ( l )(2), the group capital calculation and group capital ratio produced within the calculation and group capital information received from an insurance holding company supervised by the federal reserve board or a United States group-wide supervisor are confidential by law and privileged.
(3) For purposes of the information reported and provided to the commissioner pursuant to § 56-11-105 ( l )(3), the liquidity stress test results and supporting disclosures and liquidity stress test information received from an insurance holding company supervised by the federal reserve board and non-United States group-wide supervisors are confidential by law and privileged.
(b) Neither the commissioner nor any person who received documents, materials or other information while acting under the authority of the commissioner or with whom such documents, materials or other information are shared pursuant to this part shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (a).
(c) In order to assist in the performance of the commissioner's duties, the commissioner: (1) May share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subsection (a), with other state, federal and international regulatory agencies, with the National Association of Insurance Commissioners (NAIC) and its affiliates and subsidiaries, and with state, federal, and international law enforcement authorities, including members of any supervisory college described in § 56-11-116 ; provided, that the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material or other information, and has verified in writing the legal authority to maintain confidentiality. (2) Notwithstanding subdivision (c)(1), may only share confidential and privileged documents, material, or information reported pursuant to § 56-11-105 ( l ) with commissioners of states having statutes or regulations substantially similar to subsection (a) and who have agreed in writing not to disclose such information; (3) May receive documents, materials or information, including otherwise confidential and privileged documents, materials or information from the NAIC and its affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and (4) Shall enter into written agreements with the NAIC governing sharing and use of information provided pursuant to this part consistent with this subsection (c) that shall: (A) Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC and its affiliates and subsidiaries pursuant to this part, including procedures and protocols for sharing by the NAIC with other state, federal or international regulators. The agreement must provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the documents, materials, or other information, and has verified in writing the legal authority to maintain such confidentiality; (B) Specify that ownership of information shared with the NAIC and its affiliates and subsidiaries pursuant to this part remains with the commissioner and the NAIC's use of the information is subject to the direction of the commissioner; (C) Require prompt notice to be given to an insurer whose confidential information in the possession of the NAIC pursuant to this part is subject to a request or subpoena to the NAIC for disclosure or production; (D) Require the NAIC and its affiliates and subsidiaries to consent to intervention by an insurer in any judicial or administrative action in which the NAIC and its affiliates and subsidiaries may be required to disclose confidential information about the insurer shared with the NAIC and its affiliates and subsidiaries pursuant to this part; (E) Excluding documents, material, or information reported pursuant to § 56-11-105 ( l )(3), prohibit the NAIC and its affiliates and subsidiaries from storing the information shared pursuant to this part in a permanent database after the underlying analysis is completed; and (F) For documents, material, or information reported pursuant to § 56-11-105 ( l )(3), in the case of an agreement involving an affiliate or subsidiary, provide for notification of the identity of the affiliate or subsidiary to the applicable insurers.
(1) May share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subsection (a), with other state, federal and international regulatory agencies, with the National Association of Insurance Commissioners (NAIC) and its affiliates and subsidiaries, and with state, federal, and international law enforcement authorities, including members of any supervisory college described in § 56-11-116 ; provided, that the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material or other information, and has verified in writing the legal authority to maintain confidentiality.
(2) Notwithstanding subdivision (c)(1), may only share confidential and privileged documents, material, or information reported pursuant to § 56-11-105 ( l ) with commissioners of states having statutes or regulations substantially similar to subsection (a) and who have agreed in writing not to disclose such information;
(3) May receive documents, materials or information, including otherwise confidential and privileged documents, materials or information from the NAIC and its affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and
(4) Shall enter into written agreements with the NAIC governing sharing and use of information provided pursuant to this part consistent with this subsection (c) that shall: (A) Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC and its affiliates and subsidiaries pursuant to this part, including procedures and protocols for sharing by the NAIC with other state, federal or international regulators. The agreement must provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the documents, materials, or other information, and has verified in writing the legal authority to maintain such confidentiality; (B) Specify that ownership of information shared with the NAIC and its affiliates and subsidiaries pursuant to this part remains with the commissioner and the NAIC's use of the information is subject to the direction of the commissioner; (C) Require prompt notice to be given to an insurer whose confidential information in the possession of the NAIC pursuant to this part is subject to a request or subpoena to the NAIC for disclosure or production; (D) Require the NAIC and its affiliates and subsidiaries to consent to intervention by an insurer in any judicial or administrative action in which the NAIC and its affiliates and subsidiaries may be required to disclose confidential information about the insurer shared with the NAIC and its affiliates and subsidiaries pursuant to this part; (E) Excluding documents, material, or information reported pursuant to § 56-11-105 ( l )(3), prohibit the NAIC and its affiliates and subsidiaries from storing the information shared pursuant to this part in a permanent database after the underlying analysis is completed; and (F) For documents, material, or information reported pursuant to § 56-11-105 ( l )(3), in the case of an agreement involving an affiliate or subsidiary, provide for notification of the identity of the affiliate or subsidiary to the applicable insurers.
(A) Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC and its affiliates and subsidiaries pursuant to this part, including procedures and protocols for sharing by the NAIC with other state, federal or international regulators. The agreement must provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the documents, materials, or other information, and has verified in writing the legal authority to maintain such confidentiality;
(B) Specify that ownership of information shared with the NAIC and its affiliates and subsidiaries pursuant to this part remains with the commissioner and the NAIC's use of the information is subject to the direction of the commissioner;
(C) Require prompt notice to be given to an insurer whose confidential information in the possession of the NAIC pursuant to this part is subject to a request or subpoena to the NAIC for disclosure or production;
(D) Require the NAIC and its affiliates and subsidiaries to consent to intervention by an insurer in any judicial or administrative action in which the NAIC and its affiliates and subsidiaries may be required to disclose confidential information about the insurer shared with the NAIC and its affiliates and subsidiaries pursuant to this part;
(E) Excluding documents, material, or information reported pursuant to § 56-11-105 ( l )(3), prohibit the NAIC and its affiliates and subsidiaries from storing the information shared pursuant to this part in a permanent database after the underlying analysis is completed; and
(F) For documents, material, or information reported pursuant to § 56-11-105 ( l )(3), in the case of an agreement involving an affiliate or subsidiary, provide for notification of the identity of the affiliate or subsidiary to the applicable insurers.
(d) The sharing of information by the commissioner pursuant to this part shall not constitute a delegation of regulatory authority or rulemaking, and the commissioner is solely responsible for the administration, execution and enforcement of this part.
(e) No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in subsection (c).
(f) Documents, materials or other information in the possession or control of the NAIC pursuant to this part shall be confidential by law and privileged, shall not be subject to § 10-7-503 or § 56-1-602 , shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action.
(g) The group capital calculation and resulting group capital ratio required under § 56-11-105 ( l )(2) and the liquidity stress test, along with its results and supporting disclosures required under § 56-11-105 ( l )(3), are regulatory tools for assessing group risks and capital adequacy and group liquidity risks, respectively, and are not intended as a means to rank insurers or insurance holding company systems generally. Therefore, except as otherwise provided under this part, the making, publishing, disseminating, circulating, or placing before the public, or causing directly or indirectly to be made, published, disseminated, circulated, or placed before the public in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over a radio or television station or an electronic means of communication available to the public, or in another way as an advertisement, announcement, or statement containing a representation or statement with regard to the group capital calculation, group capital ratio, the liquidity stress test results, or supporting disclosures for the liquidity stress test of an insurer or an insurer group, or of a component derived in the calculation by an insurer, broker, or other person engaged in the insurance business would be misleading and is therefore prohibited; provided, however, that if a materially false statement with respect to the group capital calculation, resulting group capital ratio, an inappropriate comparison of an amount to an insurer's or insurance group's group capital calculation or resulting group capital ratio, liquidity stress test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison to an insurer's or insurance group's liquidity stress test result or supporting disclosures is published in a written publication and the insurer is able to demonstrate to the commissioner with substantial proof the falsity of such statement or the inappropriateness of such comparison, then the insurer may publish announcements in a written publication if the sole purpose of the announcement is to rebut the materially false statement or inappropriate comparison.
Amended by 2023 Tenn. Acts, ch. 23, Secs.s 7, s 8, s 9 eff. 7/1/2023.
Amended by 2023 Tenn. Acts, ch. 23, s 6, eff. 7/1/2023.
Amended by 2018 Tenn. Acts, ch. 873, s 14, eff. 5/3/2018.
Amended by 2014 Tenn. Acts, ch. 583, s 16, eff. 3/28/2014.
Acts 1986, ch. 572, § 8; 2000, ch. 708, § 3g; T.C.A. § 56-11-208 .
Tenn. Code Ann. § 56-6-303 — TN Code / Title 56 / Chapter 6 / Section 56-6-303
Written agreement to charges - Contents of contract
Status: in_force

In the event time-price differential charges are made pursuant to this part, the purchaser of insurance must agree to the charges in writing, and the instrument must contain: (1) The cash price of the insurance policy or bond and the amount of the initial payment, if any; (2) The difference between the two (2), if any; (3) The principal balance owed; (4) The amount of the time-price differential; and (5) The time balance owed by the buyer. Acts 1965, ch. 356, § 3; T.C.A., § 56-716.
In the event time-price differential charges are made pursuant to this part, the purchaser of insurance must agree to the charges in writing, and the instrument must contain:
(1) The cash price of the insurance policy or bond and the amount of the initial payment, if any;
(2) The difference between the two (2), if any;
(3) The principal balance owed;
(4) The amount of the time-price differential; and
(5) The time balance owed by the buyer.
Acts 1965, ch. 356, § 3; T.C.A., § 56-716.
Tenn. Code Ann. § 56-25-102 — TN Code / Title 56 / Chapter 25 / Section 56-25-102
Operating on lodge system - Children's lodges
Status: in_force

(a) A society is operating on the lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated or admitted in accordance with its laws, rules and ritual. Subordinate lodges shall be required by the laws of the society to hold regular meetings at least once every sixty (60) days in furtherance of the purposes of the society. (b) A society may, at its option, organize and operate lodges for children under the minimum age for adult membership. Membership and initiation in local lodges shall not be required of the children, nor shall they have a voice or vote in the management of the society. Acts 1990, ch. 703, § 1.
(a) A society is operating on the lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated or admitted in accordance with its laws, rules and ritual. Subordinate lodges shall be required by the laws of the society to hold regular meetings at least once every sixty (60) days in furtherance of the purposes of the society.
(b) A society may, at its option, organize and operate lodges for children under the minimum age for adult membership. Membership and initiation in local lodges shall not be required of the children, nor shall they have a voice or vote in the management of the society.
Acts 1990, ch. 703, § 1.
Tenn. Code Ann. § 56-29-119 — TN Code / Title 56 / Chapter 29 / Section 56-29-119
Fees and taxes of corporations and agents
Status: in_force

Every corporation or its agents, subject to this chapter, shall be subject to the fees and taxes as prescribed for life, health and accident insurance companies and agents of the companies doing business in this state. It is not the purpose of this chapter to discriminate in favor of the service corporations. Acts 1949, ch. 234, § 17; C. Supp. 1950, § 4186.58 (Williams, § 4186.61); T.C.A. (orig. ed.), § 56-3119.
Every corporation or its agents, subject to this chapter, shall be subject to the fees and taxes as prescribed for life, health and accident insurance companies and agents of the companies doing business in this state. It is not the purpose of this chapter to discriminate in favor of the service corporations.
Acts 1949, ch. 234, § 17; C. Supp. 1950, § 4186.58 (Williams, § 4186.61); T.C.A. (orig. ed.), § 56-3119.
Tenn. Code Ann. § 56-1-914 — TN Code / Title 56 / Chapter 1 / Section 56-1-914
Valuation manual for policies issued on or after the operative date of the valuation manual
Status: in_force

(a) For policies issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under § 56-1-902(b) , except as provided under subsections (e) or (g). (b) The operative date of the valuation manual is January 1 of the first calendar year following the first July 1 as of which all of the following have occurred: (1) The valuation manual has been adopted by the NAIC by an affirmative vote of at least forty-two (42) members, or three-fourths (3/4) of the members voting, whichever is greater; (2) The Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by states representing greater than seventy-five percent (75%) of the direct premiums written as reported in the following annual statements submitted for 2008: life, accident and health annual statements; health annual statements; or fraternal annual statements; (3) The Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by at least forty-two (42) of the following fifty-five (55) jurisdictions: The fifty (50) states of the United States, American Samoa, the American Virgin Islands, the District of Columbia, Guam and Puerto Rico. (c) Unless a change in the valuation manual specifies a later effective date, changes to the valuation manual shall be effective on January 1 following the date when the change to the valuation manual has been adopted by the NAIC by an affirmative vote representing: (1) At least three-fourths (3/4) of the members of the NAIC voting, but not less than a majority of the total membership; and (2) Members of the NAIC representing jurisdictions totaling greater than seventy-five percent (75%) of the direct premiums written as reported in the following annual statements most recently available prior to the vote in subdivision (c)(1): life, accident and health annual statements, health annual statements or fraternal annual statements. (d) The valuation manual shall specify all of the following: (1) Minimum valuation standards for and definitions of the policies or contracts subject to § 56-1-902(b) . Such minimum valuation standards shall be: (A) The commissioner's reserve valuation method for life insurance contracts, other than annuity contracts, subject to § 56-1-902(b) ; (B) The commissioner's annuity reserve valuation method for annuity contracts subject to § 56-1-902(b) ; and (C) Minimum reserves for all other policies or contracts subject to § 56-1-902(b) ; (2) Which policies or contracts or types of policies or contracts that are subject to the requirements of a principle-based valuation in § 56-1-915(a) and the minimum valuation standards consistent with those requirements; (3) For policies and contracts subject to a principle-based valuation under § 56-1-915 : (A) Requirements for the format of reports to the commissioner under § 56-1-915(b)(2) and which shall include information necessary to determine if the valuation is appropriate and in compliance with this part; (B) Assumptions shall be prescribed for risks over which the company does not have significant control or influence; and (C) Procedures for corporate governance and oversight of the actuarial function, and a process for appropriate waiver or modification of such procedures; (4) For policies not subject to a principle-based valuation under § 56-1-915 , the minimum valuation standard shall either: (A) Be consistent with the minimum standard of valuation prior to the operative date of the valuation manual; or (B) Develop reserves that quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring; (5) Other requirements, including, but not limited to, those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company experience, risk measurement, disclosure, certifications, reports, actuarial opinions and memorandums, transition rules and internal controls; and (6) The data and form of the data required under § 56-1-916 , with whom the data must be submitted, and may specify other requirements including data analyses and reporting of analyses. (e) In the absence of a specific valuation requirement or if a specific valuation requirement in the valuation manual is not, in the opinion of the commissioner, in compliance with this part, then the company shall, with respect to such requirements, comply with minimum valuation standards prescribed by the commissioner by regulation. (f) The commissioner may engage a qualified actuary, at the expense of the company, to perform an actuarial examination of the company and opine on the appropriateness of any reserve assumption or method used by the company, or to review and opine on a company's compliance with any requirement set forth in this part. The commissioner may rely upon the opinion, regarding provisions contained within this part, of a qualified actuary engaged by the commissioner of another state, district or territory of the United States. As used in this subsection (f), "engage" includes employment and contracting. (g) The commissioner may require a company to change any assumption or method that in the opinion of the commissioner is necessary in order to comply with the requirements of the valuation manual or this part; and the company shall adjust the reserves as required by the commissioner. The commissioner may take other disciplinary action as permitted pursuant to § 56-2-305 and the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Added by 2013 Tenn. Acts, ch. 260, s 3, eff. 7/1/2013.
(a) For policies issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under § 56-1-902(b) , except as provided under subsections (e) or (g).
(b) The operative date of the valuation manual is January 1 of the first calendar year following the first July 1 as of which all of the following have occurred: (1) The valuation manual has been adopted by the NAIC by an affirmative vote of at least forty-two (42) members, or three-fourths (3/4) of the members voting, whichever is greater; (2) The Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by states representing greater than seventy-five percent (75%) of the direct premiums written as reported in the following annual statements submitted for 2008: life, accident and health annual statements; health annual statements; or fraternal annual statements; (3) The Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by at least forty-two (42) of the following fifty-five (55) jurisdictions: The fifty (50) states of the United States, American Samoa, the American Virgin Islands, the District of Columbia, Guam and Puerto Rico.
(1) The valuation manual has been adopted by the NAIC by an affirmative vote of at least forty-two (42) members, or three-fourths (3/4) of the members voting, whichever is greater;
(2) The Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by states representing greater than seventy-five percent (75%) of the direct premiums written as reported in the following annual statements submitted for 2008: life, accident and health annual statements; health annual statements; or fraternal annual statements;
(3) The Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by at least forty-two (42) of the following fifty-five (55) jurisdictions: The fifty (50) states of the United States, American Samoa, the American Virgin Islands, the District of Columbia, Guam and Puerto Rico.
(c) Unless a change in the valuation manual specifies a later effective date, changes to the valuation manual shall be effective on January 1 following the date when the change to the valuation manual has been adopted by the NAIC by an affirmative vote representing: (1) At least three-fourths (3/4) of the members of the NAIC voting, but not less than a majority of the total membership; and (2) Members of the NAIC representing jurisdictions totaling greater than seventy-five percent (75%) of the direct premiums written as reported in the following annual statements most recently available prior to the vote in subdivision (c)(1): life, accident and health annual statements, health annual statements or fraternal annual statements.
(1) At least three-fourths (3/4) of the members of the NAIC voting, but not less than a majority of the total membership; and
(2) Members of the NAIC representing jurisdictions totaling greater than seventy-five percent (75%) of the direct premiums written as reported in the following annual statements most recently available prior to the vote in subdivision (c)(1): life, accident and health annual statements, health annual statements or fraternal annual statements.
(d) The valuation manual shall specify all of the following: (1) Minimum valuation standards for and definitions of the policies or contracts subject to § 56-1-902(b) . Such minimum valuation standards shall be: (A) The commissioner's reserve valuation method for life insurance contracts, other than annuity contracts, subject to § 56-1-902(b) ; (B) The commissioner's annuity reserve valuation method for annuity contracts subject to § 56-1-902(b) ; and (C) Minimum reserves for all other policies or contracts subject to § 56-1-902(b) ; (2) Which policies or contracts or types of policies or contracts that are subject to the requirements of a principle-based valuation in § 56-1-915(a) and the minimum valuation standards consistent with those requirements; (3) For policies and contracts subject to a principle-based valuation under § 56-1-915 : (A) Requirements for the format of reports to the commissioner under § 56-1-915(b)(2) and which shall include information necessary to determine if the valuation is appropriate and in compliance with this part; (B) Assumptions shall be prescribed for risks over which the company does not have significant control or influence; and (C) Procedures for corporate governance and oversight of the actuarial function, and a process for appropriate waiver or modification of such procedures; (4) For policies not subject to a principle-based valuation under § 56-1-915 , the minimum valuation standard shall either: (A) Be consistent with the minimum standard of valuation prior to the operative date of the valuation manual; or (B) Develop reserves that quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring; (5) Other requirements, including, but not limited to, those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company experience, risk measurement, disclosure, certifications, reports, actuarial opinions and memorandums, transition rules and internal controls; and (6) The data and form of the data required under § 56-1-916 , with whom the data must be submitted, and may specify other requirements including data analyses and reporting of analyses.
(1) Minimum valuation standards for and definitions of the policies or contracts subject to § 56-1-902(b) . Such minimum valuation standards shall be: (A) The commissioner's reserve valuation method for life insurance contracts, other than annuity contracts, subject to § 56-1-902(b) ; (B) The commissioner's annuity reserve valuation method for annuity contracts subject to § 56-1-902(b) ; and (C) Minimum reserves for all other policies or contracts subject to § 56-1-902(b) ;
(A) The commissioner's reserve valuation method for life insurance contracts, other than annuity contracts, subject to § 56-1-902(b) ;
(B) The commissioner's annuity reserve valuation method for annuity contracts subject to § 56-1-902(b) ; and
(C) Minimum reserves for all other policies or contracts subject to § 56-1-902(b) ;
(2) Which policies or contracts or types of policies or contracts that are subject to the requirements of a principle-based valuation in § 56-1-915(a) and the minimum valuation standards consistent with those requirements;
(3) For policies and contracts subject to a principle-based valuation under § 56-1-915 : (A) Requirements for the format of reports to the commissioner under § 56-1-915(b)(2) and which shall include information necessary to determine if the valuation is appropriate and in compliance with this part; (B) Assumptions shall be prescribed for risks over which the company does not have significant control or influence; and (C) Procedures for corporate governance and oversight of the actuarial function, and a process for appropriate waiver or modification of such procedures;
(A) Requirements for the format of reports to the commissioner under § 56-1-915(b)(2) and which shall include information necessary to determine if the valuation is appropriate and in compliance with this part;
(B) Assumptions shall be prescribed for risks over which the company does not have significant control or influence; and
(C) Procedures for corporate governance and oversight of the actuarial function, and a process for appropriate waiver or modification of such procedures;
(4) For policies not subject to a principle-based valuation under § 56-1-915 , the minimum valuation standard shall either: (A) Be consistent with the minimum standard of valuation prior to the operative date of the valuation manual; or (B) Develop reserves that quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring;
(A) Be consistent with the minimum standard of valuation prior to the operative date of the valuation manual; or
(B) Develop reserves that quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring;
(5) Other requirements, including, but not limited to, those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company experience, risk measurement, disclosure, certifications, reports, actuarial opinions and memorandums, transition rules and internal controls; and
(6) The data and form of the data required under § 56-1-916 , with whom the data must be submitted, and may specify other requirements including data analyses and reporting of analyses.
(e) In the absence of a specific valuation requirement or if a specific valuation requirement in the valuation manual is not, in the opinion of the commissioner, in compliance with this part, then the company shall, with respect to such requirements, comply with minimum valuation standards prescribed by the commissioner by regulation.
(f) The commissioner may engage a qualified actuary, at the expense of the company, to perform an actuarial examination of the company and opine on the appropriateness of any reserve assumption or method used by the company, or to review and opine on a company's compliance with any requirement set forth in this part. The commissioner may rely upon the opinion, regarding provisions contained within this part, of a qualified actuary engaged by the commissioner of another state, district or territory of the United States. As used in this subsection (f), "engage" includes employment and contracting.
(g) The commissioner may require a company to change any assumption or method that in the opinion of the commissioner is necessary in order to comply with the requirements of the valuation manual or this part; and the company shall adjust the reserves as required by the commissioner. The commissioner may take other disciplinary action as permitted pursuant to § 56-2-305 and the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Added by 2013 Tenn. Acts, ch. 260, s 3, eff. 7/1/2013.
Tenn. Code Ann. § 56-3-706 — TN Code / Title 56 / Chapter 3 / Section 56-3-706
Foreign and domestic arbitrage transactions exempt
Status: in_force

Sections 56-3-702 - 56-3-704 do not apply to foreign or domestic arbitrage transactions unless made in contravention of the rules and regulations the commissioner adopts in order to carry out the purposes of this part. Acts 1965, ch. 95, § 5; T.C.A., §§ 56-254, 56-336.
Sections 56-3-702 - 56-3-704 do not apply to foreign or domestic arbitrage transactions unless made in contravention of the rules and regulations the commissioner adopts in order to carry out the purposes of this part.
Acts 1965, ch. 95, § 5; T.C.A., §§ 56-254, 56-336.
Tenn. Code Ann. § 56-14-102 — TN Code / Title 56 / Chapter 14 / Section 56-14-102
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Admitted company" or "authorized company" means an insurance company qualified and licensed to transact business under this title; (2) "Affiliate" means, with respect to an insured, any entity that controls the insured, is controlled by the insured or is under common control with the insured; (3) "Affiliated group" means a group of entities in which each entity, with respect to an insured, controls the insured, is controlled by the insured, or is under common control with the insured; (4) "Alien insurance company" means an insurance company incorporated or formed under the laws of any country other than the United States; (5) "Commissioner" means the commissioner of commerce and insurance; (6) "Control" means: (A) To own, control, or have the power of an entity directly, indirectly, or acting through one or more other persons to vote twenty-five percent (25%) or more of any class of voting securities of another entity; or (B) To direct, by an entity, in any manner, the election of a majority of the directors or trustees of another entity; (7) "Department" means the department of commerce and insurance; (8) (A) "Exempt commercial purchaser" means any person purchasing commercial insurance that, at the time of placement, meets the following requirements: (i) The person employs or retains a qualified risk manager to negotiate insurance coverage; (ii) The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of one hundred thousand dollars ($100,000) in the immediately preceding twelve (12) months; and (iii) The person meets at least one (1) of the following criteria: (a) The person possesses a net worth in excess of twenty million dollars ($20,000,000), as such amount is adjusted pursuant to subdivision (7)(B); (b) The person generates annual revenue in excess of fifty million dollars ($50,000,000), as such amount is adjusted pursuant to subdivision (7)(B); (c) The person employs more than five hundred (500) full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand (1,000) employees in the aggregate; (d) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars ($30,000,000), as such amount is adjusted pursuant to subdivision (7)(B); or (e) The person is a local governmental entity with a population in excess of fifty thousand (50,000) inhabitants; (B) Beginning on the fifth occurrence of January 1 after June 10, 2011, and each fifth occurrence of January 1 thereafter, the amounts in subdivisions (7)(A)(iii)( a ), ( b ), and ( d ) shall be adjusted to reflect the percentage change for such five-year period in the consumer price index for all urban consumers published by the federal bureau of labor statistics; (9) "Foreign" has the same meaning as in § 56-1-102 ; (10) (A) "Home state," except as provided in subdivision (9)(B), means, with respect to an insured: (i) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or (ii) If one hundred percent (100%) of the insured risk is located out of the state referred to in subdivision (9)(A)(i), the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated; (B) If more than one (1) insured from an affiliated group are named insureds on a single nonadmitted insurance contract, "home state" means the home state, as determined pursuant to subdivision (9)(A), of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract; (C) When determining the home state of the insured, the principal place of business is the state in which the insured maintains its headquarters and where the insured's high-level officers direct, control, and coordinate the business activities of the insured; (11) "Insurance company" has the same meaning as in § 56-1-102 ; (12) "Nonadmitted company" or "unauthorized company" means an insurance company not licensed to transact business in this state under this title; (13) "Nonadmitted insurance" or "surplus lines insurance" means any insurance coverage permitted by § 56-14-105 to be placed directly or through surplus lines agents with a nonadmitted insurer eligible pursuant to § 56-14-108 ; (14) "Nonadmitted insurer" means, with respect to a state, an insurer not licensed to engage in the business of insurance in such state; provided, however, such term does not include a risk retention group, as defined in 15 U.S.C. § 3901(a)(4) ; (15) "Qualified risk manager" means, with respect to a policyholder of commercial insurance, a person who meets the following requirements: (A) The person is an employee of, or third-party consultant retained by, the commercial policyholder; (B) The person provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis, and purchase of insurance; and (C) The person meets the standards set out in one (1) of the following categories: (i) The person has: (a) A bachelor's degree or higher from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management; and (b) Either of the following: (1) Three (3) years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis or purchasing commercial lines of insurance; (2) A designation as a Chartered Property and Casualty Underwriter issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America; (3) A designation as an Associate in Risk Management issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America; (4) A designation as a Certified Risk Manager issued by the National Alliance for Insurance Education and Research; (5) A designation as a RIMS Fellow issued by the Global Risk Management Institute; or (6) Any other designation, certification, or license determined by a state insurance commissioner or other state insurance regulatory official or entity to demonstrate minimum competency in risk management; (ii) The person has: (a) At least seven (7) years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; and (b) Any one (1) of the designations set out in subdivision (15)(C)(i)( b ); (iii) The person has at least ten (10) years of experience in risk financing, claims administration, loss prevention risk and insurance coverage analysis, or purchasing commercial lines of insurance; or (iv) The person has a graduate degree from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management; (16) "State" includes any state in the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa; (17) "Surplus lines agent" means an agent who is licensed under chapter 6, part 1 of this title who is granted a surplus lines license in accordance with this chapter; (18) "Surplus lines insurer" means an unauthorized company in which a nonadmitted insurance coverage is placed or may be placed under this chapter; and (19) "Writing agent" means the licensed insurance agent who accepts the application for nonadmitted insurance directly or indirectly from the prospective insured. Acts 1969, ch. 270, § 2; impl. am. Acts 1971, ch. 137, § 2; impl. am. Acts 1975, ch. 68, § 1; T.C.A., § 56-3802; Acts 2001, ch. 220, § 1; 2011 , ch. 446, § 1.
As used in this chapter, unless the context otherwise requires:
(1) "Admitted company" or "authorized company" means an insurance company qualified and licensed to transact business under this title;
(2) "Affiliate" means, with respect to an insured, any entity that controls the insured, is controlled by the insured or is under common control with the insured;
(3) "Affiliated group" means a group of entities in which each entity, with respect to an insured, controls the insured, is controlled by the insured, or is under common control with the insured;
(4) "Alien insurance company" means an insurance company incorporated or formed under the laws of any country other than the United States;
(5) "Commissioner" means the commissioner of commerce and insurance;
(6) "Control" means: (A) To own, control, or have the power of an entity directly, indirectly, or acting through one or more other persons to vote twenty-five percent (25%) or more of any class of voting securities of another entity; or (B) To direct, by an entity, in any manner, the election of a majority of the directors or trustees of another entity;
(A) To own, control, or have the power of an entity directly, indirectly, or acting through one or more other persons to vote twenty-five percent (25%) or more of any class of voting securities of another entity; or
(B) To direct, by an entity, in any manner, the election of a majority of the directors or trustees of another entity;
(7) "Department" means the department of commerce and insurance;
(8) (A) "Exempt commercial purchaser" means any person purchasing commercial insurance that, at the time of placement, meets the following requirements: (i) The person employs or retains a qualified risk manager to negotiate insurance coverage; (ii) The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of one hundred thousand dollars ($100,000) in the immediately preceding twelve (12) months; and (iii) The person meets at least one (1) of the following criteria: (a) The person possesses a net worth in excess of twenty million dollars ($20,000,000), as such amount is adjusted pursuant to subdivision (7)(B); (b) The person generates annual revenue in excess of fifty million dollars ($50,000,000), as such amount is adjusted pursuant to subdivision (7)(B); (c) The person employs more than five hundred (500) full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand (1,000) employees in the aggregate; (d) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars ($30,000,000), as such amount is adjusted pursuant to subdivision (7)(B); or (e) The person is a local governmental entity with a population in excess of fifty thousand (50,000) inhabitants; (B) Beginning on the fifth occurrence of January 1 after June 10, 2011, and each fifth occurrence of January 1 thereafter, the amounts in subdivisions (7)(A)(iii)( a ), ( b ), and ( d ) shall be adjusted to reflect the percentage change for such five-year period in the consumer price index for all urban consumers published by the federal bureau of labor statistics;
(A) "Exempt commercial purchaser" means any person purchasing commercial insurance that, at the time of placement, meets the following requirements: (i) The person employs or retains a qualified risk manager to negotiate insurance coverage; (ii) The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of one hundred thousand dollars ($100,000) in the immediately preceding twelve (12) months; and (iii) The person meets at least one (1) of the following criteria: (a) The person possesses a net worth in excess of twenty million dollars ($20,000,000), as such amount is adjusted pursuant to subdivision (7)(B); (b) The person generates annual revenue in excess of fifty million dollars ($50,000,000), as such amount is adjusted pursuant to subdivision (7)(B); (c) The person employs more than five hundred (500) full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand (1,000) employees in the aggregate; (d) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars ($30,000,000), as such amount is adjusted pursuant to subdivision (7)(B); or (e) The person is a local governmental entity with a population in excess of fifty thousand (50,000) inhabitants;
(i) The person employs or retains a qualified risk manager to negotiate insurance coverage;
(ii) The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of one hundred thousand dollars ($100,000) in the immediately preceding twelve (12) months; and
(iii) The person meets at least one (1) of the following criteria: (a) The person possesses a net worth in excess of twenty million dollars ($20,000,000), as such amount is adjusted pursuant to subdivision (7)(B); (b) The person generates annual revenue in excess of fifty million dollars ($50,000,000), as such amount is adjusted pursuant to subdivision (7)(B); (c) The person employs more than five hundred (500) full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand (1,000) employees in the aggregate; (d) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars ($30,000,000), as such amount is adjusted pursuant to subdivision (7)(B); or (e) The person is a local governmental entity with a population in excess of fifty thousand (50,000) inhabitants;
(a) The person possesses a net worth in excess of twenty million dollars ($20,000,000), as such amount is adjusted pursuant to subdivision (7)(B);
(b) The person generates annual revenue in excess of fifty million dollars ($50,000,000), as such amount is adjusted pursuant to subdivision (7)(B);
(c) The person employs more than five hundred (500) full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand (1,000) employees in the aggregate;
(d) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars ($30,000,000), as such amount is adjusted pursuant to subdivision (7)(B); or
(e) The person is a local governmental entity with a population in excess of fifty thousand (50,000) inhabitants;
(B) Beginning on the fifth occurrence of January 1 after June 10, 2011, and each fifth occurrence of January 1 thereafter, the amounts in subdivisions (7)(A)(iii)( a ), ( b ), and ( d ) shall be adjusted to reflect the percentage change for such five-year period in the consumer price index for all urban consumers published by the federal bureau of labor statistics;
(9) "Foreign" has the same meaning as in § 56-1-102 ;
(10) (A) "Home state," except as provided in subdivision (9)(B), means, with respect to an insured: (i) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or (ii) If one hundred percent (100%) of the insured risk is located out of the state referred to in subdivision (9)(A)(i), the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated; (B) If more than one (1) insured from an affiliated group are named insureds on a single nonadmitted insurance contract, "home state" means the home state, as determined pursuant to subdivision (9)(A), of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract; (C) When determining the home state of the insured, the principal place of business is the state in which the insured maintains its headquarters and where the insured's high-level officers direct, control, and coordinate the business activities of the insured;
(A) "Home state," except as provided in subdivision (9)(B), means, with respect to an insured: (i) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or (ii) If one hundred percent (100%) of the insured risk is located out of the state referred to in subdivision (9)(A)(i), the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated;
(i) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or
(ii) If one hundred percent (100%) of the insured risk is located out of the state referred to in subdivision (9)(A)(i), the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated;
(B) If more than one (1) insured from an affiliated group are named insureds on a single nonadmitted insurance contract, "home state" means the home state, as determined pursuant to subdivision (9)(A), of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract;
(C) When determining the home state of the insured, the principal place of business is the state in which the insured maintains its headquarters and where the insured's high-level officers direct, control, and coordinate the business activities of the insured;
(11) "Insurance company" has the same meaning as in § 56-1-102 ;
(12) "Nonadmitted company" or "unauthorized company" means an insurance company not licensed to transact business in this state under this title;
(13) "Nonadmitted insurance" or "surplus lines insurance" means any insurance coverage permitted by § 56-14-105 to be placed directly or through surplus lines agents with a nonadmitted insurer eligible pursuant to § 56-14-108 ;
(14) "Nonadmitted insurer" means, with respect to a state, an insurer not licensed to engage in the business of insurance in such state; provided, however, such term does not include a risk retention group, as defined in 15 U.S.C. § 3901(a)(4) ;
(15) "Qualified risk manager" means, with respect to a policyholder of commercial insurance, a person who meets the following requirements: (A) The person is an employee of, or third-party consultant retained by, the commercial policyholder; (B) The person provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis, and purchase of insurance; and (C) The person meets the standards set out in one (1) of the following categories: (i) The person has: (a) A bachelor's degree or higher from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management; and (b) Either of the following: (1) Three (3) years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis or purchasing commercial lines of insurance; (2) A designation as a Chartered Property and Casualty Underwriter issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America; (3) A designation as an Associate in Risk Management issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America; (4) A designation as a Certified Risk Manager issued by the National Alliance for Insurance Education and Research; (5) A designation as a RIMS Fellow issued by the Global Risk Management Institute; or (6) Any other designation, certification, or license determined by a state insurance commissioner or other state insurance regulatory official or entity to demonstrate minimum competency in risk management; (ii) The person has: (a) At least seven (7) years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; and (b) Any one (1) of the designations set out in subdivision (15)(C)(i)( b ); (iii) The person has at least ten (10) years of experience in risk financing, claims administration, loss prevention risk and insurance coverage analysis, or purchasing commercial lines of insurance; or (iv) The person has a graduate degree from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management;
(A) The person is an employee of, or third-party consultant retained by, the commercial policyholder;
(B) The person provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis, and purchase of insurance; and
(C) The person meets the standards set out in one (1) of the following categories: (i) The person has: (a) A bachelor's degree or higher from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management; and (b) Either of the following: (1) Three (3) years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis or purchasing commercial lines of insurance; (2) A designation as a Chartered Property and Casualty Underwriter issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America; (3) A designation as an Associate in Risk Management issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America; (4) A designation as a Certified Risk Manager issued by the National Alliance for Insurance Education and Research; (5) A designation as a RIMS Fellow issued by the Global Risk Management Institute; or (6) Any other designation, certification, or license determined by a state insurance commissioner or other state insurance regulatory official or entity to demonstrate minimum competency in risk management; (ii) The person has: (a) At least seven (7) years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; and (b) Any one (1) of the designations set out in subdivision (15)(C)(i)( b ); (iii) The person has at least ten (10) years of experience in risk financing, claims administration, loss prevention risk and insurance coverage analysis, or purchasing commercial lines of insurance; or (iv) The person has a graduate degree from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management;
(i) The person has: (a) A bachelor's degree or higher from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management; and (b) Either of the following: (1) Three (3) years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis or purchasing commercial lines of insurance; (2) A designation as a Chartered Property and Casualty Underwriter issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America; (3) A designation as an Associate in Risk Management issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America; (4) A designation as a Certified Risk Manager issued by the National Alliance for Insurance Education and Research; (5) A designation as a RIMS Fellow issued by the Global Risk Management Institute; or (6) Any other designation, certification, or license determined by a state insurance commissioner or other state insurance regulatory official or entity to demonstrate minimum competency in risk management;
(a) A bachelor's degree or higher from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management; and
(b) Either of the following: (1) Three (3) years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis or purchasing commercial lines of insurance; (2) A designation as a Chartered Property and Casualty Underwriter issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America; (3) A designation as an Associate in Risk Management issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America; (4) A designation as a Certified Risk Manager issued by the National Alliance for Insurance Education and Research; (5) A designation as a RIMS Fellow issued by the Global Risk Management Institute; or (6) Any other designation, certification, or license determined by a state insurance commissioner or other state insurance regulatory official or entity to demonstrate minimum competency in risk management;
(1) Three (3) years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis or purchasing commercial lines of insurance;
(2) A designation as a Chartered Property and Casualty Underwriter issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America;
(3) A designation as an Associate in Risk Management issued by the American Institute for Chartered Property and Casualty Underwriter, Insurance Institute of America;
(4) A designation as a Certified Risk Manager issued by the National Alliance for Insurance Education and Research;
(5) A designation as a RIMS Fellow issued by the Global Risk Management Institute; or
(6) Any other designation, certification, or license determined by a state insurance commissioner or other state insurance regulatory official or entity to demonstrate minimum competency in risk management;
(ii) The person has: (a) At least seven (7) years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; and (b) Any one (1) of the designations set out in subdivision (15)(C)(i)( b );
(a) At least seven (7) years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; and
(b) Any one (1) of the designations set out in subdivision (15)(C)(i)( b );
(iii) The person has at least ten (10) years of experience in risk financing, claims administration, loss prevention risk and insurance coverage analysis, or purchasing commercial lines of insurance; or
(iv) The person has a graduate degree from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management;
(16) "State" includes any state in the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa;
(17) "Surplus lines agent" means an agent who is licensed under chapter 6, part 1 of this title who is granted a surplus lines license in accordance with this chapter;
(18) "Surplus lines insurer" means an unauthorized company in which a nonadmitted insurance coverage is placed or may be placed under this chapter; and
(19) "Writing agent" means the licensed insurance agent who accepts the application for nonadmitted insurance directly or indirectly from the prospective insured.
Acts 1969, ch. 270, § 2; impl. am. Acts 1971, ch. 137, § 2; impl. am. Acts 1975, ch. 68, § 1; T.C.A., § 56-3802; Acts 2001, ch. 220, § 1; 2011 , ch. 446, § 1.
Tenn. Code Ann. § 56-45-113 — TN Code / Title 56 / Chapter 45 / Section 56-45-113
Federal district courts - Orders enforceable in this state
Status: in_force

An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating in any state, or in all states or in any territory or possession of the United States, upon a finding that the risk retention group is in hazardous financial or financially impaired condition, is enforceable in the courts of this state. Acts 1991, ch. 142, § 6.
An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating in any state, or in all states or in any territory or possession of the United States, upon a finding that the risk retention group is in hazardous financial or financially impaired condition, is enforceable in the courts of this state.
Acts 1991, ch. 142, § 6.
Tenn. Code Ann. § 56-35-123 — TN Code / Title 56 / Chapter 35 / Section 56-35-123
Conduct of hearings
Status: in_force

In the conduct of any hearing, the commissioner, or the commissioner's deputy or duly authorized examiner, specially designated for the purpose, has the power to administer oaths and to examine any person under oath, and in connection therewith, to require the attendance of any person and the production of any books, records or papers relative to the inquiry. Acts 1955, ch. 173, § 15; T.C.A., § 56-3423.
In the conduct of any hearing, the commissioner, or the commissioner's deputy or duly authorized examiner, specially designated for the purpose, has the power to administer oaths and to examine any person under oath, and in connection therewith, to require the attendance of any person and the production of any books, records or papers relative to the inquiry.
Acts 1955, ch. 173, § 15; T.C.A., § 56-3423.
Tenn. Code Ann. § 56-32-114 — TN Code / Title 56 / Chapter 32 / Section 56-32-114
Licensing of agents
Status: in_force

(a) The commissioner may, after notice and hearing, promulgate reasonable rules and regulations necessary to provide for the licensing of agents. "Agent" means a person who is appointed or employed by an HMO and who engages in solicitation or membership in the organization. "Agent" does not include a person enrolling members on behalf of an employer, union or other organization to whom a master subscriber contract has been issued. (b) The commissioner may by rule exempt certain classes of persons from the requirement of obtaining a license, if other existing licensing procedures make a separate HMO agent's license unnecessary. Acts 1986, ch. 713, § 14; T.C.A. § 56-32-214.
(a) The commissioner may, after notice and hearing, promulgate reasonable rules and regulations necessary to provide for the licensing of agents. "Agent" means a person who is appointed or employed by an HMO and who engages in solicitation or membership in the organization. "Agent" does not include a person enrolling members on behalf of an employer, union or other organization to whom a master subscriber contract has been issued.
(b) The commissioner may by rule exempt certain classes of persons from the requirement of obtaining a license, if other existing licensing procedures make a separate HMO agent's license unnecessary.
Acts 1986, ch. 713, § 14; T.C.A. § 56-32-214.
Tenn. Code Ann. § 56-7-1103 — TN Code / Title 56 / Chapter 7 / Section 56-7-1103
Motor vehicle liability - Applicability of sections
Status: in_force

Sections 56-7-1103 - 56-7-1105 are applicable only in causes of action arising out of the ownership or operation of a motor vehicle when service of process cannot be obtained on the owner or operator of the motor vehicle by either personal service of process or by service on the secretary of state where there is a nonresident involved. Acts 1976, ch. 612, § 1; T.C.A., § 56-1173.
Sections 56-7-1103 - 56-7-1105 are applicable only in causes of action arising out of the ownership or operation of a motor vehicle when service of process cannot be obtained on the owner or operator of the motor vehicle by either personal service of process or by service on the secretary of state where there is a nonresident involved.
Acts 1976, ch. 612, § 1; T.C.A., § 56-1173.
Tenn. Code Ann. § 56-13-204 — TN Code / Title 56 / Chapter 13 / Section 56-13-204
Conditions for formation or licensure
Status: in_force

A protected cell captive insurance company formed or licensed under this chapter may establish and maintain one (1) or more incorporated or unincorporated protected cells, to insure risks of one (1) or more participants, subject to the following conditions: (1) (A) A protected cell captive insurance company may establish one (1) or more protected cells if the commissioner has approved in writing a plan of operation or amendments to a plan of operation submitted by the protected cell captive insurance company with respect to each protected cell. A plan of operation must include, but is not limited to, the specific business objectives and investment guidelines of the protected cell. However, the commissioner may require additional information in the plan of operation. The commissioner may make the approval of a plan of operation or amendments to a plan of operation effective as of any date on or before the date the approval is signed as long as the effective date is no earlier than the date on which the plan of operation or amendments to the plan of operation were filed with the department; (B) Upon the commissioner's written approval of the plan of operation, the protected cell captive insurance company, in accordance with the approved plan of operation, may attribute insurance obligations with respect to its insurance business to the protected cell; (C) A protected cell shall have its own distinct name or designation that shall include the words "protected cell" or "incorporated cell"; provided, an incorporated cell formed as a series of a limited liability company, if formed after July 1, 2015, shall bear a distinct name or designation as reflected in its formation documents and shall include the words "series cell". Such names or designations may also be reasonably abbreviated, including, without limitation, PC or P.C. for "protected cell", IC, I.C., IPC, or I.P.C. for "incorporated cell", and SC, S.C., SPC, or S.P.C. for "series cell"; (D) The protected cell captive insurance company shall transfer all assets attributable to a protected cell to one (1) or more separately established and identified protected cell accounts bearing the name or designation of that protected cell. Protected cell assets must be held in the protected cell accounts for the purpose of satisfying the obligations of that protected cell; (E) An incorporated protected cell may be organized and operated in any form of business organization authorized by the commissioner, including, but not limited to, an individual series of a limited liability company as provided for in title 48, chapter 249. Each incorporated protected cell of a protected cell captive insurer must be treated as a captive insurer for purposes of this chapter and has the power to enter into contracts, including an individual series of a limited liability company. Unless otherwise permitted by the organizational documents of a protected cell captive insurer, each incorporated protected cell of the protected cell captive insurer must have the same directors, secretary, and registered office as the protected cell captive insurer; (F) All attributions of assets and liabilities between a protected cell and the general account shall be in accordance with the plan of operation and participant contracts approved by the commissioner. No other attribution of assets or liabilities shall be made by a protected cell captive insurance company between the protected cell captive insurance company's general account and its protected cells. Any attribution of assets and liabilities between the general account and a protected cell shall be in cash or in readily marketable securities with established market values; (2) The creation of a protected cell does not create, with respect to that protected cell, a legal person separate from the protected cell captive insurance company unless the protected cell is an incorporated cell. Amounts attributed to a protected cell under this part, including assets transferred to a protected cell account, are owned by the protected cell. No protected cell captive insurance company shall be, or hold itself out to be, a trustee with respect to those protected cell assets of that protected cell account. Notwithstanding this subdivision (2), the protected cell captive insurance company may allow for a security interest to attach to protected cell assets or a protected cell account when in favor of a creditor of the protected cell and otherwise allowed under applicable law; (3) This chapter shall not be construed to prohibit the protected cell captive insurance company from contracting with or arranging for an investment advisor, commodity trading advisor, or other third party to manage the protected cell assets of a protected cell, if all remuneration, expenses, and other compensation of the third party advisor or manager are payable from the protected cell assets of that protected cell and not from the protected cell assets of other protected cells or the assets of the protected cell captive insurance company's general account; (4) (A) A protected cell captive insurance company shall establish administrative and accounting procedures necessary to properly identify the one (1) or more protected cells of the protected cell captive insurance company and the protected cell assets and protected cell liabilities attributable to the protected cells. The directors of a protected cell captive insurance company shall keep protected cell assets and protected cell liabilities: (i) Separate and separately identifiable from the assets and liabilities of the protected cell captive insurance company's general account; and (ii) Attributable to one (1) protected cell separate and separately identifiable from protected cell assets and protected cell liabilities attributable to other protected cells; (B) If subdivision (4)(A) is violated, then the remedy of tracing is applicable to protected cell assets when commingled with protected cell assets of other protected cells or the assets of the protected cell captive insurance company's general account. The remedy of tracing shall not be construed as an exclusive remedy; (5) When establishing a protected cell, the protected cell captive insurance company shall attribute to the protected cell assets a value at least equal to the reserves and other insurance liabilities attributed to that protected cell; (6) Each protected cell shall be accounted for separately on the books and records of the protected cell captive insurance company to reflect the financial condition and results of operations of such protected cell, net income or loss, dividends or other distributions to participants, and such other factors as may be provided in the participant contract or required by the commissioner; (7) No asset of a protected cell shall be chargeable with liabilities arising out of any other insurance business the protected cell captive insurance company may conduct; (8) No sale, exchange, or other transfer of assets shall be made by such protected cell captive insurance company between or among any of its protected cells without the consent of such protected cells; (9) No sale, exchange, transfer of assets, dividend, or distribution shall be made from a protected cell to a protected cell captive insurance company or participant without the commissioner's approval. In no event shall the commissioner's approval be given if the sale, exchange, transfer, dividend or distribution would result in the insolvency or impairment of a protected cell; (10) All attributions of assets and liabilities to the protected cells and the general account shall be in accordance with the plan of operation approved by the commissioner. No other attribution of assets or liabilities shall be made by a protected cell captive insurance company between its general account and any protected cell or between any protected cells. The protected cell captive insurance company shall attribute all insurance obligations, assets, and liabilities relating to a reinsurance contract entered into with respect to a protected cell to such protected cell. The performance under such reinsurance contract and any tax benefits, losses, refunds, or credits allocated pursuant to a tax allocation agreement to which the protected cell captive insurance company is a party, including any payments made by or due to be made to the protected cell captive insurance company pursuant to the terms of such agreement, shall reflect the insurance obligations, assets, and liabilities relating to the reinsurance contract that are attributed to such protected cell; (11) In connection with the conservation, rehabilitation, or liquidation of a protected cell captive insurance company, the assets and liabilities of a protected cell shall, to the extent the commissioner determines they are separable, at all times be kept separate from, and shall not be commingled with, those of other protected cells and the protected cell captive insurance company; (12) Each protected cell captive insurance company shall annually file with the commissioner such financial reports as required by the commissioner. Any such financial report shall include, without limitation, accounting statements detailing the financial experience of each protected cell; (13) Each protected cell captive insurance company shall notify the commissioner in writing within ten (10) business days of any protected cell that is insolvent or otherwise unable to meet its claim or expense obligations; (14) No participant contract shall take effect without the commissioner's prior written approval. The addition of each new protected cell, the withdrawal of any participant, or the termination of any existing protected cell shall constitute a change in the plan of operation requiring the commissioner's prior written approval; (15) The business written by a protected cell captive insurance company, with respect to each protected cell, shall be: (A) Fronted by an insurance company licensed under the laws of any state; (B) Reinsured by a reinsurer authorized or approved by this state; or (C) Secured by a trust fund in the United States for the benefit of policyholders and claimants or funded by an irrevocable letter of credit or other arrangement that is acceptable to the commissioner. The amount of security provided shall be no less than the reserves associated with those liabilities which are neither fronted nor reinsured, including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses and unearned premiums for business written through the participant's protected cell. The commissioner may require the protected cell captive insurance company to increase the funding of any security arrangement established under this subdivision (15). If the form of security is a letter of credit, the letter of credit shall be issued or confirmed by a bank approved by the commissioner. A trust maintained pursuant to this subdivision (15) shall be established in a form and upon such terms approved by the commissioner; (16) Notwithstanding this title or other laws of this state, and in addition to § 56-13-207 , in the event of an insolvency of a protected cell captive insurance company where the commissioner determines that one (1) or more protected cells remain solvent, the commissioner may separate such cells from the protected cell captive insurance company and may allow, on application of the protected cell captive insurance company, for the conversion of such protected cells into one (1) or more new or existing protected cell captive insurance companies, or one (1) or more other captive insurance companies, pursuant to such plan of operation as the commissioner deems acceptable; (17) Biographical affidavits are not required for participants in unincorporated cells. However, biographical affidavits are required for owners of incorporated cells, including series members of a series LLC; and (18) A protected cell captive insurance company formed or licensed under this chapter may establish and operate both unincorporated and incorporated protected cells. Amended by 2024 Tenn. Acts, ch. 643,s 14, eff. 4/4/2024. Amended by 2019 Tenn. Acts, ch. 452, s 8, s 9, s 10 eff. 5/22/2019. Amended by 2015 Tenn. Acts, ch. 156, s 14, s 15 eff. 4/17/2015. Amended by 2013 Tenn. Acts, ch. 139, s 9, s 10, s 11, s 12 eff. 4/12/2013. Acts 2011 , ch. 468, § 1.
A protected cell captive insurance company formed or licensed under this chapter may establish and maintain one (1) or more incorporated or unincorporated protected cells, to insure risks of one (1) or more participants, subject to the following conditions:
(1) (A) A protected cell captive insurance company may establish one (1) or more protected cells if the commissioner has approved in writing a plan of operation or amendments to a plan of operation submitted by the protected cell captive insurance company with respect to each protected cell. A plan of operation must include, but is not limited to, the specific business objectives and investment guidelines of the protected cell. However, the commissioner may require additional information in the plan of operation. The commissioner may make the approval of a plan of operation or amendments to a plan of operation effective as of any date on or before the date the approval is signed as long as the effective date is no earlier than the date on which the plan of operation or amendments to the plan of operation were filed with the department; (B) Upon the commissioner's written approval of the plan of operation, the protected cell captive insurance company, in accordance with the approved plan of operation, may attribute insurance obligations with respect to its insurance business to the protected cell; (C) A protected cell shall have its own distinct name or designation that shall include the words "protected cell" or "incorporated cell"; provided, an incorporated cell formed as a series of a limited liability company, if formed after July 1, 2015, shall bear a distinct name or designation as reflected in its formation documents and shall include the words "series cell". Such names or designations may also be reasonably abbreviated, including, without limitation, PC or P.C. for "protected cell", IC, I.C., IPC, or I.P.C. for "incorporated cell", and SC, S.C., SPC, or S.P.C. for "series cell"; (D) The protected cell captive insurance company shall transfer all assets attributable to a protected cell to one (1) or more separately established and identified protected cell accounts bearing the name or designation of that protected cell. Protected cell assets must be held in the protected cell accounts for the purpose of satisfying the obligations of that protected cell; (E) An incorporated protected cell may be organized and operated in any form of business organization authorized by the commissioner, including, but not limited to, an individual series of a limited liability company as provided for in title 48, chapter 249. Each incorporated protected cell of a protected cell captive insurer must be treated as a captive insurer for purposes of this chapter and has the power to enter into contracts, including an individual series of a limited liability company. Unless otherwise permitted by the organizational documents of a protected cell captive insurer, each incorporated protected cell of the protected cell captive insurer must have the same directors, secretary, and registered office as the protected cell captive insurer; (F) All attributions of assets and liabilities between a protected cell and the general account shall be in accordance with the plan of operation and participant contracts approved by the commissioner. No other attribution of assets or liabilities shall be made by a protected cell captive insurance company between the protected cell captive insurance company's general account and its protected cells. Any attribution of assets and liabilities between the general account and a protected cell shall be in cash or in readily marketable securities with established market values;
(A) A protected cell captive insurance company may establish one (1) or more protected cells if the commissioner has approved in writing a plan of operation or amendments to a plan of operation submitted by the protected cell captive insurance company with respect to each protected cell. A plan of operation must include, but is not limited to, the specific business objectives and investment guidelines of the protected cell. However, the commissioner may require additional information in the plan of operation. The commissioner may make the approval of a plan of operation or amendments to a plan of operation effective as of any date on or before the date the approval is signed as long as the effective date is no earlier than the date on which the plan of operation or amendments to the plan of operation were filed with the department;
(B) Upon the commissioner's written approval of the plan of operation, the protected cell captive insurance company, in accordance with the approved plan of operation, may attribute insurance obligations with respect to its insurance business to the protected cell;
(C) A protected cell shall have its own distinct name or designation that shall include the words "protected cell" or "incorporated cell"; provided, an incorporated cell formed as a series of a limited liability company, if formed after July 1, 2015, shall bear a distinct name or designation as reflected in its formation documents and shall include the words "series cell". Such names or designations may also be reasonably abbreviated, including, without limitation, PC or P.C. for "protected cell", IC, I.C., IPC, or I.P.C. for "incorporated cell", and SC, S.C., SPC, or S.P.C. for "series cell";
(D) The protected cell captive insurance company shall transfer all assets attributable to a protected cell to one (1) or more separately established and identified protected cell accounts bearing the name or designation of that protected cell. Protected cell assets must be held in the protected cell accounts for the purpose of satisfying the obligations of that protected cell;
(E) An incorporated protected cell may be organized and operated in any form of business organization authorized by the commissioner, including, but not limited to, an individual series of a limited liability company as provided for in title 48, chapter 249. Each incorporated protected cell of a protected cell captive insurer must be treated as a captive insurer for purposes of this chapter and has the power to enter into contracts, including an individual series of a limited liability company. Unless otherwise permitted by the organizational documents of a protected cell captive insurer, each incorporated protected cell of the protected cell captive insurer must have the same directors, secretary, and registered office as the protected cell captive insurer;
(F) All attributions of assets and liabilities between a protected cell and the general account shall be in accordance with the plan of operation and participant contracts approved by the commissioner. No other attribution of assets or liabilities shall be made by a protected cell captive insurance company between the protected cell captive insurance company's general account and its protected cells. Any attribution of assets and liabilities between the general account and a protected cell shall be in cash or in readily marketable securities with established market values;
(2) The creation of a protected cell does not create, with respect to that protected cell, a legal person separate from the protected cell captive insurance company unless the protected cell is an incorporated cell. Amounts attributed to a protected cell under this part, including assets transferred to a protected cell account, are owned by the protected cell. No protected cell captive insurance company shall be, or hold itself out to be, a trustee with respect to those protected cell assets of that protected cell account. Notwithstanding this subdivision (2), the protected cell captive insurance company may allow for a security interest to attach to protected cell assets or a protected cell account when in favor of a creditor of the protected cell and otherwise allowed under applicable law;
(3) This chapter shall not be construed to prohibit the protected cell captive insurance company from contracting with or arranging for an investment advisor, commodity trading advisor, or other third party to manage the protected cell assets of a protected cell, if all remuneration, expenses, and other compensation of the third party advisor or manager are payable from the protected cell assets of that protected cell and not from the protected cell assets of other protected cells or the assets of the protected cell captive insurance company's general account;
(4) (A) A protected cell captive insurance company shall establish administrative and accounting procedures necessary to properly identify the one (1) or more protected cells of the protected cell captive insurance company and the protected cell assets and protected cell liabilities attributable to the protected cells. The directors of a protected cell captive insurance company shall keep protected cell assets and protected cell liabilities: (i) Separate and separately identifiable from the assets and liabilities of the protected cell captive insurance company's general account; and (ii) Attributable to one (1) protected cell separate and separately identifiable from protected cell assets and protected cell liabilities attributable to other protected cells; (B) If subdivision (4)(A) is violated, then the remedy of tracing is applicable to protected cell assets when commingled with protected cell assets of other protected cells or the assets of the protected cell captive insurance company's general account. The remedy of tracing shall not be construed as an exclusive remedy;
(A) A protected cell captive insurance company shall establish administrative and accounting procedures necessary to properly identify the one (1) or more protected cells of the protected cell captive insurance company and the protected cell assets and protected cell liabilities attributable to the protected cells. The directors of a protected cell captive insurance company shall keep protected cell assets and protected cell liabilities: (i) Separate and separately identifiable from the assets and liabilities of the protected cell captive insurance company's general account; and (ii) Attributable to one (1) protected cell separate and separately identifiable from protected cell assets and protected cell liabilities attributable to other protected cells;
(i) Separate and separately identifiable from the assets and liabilities of the protected cell captive insurance company's general account; and
(ii) Attributable to one (1) protected cell separate and separately identifiable from protected cell assets and protected cell liabilities attributable to other protected cells;
(B) If subdivision (4)(A) is violated, then the remedy of tracing is applicable to protected cell assets when commingled with protected cell assets of other protected cells or the assets of the protected cell captive insurance company's general account. The remedy of tracing shall not be construed as an exclusive remedy;
(5) When establishing a protected cell, the protected cell captive insurance company shall attribute to the protected cell assets a value at least equal to the reserves and other insurance liabilities attributed to that protected cell;
(6) Each protected cell shall be accounted for separately on the books and records of the protected cell captive insurance company to reflect the financial condition and results of operations of such protected cell, net income or loss, dividends or other distributions to participants, and such other factors as may be provided in the participant contract or required by the commissioner;
(7) No asset of a protected cell shall be chargeable with liabilities arising out of any other insurance business the protected cell captive insurance company may conduct;
(8) No sale, exchange, or other transfer of assets shall be made by such protected cell captive insurance company between or among any of its protected cells without the consent of such protected cells;
(9) No sale, exchange, transfer of assets, dividend, or distribution shall be made from a protected cell to a protected cell captive insurance company or participant without the commissioner's approval. In no event shall the commissioner's approval be given if the sale, exchange, transfer, dividend or distribution would result in the insolvency or impairment of a protected cell;
(10) All attributions of assets and liabilities to the protected cells and the general account shall be in accordance with the plan of operation approved by the commissioner. No other attribution of assets or liabilities shall be made by a protected cell captive insurance company between its general account and any protected cell or between any protected cells. The protected cell captive insurance company shall attribute all insurance obligations, assets, and liabilities relating to a reinsurance contract entered into with respect to a protected cell to such protected cell. The performance under such reinsurance contract and any tax benefits, losses, refunds, or credits allocated pursuant to a tax allocation agreement to which the protected cell captive insurance company is a party, including any payments made by or due to be made to the protected cell captive insurance company pursuant to the terms of such agreement, shall reflect the insurance obligations, assets, and liabilities relating to the reinsurance contract that are attributed to such protected cell;
(11) In connection with the conservation, rehabilitation, or liquidation of a protected cell captive insurance company, the assets and liabilities of a protected cell shall, to the extent the commissioner determines they are separable, at all times be kept separate from, and shall not be commingled with, those of other protected cells and the protected cell captive insurance company;
(12) Each protected cell captive insurance company shall annually file with the commissioner such financial reports as required by the commissioner. Any such financial report shall include, without limitation, accounting statements detailing the financial experience of each protected cell;
(13) Each protected cell captive insurance company shall notify the commissioner in writing within ten (10) business days of any protected cell that is insolvent or otherwise unable to meet its claim or expense obligations;
(14) No participant contract shall take effect without the commissioner's prior written approval. The addition of each new protected cell, the withdrawal of any participant, or the termination of any existing protected cell shall constitute a change in the plan of operation requiring the commissioner's prior written approval;
(15) The business written by a protected cell captive insurance company, with respect to each protected cell, shall be: (A) Fronted by an insurance company licensed under the laws of any state; (B) Reinsured by a reinsurer authorized or approved by this state; or (C) Secured by a trust fund in the United States for the benefit of policyholders and claimants or funded by an irrevocable letter of credit or other arrangement that is acceptable to the commissioner. The amount of security provided shall be no less than the reserves associated with those liabilities which are neither fronted nor reinsured, including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses and unearned premiums for business written through the participant's protected cell. The commissioner may require the protected cell captive insurance company to increase the funding of any security arrangement established under this subdivision (15). If the form of security is a letter of credit, the letter of credit shall be issued or confirmed by a bank approved by the commissioner. A trust maintained pursuant to this subdivision (15) shall be established in a form and upon such terms approved by the commissioner;
(A) Fronted by an insurance company licensed under the laws of any state;
(B) Reinsured by a reinsurer authorized or approved by this state; or
(C) Secured by a trust fund in the United States for the benefit of policyholders and claimants or funded by an irrevocable letter of credit or other arrangement that is acceptable to the commissioner. The amount of security provided shall be no less than the reserves associated with those liabilities which are neither fronted nor reinsured, including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses and unearned premiums for business written through the participant's protected cell. The commissioner may require the protected cell captive insurance company to increase the funding of any security arrangement established under this subdivision (15). If the form of security is a letter of credit, the letter of credit shall be issued or confirmed by a bank approved by the commissioner. A trust maintained pursuant to this subdivision (15) shall be established in a form and upon such terms approved by the commissioner;
(16) Notwithstanding this title or other laws of this state, and in addition to § 56-13-207 , in the event of an insolvency of a protected cell captive insurance company where the commissioner determines that one (1) or more protected cells remain solvent, the commissioner may separate such cells from the protected cell captive insurance company and may allow, on application of the protected cell captive insurance company, for the conversion of such protected cells into one (1) or more new or existing protected cell captive insurance companies, or one (1) or more other captive insurance companies, pursuant to such plan of operation as the commissioner deems acceptable;
(17) Biographical affidavits are not required for participants in unincorporated cells. However, biographical affidavits are required for owners of incorporated cells, including series members of a series LLC; and
(18) A protected cell captive insurance company formed or licensed under this chapter may establish and operate both unincorporated and incorporated protected cells.
Amended by 2024 Tenn. Acts, ch. 643,s 14, eff. 4/4/2024.
Amended by 2019 Tenn. Acts, ch. 452, s 8, s 9, s 10 eff. 5/22/2019.
Amended by 2015 Tenn. Acts, ch. 156, s 14, s 15 eff. 4/17/2015.
Amended by 2013 Tenn. Acts, ch. 139, s 9, s 10, s 11, s 12 eff. 4/12/2013.
Acts 2011 , ch. 468, § 1.
Tenn. Code Ann. § 56-4-219 — TN Code / Title 56 / Chapter 4 / Section 56-4-219
Refund of erroneously paid taxes
Status: in_force

(a) With respect to any revenues or receipts collected by the department, any other law to the contrary notwithstanding, the amounts determined to have been erroneously paid may be refunded by the procedure developed by the commissioner of finance and administration and approved by the comptroller of the treasury. (b) The procedure shall provide that no refund shall be made unless within three (3) years from December 31 of the year in which the erroneous payment was made the refund is either requested by the claimant or made by the state on its own motion. A refund of taxes that is based solely on a final court adjudication shall not be made to any person that is not either a party to the action or a party to another similar action brought pursuant to title 67, chapter 1, part 9. The decision of the appropriate state official with respect to any refund request shall be final and not subject to review in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Acts 1984, ch. 633, § 1.
(a) With respect to any revenues or receipts collected by the department, any other law to the contrary notwithstanding, the amounts determined to have been erroneously paid may be refunded by the procedure developed by the commissioner of finance and administration and approved by the comptroller of the treasury.
(b) The procedure shall provide that no refund shall be made unless within three (3) years from December 31 of the year in which the erroneous payment was made the refund is either requested by the claimant or made by the state on its own motion. A refund of taxes that is based solely on a final court adjudication shall not be made to any person that is not either a party to the action or a party to another similar action brought pursuant to title 67, chapter 1, part 9. The decision of the appropriate state official with respect to any refund request shall be final and not subject to review in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 1984, ch. 633, § 1.
Tenn. Code Ann. § 56-26-107 — TN Code / Title 56 / Chapter 26 / Section 56-26-107
Policy deliverable in another state
Status: in_force

If any policy is issued by an insurer domiciled in this state for delivery to a person residing in another state, and if the official having responsibility for the administration of the insurance laws of such other state has advised the commissioner that any such policy is not subject to approval or disapproval by the official, the commissioner may by ruling require that the policy meet the standards set forth in § 56-26-106 and in §§ 56-26-108 - 56-26-114. Acts 1955, ch. 4, § 3; T.C.A., § 56-3307.
If any policy is issued by an insurer domiciled in this state for delivery to a person residing in another state, and if the official having responsibility for the administration of the insurance laws of such other state has advised the commissioner that any such policy is not subject to approval or disapproval by the official, the commissioner may by ruling require that the policy meet the standards set forth in § 56-26-106 and in §§ 56-26-108 - 56-26-114.
Acts 1955, ch. 4, § 3; T.C.A., § 56-3307.
Tenn. Code Ann. § 56-6-401 — TN Code / Title 56 / Chapter 6 / Section 56-6-401
"Administrator" defined
Status: in_force

As used in this part, "administrator" means any person, company, corporation, partnership, association or other legal entity that collects charges or premiums from, or that adjusts or settles claims on, residents of this state in connection with life or health insurance coverage or annuities other than: (1) An employer on behalf of its employees or the employees of one (1) or more subsidiary or affiliated corporations of the employer; (2) A union on behalf of its members; (3) An insurance company that is either licensed in this state or acting as an insurer with respect to a policy lawfully issued and delivered by it in and pursuant to the laws of a state in which the insurer was authorized to conduct an insurance business or a nonprofit hospital, medical, dental or vision service organization, including its sales representatives, licensed in this state when engaged in the performance of its duties as such, or a duly licensed health maintenance organization; (4) A life or health agent or broker licensed in this state, whose activities are limited exclusively to the sale of insurance, or sales-related services for which no monetary compensation is paid; (5) A creditor on behalf of its debtors with respect to insurance covering a debt between the creditor and its debtors; (6) A trust, its trustees, agents and employees acting under the trust, established in conformity with 29 U.S.C. § 186 ; (7) A trust exempt from taxation under the Internal Revenue Code, § 501(a) ( 26 U.S.C. § 501(a) ), its trustees, and employees acting under 26 U.S.C. § 501(a) , or a custodian, its agents and employees acting pursuant to a custodian account that meets the requirements of the Internal Revenue Code, § 401(f) ( 26 U.S.C. § 401(f) ); (8) A bank, credit union or other financial institution that is subject to supervision or examination by federal or state banking authorities; (9) A credit card issuing company that advances for and collects premiums or charges from its credit card holders who have authorized it to do so, provided the company does not adjust or settle claims; or (10) A person who adjusts or settles claims in the normal course of the person's practice or employment as an attorney at law, and who does not collect charges or premiums in connection with life or health insurance coverage or annuities. Acts 1980, ch. 640, § 1.
As used in this part, "administrator" means any person, company, corporation, partnership, association or other legal entity that collects charges or premiums from, or that adjusts or settles claims on, residents of this state in connection with life or health insurance coverage or annuities other than:
(1) An employer on behalf of its employees or the employees of one (1) or more subsidiary or affiliated corporations of the employer;
(2) A union on behalf of its members;
(3) An insurance company that is either licensed in this state or acting as an insurer with respect to a policy lawfully issued and delivered by it in and pursuant to the laws of a state in which the insurer was authorized to conduct an insurance business or a nonprofit hospital, medical, dental or vision service organization, including its sales representatives, licensed in this state when engaged in the performance of its duties as such, or a duly licensed health maintenance organization;
(4) A life or health agent or broker licensed in this state, whose activities are limited exclusively to the sale of insurance, or sales-related services for which no monetary compensation is paid;
(5) A creditor on behalf of its debtors with respect to insurance covering a debt between the creditor and its debtors;
(6) A trust, its trustees, agents and employees acting under the trust, established in conformity with 29 U.S.C. § 186 ;
(7) A trust exempt from taxation under the Internal Revenue Code, § 501(a) ( 26 U.S.C. § 501(a) ), its trustees, and employees acting under 26 U.S.C. § 501(a) , or a custodian, its agents and employees acting pursuant to a custodian account that meets the requirements of the Internal Revenue Code, § 401(f) ( 26 U.S.C. § 401(f) );
(8) A bank, credit union or other financial institution that is subject to supervision or examination by federal or state banking authorities;
(9) A credit card issuing company that advances for and collects premiums or charges from its credit card holders who have authorized it to do so, provided the company does not adjust or settle claims; or
(10) A person who adjusts or settles claims in the normal course of the person's practice or employment as an attorney at law, and who does not collect charges or premiums in connection with life or health insurance coverage or annuities.
Acts 1980, ch. 640, § 1.
Tenn. Code Ann. § 56-61-108 — TN Code / Title 56 / Chapter 61 / Section 56-61-108
Second level review of adverse determination
Status: in_force

(a) A health carrier shall establish a second level review process to give aggrieved persons, who are dissatisfied with the first level review decision, the option of requesting a second level review. (b) (1) Health carriers required by this section to establish a second level review process shall provide aggrieved persons with notice pursuant to § 56-61-107 , as appropriate, of the option to file a request with the health carrier for a second level review of the first level review's decision rendered pursuant to § 56-61-107 . (2) Upon receipt of a request for a second level review, the health carrier shall send notice within five (5) business days to the covered person or, if applicable, the covered person's authorized representative of the covered person's right to: (A) Request, within the timeframe specified in subdivision (b)(3)(A), the opportunity to appear in person before a review panel of the health carrier's designated representatives; (B) Receive from the health carrier, upon request, copies of all documents, records and other information that is not confidential or privileged relevant to the covered person's request for benefits; (C) Present the covered person's case to the review panel; (D) Submit written comments, documents, records and other material relating to the request for benefits to the review panel for consideration when conducting the second level review both before and, if applicable, during the second level review; (E) If applicable, ask questions of any representative of the health carrier on the review panel; provided, such questions are governed and relevant to the subject matter of the second level review; and (F) Be assisted or represented by an individual of the covered person's choice, at the expense of such covered person. (3) (A) A covered person or covered person's authorized representative wishing to request to appear in person before the review panel of the health carrier's designated representatives shall make the request to the health carrier within ten (10) business days after the date of receipt of the notice sent in accordance with subdivision (b)(2). (B) The covered person's right to a fair review shall not be made conditional on the covered person or the covered person's authorized representative's appearance at the second level review. (4) Upon receipt of a request for a second level review, the health carrier shall send notice within five (5) business days to the healthcare provider of the healthcare provider's right to: (A) Receive from the health carrier, upon request, copies of all documents, records and other information that is not confidential or privileged relevant to the aggrieved person's request for benefits; (B) Submit written comments, documents, records and other material relating to the request for benefits for the review panel to consider when conducting the second level review; and (C) If applicable, ask questions of any representative of the health carrier on the review panel; provided, such questions are governed and relevant to the subject matter of the second level review. (c) (1) (A) With respect to a second level review of a first level review decision rendered pursuant to § 56-61-107 , a health carrier shall appoint a review panel to review the request. (B) In conducting the review, the review panel shall take into consideration all comments, documents, records and other information regarding the request for benefits submitted by the aggrieved person pursuant to subdivision (b)(2), without regard to whether the information was submitted or considered in reaching the first level review's decision. (C) The review panel shall have the legal authority to bind the health carrier to the review panel's decision. (2) (A) Except as provided in subdivision (c)(2)(B), a majority of the review panel shall be comprised of individuals who were not involved in the first level review decision rendered pursuant to § 56-61-107 . (B) An individual who was involved with the first level review decision may be a member of the review panel or appear before the review panel to present information or answer questions. (C) The health carrier shall ensure that the individuals conducting the second level review of the first level review decision have appropriate expertise or have access to appropriate expertise that consists of similar knowledge and training or specialty that typically is involved in managing the medical condition, procedure or treatment that is the subject of the grievance under second level review. (D) No member of the review panel shall have a direct financial interest in the outcome of the second level review. (d) The procedures for conducting the second level review shall include the provisions described in subdivisions (d)(1)-(5): (1) The review panel shall schedule and hold the second level review within sixty (60) business days after the date of receipt of the request for a second level review; (A) The aggrieved person shall be notified in writing at least fifteen (15) business days in advance of the date of the second level review; (B) The health carrier shall not unreasonably deny a request for postponement of the second level review made by the aggrieved person; (2) The second level review shall be held during regular business hours at a location that meets the guidelines established by the Americans with Disabilities Act ( 42 U.S.C. § 1201 et seq.), to the aggrieved person; (3) In cases where an in-person second level review is not practical for geographic reasons, or any other reason, a health carrier shall offer the aggrieved person the opportunity to communicate with the review panel, at the health carrier's sole expense, by conference call or other appropriate technology as determined by the health carrier; (4) The review panel shall provide the aggrieved person notice of the right to have an attorney present at the second level review; and (5) The review panel shall issue a written or electronic decision, as provided in subsection (e), to the aggrieved person within five (5) business days of completing the second level review meeting. (e) A decision issued pursuant to this section shall include the: (1) Titles and qualifying credentials of the reviewers on the review panel; (2) Statement of the review panel's understanding of the nature of the grievance and all pertinent facts; (3) Rationale for the review panel's decision; (4) Reference to evidence or documentation considered by the review panel in rendering its decision; and (5) In cases concerning a grievance involving an adverse determination: (A) Instructions for requesting a written statement of the clinical rationale, including the clinical review criteria used to make the determination; and (B) If applicable, a statement describing the procedures for obtaining an external review of the adverse determination pursuant to this chapter. Acts 2010, ch. 980, § 9.
(a) A health carrier shall establish a second level review process to give aggrieved persons, who are dissatisfied with the first level review decision, the option of requesting a second level review.
(b) (1) Health carriers required by this section to establish a second level review process shall provide aggrieved persons with notice pursuant to § 56-61-107 , as appropriate, of the option to file a request with the health carrier for a second level review of the first level review's decision rendered pursuant to § 56-61-107 . (2) Upon receipt of a request for a second level review, the health carrier shall send notice within five (5) business days to the covered person or, if applicable, the covered person's authorized representative of the covered person's right to: (A) Request, within the timeframe specified in subdivision (b)(3)(A), the opportunity to appear in person before a review panel of the health carrier's designated representatives; (B) Receive from the health carrier, upon request, copies of all documents, records and other information that is not confidential or privileged relevant to the covered person's request for benefits; (C) Present the covered person's case to the review panel; (D) Submit written comments, documents, records and other material relating to the request for benefits to the review panel for consideration when conducting the second level review both before and, if applicable, during the second level review; (E) If applicable, ask questions of any representative of the health carrier on the review panel; provided, such questions are governed and relevant to the subject matter of the second level review; and (F) Be assisted or represented by an individual of the covered person's choice, at the expense of such covered person. (3) (A) A covered person or covered person's authorized representative wishing to request to appear in person before the review panel of the health carrier's designated representatives shall make the request to the health carrier within ten (10) business days after the date of receipt of the notice sent in accordance with subdivision (b)(2). (B) The covered person's right to a fair review shall not be made conditional on the covered person or the covered person's authorized representative's appearance at the second level review. (4) Upon receipt of a request for a second level review, the health carrier shall send notice within five (5) business days to the healthcare provider of the healthcare provider's right to: (A) Receive from the health carrier, upon request, copies of all documents, records and other information that is not confidential or privileged relevant to the aggrieved person's request for benefits; (B) Submit written comments, documents, records and other material relating to the request for benefits for the review panel to consider when conducting the second level review; and (C) If applicable, ask questions of any representative of the health carrier on the review panel; provided, such questions are governed and relevant to the subject matter of the second level review.
(1) Health carriers required by this section to establish a second level review process shall provide aggrieved persons with notice pursuant to § 56-61-107 , as appropriate, of the option to file a request with the health carrier for a second level review of the first level review's decision rendered pursuant to § 56-61-107 .
(2) Upon receipt of a request for a second level review, the health carrier shall send notice within five (5) business days to the covered person or, if applicable, the covered person's authorized representative of the covered person's right to: (A) Request, within the timeframe specified in subdivision (b)(3)(A), the opportunity to appear in person before a review panel of the health carrier's designated representatives; (B) Receive from the health carrier, upon request, copies of all documents, records and other information that is not confidential or privileged relevant to the covered person's request for benefits; (C) Present the covered person's case to the review panel; (D) Submit written comments, documents, records and other material relating to the request for benefits to the review panel for consideration when conducting the second level review both before and, if applicable, during the second level review; (E) If applicable, ask questions of any representative of the health carrier on the review panel; provided, such questions are governed and relevant to the subject matter of the second level review; and (F) Be assisted or represented by an individual of the covered person's choice, at the expense of such covered person.
(A) Request, within the timeframe specified in subdivision (b)(3)(A), the opportunity to appear in person before a review panel of the health carrier's designated representatives;
(B) Receive from the health carrier, upon request, copies of all documents, records and other information that is not confidential or privileged relevant to the covered person's request for benefits;
(C) Present the covered person's case to the review panel;
(D) Submit written comments, documents, records and other material relating to the request for benefits to the review panel for consideration when conducting the second level review both before and, if applicable, during the second level review;
(E) If applicable, ask questions of any representative of the health carrier on the review panel; provided, such questions are governed and relevant to the subject matter of the second level review; and
(F) Be assisted or represented by an individual of the covered person's choice, at the expense of such covered person.
(3) (A) A covered person or covered person's authorized representative wishing to request to appear in person before the review panel of the health carrier's designated representatives shall make the request to the health carrier within ten (10) business days after the date of receipt of the notice sent in accordance with subdivision (b)(2). (B) The covered person's right to a fair review shall not be made conditional on the covered person or the covered person's authorized representative's appearance at the second level review.
(A) A covered person or covered person's authorized representative wishing to request to appear in person before the review panel of the health carrier's designated representatives shall make the request to the health carrier within ten (10) business days after the date of receipt of the notice sent in accordance with subdivision (b)(2).
(B) The covered person's right to a fair review shall not be made conditional on the covered person or the covered person's authorized representative's appearance at the second level review.
(4) Upon receipt of a request for a second level review, the health carrier shall send notice within five (5) business days to the healthcare provider of the healthcare provider's right to: (A) Receive from the health carrier, upon request, copies of all documents, records and other information that is not confidential or privileged relevant to the aggrieved person's request for benefits; (B) Submit written comments, documents, records and other material relating to the request for benefits for the review panel to consider when conducting the second level review; and (C) If applicable, ask questions of any representative of the health carrier on the review panel; provided, such questions are governed and relevant to the subject matter of the second level review.
(A) Receive from the health carrier, upon request, copies of all documents, records and other information that is not confidential or privileged relevant to the aggrieved person's request for benefits;
(B) Submit written comments, documents, records and other material relating to the request for benefits for the review panel to consider when conducting the second level review; and
(C) If applicable, ask questions of any representative of the health carrier on the review panel; provided, such questions are governed and relevant to the subject matter of the second level review.
(c) (1) (A) With respect to a second level review of a first level review decision rendered pursuant to § 56-61-107 , a health carrier shall appoint a review panel to review the request. (B) In conducting the review, the review panel shall take into consideration all comments, documents, records and other information regarding the request for benefits submitted by the aggrieved person pursuant to subdivision (b)(2), without regard to whether the information was submitted or considered in reaching the first level review's decision. (C) The review panel shall have the legal authority to bind the health carrier to the review panel's decision. (2) (A) Except as provided in subdivision (c)(2)(B), a majority of the review panel shall be comprised of individuals who were not involved in the first level review decision rendered pursuant to § 56-61-107 . (B) An individual who was involved with the first level review decision may be a member of the review panel or appear before the review panel to present information or answer questions. (C) The health carrier shall ensure that the individuals conducting the second level review of the first level review decision have appropriate expertise or have access to appropriate expertise that consists of similar knowledge and training or specialty that typically is involved in managing the medical condition, procedure or treatment that is the subject of the grievance under second level review. (D) No member of the review panel shall have a direct financial interest in the outcome of the second level review.
(1) (A) With respect to a second level review of a first level review decision rendered pursuant to § 56-61-107 , a health carrier shall appoint a review panel to review the request. (B) In conducting the review, the review panel shall take into consideration all comments, documents, records and other information regarding the request for benefits submitted by the aggrieved person pursuant to subdivision (b)(2), without regard to whether the information was submitted or considered in reaching the first level review's decision. (C) The review panel shall have the legal authority to bind the health carrier to the review panel's decision.
(A) With respect to a second level review of a first level review decision rendered pursuant to § 56-61-107 , a health carrier shall appoint a review panel to review the request.
(B) In conducting the review, the review panel shall take into consideration all comments, documents, records and other information regarding the request for benefits submitted by the aggrieved person pursuant to subdivision (b)(2), without regard to whether the information was submitted or considered in reaching the first level review's decision.
(C) The review panel shall have the legal authority to bind the health carrier to the review panel's decision.
(2) (A) Except as provided in subdivision (c)(2)(B), a majority of the review panel shall be comprised of individuals who were not involved in the first level review decision rendered pursuant to § 56-61-107 . (B) An individual who was involved with the first level review decision may be a member of the review panel or appear before the review panel to present information or answer questions. (C) The health carrier shall ensure that the individuals conducting the second level review of the first level review decision have appropriate expertise or have access to appropriate expertise that consists of similar knowledge and training or specialty that typically is involved in managing the medical condition, procedure or treatment that is the subject of the grievance under second level review. (D) No member of the review panel shall have a direct financial interest in the outcome of the second level review.
(A) Except as provided in subdivision (c)(2)(B), a majority of the review panel shall be comprised of individuals who were not involved in the first level review decision rendered pursuant to § 56-61-107 .
(B) An individual who was involved with the first level review decision may be a member of the review panel or appear before the review panel to present information or answer questions.
(C) The health carrier shall ensure that the individuals conducting the second level review of the first level review decision have appropriate expertise or have access to appropriate expertise that consists of similar knowledge and training or specialty that typically is involved in managing the medical condition, procedure or treatment that is the subject of the grievance under second level review.
(D) No member of the review panel shall have a direct financial interest in the outcome of the second level review.
(d) The procedures for conducting the second level review shall include the provisions described in subdivisions (d)(1)-(5): (1) The review panel shall schedule and hold the second level review within sixty (60) business days after the date of receipt of the request for a second level review; (A) The aggrieved person shall be notified in writing at least fifteen (15) business days in advance of the date of the second level review; (B) The health carrier shall not unreasonably deny a request for postponement of the second level review made by the aggrieved person; (2) The second level review shall be held during regular business hours at a location that meets the guidelines established by the Americans with Disabilities Act ( 42 U.S.C. § 1201 et seq.), to the aggrieved person; (3) In cases where an in-person second level review is not practical for geographic reasons, or any other reason, a health carrier shall offer the aggrieved person the opportunity to communicate with the review panel, at the health carrier's sole expense, by conference call or other appropriate technology as determined by the health carrier; (4) The review panel shall provide the aggrieved person notice of the right to have an attorney present at the second level review; and (5) The review panel shall issue a written or electronic decision, as provided in subsection (e), to the aggrieved person within five (5) business days of completing the second level review meeting.
(1) The review panel shall schedule and hold the second level review within sixty (60) business days after the date of receipt of the request for a second level review; (A) The aggrieved person shall be notified in writing at least fifteen (15) business days in advance of the date of the second level review; (B) The health carrier shall not unreasonably deny a request for postponement of the second level review made by the aggrieved person;
(A) The aggrieved person shall be notified in writing at least fifteen (15) business days in advance of the date of the second level review;
(B) The health carrier shall not unreasonably deny a request for postponement of the second level review made by the aggrieved person;
(2) The second level review shall be held during regular business hours at a location that meets the guidelines established by the Americans with Disabilities Act ( 42 U.S.C. § 1201 et seq.), to the aggrieved person;
(3) In cases where an in-person second level review is not practical for geographic reasons, or any other reason, a health carrier shall offer the aggrieved person the opportunity to communicate with the review panel, at the health carrier's sole expense, by conference call or other appropriate technology as determined by the health carrier;
(4) The review panel shall provide the aggrieved person notice of the right to have an attorney present at the second level review; and
(5) The review panel shall issue a written or electronic decision, as provided in subsection (e), to the aggrieved person within five (5) business days of completing the second level review meeting.
(e) A decision issued pursuant to this section shall include the: (1) Titles and qualifying credentials of the reviewers on the review panel; (2) Statement of the review panel's understanding of the nature of the grievance and all pertinent facts; (3) Rationale for the review panel's decision; (4) Reference to evidence or documentation considered by the review panel in rendering its decision; and (5) In cases concerning a grievance involving an adverse determination: (A) Instructions for requesting a written statement of the clinical rationale, including the clinical review criteria used to make the determination; and (B) If applicable, a statement describing the procedures for obtaining an external review of the adverse determination pursuant to this chapter.
(1) Titles and qualifying credentials of the reviewers on the review panel;
(2) Statement of the review panel's understanding of the nature of the grievance and all pertinent facts;
(3) Rationale for the review panel's decision;
(4) Reference to evidence or documentation considered by the review panel in rendering its decision; and
(5) In cases concerning a grievance involving an adverse determination: (A) Instructions for requesting a written statement of the clinical rationale, including the clinical review criteria used to make the determination; and (B) If applicable, a statement describing the procedures for obtaining an external review of the adverse determination pursuant to this chapter.
(A) Instructions for requesting a written statement of the clinical rationale, including the clinical review criteria used to make the determination; and
(B) If applicable, a statement describing the procedures for obtaining an external review of the adverse determination pursuant to this chapter.
Acts 2010, ch. 980, § 9.
Tenn. Code Ann. § 56-47-105 — TN Code / Title 56 / Chapter 47 / Section 56-47-105
Penalties
Status: in_force

Violations of § 56-47-103(a), (b) and (c) are to be valued according to § 39-11-106(a)(38) , and punished as theft under § 39-14-105 . Violations of § 56-47-103(d) shall be valued to include the total amount of workers' compensation premiums that the employer avoided paying, to be calculated by utilizing the appropriate Tennessee assigned risk plan advisory prospective loss cost and multiplier for such an employer for the total number of years, and parts of years, during which the employer was subject to the workers' compensation law and intentionally failed to secure payment of compensation as required by the workers' compensation law, and the violations shall be punished as theft under § 39-14-105 . Acts 1996, ch. 944, § 48; 1998, ch. 1024, § 12; 2000, ch. 852, § 11.
Violations of § 56-47-103(a), (b) and (c) are to be valued according to § 39-11-106(a)(38) , and punished as theft under § 39-14-105 . Violations of § 56-47-103(d) shall be valued to include the total amount of workers' compensation premiums that the employer avoided paying, to be calculated by utilizing the appropriate Tennessee assigned risk plan advisory prospective loss cost and multiplier for such an employer for the total number of years, and parts of years, during which the employer was subject to the workers' compensation law and intentionally failed to secure payment of compensation as required by the workers' compensation law, and the violations shall be punished as theft under § 39-14-105 .
Acts 1996, ch. 944, § 48; 1998, ch. 1024, § 12; 2000, ch. 852, § 11.
Tenn. Code Ann. § 56-30-131 — TN Code / Title 56 / Chapter 30 / Section 56-30-131
Laws relating to practice of medicine and surgery or dentistry or other insurance not affected
Status: in_force

Nothing in this chapter shall be construed to modify or repeal any law or parts of law now in force, relating to the practice of medicine or surgery, or to the practice of dentistry, or to the regulation of life, accident, health or casualty insurance, excepting as they are inconsistent with this chapter. Acts 1961, ch. 340, § 31; T.C.A., § 56-3532.
Nothing in this chapter shall be construed to modify or repeal any law or parts of law now in force, relating to the practice of medicine or surgery, or to the practice of dentistry, or to the regulation of life, accident, health or casualty insurance, excepting as they are inconsistent with this chapter.
Acts 1961, ch. 340, § 31; T.C.A., § 56-3532.
Tenn. Code Ann. § 56-7-909 — TN Code / Title 56 / Chapter 7 / Section 56-7-909
Termination of insurance - Refunds and charges
Status: in_force

(a) Each individual policy of credit life insurance on which the premium is paid by the debtor and each group certificate for which an identifiable charge is made to the debtor shall provide that, in the event of termination of the insurance prior to the scheduled maturity date of the indebtedness, any refund or premium or identifiable charge due shall be paid or credited promptly to the debtor. If a debtor has paid a premium or an identifiable charge for credit life insurance to the creditor and the insurance is declined by the insurer or otherwise does not become effective, the insurer or creditor shall immediately give written notice to the debtor and shall promptly arrange for refund or credit to the debtor of any premium or identifiable charge paid by the debtor for the insurance plus interest and fees charged on the premium or identifiable charge. (b) (1) The refund of premiums or identifiable charges, in the case of level term credit life insurance and of reducing term credit life insurance on which premiums are payable other than by a single premium, shall be equal to the pro rata unearned gross premium, and in the case of reducing term credit life insurance paid by a single premium shall be equal to the amount computed by the sum of digits formula commonly known as the "Rule of 78"; however, refunds calculated at less than one dollar ($1.00) need not be made. If fifteen (15) days or less of a loan month has been earned, no charge may be made, but if over fifteen (15) days, a full month may be charged. (2) The formulae to be used in computing the amounts of the return premiums shall be filed with and approved by the commissioner. (c) An insurer shall promptly refund to an individual policyholder, and refund or credit to a group policyholder, any refund of premium due on termination of insurance prior to the scheduled maturity date of the indebtedness, and a group policyholder or creditor shall promptly refund or credit to the debtor any refund due. If an amount at least equal to the amount of any premium refund is still owed to the creditor on the indebtedness as covered, then the creditor may elect to apply the amount of the refund to the indebtedness. It shall be the obligation of the insured to notify the insurer of any early payoff of the indebtedness that is covered by insurance. Insurers shall establish procedures by which the refunds or credits are made. Each individual policy or group certificate of credit life insurance issued after January 1, 2006, shall provide a notice in the policy or certificate that it is the obligation of the insured to notify the insurer of any early payoff of the indebtedness that is covered by the insurance and that the insured may be entitled to a refund. Acts 1985, ch. 107, § 3; 2005, ch. 399, § 1.
(a) Each individual policy of credit life insurance on which the premium is paid by the debtor and each group certificate for which an identifiable charge is made to the debtor shall provide that, in the event of termination of the insurance prior to the scheduled maturity date of the indebtedness, any refund or premium or identifiable charge due shall be paid or credited promptly to the debtor. If a debtor has paid a premium or an identifiable charge for credit life insurance to the creditor and the insurance is declined by the insurer or otherwise does not become effective, the insurer or creditor shall immediately give written notice to the debtor and shall promptly arrange for refund or credit to the debtor of any premium or identifiable charge paid by the debtor for the insurance plus interest and fees charged on the premium or identifiable charge.
(b) (1) The refund of premiums or identifiable charges, in the case of level term credit life insurance and of reducing term credit life insurance on which premiums are payable other than by a single premium, shall be equal to the pro rata unearned gross premium, and in the case of reducing term credit life insurance paid by a single premium shall be equal to the amount computed by the sum of digits formula commonly known as the "Rule of 78"; however, refunds calculated at less than one dollar ($1.00) need not be made. If fifteen (15) days or less of a loan month has been earned, no charge may be made, but if over fifteen (15) days, a full month may be charged. (2) The formulae to be used in computing the amounts of the return premiums shall be filed with and approved by the commissioner.
(1) The refund of premiums or identifiable charges, in the case of level term credit life insurance and of reducing term credit life insurance on which premiums are payable other than by a single premium, shall be equal to the pro rata unearned gross premium, and in the case of reducing term credit life insurance paid by a single premium shall be equal to the amount computed by the sum of digits formula commonly known as the "Rule of 78"; however, refunds calculated at less than one dollar ($1.00) need not be made. If fifteen (15) days or less of a loan month has been earned, no charge may be made, but if over fifteen (15) days, a full month may be charged.
(2) The formulae to be used in computing the amounts of the return premiums shall be filed with and approved by the commissioner.
(c) An insurer shall promptly refund to an individual policyholder, and refund or credit to a group policyholder, any refund of premium due on termination of insurance prior to the scheduled maturity date of the indebtedness, and a group policyholder or creditor shall promptly refund or credit to the debtor any refund due. If an amount at least equal to the amount of any premium refund is still owed to the creditor on the indebtedness as covered, then the creditor may elect to apply the amount of the refund to the indebtedness. It shall be the obligation of the insured to notify the insurer of any early payoff of the indebtedness that is covered by insurance. Insurers shall establish procedures by which the refunds or credits are made. Each individual policy or group certificate of credit life insurance issued after January 1, 2006, shall provide a notice in the policy or certificate that it is the obligation of the insured to notify the insurer of any early payoff of the indebtedness that is covered by the insurance and that the insured may be entitled to a refund.
Acts 1985, ch. 107, § 3; 2005, ch. 399, § 1.
Tenn. Code Ann. § 56-36-104 — TN Code / Title 56 / Chapter 36 / Section 56-36-104
Minimum values
Status: in_force

(a) Prior to July 1, 2006, a company may elect to comply with this subsection (a) or subsection (b). On and after July 1, 2006, all companies shall comply with subsection (b). The minimum values as specified in this chapter in §§ 56-36-105 - 56-36-108 and 56-36-110 of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this section: (1) (A) (i) With respect to contracts providing for flexible considerations issued prior to July 1, 2002, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to that time at a rate of interest of three percent (3%) per annum of percentages of the net considerations, as defined in subdivision (a)(1)(B), prior to that time, decreased by the sum of: (a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of three percent (3%) per annum; and (b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract. (ii) With respect to contracts providing for flexible considerations issued on and after July 1, 2002, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest of one and one half percent (1.5%) per annum of percentages of the net considerations, as defined in subdivision (a)(1)(B), prior to such time, decreased by the sum of: (a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one half percent (1.5%) per annum; and (b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract; (B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero (0) and shall be equal to the corresponding gross considerations credited to the contract during that contract year, less an annual contract charge of thirty dollars ($30.00), and less a collection charge of one dollar and twenty-five cents ($1.25), per consideration credited to the contract during that contract year. The percentages of net considerations shall be sixty-five percent (65%) of the net consideration for the first contract year and eighty-seven and one half percent (87.5%) of the net considerations for the second and later contract years. Notwithstanding the preceding sentence, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year that exceeds by not more than two (2) times the sum of those portions of the net considerations in all prior years for which the percentage was sixty-five percent (65%); (2) With respect to contracts providing for fixed scheduled considerations, minimum nonforfeiture amounts shall be calculated on the assumption that considerations are paid annually in advance and shall be defined as for contracts with flexible considerations that are paid annually with two (2) exceptions: (A) The portion of the net consideration for the first contract year to be accumulated shall be the sum of sixty-five percent (65%) of the net consideration for the first contract year plus twenty-two and one half percent (22.5%) of the excess of the net consideration for the first contract year over the lesser of the net considerations for the second and third contract years; and (B) The annual contract charge shall be the lesser of: (i) Thirty dollars ($30.00); or (ii) Ten percent (10%) of the gross annual consideration; and (3) With respect to contracts providing for a single consideration, minimum nonforfeiture amounts shall be defined as for contracts with flexible considerations, except that the percentage of net consideration used to determine the minimum nonforfeiture amount shall be equal to ninety percent (90%) and the net consideration shall be the gross consideration less a contract charge of seventy-five dollars ($75.00). (b) The minimum values as specified in this chapter in §§ 56-36-105 - 56-36-108 and 56-36-110 of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this subsection (b). (1) (A) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at rates of interest as indicated in subdivision (b)(2) of the net considerations, as defined in this section, paid prior to such time, decreased by the sum of subdivisions (b)(1)(A)(i)-(iv): (i) Any prior withdrawals from or partial surrenders of the contract accumulated at rates of interest as indicated in subdivision (b)(2); (ii) An annual contract charge of fifty dollars ($50.00), accumulated at rates of interest as indicated in subdivision (b)(2); (iii) Any premium tax paid by the company for the contract, accumulated at rates of interest as indicated in subdivision (b)(2); and (iv) The amount of any indebtedness to the company on the contract, including interest due and accrued; and (B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one half percent (87.5%) of the gross considerations credited to the contract during that contract year. (2) The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of three percent (3%) per annum and the following, which shall be specified in the contract if the interest rate will be reset: (A) The five-year constant maturity treasury rate reported by the federal reserve as of a date, or average over a period, rounded to the nearest one-twentieth of one percent (0.05%), specified in the contract no longer than fifteen (15) months prior to the contract issue date or redetermination date under subdivision (b)(2)(D); (B) Reduced by one hundred twenty-five (125) basis points; (C) Where the resulting interest rate is not less than one percent (1%); and (D) The interest rate shall apply for an initial period and may be redetermined for additional periods. The redetermination date, basis and period, if any, shall be stated in the contract. The basis is the date or average over a specified period that produces the value of the five-year constant maturity treasury rate to be used at each redetermination date. (3) During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described in subdivision (b)(2)(B) by up to an additional one hundred (100) basis points to reflect the value of the equity index benefit. The present value at the contract issue date, and at each redetermination date thereafter, of the additional reduction shall not exceed the market value of the benefit. The commissioner may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. Lacking such a demonstration that is acceptable to the commissioner, the commissioner may disallow or limit the additional reduction. (4) The commissioner may adopt rules and regulations, in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement subdivision (b)(3) and to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts that the commissioner determines adjustments are justified. Acts 1978, ch. 590, § 4; T.C.A., § 56-4604; Acts 2002, ch. 570, § 1; 2004, ch. 439, §§ 2, 3.
(a) Prior to July 1, 2006, a company may elect to comply with this subsection (a) or subsection (b). On and after July 1, 2006, all companies shall comply with subsection (b). The minimum values as specified in this chapter in §§ 56-36-105 - 56-36-108 and 56-36-110 of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this section: (1) (A) (i) With respect to contracts providing for flexible considerations issued prior to July 1, 2002, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to that time at a rate of interest of three percent (3%) per annum of percentages of the net considerations, as defined in subdivision (a)(1)(B), prior to that time, decreased by the sum of: (a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of three percent (3%) per annum; and (b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract. (ii) With respect to contracts providing for flexible considerations issued on and after July 1, 2002, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest of one and one half percent (1.5%) per annum of percentages of the net considerations, as defined in subdivision (a)(1)(B), prior to such time, decreased by the sum of: (a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one half percent (1.5%) per annum; and (b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract; (B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero (0) and shall be equal to the corresponding gross considerations credited to the contract during that contract year, less an annual contract charge of thirty dollars ($30.00), and less a collection charge of one dollar and twenty-five cents ($1.25), per consideration credited to the contract during that contract year. The percentages of net considerations shall be sixty-five percent (65%) of the net consideration for the first contract year and eighty-seven and one half percent (87.5%) of the net considerations for the second and later contract years. Notwithstanding the preceding sentence, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year that exceeds by not more than two (2) times the sum of those portions of the net considerations in all prior years for which the percentage was sixty-five percent (65%); (2) With respect to contracts providing for fixed scheduled considerations, minimum nonforfeiture amounts shall be calculated on the assumption that considerations are paid annually in advance and shall be defined as for contracts with flexible considerations that are paid annually with two (2) exceptions: (A) The portion of the net consideration for the first contract year to be accumulated shall be the sum of sixty-five percent (65%) of the net consideration for the first contract year plus twenty-two and one half percent (22.5%) of the excess of the net consideration for the first contract year over the lesser of the net considerations for the second and third contract years; and (B) The annual contract charge shall be the lesser of: (i) Thirty dollars ($30.00); or (ii) Ten percent (10%) of the gross annual consideration; and (3) With respect to contracts providing for a single consideration, minimum nonforfeiture amounts shall be defined as for contracts with flexible considerations, except that the percentage of net consideration used to determine the minimum nonforfeiture amount shall be equal to ninety percent (90%) and the net consideration shall be the gross consideration less a contract charge of seventy-five dollars ($75.00).
(1) (A) (i) With respect to contracts providing for flexible considerations issued prior to July 1, 2002, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to that time at a rate of interest of three percent (3%) per annum of percentages of the net considerations, as defined in subdivision (a)(1)(B), prior to that time, decreased by the sum of: (a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of three percent (3%) per annum; and (b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract. (ii) With respect to contracts providing for flexible considerations issued on and after July 1, 2002, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest of one and one half percent (1.5%) per annum of percentages of the net considerations, as defined in subdivision (a)(1)(B), prior to such time, decreased by the sum of: (a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one half percent (1.5%) per annum; and (b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract; (B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero (0) and shall be equal to the corresponding gross considerations credited to the contract during that contract year, less an annual contract charge of thirty dollars ($30.00), and less a collection charge of one dollar and twenty-five cents ($1.25), per consideration credited to the contract during that contract year. The percentages of net considerations shall be sixty-five percent (65%) of the net consideration for the first contract year and eighty-seven and one half percent (87.5%) of the net considerations for the second and later contract years. Notwithstanding the preceding sentence, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year that exceeds by not more than two (2) times the sum of those portions of the net considerations in all prior years for which the percentage was sixty-five percent (65%);
(A) (i) With respect to contracts providing for flexible considerations issued prior to July 1, 2002, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to that time at a rate of interest of three percent (3%) per annum of percentages of the net considerations, as defined in subdivision (a)(1)(B), prior to that time, decreased by the sum of: (a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of three percent (3%) per annum; and (b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract. (ii) With respect to contracts providing for flexible considerations issued on and after July 1, 2002, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest of one and one half percent (1.5%) per annum of percentages of the net considerations, as defined in subdivision (a)(1)(B), prior to such time, decreased by the sum of: (a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one half percent (1.5%) per annum; and (b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract;
(i) With respect to contracts providing for flexible considerations issued prior to July 1, 2002, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to that time at a rate of interest of three percent (3%) per annum of percentages of the net considerations, as defined in subdivision (a)(1)(B), prior to that time, decreased by the sum of: (a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of three percent (3%) per annum; and (b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract.
(a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of three percent (3%) per annum; and
(b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract.
and increased by any existing additional amounts credited by the company to the contract.
(ii) With respect to contracts providing for flexible considerations issued on and after July 1, 2002, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest of one and one half percent (1.5%) per annum of percentages of the net considerations, as defined in subdivision (a)(1)(B), prior to such time, decreased by the sum of: (a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one half percent (1.5%) per annum; and (b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract;
(a) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one half percent (1.5%) per annum; and
(b) The amount of any indebtedness to the company on the contract, including interest due and accrued; and increased by any existing additional amounts credited by the company to the contract;
and increased by any existing additional amounts credited by the company to the contract;
(B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero (0) and shall be equal to the corresponding gross considerations credited to the contract during that contract year, less an annual contract charge of thirty dollars ($30.00), and less a collection charge of one dollar and twenty-five cents ($1.25), per consideration credited to the contract during that contract year. The percentages of net considerations shall be sixty-five percent (65%) of the net consideration for the first contract year and eighty-seven and one half percent (87.5%) of the net considerations for the second and later contract years. Notwithstanding the preceding sentence, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year that exceeds by not more than two (2) times the sum of those portions of the net considerations in all prior years for which the percentage was sixty-five percent (65%);
(2) With respect to contracts providing for fixed scheduled considerations, minimum nonforfeiture amounts shall be calculated on the assumption that considerations are paid annually in advance and shall be defined as for contracts with flexible considerations that are paid annually with two (2) exceptions: (A) The portion of the net consideration for the first contract year to be accumulated shall be the sum of sixty-five percent (65%) of the net consideration for the first contract year plus twenty-two and one half percent (22.5%) of the excess of the net consideration for the first contract year over the lesser of the net considerations for the second and third contract years; and (B) The annual contract charge shall be the lesser of: (i) Thirty dollars ($30.00); or (ii) Ten percent (10%) of the gross annual consideration; and
(A) The portion of the net consideration for the first contract year to be accumulated shall be the sum of sixty-five percent (65%) of the net consideration for the first contract year plus twenty-two and one half percent (22.5%) of the excess of the net consideration for the first contract year over the lesser of the net considerations for the second and third contract years; and
(B) The annual contract charge shall be the lesser of: (i) Thirty dollars ($30.00); or (ii) Ten percent (10%) of the gross annual consideration; and
(i) Thirty dollars ($30.00); or
(ii) Ten percent (10%) of the gross annual consideration; and
(3) With respect to contracts providing for a single consideration, minimum nonforfeiture amounts shall be defined as for contracts with flexible considerations, except that the percentage of net consideration used to determine the minimum nonforfeiture amount shall be equal to ninety percent (90%) and the net consideration shall be the gross consideration less a contract charge of seventy-five dollars ($75.00).
(b) The minimum values as specified in this chapter in §§ 56-36-105 - 56-36-108 and 56-36-110 of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this subsection (b). (1) (A) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at rates of interest as indicated in subdivision (b)(2) of the net considerations, as defined in this section, paid prior to such time, decreased by the sum of subdivisions (b)(1)(A)(i)-(iv): (i) Any prior withdrawals from or partial surrenders of the contract accumulated at rates of interest as indicated in subdivision (b)(2); (ii) An annual contract charge of fifty dollars ($50.00), accumulated at rates of interest as indicated in subdivision (b)(2); (iii) Any premium tax paid by the company for the contract, accumulated at rates of interest as indicated in subdivision (b)(2); and (iv) The amount of any indebtedness to the company on the contract, including interest due and accrued; and (B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one half percent (87.5%) of the gross considerations credited to the contract during that contract year. (2) The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of three percent (3%) per annum and the following, which shall be specified in the contract if the interest rate will be reset: (A) The five-year constant maturity treasury rate reported by the federal reserve as of a date, or average over a period, rounded to the nearest one-twentieth of one percent (0.05%), specified in the contract no longer than fifteen (15) months prior to the contract issue date or redetermination date under subdivision (b)(2)(D); (B) Reduced by one hundred twenty-five (125) basis points; (C) Where the resulting interest rate is not less than one percent (1%); and (D) The interest rate shall apply for an initial period and may be redetermined for additional periods. The redetermination date, basis and period, if any, shall be stated in the contract. The basis is the date or average over a specified period that produces the value of the five-year constant maturity treasury rate to be used at each redetermination date. (3) During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described in subdivision (b)(2)(B) by up to an additional one hundred (100) basis points to reflect the value of the equity index benefit. The present value at the contract issue date, and at each redetermination date thereafter, of the additional reduction shall not exceed the market value of the benefit. The commissioner may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. Lacking such a demonstration that is acceptable to the commissioner, the commissioner may disallow or limit the additional reduction. (4) The commissioner may adopt rules and regulations, in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement subdivision (b)(3) and to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts that the commissioner determines adjustments are justified.
(1) (A) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at rates of interest as indicated in subdivision (b)(2) of the net considerations, as defined in this section, paid prior to such time, decreased by the sum of subdivisions (b)(1)(A)(i)-(iv): (i) Any prior withdrawals from or partial surrenders of the contract accumulated at rates of interest as indicated in subdivision (b)(2); (ii) An annual contract charge of fifty dollars ($50.00), accumulated at rates of interest as indicated in subdivision (b)(2); (iii) Any premium tax paid by the company for the contract, accumulated at rates of interest as indicated in subdivision (b)(2); and (iv) The amount of any indebtedness to the company on the contract, including interest due and accrued; and (B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one half percent (87.5%) of the gross considerations credited to the contract during that contract year.
(A) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at rates of interest as indicated in subdivision (b)(2) of the net considerations, as defined in this section, paid prior to such time, decreased by the sum of subdivisions (b)(1)(A)(i)-(iv): (i) Any prior withdrawals from or partial surrenders of the contract accumulated at rates of interest as indicated in subdivision (b)(2); (ii) An annual contract charge of fifty dollars ($50.00), accumulated at rates of interest as indicated in subdivision (b)(2); (iii) Any premium tax paid by the company for the contract, accumulated at rates of interest as indicated in subdivision (b)(2); and (iv) The amount of any indebtedness to the company on the contract, including interest due and accrued; and
(i) Any prior withdrawals from or partial surrenders of the contract accumulated at rates of interest as indicated in subdivision (b)(2);
(ii) An annual contract charge of fifty dollars ($50.00), accumulated at rates of interest as indicated in subdivision (b)(2);
(iii) Any premium tax paid by the company for the contract, accumulated at rates of interest as indicated in subdivision (b)(2); and
(iv) The amount of any indebtedness to the company on the contract, including interest due and accrued; and
(B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one half percent (87.5%) of the gross considerations credited to the contract during that contract year.
(2) The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of three percent (3%) per annum and the following, which shall be specified in the contract if the interest rate will be reset: (A) The five-year constant maturity treasury rate reported by the federal reserve as of a date, or average over a period, rounded to the nearest one-twentieth of one percent (0.05%), specified in the contract no longer than fifteen (15) months prior to the contract issue date or redetermination date under subdivision (b)(2)(D); (B) Reduced by one hundred twenty-five (125) basis points; (C) Where the resulting interest rate is not less than one percent (1%); and (D) The interest rate shall apply for an initial period and may be redetermined for additional periods. The redetermination date, basis and period, if any, shall be stated in the contract. The basis is the date or average over a specified period that produces the value of the five-year constant maturity treasury rate to be used at each redetermination date.
(A) The five-year constant maturity treasury rate reported by the federal reserve as of a date, or average over a period, rounded to the nearest one-twentieth of one percent (0.05%), specified in the contract no longer than fifteen (15) months prior to the contract issue date or redetermination date under subdivision (b)(2)(D);
(B) Reduced by one hundred twenty-five (125) basis points;
(C) Where the resulting interest rate is not less than one percent (1%); and
(D) The interest rate shall apply for an initial period and may be redetermined for additional periods. The redetermination date, basis and period, if any, shall be stated in the contract. The basis is the date or average over a specified period that produces the value of the five-year constant maturity treasury rate to be used at each redetermination date.
(3) During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described in subdivision (b)(2)(B) by up to an additional one hundred (100) basis points to reflect the value of the equity index benefit. The present value at the contract issue date, and at each redetermination date thereafter, of the additional reduction shall not exceed the market value of the benefit. The commissioner may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. Lacking such a demonstration that is acceptable to the commissioner, the commissioner may disallow or limit the additional reduction.
(4) The commissioner may adopt rules and regulations, in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement subdivision (b)(3) and to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts that the commissioner determines adjustments are justified.
Acts 1978, ch. 590, § 4; T.C.A., § 56-4604; Acts 2002, ch. 570, § 1; 2004, ch. 439, §§ 2, 3.