TN Code § 56-3-401 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 3 - Operation of Insurance Companies|Part 4 - Investments of Other Domestic Insurance Companies|§ 56-3-401. Part Definitions

 As used in this part, unless the context otherwise requires:   “Domestic insurance company” means an insurance company, other than life and fraternal insurance companies, nonprofit hospital and medical service corporations, nonprofit dental service corporations, nonprofit vision service corporations and title insurance companies, incorporated under the laws of this state;   “Fixed charges” includes interest on all bonds and other evidence of indebtedness, and amortization of debt discount and expenses;   “Institution” includes a corporation, a joint-stock association and a business trust;   “Net earnings available for fixed charges” means net income determined on either a consolidated or an unconsolidated basis after allowance for operating and maintenance expenses, depreciation and depletion, and taxes, other than federal and state income taxes, but excluding extraordinary nonrecurring items of income or expense appearing in the regular financial statements of the issuing, assuming or guaranteeing institution. In applying the test of “net earnings available for fixed charges” to an issuing, assuming or guaranteeing institution or a lessee, whether or not in legal existence during the whole of the test period, that has at or prior to the date of investment by the insurance company acquired the assets of any other institution by purchase, merger, consolidation or otherwise substantially as an entirety, net earnings available for fixed charges of the predecessor or constituent institution for such portion of the test period as preceded acquisition may be included in the net earnings of the issuing, assuming or guaranteeing institution or the lessee, in accordance with consolidated earnings statement covering the period. The requirements imposed by § 56-3-402(2) and (13) upon the issuing, assuming or guaranteeing institution or the lessee are deemed to have been met if at the time the investment is made an institution that meets the requirements has guaranteed the indebtedness or has otherwise become obligated to pay amounts that are applicable to the payment of and sufficient to discharge the principal of and interest on the indebtedness in accordance with the terms of the indebtedness; provided, that, in determining whether the requirements have been met, the pro forma annual interest on the indebtedness is included in the fixed charges of the institution applicable to the test period in question;   “Net earnings available for fixed charges and dividends” are determined in the same manner as “net earnings available for fixed charges” but after allowance for federal and state income taxes;   “Preferred dividend requirements” means dividends at the maximum prescribed rate on all preferred stock of the same class as that being acquired by the insurance company and on all stock ranking as to dividends on a parity with the dividends or prior to the dividends, whether or not the dividends are cumulative; and   “State” includes the several states, the District of Columbia, the Commonwealth of Puerto Rico and the possessions of the United States.