reglab/housing_qa huggingface dataset:
TN Code § 56-13-109 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-109. Inspection and Examination — Audits

  At least once every three (3) years, and whenever the commissioner determines it to be prudent, the commissioner shall visit each captive insurance company and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations and whether it has complied with this chapter. The commissioner may extend such three-year period to five (5) years; provided, that the captive insurance company is subject to a comprehensive annual audit by independent auditors approved by the commissioner during such five-year period. The comprehensive audit shall be of a scope satisfactory to the commissioner. The expenses and charges of the examination shall be paid by the captive insurance company.   Any other law or regulation to the contrary notwithstanding, an association captive insurance company, all of whose insureds operate municipal or cooperative electric systems, shall not be required to have performed an audit of its annual statutory financial statements by an independent certified public accountant, unless, within ninety (90) days before the close of the fiscal year of the association captive insurance company, a majority of the association members who are insured, directly or indirectly by it, request an audit.   Sections 56-1-401 — 56-1-420 shall apply to examinations conducted under this section.   All examination reports, preliminary examination reports or results, working papers, recorded information, documents and copies thereof produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this section are confidential and are not subject to subpoena and may not be made public by the commissioner or an employee or agent of the commissioner without the written consent of the captive insurance company, except to the extent provided in this subsection (d). Nothing in this subsection (d), shall prevent the commissioner from using such information in furtherance of the commissioner's regulatory authority under this title. The commissioner shall have the discretion to grant access to such information to public officers having jurisdiction over the regulation of insurance in any other state or country, or to law enforcement officers of this state or any other state or agency of the federal government at any time, only if the officers receiving the information agree in writing to maintain the confidentiality of the information in a manner consistent with this subsection (d).
TN Code § 56-13-110 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-110. License Suspension or Revocation

  The license of a captive insurance company may be suspended or revoked by the commissioner for any of the following reasons:  Insolvency or impairment of capital or surplus;   Failure to meet the requirements of § 56-13-105;   Refusal or failure to submit an annual report, as required by this chapter, or any other report or statement required by law or by lawful order of the commissioner;   Failure to comply with its own charter, bylaws or other organizational document;   Failure to submit to or pay the cost of examination or any legal obligation relative to an examination, as required by this chapter;   Use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or   Failure otherwise to comply with the laws of this state.     If the commissioner finds, upon examination, hearing, or other evidence, that any captive insurance company has violated subsection (a), then the commissioner may suspend or revoke such company's license if the commissioner deems it in the best interest of the public and the policyholders of such captive insurance company, notwithstanding any other provision of this title.
TN Code § 56-13-111 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-111. Investment Requirements

  Except as may be otherwise authorized by the commissioner, association captive insurance companies and risk retention groups shall comply with the investment requirements contained in §§ 56-3-401 — 56-3-409, as applicable. Notwithstanding any other provision of this title, the commissioner may approve the use of alternative reliable methods of valuation and rating.   No pure captive insurance company, industrial insured captive insurance company, protected cell captive insurance company, incorporated cell captive insurance company or special purpose financial captive insurance company as defined in part 4 of this chapter shall be subject to any restrictions on allowable investments; provided, that the commissioner may prohibit or limit any investment that threatens the solvency or liquidity of any such company. Companies under this subsection (b) must file with the commissioner a statement of investment policy approved by its governing body that describes the types of investments that the company may elect to undertake and may not make investments that materially deviate from the statement of investment policy that is on file with the commissioner.   No pure captive insurance company shall make a loan to or an investment in its parent company or affiliates without prior written approval of the commissioner, and any such loan or investment shall be evidenced by documentation approved by the commissioner. Loans of minimum capital and surplus funds required by § 56-13-105 are prohibited.    Notwithstanding this section or chapter 3, part 4 of this title, an association captive insurance company of an association described in § 56-13-102(3)(B) may hold any interest in qualified headquarters property as defined in subdivision (d)(2), and the qualified headquarters property shall be admitted assets and authorized investments of the association captive insurance company. The net book value of the qualified headquarters property deemed admitted and authorized under this subsection (d) may not exceed two million five hundred thousand dollars ($2,500,000), and an association captive insurance company holding qualified headquarters property pursuant to this subsection (d) shall at all times maintain total surplus, without regard to the qualified headquarters property, of at least the sum of:  Fifty percent (50%) of the net book value of the qualified headquarters property; and   The minimum capital and surplus requirements.     For purposes of this subsection (d), “qualified headquarters property” includes the real property and the building in which the principal office of the association captive insurance company is located and also includes any improved and unimproved real property of the association captive insurance company that is located within one thousand five hundred feet (1,500') of the company's principal office.
TN Code § 56-13-112 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-112. Reinsurance

  Any captive insurance company may provide reinsurance as authorized by this title on risks ceded by any other insurer.   Any captive insurance company may take credit for the reinsurance of risks or portions of risks ceded to reinsurers complying with this title. If the reinsurer is licensed as a risk retention group, then the ceding risk retention group or its members must qualify for membership with the reinsurer. The commissioner shall have the discretion to allow a captive insurance company to take credit for the reinsurance of risks or portions of risks ceded to an unauthorized reinsurer, after review, on a case by case basis. The commissioner may require any documents, financial information or other evidence that such an unauthorized reinsurer will be able to demonstrate adequate security for its financial obligations.   In addition to reinsurers authorized by this title, a captive insurance company may take credit for the reinsurance of risks or portions of risks ceded to a pool, exchange or association to the extent authorized by the commissioner. The commissioner may require any documents, financial information or other evidence that such a pool, exchange or association will be able to provide adequate security for its financial obligations. The commissioner may deny authorization or impose any limitations on the activities of a reinsurance pool, exchange or association that, in the commissioner's judgment, are necessary and proper to provide adequate security for the ceding captive insurance company and for the protection and consequent benefit of the public at large.   Except where specifically provided otherwise, insurance by a captive insurance company of any workers' compensation or accident and health qualified self-insured plan of its parent and affiliates, and the assumption of risk by a captive insurance company under any service contract issued by a parent or affiliate, is deemed to be reinsurance.
TN Code § 56-13-113 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-113. Membership in Rating Organizations — Exemption From Compulsory Associations

  No captive insurance company shall be required to join a rating organization.   No captive insurance company shall be permitted to join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this state, nor shall any such captive insurance company, or any insured or affiliate thereof, receive any benefit from any such plan, pool, association, or guaranty or insolvency fund for claims arising out of the operations of such captive insurance company.
TN Code § 56-13-115 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-115. Adoption and Amendment of Rules by Commissioner

 The commissioner may adopt and, from time to time, amend such rules relating to captive insurance companies as are necessary to enable the commissioner to carry out the provisions of this chapter.
TN Code § 56-13-116 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-116. Applicable Provisions

 No provisions of this title, other than those contained in this chapter or expressly provided in this chapter, shall apply to captive insurance companies. Risk retention groups shall have the privileges and be subject to chapter 45 of this title in addition to the applicable provisions of this chapter. Section 56-2-801 applies to this chapter.
TN Code § 56-13-117 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-117. Establishment of Standards Regarding Risk Management

 The commissioner may adopt rules establishing standards to ensure that a parent or its affiliated company, or an industrial insured or its affiliated company, is able to exercise control of the risk management function of any controlled unaffiliated business to be insured by a pure captive insurance company or an industrial insured captive insurance company, respectively; provided, however, that, until such time as rules under this section are adopted, the commissioner may approve the coverage of such risks by a pure captive insurance company or an industrial insured captive insurance company.
TN Code § 56-13-118 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-118. Approval of Material Change of Plan of Operation — Filing of Change of Information

  No captive insurance company shall make any material change or changes to its plan of operation until the department has approved the change or changes.   Each subsequent material change of plan of operation filed during each year is subject to the fee described in § 56-4-101(a)(8).   For purposes of this section and § 56-4-101(a)(8), the “plan of operation” and “business plan” have the same meaning.   A change in any information filed with the application that does not constitute a material change, or a change otherwise requiring commissioner approval, must be filed with the commissioner within thirty (30) days, but does not require prior approval under this section.
TN Code § 56-13-119 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-119. Authority for Expenditure of Public Funds

 Any municipality, metropolitan government, county, authority, utility district, or other public body generally classified as a governmental body or governmental entity, whether organized by private act or public act of the general assembly, or otherwise, or any agency, board, or commission of any municipality, metropolitan government, county, authority, utility district, or other public body generally classified as a governmental body or governmental entity, may expend public funds other than local tax revenues for the purchase of capital stock in a captive insurance company or to provide guaranty capital in a mutual captive insurance company; provided, that at the time of authorization of expenditure of public funds adequate insurance markets in the United States are not available to cover the risks, hazards and liabilities of the public body or that the needed coverage is only available at excessive rates or with unreasonable deductibles.
TN Code § 56-13-120 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-120. Violations and Penalties

  If, after providing notice consistent with the process established by § 4-5-320(c) and providing the opportunity for a contested case hearing held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3, the commissioner finds that any insurer, person, or entity required to be licensed, permitted, or authorized to transact the business of insurance under this chapter has violated any provision of this chapter or any rule or regulation authorized by this chapter, the commissioner may order:  The insurer, person, or entity to cease and desist from engaging in the act or practice giving rise to the violation;   Payment of a monetary penalty of not more than one thousand dollars ($1,000) for each violation, but not to exceed an aggregate penalty of one hundred thousand dollars ($100,000), unless the insurer, person, or entity knowingly violates a statute, rule or order, in which case the penalty shall not be more than twenty-five thousand dollars ($25,000) for each violation, not to exceed an aggregate penalty of two hundred fifty thousand dollars ($250,000). This subdivision (a)(2) shall not apply where a statute or rule specifically provides for other civil penalties for the violation. For purposes of this subdivision (a)(2), each day of continued violation shall constitute a separate violation; and   The suspension or revocation of the insurer's, person's, or entity's license.     Section 56-13-103(c)(3) applies to any action taken by the commissioner pursuant to this section.
TN Code § 56-13-121 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-121. Rules and Regulations

 The commissioner is authorized to promulgate rules and regulations necessary to effectuate the purposes of this chapter; provided, that, no rule promulgated pursuant to this chapter shall affect a special purpose financial captive (SPFC) insurance securitization, as defined and authorized by part 4 of this chapter, in effect at the time of the promulgation. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
TN Code § 56-13-122 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-122. Audit by the Comptroller of the Treasury — Annual Reports

  The regulation of captive insurance companies as authorized by this chapter is subject to audit by the comptroller of the treasury as otherwise provided by state law. Information submitted to the department by captive insurance companies subject to this chapter shall, without written request, be open to inspection by, or disclosure to, the comptroller of the treasury or the comptroller's designated representative for purposes of audit.   The commissioner shall annually report to  the commerce and labor committee of the senate, and the insurance committee of the house of representatives regarding the captive insurance company program. Such report shall include, but not be limited to, the number and types of captive insurance companies authorized by the commissioner to conduct business in this state, the amount of premium tax and fee revenues generated pursuant to the program, and any recommendations for legislative action to improve the captive insurance company program.
TN Code § 56-13-125 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 1 - General Provisions|§ 56-13-125. Payment of Premiums and Claims in Foreign Currency or Foreign Securities

  For purposes of this section:  “Foreign” means outside the United States, its territories, or possessions;   “Foreign currency” means currency issued by a government outside the United States that is recognized by the United States as a legitimate government-issued currency and freely exchangeable with United States currency; and   “Foreign securities” means securities that are ordinarily traded on an exchange outside the United States.     A captive insurance company or an individual cell of a captive insurance company may, with the approval of the commissioner, include within its plan of operation that the company will:  Receive payments of premium in a specified foreign currency or foreign securities and will pay claims on insured losses in a specified currency or foreign securities;   Authorize the payment of claims in a specified foreign currency or foreign securities; and   Hold foreign currency or foreign securities as surplus for the payment of future claims.     In determining the exchange rate between United States currency and the foreign currency or foreign securities, the captive insurance company shall identify in its approved plan of operation a publicly available and reliable exchange rate index. If the exchange rate index identified in the plan of operation is not available, then the commissioner must determine the appropriate exchange rate for the purpose of calculating the amount of premium tax due.   For the purpose of calculating the amount of premium tax due under § 56-13-114, a policy issued by a captive insurance company payable in foreign currency or foreign securities is deemed to be of an equivalent value in United States currency as of the date that coverage is bound and is payable in United States currency when due under § 56-13-114.   For captive insurance companies and protected cells that have received permission pursuant to subsection (b), all reports required to be filed pursuant to § 56-13-108 must be converted to United States currency for the reporting period covered by the annual report.
TN Code § 56-13-201 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 2 - Protected Cell Captive Insurance Companies|§ 56-13-201. Forming a Protective Cell Captive Insurance Company

  One (1) or more sponsors may form a protected cell captive insurance company under this chapter. In addition to part 1 of this chapter, this part shall apply to protected cell captive insurance companies.   A protected cell captive insurance company shall be incorporated as a stock insurer with its capital divided into shares and held by the stockholders, as a mutual corporation, as a nonprofit corporation with one (1) or more members, or as a limited liability company.
TN Code § 56-13-202 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 2 - Protected Cell Captive Insurance Companies|§ 56-13-202. Part Definitions

 As used in this part, unless the context requires otherwise:   “General account” means all assets and liabilities of a protected cell captive insurance company not attributable to a protected cell;   “Participant” means a person or an entity, authorized to be a participant by § 56-13-205, and any affiliate of a participant, that is insured by a protected cell captive insurance company, if the losses of the participant are limited through a participant contract;   “Participant contract” means a contract by which a protected cell captive insurance company insures the risks of a participant and limits the losses of each such participant to its pro rata share of the assets of one (1) or more protected cells identified in such participant contract;   “Protected cell” means a separate account established by a protected cell captive insurance company formed or licensed under this chapter, in which an identified pool of assets and liabilities are segregated and insulated by means of this chapter from the remainder of the protected cell captive insurance company's assets and liabilities in accordance with the terms of one (1) or more participant contracts to fund the liability of the protected cell captive insurance company with respect to the participants as set forth in the participant contracts;   “Protected cell assets” means all assets, contract rights, and general intangibles identified with and attributable to a specific protected cell of a protected cell captive insurance company;   “Protected cell captive insurance company” means any captive insurance company:  In which the minimum capital and surplus required by this chapter are provided by one (1) or more sponsors;   That is formed or licensed under this chapter;   That insures the risks of separate participants through participant contracts; and   That funds its liability to each participant through one (1) or more protected cells and segregates the assets of each protected cell from the assets of other protected cells and from the assets of the protected cell captive insurance company's general account;     “Protected cell liabilities” means all liabilities and other obligations identified with and attributed to a specific protected cell of a protected cell captive insurance company; and   “Sponsor” means any person or entity that is approved by the commissioner to provide all or part of the capital and surplus required by this chapter and to organize and operate a protected cell captive insurance company.
TN Code § 56-13-203 (2021)
2021 Tennessee Code|Title 56 - Insurance|Chapter 13 - Revised Tennessee Captive Insurance Act|Part 2 - Protected Cell Captive Insurance Companies|§ 56-13-203. Required Filings

 In addition to the information required by § 56-13-103(c)(1), each applicant-protected cell captive insurance company shall file with the commissioner the following:   Materials demonstrating how the applicant will account for the loss and expense experience of each protected cell at a level of detail found to be sufficient by the commissioner, and how it will report such experience to the commissioner;   A statement acknowledging that all financial records of the applicant, including records pertaining to any protected cells, shall be made available for inspection or examination by the commissioner or the commissioner's designated agent;   All contracts or sample contracts between the applicant and any participants; and   Evidence that expenses shall be allocated to each protected cell in a fair and equitable manner.