reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 18 - MUTUAL LIFE INSURANCE COMPANIES (§§ 56-18-101 — 56-18-116) › Section 56-18-114 - Powers of corporation upon conversion

When a stock life insurance corporation has become converted into a mutual life insurance corporation as provided in this chapter, it shall have all the rights, privileges and powers conferred upon it by its charter and any amendments to its charter, and all the rights, privileges and powers conferred by general laws of this state either expressly applicable to a mutual life insurance corporation or containing general language within the scope and purview of which a mutual life insurance corporation falls.
Acts 1949, ch. 91, § 13; C. Supp. 1950, § 6433.25 (Williams, § 6433.29); T.C.A. (orig. ed.), § 56-1615.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 18 - MUTUAL LIFE INSURANCE COMPANIES (§§ 56-18-101 — 56-18-116) › Section 56-18-115 - Existing contracts not affected by conversion of stock life insurance company into mutual

Neither the retirement of its capital stock nor any other action taken under this chapter shall affect existing suits, rights or contracts of the corporation. Any deposit made by the corporation under any requirement of an applicable statute of this state shall be retained by the commissioner in trust for the benefit and security of all of the policyholders of the corporation.
Acts 1949, ch. 91, § 6; C. Supp. 1950, § 6433.18 (Williams, § 6433.22); T.C.A. (orig. ed.), § 56-1616.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 18 - MUTUAL LIFE INSURANCE COMPANIES (§§ 56-18-101 — 56-18-116) › Section 56-18-116 - Abandonment of conversion of stock life insurance company into mutual

Any time before the mutualization of the corporation is complete, the corporation may abandon a plan of mutualization by the same procedure as was followed in adopting the plan. Upon abandonment, any right of any stockholder to be paid for stock in accordance with the plan shall cease and terminate, and the corporation shall continue to conduct its business as a domestic stock life insurance corporation as though no plan of mutualization had ever been adopted.
Acts 1949, ch. 91, § 5; C. Supp. 1950, § 6433.17 (Williams, § 6433.21); T.C.A. (orig. ed.), § 56-1617.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-101 - Incorporators - Number - Residence qualifications

Any number of persons, not less than twenty (20), a majority of whom are bona fide residents of this state, by complying with this chapter, may become, together with others who may thereafter be associated with them or their successors, a body corporate for the purpose of carrying on the business of mutual insurance as provided in this chapter.
Acts 1919, ch. 108, § 1; Shan. Supp., § 3369a58b5; Code 1932, § 6317; T.C.A. (orig. ed.), § 56-1701.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-102 - Name of company

No name shall be adopted by the company that does not contain the word "mutual," or that is so similar to any name already in use by any such existing corporation, company or association, organized and doing business in the United States, as to be confusing or misleading.
Acts 1919, ch. 108, § 3; Shan. Supp., § 3369a58b7; Code 1932, § 6319; T.C.A. (orig. ed.), § 56-1702.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-103 - Articles of incorporation - Acknowledgment - Contents

Any persons proposing to form any such company shall subscribe and acknowledge articles of incorporation specifying:
(1)
The name, the purpose for which formed, and the location of its principal or home office, which shall be within this state;
(2)
The names and addresses of those composing the board of directors in which the management shall be vested until the first meeting of the members; and
(3)
The names and places of residence of the incorporators.
Acts 1919, ch. 108, § 2; Shan. Supp., § 3369a58b6; Code 1932, § 6318; T.C.A. (orig. ed.), § 56-1703.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-104 - Articles of incorporation - Execution in duplicate - Submission to commissioner - Filing

Articles executed in duplicate shall be submitted to the commissioner of commerce and insurance, who, upon finding them to comply with this chapter, shall endorse approval thereon and shall file one (1) in the commissioner's office and shall cause the other to be filed and recorded as may be required in the case of other corporations.
Acts 1919, ch. 108, § 4; Shan. Supp., § 3369a58b8; Code 1932, § 6320; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-1704.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-105 - Certificate of incorporation

Upon approval as provided in §
56-19-104
, the commissioner or any other officer that may be charged with the duty in the case of other corporations shall issue to the company a certificate that shall be its authority to begin business.
Acts 1919, ch. 108, § 4; Shan. Supp., § 3369a58b9; Code 1932, § 6321; T.C.A. (orig. ed.), § 56-1705.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-106 - Amendment of articles of incorporation

The articles may be amended in the manner provided for other corporations or as may be provided in the articles, and any such amendment shall be filed and recorded as in the case of the original articles.
Acts 1919, ch. 108, § 4; Shan. Supp., § 3369a58b10; Code 1932, § 6322; T.C.A. (orig. ed.), § 56-1706.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-107 - Legal existence - Bylaws and transaction of business

(a)
The company shall have legal existence from and after the date of the certificate of incorporation.
(b)
(1)
The board of directors named in the articles may thereupon adopt bylaws, accept applications for insurance and proceed to transact the business of the company; provided, that no insurance shall be put into force until the company has been licensed to transact insurance as provided by this chapter.
(2)
The bylaws and any amendments thereto shall within thirty (30) days after adoption be filed with the commissioner.
Acts 1919, ch. 108, § 5; Shan. Supp., § 3369a58b11; Code 1932, § 6323; T.C.A. (orig. ed.), § 56-1707.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-108 - Powers of company - Insurance contracts - Kinds of insurance - Reinsurance

Any company organized under this chapter is empowered to make contracts of insurance or to reinsure or accept reinsurance or any portion thereof, to the extent specified in its articles of incorporation, for insurance:
(1)
Against loss or damage to property and loss of use and occupancy by fire, lightning, hail, tempest, flood, earthquake, frost or snow, explosion, fire ensuing and explosion, no fire ensuing, except explosion by steam boilers or flywheels; against loss or damage by water caused by the breakage or leakage of sprinklers, pumps or other apparatus, waterpipes, plumbing or their fixtures, erected for extinguishing fires, and against accidental injury to the sprinklers, pumps or other apparatus, waterpipes, plumbing or fixtures; against the risks of inland transportation and navigation; upon automobiles, whether stationary or operated under their own power, against loss or damage by any of the causes or risks specified in this subdivision (1), including also transportation, collision liability for damage to property resulting from owning, maintaining or using automobiles, and including burglary and theft, but not including loss or damage by reason of bodily injury to the person;
(2)
Against loss, expense or liability by reason of bodily injury or death by accident, disability, sickness or disease suffered by others for which the insured may be liable or have assumed liability, including workers' compensation;
(3)
Against bodily injury or death by accident and disability by sickness;
(4)
Against any or all loss, expense and liability resulting from the ownership, maintenance, or use of any automobile or other vehicle; provided, that no policies shall be issued under this subdivision (4) against the hazard of fire alone;
(5)
Against loss or liability to persons or property resulting from explosions or accidents to boilers, containers, pipes, engines, flywheels, elevators and machinery in connection therewith, and against loss of use and occupancy caused thereby, and to make inspections and issue certificates of inspection of the machinery;
(6)
Against loss from interruption of trade or business that may be the result of any accident or casualty; and
(7)
Against loss or damage by any hazard upon any risk not provided for in this section that is not prohibited by statute or at common law from being the subject of insurance, excepting life insurance.
Acts 1919, ch. 108, § 6; Shan. Supp., § 3369a58b12; Code 1932, § 6324; T.C.A. (orig. ed.), § 56-1708.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-109 - License - Conditions precedent

No such company shall issue policies or transact any business of insurance, unless it holds a license from the commissioner authorizing the transaction of the business, which license shall not be issued until and unless the company complies with the following conditions:
(1)
It shall hold bona fide applications for insurance upon which it shall issue simultaneously, or it shall have in force, at least twenty (20) policies to at least twenty (20) members for the same kind of insurance upon not less than two hundred (200) separate risks, each within the maximum single risk described in subdivision (2);
(2)
The "maximum single risk" shall not exceed twenty percent (20%) of the admitted assets or three (3) times the average risk of one percent (1%) of the insurance in force, whichever is the greater, any reinsurance taking effect simultaneously with the policy being deducted in determining the maximum single risk;
(3)
It shall have collected a premium upon each application, which premiums shall be held in cash or securities in which insurance companies are authorized to invest and shall be equal, in case of fire insurance to not less than twice the maximum single risk assumed subject to one (1) fire nor less than ten thousand dollars ($10,000), and in any other kind of insurance to not less than five (5) times the maximum single risk assumed, and in case of workers' compensation insurance to not less than fifty thousand dollars ($50,000);
(4)
For the purpose of transacting employer's liability and workers' compensation insurance, the applications shall cover not less than one thousand five hundred (1,500) employees, each such employee being considered a separate risk for determining the maximum single risk; and
(5)
Satisfy the commissioner that its financial condition, methods of operation and manner of doing business are adequate to meet its obligations to all policyholders in this state.
Acts 1919, ch. 108, § 7; Shan. Supp., § 3369a58b13; Code 1932, § 6325; T.C.A. (orig. ed.), § 56-1709.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-110 - Policy provisions

The mutual company may insert in any form of policy prescribed by the law of this state any provisions or conditions required by its plan of insurance that are not inconsistent or in conflict with any law of this state. The policy, in lieu of conforming to the language and form prescribed by the law, may conform thereto in substance, if the policy includes a provision or endorsement reciting that the policy shall be construed as if in the language and form prescribed by the law, and a copy of the policy and endorsement, if any, has been first filed with, and has not been disapproved by, the commissioner.
Acts 1919, ch. 108, § 15; Shan. Supp., § 3369a58b21; Code 1932, § 6333; T.C.A. (orig. ed.), § 56-1710.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-111 - Corporate policyholders - Officers not personally liable

(a)
Any public or private corporation, board or association in this state or elsewhere may make applications, enter into agreements for and hold policies in any such mutual insurance company. Any officer, stockholder, trustee or legal representative of any such corporation, board, association or estate may be recognized as acting for or on its behalf for the purpose of the membership, but shall not be personally liable upon the contract of insurance by reason of acting in the representative capacity.
(b)
The right of any corporation organized under the laws of this state to participate as a member of any such mutual insurance company is declared to be incidental to the purpose for which the corporation is organized and as much granted as the rights and powers expressly conferred.
Acts 1919, ch. 108, § 8; Shan. Supp., § 3369a58b14; Code 1932, § 6326; T.C.A. (orig. ed.), § 56-1711.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-112 - Voting rights of members

Every member of the company shall be entitled to one (1) vote, or to a number of votes based upon the insurance in force, the number of policies held or the amount of premiums paid, as may be provided in the bylaws.
Acts 1919, ch. 108, § 9; Shan. Supp., § 3369a58b15; Code 1932, § 6327; T.C.A. (orig. ed.), § 56-1712.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-113 - Maximum premium to be stated - Cash and contingent premiums

(a)
The maximum premium payable by any member shall be expressed in the policy or in the application for the insurance. The maximum premium may be a cash premium and the contingent premium not less than the cash premium, or may be solely a cash premium.
(b)
No policy shall be issued for a cash premium without an additional contingent premium, unless the company has a surplus of at least one hundred thousand dollars ($100,000) or a surplus that is not less in amount than the capital stock required of domestic stock insurance companies transacting the same kinds of insurance.
Acts 1919, ch. 108, § 10; Shan. Supp., § 3369a58b16; Code 1932, § 6328; T.C.A. (orig. ed.), § 56-1713.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-114 - Investment of assets

No such company shall invest any of its assets except in accordance with the laws of this state relating to the investment of the assets of domestic stock insurance companies transacting the same kind of insurance.
Acts 1919, ch. 108, § 11; Shan. Supp., § 3369a58b17; Code 1932, § 6329; T.C.A. (orig. ed.), § 56-1714.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-115 - Unearned premium and other reserves - Maintenance

The mutual company shall maintain unearned premium and other reserves separately for each kind of insurance, upon the same basis as that required of domestic stock insurance companies transacting the same kind of insurance, and the funds earned by each kind of insurance shall be kept separate and shall not be available to pay losses or expenses incurred by any other kind of insurance; provided, that any reserve for losses or claims based upon the premium income shall be computed upon the net premium income after deducting any so-called dividend or premium returned or credited to the member.
Acts 1919, ch. 108, § 12; Shan. Supp., § 3369a58b18; Code 1932, § 6330; T.C.A. (orig. ed.), § 56-1715.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-116 - Assets not equal to unearned premium reserve and other liabilities - Assessment of members - Increase

A mutual company not possessed of assets at least equal to the unearned premium reserve and other liabilities shall make an assessment upon its members liable to assessment to provide for the deficiency, the assessment to be against each such member in proportion to the liability as expressed in the member's policy; provided, that the commissioner may, by written order, relieve the company from an assessment or other proceeding to restore the assets during the time fixed in that order; and provided further, that any domestic company that is deficient in providing the unearned premium reserve required hereby may, notwithstanding the deficiency, come under this chapter on the condition that it shall each year thereafter reduce the deficiency at least fifteen percent (15%) of the original amount, and in this case it may increase its assessments accordingly.
Acts 1919, ch. 108, § 13; Shan. Supp., § 3369a58b19; Code 1932, § 6331; T.C.A. (orig. ed.), § 56-1716.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-117 - Advancements

(a)
Any director, officer or member of any such company, or any other person, may advance to the company any sum or sums of money necessary for the purpose of its business or to enable it to comply with any of the requirements of the law, and the money and the interest thereon as may have been agreed upon, not exceeding the legal rate of interest, shall be payable only out of the surplus remaining after providing for all reserves and other liabilities and shall not otherwise be a liability or claim against the company or any of its assets.
(b)
No commission or promotion expenses shall be paid in connection with the advance of any such money to the company and the amount of the advance shall be reported in each annual statement.
Acts 1919, ch. 108, § 14; Shan. Supp., § 3369a58b20; Code 1932, § 6332; T.C.A. (orig. ed.), § 56-1717.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-118 - Foreign mutual insurance companies admitted if solvent - Requirements for admission

(a)
Any mutual insurance company organized outside of this state and authorized to transact the business of insurance on the mutual plan in any state, district, or territory, shall be admitted and licensed, subject to the approval of the commissioner as provided for in this chapter, to transact the kinds of insurance authorized by its charter or articles to the extent and with the powers and privileges specified in this chapter and when it is solvent under this chapter, and has complied with the following requirements:
(1)
Filing with the commissioner a certified copy of its charter or articles and a certificate of the supervising insurance official of the state, district, or territory, in which it is incorporated, that it is there organized and authorized to do such business as it desires to transact in this state;
(2)
Filing with the commissioner a copy of its bylaws certified to by its secretary;
(3)
Appointing the commissioner its agent for the service of process in any action, suit, or proceeding in any court of this state, which authority shall continue as long as any liability shall remain outstanding in this state;
(4)
Filing a financial statement under oath, in the form that the commissioner may require, and complying with other provisions of the law applicable to the filing of papers and furnishing information by stock companies on application for authority to transact the same kinds of insurance;
(5)
If organized without the United States, making and maintaining the deposit required of stock insurance companies formed without the United States transacting the same kinds of insurance; and
(6)
Its name shall not be so similar to any name already in use by any such existing corporation, company or association organized or licensed in this state as to be confusing or misleading.
(b)
Upon compliance by any such foreign company with this section, the company shall be licensed and authorized to transact business in this state, subject to all the provisions of law relating to information to and examinations by the commissioner, annual reports, taxes and the renewal of licenses, applicable to stock insurance companies transacting the same kinds of insurance, except as otherwise provided in this chapter.
Acts 1919, ch. 108, § 16; Shan. Supp., § 3369a58b22; Code 1932, § 6334; T.C.A. (orig. ed.), § 56-1718.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-119 - Annual report - Examination - Information required

Every mutual insurance company shall make its annual report in such form and submit to such examinations and furnish such information as may be required by the commissioner. As far as practicable, the examinations of foreign mutual insurance companies shall be made in cooperation with the insurance departments of other states and the forms of the annual report shall be such as are in general use throughout the United States.
Acts 1919, ch. 108, § 17; Shan. Supp., § 3369a58b23; Code 1932, § 6335; T.C.A. (orig. ed.), § 56-1719.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-120 - Reinsurance - Restrictions

Any such company organized or admitted to transact insurance in this state may reinsure any part or all of any risk or risks, in any insurance company or insurer licensed in this state; provided, that no such reinsurance shall be effected with any company or insurer not licensed in this state that has been disapproved by written order of the commissioner filed in the commissioner's office.
Acts 1919, ch. 108, § 20; Shan. Supp., § 3369a58b27; Code 1932, § 6339; Acts 1949, ch. 146, § 1; C. Supp. 1950, § 6339; T.C.A. (orig. ed.), § 56-1720.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-121 - Resident agent not required

Any law requiring that policies be countersigned and delivered through a resident agent shall not apply to any policy of the mutual company on which no commission shall be paid to any local agent.
Acts 1919, ch. 108, § 15; Shan. Supp., § 3369a58b21; Code 1932, § 6333; T.C.A. (orig. ed.), § 56-1721.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-122 - Companies governed by this chapter not subject to any other law

Except as provided in this chapter, insurance companies organized or admitted to do business in this state under this chapter are not subject to any other law of this state governing insurance companies unless they are specifically mentioned or clearly included in its terms.
Acts 1919, ch. 108, § 18; Shan. Supp., § 3369a58b24; mod. Code 1932, § 6336; modified; T.C.A. (orig. ed.), § 56-1722.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-123 - Violation of chapter - Penalty - Revocation of license

Any person or corporation violating this chapter commits a Class C misdemeanor, and the commissioner has the power to revoke the license of any such person or corporation.
Acts 1919, ch. 108, § 21; Shan. Supp., § 3369a58b28; Code 1932, § 6340; T.C.A. (orig. ed.), § 56-1723; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 19 - MUTUAL INSURANCE COMPANIES OTHER THAN LIFE (§§ 56-19-101 — 56-19-125) › Section 56-19-124 - Requirements as to deposits and surplus

Each and every requirement and provision of §§
56-2-101
- 56-2-104, 56-2-113 - 56-2-115, 56-2-201 and 56-2-301 relating to the kinds of business as defined in those sections, required deposits with the commissioner, and required surplus of insurance companies, shall be fully and specifically applicable to all insurance companies organized under this chapter.
Acts 1955, ch. 13, § 4; T.C.A., § 56-1724.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-101 - Documents filed with commissioner

Every mutual or assessment fire insurance company shall file with the commissioner of commerce and insurance a properly certified copy of its charter or articles of incorporation, together with a sworn statement of three (3) of the incorporators that bona fide agreements have been entered into for the insurance of property of an amount not less than fifty thousand dollars ($50,000), and of the nature and class stated in this chapter.
Acts 1895, ch. 220, § 2; Shan., § 3355; Code 1932, § 6237; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-1901.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-102 - Policy provisions

The directors of every corporation subject to this chapter shall issue policies of insurance, signed by its president and secretary, agreeing in the name of the corporation to pay all damages, not exceeding the amount insured, which shall not be more than five thousand dollars ($5,000) on any one (1) risk, done to dwelling houses, barns and their contents, and other property not more hazardous and buildings not more hazardous, in cities or villages, and their contents, during the time mentioned in the policy. Every policy issued shall have attached to it a printed copy of the bylaws and regulations of the corporation.
Acts 1895, ch. 220, § 3; Shan., § 3356; Code 1932, § 6238; T.C.A. (orig. ed.), § 56-1902.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-103 - Obligations of insured - Uniformity

Every person insured in and by any corporation subject to this chapter shall give an undertaking in the form as the corporation may prescribe, which form shall be uniform between and by all the insured, to pay the person's pro rata share of all losses or damages sustained by any member from any cause specified in the policy of the corporation. The person shall also pay a reasonable sum for expenses as the bylaws may require.
Acts 1895, ch. 220, § 4; Shan., § 3357; Code 1932, § 6239; T.C.A. (orig. ed.), § 56-1903.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-104 - Payment of losses or damages - Borrowing or assessments - General assessments

(a)
Should the amount of any loss or damage exceed the amount of money on hand, such of its officers as may be authorized by the bylaws to do so shall convene the directors or executive committee, who may borrow money on the credit of the corporation, sufficient to pay the loss, but no more, or make an assessment upon all the property insured pro rata according to its classification, and according to the amount insured, sufficient to pay what the cash in hand falls short of paying, or for the whole loss or damage, as the directors or executive committee may decide to be for the best interest of the corporation. If the directors or the executive committee deem it to be for the best interest of the corporation, they may, with the authority of a majority in value of the insurance held by members of the corporation, conferred by resolution, bylaw, or otherwise, previously given, make an estimate of the sums as, in their judgment, will be necessary to pay all losses, damages, and expenses for the current year, and supply any deficiency in the preceding year, and proceed to assess, levy, and collect the same of the members of the corporation at such times as, in their discretion, will be most advantageous to the corporation.
(b)
The assessment shall be made pro rata upon all property at the time insured, according to its classification or according to the amount insured, sufficient to pay the amount so estimated.
(c)
Not more than one (1) such general assessment shall be made in any one (1) year, nor shall any such assessment be made if more than ten percent (10%) of any previous assessment shall be in the treasury of the corporation, and not at the time required for losses actually suffered.
(d)
No assessment shall be invalid because made in whole or in part for the purpose of paying any money borrowed by the directors or executive committee, which has been used in the payment of any claim for the loss or damage against the corporation.
Acts 1895, ch. 220, § 5; Shan., § 3358; Code 1932, § 6240; T.C.A. (orig. ed.), § 56-1904.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-105 - Limitation on and use of assessments

The officers of the corporation shall not enter into any contract or agreement, or make any debt of any kind, except for payment of losses or damages as provided in §
56-20-104
, that will require an assessment of more than fifty cents (50¢) on each one hundred dollars ($100) of insurance in force. Neither shall the officers of any such company use for current expenses any money assessed for losses or damages, and all money for the expenses raised by assessment must be so stated in the notices calling for the assessment.
Acts 1895, ch. 220, § 6; Shan., § 3359; Code 1932, § 6241; T.C.A. (orig. ed.), § 56-1905.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-106 - Notice of assessments - Time of payment - Expense and cost of collection

The secretary shall, within thirty (30) days after any assessment has been made, notify every member of the corporation, by written or printed notice, signed by the secretary, stating the amount due the corporation from the members, the time when and to whom it shall be paid, and the use to be made of the money collected. Such time shall not be less than thirty (30) days nor more than sixty (60) days from the service of the notice, which notice may be served personally or by mail. If by mail, service shall be deemed complete when deposited in the post office at the place where the principal office of the corporation is located, directed to each member at the member's place of residence or business, and postage prepaid. The expense and cost of collection of the assessment shall be regulated by the bylaws.
Acts 1895, ch. 220, § 7; Shan., § 3360; Code 1932, § 6242; T.C.A. (orig. ed.), § 56-1906.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-107 - Collection of assessments by officers - Individual liability for neglect

The officers of every corporation subject to this chapter may proceed to collect any assessment, when due and unpaid for thirty (30) days. Refusal and neglect on their part to endeavor to collect the assessments, or to perform any of the duties imposed by this chapter, shall render them liable, individually, for the amount lost by any person who loses by their neglect or refusal, and an action can be maintained against the officers for the losses.
Acts 1895, ch. 220, § 8; Shan., § 3364; Code 1932, § 6246; T.C.A. (orig. ed.), § 56-1907.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-108 - Actions to recover assessments - Penalty and interest

An action may be brought by the corporation against any member to recover all assessments that the member may neglect or refuse to pay, made upon the member under this chapter, or by the bylaws of the corporation. If the corporation is compelled to bring any such action in order to collect any such assessment, it may recover the amount so assessed, with fifty percent (50%) to be added to the amount, in addition to lawful interest, as a penalty for the neglect and refusal to pay within the time required.
Acts 1895, ch. 220, § 8; Shan., § 3361; Code 1932, § 6243; T.C.A. (orig. ed.), § 56-1908.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-109 - Lien for assessments - Rights of subsequent purchaser, or junior lienholder

The corporation shall have a lien upon the property insured to secure the payment of the assessments and calls as may be legally made under the contract of insurance, and, in case of loss, the subsequent purchaser, or junior lienholder, shall be entitled to the benefits of the insurance, and to the rights, benefits and privileges of the original insured, to the extent of the insured's interest in the property.
Acts 1895, ch. 220, § 8; Shan., § 3366; Code 1932, § 6248; T.C.A. (orig. ed.), § 56-1909.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-110 - Exclusion from membership - Policies cancelled or withdrawn - Effect

Any member who neglects or refuses to pay an assessment may for this reason, or for any other reason satisfactory to the directors or executive committee, be excluded by a majority of the directors or executive committee, or as the bylaws may prescribe, from the corporation; and when thus excluded, the secretary shall cancel or withdraw the person's policy or policies and notify the person of the fact, which shall prevent the person's recovering for any loss or damage sustained after the exclusion.
Acts 1895, ch. 220, § 8; Shan., § 3362; Code 1932, § 6244; T.C.A. (orig. ed.), § 56-1910.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-111 - Liability for assessments made before exclusion - Penalty - Limitation of actions

A member liable under §
56-20-110
shall remain liable for the payment of any assessment made prior to the member's exclusion, and for the penalty provided in §
56-20-108
, in case action has been or shall be brought against the member therefor, within twelve (12) months after the time it was due.
Acts 1895, ch. 220, § 8; Shan., § 3363; Code 1932, § 6245; T.C.A. (orig. ed.), § 56-1911.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-112 - Notice of exclusion and cancellation - Repayment of equitable portion of unearned premiums of cancelled policy

If any member of the corporation is excluded therefrom as provided in §
56-20-110
, and the policy issued to such member cancelled, the secretary shall at once enter the action, with date thereof, upon the records of the association, and, either in person or by mail, notify the member of the exclusion, and, if by mail, the postage shall be prepaid and the notice be addressed to the office given in the application or policy. From and after the personal notice, or five (5) days after mailing the notice, as required in this section, the policy shall be cancelled, and all liability on the policy shall cease, but the owner shall be entitled to receive from the corporation a repayment of an equitable portion of all unearned money to which the member has contributed, if any.
Acts 1895, ch. 220, § 8; Shan., § 3365; Code 1932, § 6247; T.C.A. (orig. ed.), § 56-1912.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-113 - Annual statement to commissioner

The president and secretary of every corporation doing business under this chapter shall make a statement, under oath, to the commissioner showing the condition of the corporation on December 31 in each year, which shall contain the amount and kind of property insured, the number of policies issued from the time of organization of the corporation up to the time of making the statement, the number insured during the year last past, the amount of insurance accepted and amount withdrawn, expired, and cancelled during the year, the whole amount of insurance in force on December 31, the amount of money received during the year by the corporation, the amount of disbursements, specifying the amount paid for fees, salaries, commissions, and all other matters of interest to the corporation or member that the commissioner may require on or before February 1 next following.
Acts 1895, ch. 220, § 9; Shan., § 3367; Code 1932, § 6249; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-1913.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-114 - Examination by commissioner - Payment of expenses - Prosecution of offending officers

It is the duty of the commissioner, upon the application of five (5) members of any company doing business under this chapter, or two (2) directors, or the president or secretary, to examine into the management of such company, and the company shall pay the necessary expenses of the examination. Should the commissioner find that any officer or any number of officers have been, or are, at the time, violating this chapter or the bylaws of the company, the commissioner shall cause the officer or officers to be prosecuted, as with other corporations that are guilty of like violations.
Acts 1895, ch. 220, § 10; Shan., § 3368; Code 1932, § 6250; T.C.A. (orig. ed.), § 56-1914.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-115 - Fees of commissioner

The commissioner shall collect and pay into the state treasury the fees prescribed by §
56-4-101
for issuing each new certificate of authority for filing the company's annual statement and for amendments to the company's certificate of authority.
Acts 1895, ch. 220, § 11; Shan., § 3369; Code 1932, § 6251; Acts 1979, ch. 298, §2; T.C.A. (orig. ed.), § 56-1915.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-116 - Extension of business operations

Companies organized or incorporated under the laws of this state, and operated under and according to this chapter, are authorized and empowered to extend their business to and operate in contiguous counties.
Acts 1897, ch. 130, § 1; Shan., § 3369a1; Code 1932, § 6252; T.C.A. (orig. ed.), § 56-1916.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 20 - MUTUAL OR ASSESSMENT FIRE INSURANCE COMPANIES (§§ 56-20-101 — 56-20-117) › Section 56-20-117 - Exemption from deposit and surplus requirements

Sections
56-2-101
- 56-2-104, 56-2-113 - 56-2-115, 56-2-201, and 56-2-301 do not apply to or affect, nor should they be construed as in any way applying to or affecting, domestic, state and county mutual fire insurance companies, the organization of which was and is authorized by this chapter and chapters 21 and 22 of this title.
Acts 1955, ch. 13, § 7; T.C.A., § 56-1917.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 21 - STATE MUTUAL FIRE INSURANCE COMPANIES (§§ 56-21-101 — 56-21-132) › Section 56-21-101 - Paid-up guaranty capital - Division into shares

(a)
Any mutual fire insurance company organized under the laws of this state shall have a paid-up guaranty capital of not less than nine hundred fifty thousand dollars ($950,000) divided into shares of not exceeding one hundred dollars ($100) each.
(b)
The increase in the minimum amount of guaranty capital provided by the 1969 amendment does not apply to companies qualified and authorized prior to May 7, 1969.
Acts 1907, ch. 461, § 2; Shan., § 3369a4; Acts 1921, ch. 160, § 2; Code 1932, § 6255; Acts 1969, ch. 218, §§ 2, 6; 1973, ch. 292, § 4; T.C.A. (orig. ed.), § 56-2003.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 21 - STATE MUTUAL FIRE INSURANCE COMPANIES (§§ 56-21-101 — 56-21-132) › Section 56-21-102 - Deposit of securities

Notwithstanding the provisions contained in §
56-2-104
to the contrary, guaranty capital securities, in amounts equal to the requirements of §
56-2-104(a)(4)
, must be deposited with the commissioner of commerce and insurance for the protection of the policyholders and creditors of the company in this state. Companies not having guaranty capital securities must deposit securities equal to ten percent (10%) of net written premiums, annually, not to exceed the requirements of §
56-2-104(a)(4)
.
Acts 1907, ch. 461, § 2; Shan., § 3369a6; Acts 1921, ch. 160, § 2; Code 1932, § 6257; Acts 1945, ch. 105, § 2; C. Supp. 1950, § 6257; Acts 1967, ch. 236, § 1; 1968, ch. 549, § 1; 1975, ch. 62, § 1; 1977, ch. 202, § 1; T.C.A. (orig. ed.), § 56-2004.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 21 - STATE MUTUAL FIRE INSURANCE COMPANIES (§§ 56-21-101 — 56-21-132) › Section 56-21-103 - Interest and dividends from guaranty capital securities to subscribers - Dividends on paid-up shares

Every mutual fire insurance company organized with a guaranty capital may allow its subscribers all the interest and dividends accruing from the guaranty capital securities, according to the amount paid in or deposited by the respective guarantors, and, in addition, may pay the guarantors dividends of not exceeding six percent (6%) per annum on their respective paid-up shares; provided, that the surplus at the end of each year, over and above all liabilities, including reinsurance reserve and guaranty capital, is sufficient to pay the dividends.
Acts 1907, ch. 461, § 3; Shan., § 3369a7; Acts 1921, ch. 160, § 3; Code 1932, § 6258; T.C.A. (orig. ed.), § 56-2005.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 21 - STATE MUTUAL FIRE INSURANCE COMPANIES (§§ 56-21-101 — 56-21-132) › Section 56-21-104 - Investment of guaranty capital and other assets

The capital and other invested assets of the company shall be invested in real estate mortgages or mortgage notes, not exceeding one half (1/2) of the value of the property, or in such other securities as are permitted for investment by domestic stock fire insurance companies.
Acts 1907, ch. 461, § 2; Shan., § 3369a5; Acts 1921, ch. 160, § 2; Code 1932, § 6256; T.C.A. (orig. ed.), § 56-2006.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 21 - STATE MUTUAL FIRE INSURANCE COMPANIES (§§ 56-21-101 — 56-21-132) › Section 56-21-105 - Impairment of guaranty capital - Effect

(a)
Should the guaranty capital of any mutual fire insurance company at any time become impaired and remain so for sixty (60) days, the company shall cease issuing policies until the impairment is made good by either replacing the funds due the guaranty capital or by reducing the authorized amount of same by written notice to the commissioner by an amount equal to the impairment, but in no event to less than nine hundred fifty thousand dollars ($950,000). The company may continue to collect premiums that are due or become due on policies already in force while the impairment exists and until it is made good.
(b)
The increase in the minimum amount of guaranty capital provided by the 1969 amendment does not apply to companies qualified and authorized prior to May 7, 1969.
Acts 1907, ch. 461, § 4; Shan., § 3369a9; Acts 1921, ch. 160, § 4; Code 1932, § 6260; Acts 1969, ch. 218, §§ 3, 6; T.C.A. (orig. ed.), § 56-2007.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 21 - STATE MUTUAL FIRE INSURANCE COMPANIES (§§ 56-21-101 — 56-21-132) › Section 56-21-106 - Retirement or liquidation of guaranty capital

A mutual fire insurance company may at any time use any surplus over and above all liabilities, including reinsurance reserve, for the purpose of retiring or liquidating any part of its guaranty capital. All of the guaranty capital shall be retired when an amount of net surplus of one million five hundred thousand dollars ($1,500,000) shall have been accumulated.
Acts 1907, ch. 461, § 4; Shan., § 3369a10; Acts 1921, ch. 160, § 4; Code 1932, § 6261; Acts 1972, ch. 703, § 1; T.C.A. (orig. ed.), § 56-2008.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 21 - STATE MUTUAL FIRE INSURANCE COMPANIES (§§ 56-21-101 — 56-21-132) › Section 56-21-107 - Return to guarantors upon retirement or liquidation of guaranty capital

When guaranty capital is being retired or liquidated, if the guarantors have made their contributions in cash, a like amount of cash shall be repaid them; but if the same has been made in securities, the securities if not disposed of, or their cash value at the time of their sale if disposed of, shall be returned to the guarantor contributing them, or the return of the guaranty capital shall be made on such other terms as are agreed upon when the securities are deposited by the guarantor.
Acts 1907, ch. 461, § 4; Shan., § 3369a12; Acts 1921, ch. 160, § 4; Code 1932, § 6263; T.C.A. (orig. ed.), § 56-2009.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 21 - STATE MUTUAL FIRE INSURANCE COMPANIES (§§ 56-21-101 — 56-21-132) › Section 56-21-108 - Withdrawal of guaranty capital or securities by guarantor

(a)
A guarantor desiring to surrender the guarantor's shares and withdraw the guaranty capital or securities may do so by giving the company ninety (90) days' written notice to that effect; provided, that the withdrawal does not impair the company's guaranty capital below nine hundred fifty thousand dollars ($950,000).
(b)
The increase in the minimum amount of guaranty capital provided by the 1969 amendment does not apply to companies qualified and authorized prior to May 7, 1969.
Acts 1907, ch. 461, § 4; Shan., § 3369a11; Acts 1921, ch. 160, § 4; Code 1932, § 6262; Acts 1969, ch. 218, §§ 4, 6; T.C.A. (orig. ed.), § 56-2010.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 21 - STATE MUTUAL FIRE INSURANCE COMPANIES (§§ 56-21-101 — 56-21-132) › Section 56-21-109 - Reinsurance reserve - Computation

When computing reinsurance reserve, policy fees, membership and endorsement fees, all agents' commissions and salaries of all agents required to have a certificate of authority from the department of commerce and insurance shall be excluded as a part of the premium receipts. The unpaid premiums in the course of collection and the unpaid premium notes of the policyholders not over twelve (12) months due shall be treated as ledger assets.
Acts 1907, ch. 461, § 4; Shan., § 3369a13; Acts 1921, ch. 160, § 4; Code 1932, § 6264; T.C.A. (orig. ed.), § 56-2011.