reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 3 - DIVISION OF REGULATORY BOARDS (§§ 56-1-301 — 56-1-313) › Section 56-1-313 - Disciplinary authority of governmental entities attached to the division of regulatory boards

(a)
In addition to any other lawful disciplinary authority, any board, commission or agency attached to the division of regulatory boards may, upon receipt of a certified order, refuse to issue or renew a license, permit or authorization to practice, and revoke, suspend or restrict any license, permit or authorization to practice that the board, commission, or agency has issued to any person who:
(1)
Has had the person's license, permit or authorization to practice in the profession or occupation subject to the jurisdiction of the board, commission or agency suspended or revoked by another state or national board, commission or agency for any acts or omissions that would constitute grounds for discipline in this state; or
(2)
Has voluntarily surrendered the person's license, permit or authorization to practice in the profession or occupation that is subject to the jurisdiction of the board, commission or agency, as a result of or during the pendency of disciplinary proceedings by another state or national board, commission or agency, for any acts or omissions that would constitute grounds for discipline in this state.
(b)
The Uniform Administrative Procedures Act, compiled in title 4, chapter 5, shall govern all matters and procedures respecting the hearing and judicial review of any contested case, as defined in §
4-5-102
, arising under the authority of this section.
(c)
Any board, commission or agency attached to the division of regulatory boards is authorized to promulgate rules to effectuate the purposes of this section. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act.
Acts 2005, ch. 285, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-NEW - [Newly enacted section not yet numbered]

(a)
The comptroller of the treasury shall conduct a study of all insurers, including insurance pools, that provide policies of workers' compensation coverage to local governmental entities, including a review of each insurer's solvency, a comparative rate study, and an analysis of the process to bid out, procure, or otherwise obtain such a policy.
(b)
The comptroller shall report the findings of the study conducted under subsection (a) to the speakers of the senate and the house of representatives no later than January 1, 2025.
(c)
As used in this section, "local governmental entity" means a county, incorporated city or town, metropolitan government, and the governing body of a local education agency and charter school.
Added by 2024 Tenn. Acts, ch. 813,s 1, eff. 4/29/2024.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-401 - Examination of companies by commissioner before granting of certificate to do business

Before granting certificates of authority to an insurance company to issue policies or make contracts of insurance, the commissioner shall be satisfied, by such examination and evidence as the commissioner sees fit to make and require, that the company is duly qualified under the laws of the state to transact business in the state.
Acts 1895, ch. 160, § 4; Shan., § 3277; Code 1932, § 6091; T.C.A. (orig. ed.), § 56-113.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-402 - [Repealed]

Repealed by 2013 Tenn. Acts, ch. 260, s 1, eff. 7/1/2013.
Acts 1895, ch. 160, § 8; Shan., § 3288; Code 1932, § 6103; Acts 1945, ch. 56, § 1; C. Supp. 1950, § 6103; Acts 1963, ch. 140, §§ 1, 2; T.C.A. (orig. ed.), § 56-114; Acts 1995, ch. 363, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-403 - [Repealed]

Repealed by 2013 Tenn. Acts, ch. 260, s 1, eff. 7/1/2013.
Acts 1895, ch. 160, § 8; Shan., § 3289; Code 1932, § 6104; Acts 1945, ch. 56, § 2; C. Supp. 1950, § 6104; Acts 1961, ch. 37, § 1; 1963, ch. 140, § 3; 1973, ch. 203, §§ 1-3; 1976, ch. 430, § 2; 1978, ch. 591, § 1; T.C.A. (orig. ed.), § 56-115; Acts 1982, ch. 660, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-404 - Determination of liability upon contracts of insurance on policies other than life for reinsurance

To determine the liability upon the contracts of insurance for insurance companies doing business in this state, foreign and domestic, other than life, the commissioner shall require the companies to charge, as the liability for reinsurance of outstanding policies, fifty percent (50%) of the premiums received on policies or risks having not more than one (1) year to run, and a pro rata of all premiums received on policies or risks having more than one (1) year to run.
Acts 1895, ch. 160, § 8; 1897, ch. 37, § 1; Shan., § 3290; Code 1932, § 6105; Acts 1947, ch. 173, § 1; C. Supp. 1950, § 6105; T.C.A. (orig. ed.), § 56-116.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-405 - Assets allowable as credits in account of financial condition

The commissioner shall allow to the credit of an insurance company in the account of its financial condition only the assets that are or can be made available for the payment of losses in the state, but may credit any deposits of funds of the company set apart as security for a particular liability, or any deposits of funds of the company that are deposited for the purpose of meeting the requirements for doing business in another state or commonwealth. The commissioner may, in the commissioner's discretion, disallow stockholders' obligations of any description as part of the assets or capital of any insurance company, unless secured by competent collateral.
Acts 1895, ch. 160, § 8; Shan., § 3291; Code 1932, § 6106; modified; T.C.A. (orig. ed.), § 56-117; Acts 1998, ch. 678, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-406 - Commissioner is custodian of collateral deposited

The commissioner shall be the custodian of all collateral in the form of stock certificates, bonds, debentures, notes and other evidences of indebtedness deposited or pledged with the commissioner under any existing law, and it shall be the commissioner's official duty safely to keep, surrender and account for the collateral deposited as provided by law, and for the safekeeping of that collateral both the commissioner and the sureties on the commissioner's official bond are liable.
Acts 1937, ch. 203, § 1; C. Supp. 1950, § 6088.1; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-118.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-407 - Valuation of bonds held by insurance companies - Basis

(a)
All bonds or other evidences of debt having a fixed term and rate held by any life insurance company, assessment life association, or fraternal beneficiary association, authorized to do business in this state, may, if amply secured and not in default as to principal and interest, be valued as follows:
(1)
If purchased at par, at par value; or
(2)
If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made.
(b)
The purchase shall in no case be taken at a higher figure than the actual market value at the time of purchase.
(c)
The commissioner shall have full discretion in determining the method of calculating values according to subsection (a).
Acts 1921, ch. 128, § 1; Shan. Supp., § 3281a1; Code 1932, § 6096; T.C.A. (orig. ed.), § 56-119.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-408 - Examination of insurance companies - Frequency

As often as once in five (5) years, the commissioner shall, personally or by a deputy or some competent person appointed by the commissioner for that purpose, visit each insurance company licensed in this state and examine its affairs, especially as to its financial condition and ability to fulfill its obligations, and whether it has complied with the law.
Acts 1895, ch. 160, § 4; Shan., § 3278; Code 1932, § 6092; T.C.A. (orig. ed.), § 56-120; Acts 1983, ch. 85, § 1; 1993, ch. 253, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-409 - Examination when deemed prudent or requested

(a)
The commissioner shall also make an examination of each insurance company licensed in this state whenever the commissioner deems it prudent to do so, or upon the request of five (5) or more of the stockholders or persons pecuniarily interested in the company, who shall make affidavit of their belief, with specifications of their reasons for the belief, that the company is in an unsound condition.
(b)
For the purpose of ascertaining financial condition or legality of conduct, the commissioner may, for good cause, make an investigation and examination, independent of any other examination of an insurer or proposed insurer, of any accounts, records, files, documents, and transactions pertaining to the business of insurance. The investigatory and examination authority shall extend to:
(1)
Any insurance agency, agent, general agent, surplus lines agent, insurance representative, or any person holding out to be an insurance agency, agent, general agent, surplus lines agent, or insurance representative;
(2)
Any person having a contract under which that person enjoys by terms or in fact the exclusive or dominant right to manage or control an insurer;
(3)
Any corporation, association, or person engaged in the business of adjusting losses, financing premiums, or furnishing insurance services in the form of administrative services only to self-insured groups;
(4)
Any other individual, corporation, association, partnership, reciprocal exchange, interinsurer, Lloyds insurer, fraternal benefit society, and any other legal entity engaged in the business of insurance; and
(5)
Any employer that self-insures its workers' compensation liabilities pursuant to §
50-6-405(b)
or a group of employers qualifying as self-insurers pursuant to §
50-6-405(c)
.
Acts 1895, ch. 160, § 4; Shan., § 3279; Code 1932, § 6093; Acts 1978, ch. 647, § 1; T.C.A. (orig. ed.), § 56-121; Acts 2004, ch. 962, § 38.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-410 - Examination of foreign companies

(a)
When the commissioner or the commissioner's deputy deems it prudent for the protection of policyholders in this state, the commissioner shall in like manner, visit and examine, or cause to be visited and examined by some competent person or persons the commissioner may appoint for that purpose, any foreign insurance company applying for admission to do business in this state.
(b)
In lieu of an examination under this section of any foreign or alien insurer licensed in this state, the commissioner may accept an examination report on the company as prepared by the department of insurance for the company's state of domicile or port-of-entry state until January 1, 1994. Thereafter, these reports may only be accepted if:
(1)
The department of insurance was at the time of the examination accredited under the National Association of Insurance Commissioners, Financial Regulation Standards and Accreditation Program; or
(2)
The examination is performed:
(A)
Under the supervision of a department of insurance so accredited; or
(B)
With the participation of one (1) or more examiners who are employed by such an accredited state department of insurance and who, after a review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by their department of insurance.
Acts 1895, ch. 160, § 4; Shan., § 3280; Code 1932, § 6094; T.C.A. (orig. ed.), § 56-122; Acts 1993, ch. 253, §§ 2, 3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-412 - Failure to testify before commissioner - Obstruction of examination - Penalty

Whoever, without justifiable cause, neglects, upon due summons, to appear and testify before the commissioner, the commissioner's deputy, or person appointed by the commissioner as provided, and whoever obstructs the commissioner, the commissioner's deputy or examiner in examining insurance companies commits a Class C misdemeanor.
Acts 1895, ch. 160, § 35; Shan., § 3320; Code 1932, § 6149; T.C.A. (orig. ed.), § 56-124; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-413 - Expenses of examination - Payment by company examined

(a)
(1)
Any insurance company authorized to do business in this state and examined under the law shall pay the proper charges incurred in the examination, including the expenses of the commissioner or the commissioner's deputy, and the expenses and compensation of the commissioner's assistants employed in the examination.
(2)
The compensation of the experts, actuaries and examiners designated by the commissioner for examining the books or business of insurance companies doing business in this state shall be fixed by the commissioner at a reasonable amount commensurate with usual compensation for like services.
(b)
All persons engaging, assisting, or making the required examination under this chapter shall be regular state employees, and their entire expenses and compensation shall be paid only by the state as now provided for by law. Notwithstanding this subsection (b), the commissioner may contract, in accordance with applicable state contracting procedures, for qualified actuaries and financial examiners the commissioner deems necessary due to the unavailability of qualified regular state employees to conduct a particular examination; provided, that, with respect to financial examinations, the compensation and per diem allowances paid to the persons shall be fixed by the commissioner at a reasonable amount commensurate with usual compensation for like services.
(c)
The full cost of the examination fixed by the commissioner shall be paid into the department for its use and benefit in meeting the expenses and compensation for the persons engaged in the examinations.
Amended by 2017 Tenn. Acts, ch. 354,s 6, eff. 5/11/2017.
Acts 1895, ch. 160, § 4; Shan., § 3282; Acts 1921, ch. 30, § 1; Code 1932, § 6097; Acts 1951, ch. 103, § 1; 1965, ch. 263, § 1; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-125; Acts 1991, ch. 142, § 9; 2000, ch. 642, § 1; 2005, ch. 251, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-414 - Impairment of capital stock of domestic insurance company

When it appears to the commissioner that the capital stock of a domestic insurance company is impaired to the extent of twenty percent (20%) or more, the commissioner shall notify the company that its capital is legally subject to be made good; and, if the company does not, within sixty (60) days after the notice, satisfy the commissioner that it has fully repaired its capital, or reduced its capital as provided by law, the commissioner shall institute proceedings against it.
Acts 1895, ch. 160, § 6; Shan., § 3286; Code 1932, § 6101; T.C.A. (orig. ed.), § 56-126.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-415 - Issuance of policies by domestic life insurance companies forbidden when assets are insufficient

When the actual funds of a domestic life insurance company, exclusive of its capital, are not of a net cash value equal to its liabilities, including the net value of its policies, computed by the rule of valuation established by part 9 of this chapter, the commissioner shall notify the company and its agents to issue no new policies until its funds become equal to its liabilities.
Amended by 2013 Tenn. Acts, ch. 260,s 2, eff. 7/1/2013.
Acts 1895, ch. 160, § 7; Shan., § 3287; Code 1932, § 6102; T.C.A. (orig. ed.), § 56-127.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-416 - Revocation or suspension of certificate of authority

(a)
The commissioner shall revoke or suspend all certificates of authority granted to the company or its agents and cause notice of revocation or suspension to be published in one (1) or more newspapers of general circulation, if the commissioner is of the opinion, upon examination or other evidence, that:
(1)
A foreign insurance company is:
(A)
In an unsound condition; or
(B)
If a life insurance company, has actual funds, exclusive of its capital, less than its liabilities; or
(2)
A foreign insurance company has:
(A)
Failed to comply with the law; or
(B)
Its officers or agents have:
(i)
Refused to submit to examination;
(ii)
Refused to perform any legal obligations in relation to examinations; or
(iii)
Failed to pay any final judgment against the company recovered by a Tennessee citizen.
(b)
No new business shall be done by a company or its agents under suspension or revocation while the default or disability continues, nor until its authority to do business is restored by the commissioner.
Acts 1895, ch. 160, § 5; Shan., § 3283; Code 1932, § 6098; T.C.A. (orig. ed.), § 56-128.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-417 - Notice required for revocation or suspension of certificate of authority

Unless the ground for revocation or suspension relates only to the financial condition or soundness of the company or to a deficiency in its assets, the commissioner shall notify the company no less than ten (10) days before revoking its authority to do business in this state, and the commissioner shall specify in the notice the particulars of the supposed violation.
Acts 1895, ch. 160, § 5; Shan., § 3284; Code 1932, § 6099; T.C.A. (orig. ed.), § 56-129.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-418 - Calculation of disability benefit reserves

The commissioner shall annually cause to be made, or require the insurer to make, calculations of policy and claim reserves for accident and health policies providing disability benefits as defined in §
56-2-201
on the basis of regulations the commissioner prescribes from time to time regarding minimum reserve standards and tables of mortality, morbidity, interest or other contingencies to be used to compute the reserves. From July 1, 1995, until the date of promulgation of rules and regulations, all calculations with respect to policy and claim reserves for accident and health policies providing disability benefits shall be made at a rate of interest not exceeding four and one half percent (4.5%) per annum.
Acts 1976, ch. 507, § 1; T.C.A., § 56-144; Acts 1995, ch. 363, § 17.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 4 - FINANCIAL VALUATIONS AND EXAMINATION OF COMPANIES (§§ 56-1-NEW — 56-1-420) › Section 56-1-419 - Statement of actuarial opinion - Summary - Report and work papers - Liability for errors and omissions

(a)
Statement of Actuarial Opinion.
On or before March 1, 2012, and annually every year thereafter, every property and casualty insurance company doing business in this state, unless otherwise exempted by the domiciliary commissioner, shall submit the opinion of an appointed actuary entitled "Statement of Actuarial Opinion". This opinion shall be filed with the appropriate National Association of Insurance Commissioners (NAIC) property and casualty annual statement instructions and shall cover the activity of the prior calendar year.
(b)
Actuarial Opinion Summary.
(1)
Every property and casualty insurance company domiciled in this state that is required to submit a statement of actuarial opinion shall annually submit an actuarial opinion summary, written by the company's appointed actuary. This actuarial opinion summary shall be filed in accordance with the appropriate NAIC property and casualty annual statement instructions and shall be considered as a document supporting the actuarial opinion required in subsection (a).
(2)
A company licensed but not domiciled in this state shall provide the actuarial opinion summary upon request.
(c)
Actuarial Report and Work Papers.
(1)
An actuarial report and underlying work papers as required by the appropriate NAIC property and casualty annual statement instructions shall be prepared to support each actuarial opinion.
(2)
If the insurance company fails to provide a supporting actuarial report and/or work papers at the request of the commissioner or the commissioner determines that the supporting actuarial report or work papers provided by the insurance company is otherwise unacceptable to the commissioner, the commissioner may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting actuarial report or work papers.
(d)
The appointed actuary shall not be liable for damages to any person, other than the insurance company and the commissioner, for any act, error, omission, decision or conduct with respect to the actuary's opinion, except in cases of fraud or willful misconduct on the part of the appointed actuary.
Acts 2010, ch. 892, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 5 - ANNUAL STATEMENTS (§§ 56-1-501 — 56-1-503) › Section 56-1-502 - Forfeiture for failure to file statement - Suspension of authority to do new business

Any insurance company that neglects to make and file its annual statement in the form and within the time provided by §
56-1-501
shall forfeit one hundred dollars ($100) for each day neglected, and, upon notice by the commissioner to that effect, its authority to do new business shall cease while the default continues.
Acts 1895, ch. 160, § 34; Shan., § 3318; Code 1932, § 6147; T.C.A. (orig. ed.), § 56-132.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 5 - ANNUAL STATEMENTS (§§ 56-1-501 — 56-1-503) › Section 56-1-503 - False statement - Penalty - Perjury

(a)
For willfully making a false annual or other statement it is required by law to make, an insurance company, and persons making oath to or subscribing to the statement, shall be severally punished by a fine of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000).
(b)
Any person making oath to the false statement commits perjury.
Acts 1895, ch. 160, § 34; Shan., § 3319; Code 1932, § 6148; T.C.A. (orig. ed.), § 56-133.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 6 - RECORDS AND DOCUMENTS (§§ 56-1-601 — 56-1-604) › Section 56-1-601 - Duty of commissioner to keep records of proceedings and examinations - Commissioner's report

(a)
The commissioner shall preserve in a permanent form a record of the commissioner's proceedings, including a concise statement of the result of official examinations of insurance companies.
(b)
The commissioner shall, annually, and as early as consistent with full and accurate preparation, make a report to the governor of all official transactions, and shall include in the report a statement of the receipts and expenditures of the department for the preceding year, an exhibit of the financial condition and business transactions of the several insurance companies as disclosed by their annual statements, abstracts of which statements shall appear in the report, and other information and comments in relation to insurance and the public interest in insurance the commissioner deems fit to communicate.
Acts 1895, ch. 160, § 17; Shan., § 3300; mod. Code 1932, § 6116; T.C.A. (orig. ed.), § 56-134.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 6 - RECORDS AND DOCUMENTS (§§ 56-1-601 — 56-1-604) › Section 56-1-602 - Records - Inspection by public

(a)
The records of the department shall, at all times, be open to the inspection of the public, subject to rules made by the commissioner for their safekeeping, free from any charge whatever.
(b)
The commissioner shall, on demand, furnish certified copies of any paper, report, or document on file in the commissioner's office to any person requesting them, upon payment of the fee allowed by law.
Acts 1873, ch. 58, § 12; Shan., § 3342; mod. Code 1932, § 6167; T.C.A. (orig. ed.), § 56-135.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 6 - RECORDS AND DOCUMENTS (§§ 56-1-601 — 56-1-604) › Section 56-1-603 - Seal of department

The commissioner, with the approval of the governor, shall devise a seal, with suitable inscription, for the department, a description of which, with a certificate of approval by the governor, together with an impression of the seal, shall be filed in the office of the secretary of state, and may be renewed whenever necessary.
Acts 1873, ch. 58, § 13; Shan., § 3343; mod. Code 1932, § 6168; T.C.A. (orig. ed.), § 56-136.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 6 - RECORDS AND DOCUMENTS (§§ 56-1-601 — 56-1-604) › Section 56-1-604 - Documents to be recorded by commissioner or the commissioner's chief deputy - Certified copies of records to be evidence

Every certificate, assignment, or conveyance executed by the commissioner or the commissioner's chief deputy, relating to the business of insurance companies, in pursuance of authority conferred by law, and sealed with the seal of office, shall be recorded in the proper recording office in the same manner and with the same effect as a deed regularly acknowledged or proved before an officer authorized by law to take the proof or acknowledgment of deeds, and all copies of papers in the office of the department, certified by the commissioner or the chief deputy, and authenticated by the seal, shall in all cases be evidence equally and in like manner with the original.
Acts 1873, ch. 58, § 13; Shan., § 3344; Code 1932, § 6169; modified; Acts 1957, ch. 7, § 1; T.C.A. (orig. ed.), § 56-137.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 7 - RULES AND REGULATIONS (§§ 56-1-701 — 56-1-702) › Section 56-1-701 - [Repealed]

Repealed by 2018 Tenn. Acts, ch. 873, s 3, eff. 5/3/2018.
Acts 1970, ch. 503, § 1; impl. am. Acts 1971, ch. 137, § 2; T.C.A., § 56-141.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 7 - RULES AND REGULATIONS (§§ 56-1-701 — 56-1-702) › Section 56-1-702 - [Repealed]

Repealed by 2018 Tenn. Acts, ch. 873, s 3, eff. 5/3/2018.
Acts 1970, ch. 503, § 2; impl. am. Acts 1974, ch. 725, §§ 1, 22; T.C.A., § 56-142.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 8 - PENALTIES (§§ 56-1-801 — 56-1-802) › Section 56-1-801 - Violation of insurance laws - General penalty

A violation of this chapter and chapters 2-4, 7, 11 and 32 of this title, the penalty of which is not specifically provided, is a Class C misdemeanor.
Acts 1895, ch. 160, § 36; Shan., § 3321; Code 1932, § 6150; modified; T.C.A. (orig. ed.), § 56-139; Acts 1989, ch. 591, § 113; 2000, ch. 708, § 9.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 8 - PENALTIES (§§ 56-1-801 — 56-1-802) › Section 56-1-802 - Recovery of penalties - Imprisonment for failure to pay penalties

(a)
Every penalty fixed in this title, unless otherwise provided for, shall be sued for and recovered in the name of the state by the district attorney general of the district in which the delinquency occurs, and shall be paid into the state treasury.
(b)
Nonpayment of the penalties is a Class C misdemeanor.
Acts 1895, ch. 160, § 37; Shan., § 3322; Code 1932, § 6151; modified; T.C.A. (orig. ed), § 56-140; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-902 - Reserve valuation

(a)
For policies and contracts issued prior to the operative date of the valuation manual:
(1)
The commissioner shall annually value, or cause to be valued, the reserve liabilities (reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in this state issued on or after January 1, 1962, and prior to the operative date of the valuation manual. In calculating reserves, the commissioner may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves required of a foreign or alien company, the commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this part.
(2)
Sections
56-1-904
- 56-1-913 shall apply to all policies and contracts, as appropriate, subject to this part issued on or after January 1, 1962, and prior to the operative date of the valuation manual and the provisions set forth in §§
56-1-914
and
56-1-915
shall not apply to any such policies and contracts.
(3)
The minimum standard for the valuation of policies and contracts issued prior to January 1, 1962, shall be that provided by the laws in effect immediately prior to that date.
(b)
For policies and contracts issued on or after the operative date of the valuation manual:
(1)
The commissioner shall annually value, or cause to be valued, the reserves for all outstanding life insurance contracts, annuity and pure endowment contracts, accident and health contracts, and deposit-type contracts of every company issued on or after the operative date of the valuation manual. In lieu of the valuation of the reserves required of a foreign or alien company, the commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this part; and
(2)
Sections
56-1-914
and
56-1-915
shall apply to all policies and contracts issued on or after the operative date of the valuation manual.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-908 - Reserve valuation method - Annuity and pure endowment benefits

(a)
This section shall apply to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer, including a partnership or sole proprietorship, or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under § 408 of the Internal Revenue Code (
26 U.S.C. § 408
), as amended.
(b)
Reserves according to the commissioners annuity reserve method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death benefits in the contracts, shall be the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by the contracts at the end of each respective contract year, over the present value, at the date of valuation, of any future valuation considerations derived from future gross considerations, required by the terms of the contract, that become payable prior to the end of the respective contract year. The future guaranteed benefits shall be determined by using the mortality table, if any, and the interest rate, or rates, specified in the contracts for determining guaranteed benefits. The valuation considerations are the portions of the respective gross considerations applied under the terms of the contracts to determine nonforfeiture values.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-909 - Minimum reserves

(a)
In no event shall a company's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after March 13, 1978, be less than the aggregate reserves calculated in accordance with the methods set forth in §§
56-1-907
,
56-1-908
,
56-1-911
and
56-1-912
and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for the policies.
(b)
In no event shall the aggregate reserves for all policies, contracts and benefits be less than the aggregate reserves determined by the appointed actuary to be necessary to render the opinion required by §
56-1-903
.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-910 - Optional reserve calculation

(a)
Reserves for policies and contracts issued prior to March 13, 1978, may be calculated, at the option of the company, according to any standards that produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by the laws in effect immediately prior to March 13, 1978.
(b)
Reserves for any category of policies, contracts or benefits established by the commissioner, issued on or after March 13, 1978, may be calculated, at the option of the company, according to any standards that produce greater aggregate reserves for the category than those calculated according to the minimum standard provided in this part, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, shall not be greater than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided in the policies or contracts.
(c)
A company, which adopts at any time a standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard provided under this part may adopt a lower standard of valuation with the approval of the commissioner, but not lower than the minimum provided herein; provided that, for the purposes of this section, the holding of additional reserves previously determined by the appointed actuary to be necessary to render the opinion required by §
56-1-903
shall not be deemed to be the adoption of a higher standard of valuation.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-911 - Reserve calculation - Valuation net premium exceeding the gross premium charged

(a)
If in any contract year the gross premium charged by a company on a policy or contract is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required for the policy or contract shall be the greater of either the reserve calculated according to the mortality table, rate of interest and method actually used for the policy or contract; or the reserve calculated by the method actually used for the policy or contract but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium. The minimum valuation standards of mortality and rate of interest referred to in this section are those standards stated in §§
56-1-904
and
56-1-906
.
(b)
For a life insurance policy issued on or after January 1, 1986, for which the gross premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for the excess and which provides an endowment benefit or a cash surrender value, or a combination, in an amount greater than the excess premium, subsection (a) shall be applied as if the method actually used in calculating the reserve for the policy were the method described in §
56-1-907
, without consideration of §
56-1-907(b)
. The minimum reserve at each policy anniversary of such a policy shall be the greater of the minimum reserve calculated in accordance with §
56-1-907
, including §
56-1-907(b)
, and the minimum reserve calculated in accordance with this section.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-912 - Reserve calculation - Indeterminate premium plans

In the case of a plan of life insurance that provides for future premium determination, the amounts of which are to be determined by the insurance company based on then estimates of future experience, or in the case of a plan of life insurance or annuity that is of such a nature that the minimum reserves cannot be determined by the methods described in §§
56-1-907
,
56-1-908
and
56-1-911
, the reserves that are held under the plan shall, as determined by regulations promulgated by the commissioner:
(1)
Be appropriate in relation to the benefits and the pattern of premiums for that plan; and
(2)
Be computed by a method that is consistent with the principles of this part.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-913 - Minimum standard for accident and health insurance contracts

(a)
For accident and health insurance contracts 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)
.
(b)
For disability, accident and sickness, accident and health insurance contracts issued on or after January 1, 1962, and prior to the operative date of the valuation manual, the minimum standard of valuation is the standard adopted by the commissioner by regulation.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-915 - Requirements of a principle-based valuation

(a)
A company shall establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the valuation manual:
(1)
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 during the lifetime of the contracts. For policies or contracts with significant tail risk, reflects conditions appropriately adverse to quantify the tail risk;
(2)
Incorporate assumptions, risk analysis methods and financial models and management techniques that are consistent with, but not necessarily identical to, those utilized within the company's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods;
(3)
Incorporate assumptions that are derived in one (1) of the following manners:
(A)
The assumption is prescribed in the valuation manual;
(B)
For assumptions that are not prescribed, the assumptions shall:
(i)
Be established utilizing the company's available experience to the extent it is relevant and statistically credible; or
(ii)
To the extent that company data is not available, relevant, or statistically credible, be established utilizing other relevant, statistically credible experience;
(4)
Provide margins for uncertainty including adverse deviation and estimation error, such that the greater the uncertainty the larger the margin and resulting reserve.
(b)
A company using a principle-based valuation for one (1) or more policies or contracts subject to this section as specified in the valuation manual shall:
(1)
Establish procedures for corporate governance and oversight of the actuarial valuation function consistent with those described in the valuation manual;
(2)
Provide to the commissioner and the board of directors an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation. Such controls shall be designed to assure that all material risks inherent in the liabilities and associated assets subject to such valuation are included in the valuation, and that valuations are made in accordance with the valuation manual. The certification shall be based on the controls in place as of the end of the preceding calendar year;
(3)
Develop, and file with the commissioner upon request, a principle-based valuation report that complies with standards prescribed in the valuation manual.
(c)
A principle-based valuation may include a prescribed formulaic reserve component.
Added by 2013 Tenn. Acts, ch. 260, s 3, eff. 7/1/2013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-916 - Experience reporting for policies in force on or after the operative date of the valuation manual

A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-918 - Single state exemption

(a)
The commissioner may exempt specific product forms or product lines of a domestic company that is licensed and doing business only in this state from §
56-1-914
; provided, that:
(1)
The commissioner has issued an exemption in writing to the company and has not subsequently revoked the exemption in writing; and
(2)
The company computes reserves using assumptions and methods used prior to the operative date of the valuation manual in addition to any requirements established by the commissioner and promulgated by regulation.
(b)
For any company granted an exemption under this section, §§
56-1-903
- 56-1-913 shall be applicable. With respect to any company applying this exemption, any reference to §
56-1-914
found in §§
56-1-903
- 56-1-913 shall not be applicable.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 9 - STANDARD VALUATION LAW (§§ 56-1-901 — 56-1-919) › Section 56-1-919 - Conflicts with other laws - Applicability date

To the extent that this part conflicts with or is inconsistent with any law, this part shall control. This part shall apply to policies and contracts issued on or after January 1, 1962.
Added by 2013 Tenn. Acts, ch. 260,s 3, eff. 7/1/2013.