reglab/statecodes huggingface dataset:
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 56-21-110 - Deposits and investments - Borrowing of funds by officers or committee members prohibited - Director or officer not to take fees for making loans - Penalty

(a)
The deposits and investments of every mutual fire insurance company subject to this chapter shall be made in its corporate name.
(b)
No officer of the company or member of any committee thereof charged with the investment of funds shall borrow the same or be, directly or indirectly, liable therefor, for or on account of loans made to others, nor shall any director or any officer take or receive to use any fee, brokerage, commission, gift or other consideration on account of any loan made by or on behalf of any such company; provided, that this does not prevent the persons subscribing for or securing shares of guaranty capital in any company operating on the guaranty capital plan on equal terms and conditions with other guarantors.
(c)
A violation of this section is a Class C misdemeanor.
Acts 1907, ch. 461, § 10; Shan., § 3369a26; Acts 1921, ch. 160, § 10; Code 1932, § 6277; T.C.A. (orig. ed.), § 56-2012; Acts 1989, ch. 591, § 113.
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 56-21-111 - Annual report to commissioner - Fee

Every company subject to this chapter shall make an annual report to the commissioner, by March 1 of each year as of December 31 of the preceding year, on blank forms prepared and furnished by the commissioner for that purpose, setting forth the transactions of the company during the previous year, showing its condition at the close of the year, and shall pay to the commissioner a fee of fifty dollars ($50.00) at the time of filing the statement.
Acts 1907, ch. 461, § 11; Shan., § 3369a27; Acts 1921, ch. 160, § 11; Code 1932, § 6278; Acts 1972, ch. 703, § 2; 1979, ch. 298, § 3; T.C.A. (orig. ed.), § 56-2013.
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 56-21-112 - Injunction against further business - Procedure - Appointment of receiver

(a)
The commissioner, whenever satisfied that any such company has exceeded its powers or has failed to comply with this chapter, or is conducting its business fraudulently, or that in the commissioner's judgment its financial condition is unsound, or that it is not maintaining the required amount of net surplus or unimpaired guaranty capital and reserve, shall have the duty to present the facts relating thereto to the attorney general and reporter, who shall, if the attorney general and reporter deems the circumstances warrant, commence an action in quo warranto or an action of that nature in any court of competent jurisdiction nearest to the company's domicile; and, if upon the trial, the court finds that the allegations in the petition are true and that legal grounds exist therefor, the company shall be enjoined from doing further business; provided, that the company shall have reasonable notice served upon it by the commissioner and shall be given reasonable opportunity and time to show cause why the proceedings should not be commenced and to make good any impairment in its guaranty capital or reserve.
(b)
Whenever, in the opinion of the court, the company should not be permitted longer to transact business, the court shall appoint a receiver for the purpose of winding up its business as in other cases of receivership in this state.
Acts 1907, ch. 461, § 12; Shan., § 3369a28; Acts 1921, ch. 160, § 12; Code 1932, § 6279; T.C.A. (orig. ed.), § 56-2014.
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 56-21-113 - Guaranty capitalized companies maintaining reinsurance reserves may limit premiums in policies

All companies operating under the guaranty capital provisions of this chapter and levying advance premiums and maintaining a full legal reinsurance reserve may limit their policyholders' liability to the amount of premiums stated in the policy or insurance contract and collect the same as set out in the policy and contract.
Acts 1907, ch. 461, § 4; Shan., § 3369a8; Acts 1921, ch. 160, § 4; Code 1932, § 6259; T.C.A. (orig. ed.), § 56-2015.
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 56-21-114 - Policy and its prescribed requisites constitute the contract

The insurance contracts of all such companies shall be made to conform to this chapter, and shall consist of the policy proper; the constitution and bylaws of the company, which must be attached to or printed on the policy; all endorsements made on or attached to the policy; the parts of the application as are attached to or incorporated in the insurance contract; and any premium note, or other policy obligation given by the insured, all of which shall be binding on the insured as long as the insured remains a member of or policyholder in the company.
Acts 1907, ch. 461, § 8; Shan., § 3369a24; Acts 1921, ch. 160, § 8; Code 1932, § 6275; T.C.A. (orig. ed.), § 56-2016.
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 56-21-115 - Regular and contingent premium information in policy

The amount of the regular premium and the contingent premium shall be plainly written on the outside or title page of the policy, and it shall be plainly stated in the policy or insurance contract that it is issued in consideration of the regular premium, and the further contingent premium of not less than the same amount in addition to the premium.
Acts 1907, ch. 461, § 5; Shan., § 3369a15; Acts 1921, ch. 160, § 5; Code 1932, § 6266; T.C.A. (orig. ed.), § 56-2017.
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 56-21-116 - Regular and contingent premiums - Additional assessments

(a)
All companies operating under this chapter and not maintaining a nine hundred fifty thousand dollar ($950,000) guaranty capital or more and a full legal reinsurance reserve, exclusive of all other liabilities, shall charge one (1) full regular annual or term premium for each policy issued and collect the same at the times and under the conditions as the insurance contract provides for; and the insured or policyholders shall be liable for a contingent premium equal to and in addition to the regular premium if needed by the company for the purpose of paying its losses and other liabilities. If any such company desires, it may make provisions in its insurance contract for assessments in addition to the one (1) contingent premium, which is herein made mandatory.
(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, § 5; Shan., § 3369a14; Acts 1921, ch. 160, § 5; Code 1932, § 6265; Acts 1969, ch. 218, §§ 5, 6; T.C.A. (orig. ed.), § 56-2018.
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 56-21-117 - Policyholder's liability - Computation as assets of company

The contingent liabilities of the policyholders shall be computed as contingent assets of the company. The unpaid regular premium and premium notes of the policyholders not over twelve (12) months due shall be computed as ledger assets of the company.
Acts 1907, ch. 461, § 5; Shan., § 3369a16; Acts 1921, ch. 160, § 5; Code 1932, § 6267; T.C.A. (orig. ed.), § 56-2019.
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 56-21-118 - Extent of policyholder's liability

No policyholder shall be liable for any amount in excess of the regular premium and contingent premium as herein provided for and required to be stated in the policy or insurance contract; nor shall any policyholder be liable for losses or expenses accruing before the policy was issued, nor for losses or expenses accruing after the termination of the insurance.
Acts 1907, ch. 461, § 5; Shan., § 3369a17; Acts 1921, ch. 160, § 5; Code 1932, § 6268; T.C.A. (orig. ed.), § 56-2020.
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 56-21-119 - Lien on insured property for premiums and other policy obligations

Every company operating under this chapter shall have a lien upon the property insured to secure the payment of all regular premiums, contingent premiums and other policy obligations due the company.
Acts 1907, ch. 461, § 5; Shan., § 3369a18; Acts 1921, ch. 160, § 5; Code 1932, § 6269; T.C.A. (orig. ed.), § 56-2021.
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 56-21-120 - Action to collect premiums or other obligation - Costs and attorney's fee

If the company is compelled to collect the premiums or obligation by suit or through a collecting attorney, the insured shall be liable for all costs incident to the proceeding, including reasonable attorney's fee.
Acts 1907, ch. 461, § 5; Shan., § 3369a19; Acts 1921, ch. 160, § 5; Code 1932, § 6270; T.C.A. (orig. ed.), § 56-2022.
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 56-21-121 - Voting rights of policyholders and guarantors - Election of directors - Qualifications of officers and directors

Every policyholder in good standing of any company doing business under this chapter shall have one (1) vote at the election of the board of directors, and may vote either in person or by proxy. Guarantors in a guaranty capital company shall have one (1) vote each for each of their respective paid-up shares, and may vote either in person or by proxy. Not less than two thirds (2/3) of the directors in any such company shall be residents of this state. No person not a policyholder or guarantor shall be eligible to hold any principal office or be a director in any such company.
Acts 1907, ch. 461, § 6; Shan., § 3369a20; Acts 1921, ch. 160, § 6; Code 1932, § 6271; T.C.A. (orig. ed.), § 56-2023.
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 56-21-122 - Accepting or rejecting insurance shall not be compensated by commissions on premiums

No officer or other person whose duty it is to determine the character of the risk and upon whose decision the application for insurance thereon shall finally be accepted or rejected shall receive as compensation any commission upon the premium; but the person's compensation shall be a fixed salary, fee, or the part of the net profits of the company as the board of directors may determine.
Acts 1907, ch. 461, § 7; Shan., § 3369a21; Acts 1921, ch. 160, § 7; Code 1932, § 6272; T.C.A. (orig. ed.), § 56-2024.
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 56-21-123 - Maximum amounts of fire risks prescribed

(a)
The maximum amount carried by any such company on any one (1) or more risks reasonably subject to one (1) fire shall not exceed the amounts prescribed in the following schedule when under the protection of a full paid fire department, not exceeding three fifths (3/5) of that amount when not under the protection of a full paid fire department:
Total amounts of fire insurance in force
Maximum single risk
When under $400,000 ....................
$ 2,000
$400,000 and under $600,000 ....................
3,000
$600,000 and under $900,000 ....................
4,000
$900,000 and under $1,200,000 ....................
5,000
$1,200,000 and under $1,500,000 ....................
5,500
$1,500,000 and under $2,000,000 ....................
6,000
$2,000,000 and under $2,500,000 ....................
7,000
$2,500,000 and under $3,000,000 ....................
8,000
$3,000,000 and under $3,500,000 ....................
9,000
$3,500,000 and under $5,000,000 ....................
10,000
$5,000,000 and over ....................
12,500
(b)
When the insurance in force exceeds five million dollars ($5,000,000), the maximum permissible risk shall increase in the amount of one thousand dollars ($1,000) for each one million dollars ($1,000,000) of the amount of insurance in force; provided, that the maximum permissible risk shall in no case exceed thirty-five thousand dollars ($35,000). Notwithstanding any of the foregoing provisions, any state mutual fire insurance company having and maintaining seven hundred fifty thousand dollars ($750,000) in surplus funds, exclusive of contingent surplus funds, may insure any single risk up to fifty thousand dollars ($50,000). For purposes of this section, homeowners' policies, farm owners' policies and commercial multi-peril policies shall be considered permissible up to the limits of the property coverage.
(c)
State mutual fire insurance companies not maintaining guaranty capital securities equal to or more than two hundred thousand dollars ($200,000), deposited prior to July 1, 1975, or maintaining seven hundred fifty thousand dollars ($750,000) in surplus funds, exclusive of contingent surplus funds, may retain up to ten percent (10%) of risks classified as vehicle insurance, casualty insurance and surety insurance. Ninety percent (90%) shall be reinsured with another state mutual fire insurance company or any casualty insurance company licensed to transact the specific lines of coverage to be reinsured in this state.
Acts 1907, ch. 461, § 8; Shan., § 3369a22; Acts 1921, ch. 160, § 8; Code 1932, § 6273; Acts 1975, ch. 119, § 1; 1977, ch. 201, § 1; T.C.A. (orig. ed.), § 56-2025.
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 56-21-124 - Reinsurance of fire risks with or for other companies

Any state mutual fire insurance company organized under the laws of this state is empowered to contract by policy or other agreement with any insurance company authorized to do business in this state for reinsurance by the insurance company of the whole or any part of any risk it has outstanding by reason of the issuance of its policy of insurance. The state mutual fire insurance company is further empowered to reinsure for any state or county mutual fire insurance company organized under the laws of this state the whole or any part of any risk that the other company may be carrying and that such other company may desire to reinsure, in whole or in part.
Acts 1925, ch. 85, § 1; Shan. Supp., § 3369a29b2; Code 1932, § 6280; T.C.A. (orig. ed.), § 56-2026.
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 56-21-125 - Reinsurance of excess fire risks - Reinsurance in unauthorized company - Premium tax

All amounts in excess of those provided by §
56-21-123
shall be reinsured concurrently with its writing. No company doing business under this chapter shall reinsure any of its business in any unauthorized company, except upon the written approval of the commissioner. The company shall pay the tax prescribed by chapter 4, part 2 of this title on all business it reinsures in companies not having their domicile in this state.
Acts 1907, ch. 461, § 8; Shan., § 3369a23; Acts 1921, ch. 160, § 8; Code 1932, § 6274; modified; T.C.A. (orig. ed.), § 56-2027.
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 56-21-126 - Reinsurance of fire risks to be deducted in determining limit of insurance

The reinsurance which any state mutual fire insurance company may secure upon any risk it has outstanding shall be deducted in determining whether the amount of the risk exceeds the limit that by law such company may insure.
Acts 1925, ch. 85, § 4; Shan. Supp., § 3369a29b5; Code 1932, § 6283; T.C.A. (orig. ed.), § 56-2028.
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 56-21-127 - Premium rate or assessment paid to reinsuring company

When any company subject to this chapter reinsures in another company the whole or a part of any risk it has outstanding by reason of the issuance of a policy of insurance, the company shall pay to the reinsuring company the regular rate or assessment that the company accepting the reinsurance may establish or require, and any money or assets of the state mutual fire insurance company shall be liable for the payment of the premium or assessment due.
Acts 1925, ch. 85, § 3; Shan. Supp., § 3369a29b4; Code 1932, § 6282; T.C.A. (orig. ed.), § 56-2029.
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 56-21-128 - Regular policies, assessments and premium rates apply to reinsurance

When any company subject to this chapter agrees to reinsure for another state or county mutual fire insurance company the whole or any part of the risk, as authorized by §
56-21-124
, it shall issue its regular policy of insurance for the amount of the risk, or part thereof so reinsured upon application therefor, and the company whose risk, in part or in whole, is reinsured, shall be liable to assessments or to pay a premium at the same rate as other members of the company for like insurance.
Acts 1925, ch. 85, § 2; Shan. Supp., § 3369a29b3; Code 1932, § 6281; T.C.A. (orig. ed.), § 56-2030.
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 56-21-129 - Dividends to policyholders

Dividends in cash or otherwise may be paid to policyholders annually, or at such times as the directors may decide upon. The percent of dividend to be paid shall be fixed from time to time by the board of directors, and the board's action shall be final, both as to the percent of dividend and the time when it shall be paid to the policyholders. The percent of dividend shall be the same to all in each class of policyholders, but shall not be so large as to require the payment for any calendar year of more than fifty percent (50%) of the company's net cash surplus at the close of that year.
Acts 1907, ch. 461, § 9; Shan., § 3369a25; Acts 1921, ch. 160, § 9; Code 1932, § 6276; T.C.A. (orig. ed.), § 56-2031.
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 56-21-130 - Certificate of authority for agents - Fee

Every company subject to this chapter shall be required to obtain from the commissioner a certificate of authority for each of its agents who solicits or writes insurance in this state, the fee for which shall be two dollars ($2.00).
Acts 1907, ch. 461, § 11; Shan., § 3369a27; Acts 1921, ch. 160, § 11; Code 1932, § 6278; T.C.A. (orig. ed.), § 56-2032.
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 56-21-131 - Conversion of state mutual fire insurance company to state stock fire insurance company

A state mutual fire insurance company organized under this chapter may become a state stock fire insurance company operating under chapter 23 of this title pursuant to a plan and procedure that is approved in advance by the commissioner. The commissioner shall not approve any such plan or procedure unless:
(1)
The plan or procedure is equitable to the insurer's policyholders;
(2)
The plan or procedure is subject to approval by vote of not less than three fourths (3/4) of the votes cast in person, by proxy, or by mail at a meeting of policyholders called for the purpose pursuant to the notice and procedure as may be approved by the commissioner;
(3)
The equity of each policyholder in the insurer is determinable under a fair formula approved by the commissioner, which equity shall be based upon not less than the insurer's entire surplus, after deducting contributed or borrowed surplus funds and any outstanding guaranty capital securities, plus a reasonable present equity in its reserves and in all nonadmitted assets;
(4)
The policyholders entitled to receive stock upon conversion and to participate in the purchase of additional stock, if any, include all policyholders having policies in force on the date of conversion;
(5)
The plan provides that each policyholder of the insurer specified in subdivision (4) shall receive a proportionate part of the capital stock to be issued in respect to the policyholders' equity, and further gives to each such policyholder a nontransferable preemptive right to acquire a proportionate part of any additional capital stock to be issued and sold by the insurer, within a designated reasonable period. In addition to the issuance of shares in respect of the policyholders' equity, in the event the insurer has outstanding guaranty capital securities, the plan shall require the sale of a sufficient number of shares (at the same price per share as all other shares issued under the plan) to retire the guaranty capital securities; and to the extent each policyholder specified in subdivision (4) does not exercise the preemptive right to purchase a pro rata number of shares to retire the guaranty capital securities, the holders of the guaranty capital securities shall have the right to convert the securities, including all accrued interest, into shares of capital stock at such price;
(6)
Shares are so offered to policyholders at a price not greater than that thereafter offered to others nor at more than five (5) times the par value of the shares; and
(7)
The plan, when completed, would provide for the converted insurer paid-in capital stock in an amount not less than the minimum paid-in capital required of a state stock insurer organized under chapter 23 of this title; provided, that this provision does not apply to any converting mutual companies that were qualified and authorized under this chapter prior to May 7, 1969.
Acts 1973, ch. 292, § 1; T.C.A., § 56-2033.
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 56-21-132 - Guaranty capital - Contingent premiums

All companies operating under this chapter and not maintaining a nine hundred fifty thousand dollar ($950,000) guaranty capital or more and issuing policies providing for a contingent premium equal to and in addition to the regular premium and the contingent liabilities of the policyholders are included as contingent assets of the company, and the inclusion of these contingent assets on a statement of financial condition of the company at any date is required to show admitted assets equal to or greater than the outstanding liabilities, including provision for unearned premiums, the company shall cease to write any contracts of insurance except policies providing insurance against damage by fire, lightning, hail, extended coverage and tornadoes.
Acts 1975, ch. 62, § 2; 1977, ch. 202, § 2; T.C.A., § 56-2034.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-101 - Short title

This chapter shall be known and may be cited as the "Tennessee County Mutual Insurance Company Act of 2006."
Acts 2006, ch. 689, §§ 3, 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-102 - Scope of chapter

This chapter governs the qualifications and procedures for licensing and general regulatory requirements for county mutual insurance companies insuring risks and property in this state.
Acts 2006, ch. 689, §§ 3, 5.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-103 - Chapter definitions

As used in this chapter, unless the context otherwise requires:
(1)
"Certificate of authority" means a legal right granted by the commissioner and enjoyed by a county mutual insurance company to provide insurance as provided for in this chapter;
(2)
"Commissioner" means the commissioner of commerce and insurance;
(3)
"County mutual insurance company" means a person that is authorized to provide insurance coverage pursuant to this chapter;
(4)
"Department" means the department of commerce and insurance;
(5)
"Gross premium" means maximum gross premiums as provided in the policy contracts, new and renewal, including policy or membership fees, whether paid in part or in whole by cash, automatic premium loans, dividends applied in any manner whatsoever, and without deduction or exclusion of dividends in any manner, but excluding premiums returned on cancelled policies, on account of reduction in rates, or reductions in the amount insured;
(6)
"Insurer" or "insurance company" means any corporation, association, partnership or individual engaged as a principal in the business of insurance not licensed pursuant to this chapter;
(7)
"Person" means an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of these acting in concert;
(8)
"Policyholder" means a person who is insured by a county mutual insurance company;
(9)
"Premium" means money given in consideration to a county mutual insurance company on account of or in connection with an insurance policy for a specified policy period;
(10)
"Principal place of business" means the primary office maintained by a county mutual insurance company in the county in which a county mutual insurance company was first granted a certificate of authority; and
(11)
"Surplus" means the accumulated assets of a county mutual insurance company that exceed the county mutual insurance company's accrued losses and expenses.
Acts 2006, ch. 689, §§ 3, 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-104 - Unlawful to transact insurance business without certificate of authority

It is unlawful for any person to enter into a contract of insurance as a county mutual insurance company or transact insurance business in this state as a county mutual insurance company without a certificate of authority provided by the commissioner.
Acts 2006, ch. 689, §§ 3, 7.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-105 - Application for certificate of authority - Minimum requirements

(a)
To apply for a certificate of authority, a person shall file with the commissioner an application on a form adopted by the commissioner, accompanied by a nonrefundable filing fee in the amount referenced in §
56-4-101(a)(1)
. A person in this state applying for a certificate of authority to act as a county mutual insurance company shall, under penalty of refusal, suspension or revocation of the certificate of authority, declare that the statements made in the application are true, correct and complete to the best of the person's knowledge and belief.
(b)
An application for a certificate of authority shall include the following documentation, together with any other information or documentation the commissioner may require:
(1)
A certified copy of the articles of incorporation, charter or other such document;
(2)
A certified copy of the bylaws or other similar document; and
(3)
The names of the officers and directors of the county mutual insurance company.
(c)
No certificate of authority shall be granted or maintained, unless the applicant or county mutual insurance company can prove to the commissioner's satisfaction that it will be able to write at least one hundred (100) policies of insurance and possesses at least two hundred thousand dollars ($200,000) in surplus.
Acts 2006, ch. 689, §§ 3, 8.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-107 - Elections - Commissions - Compensation - Benefits - Expense ratios

(a)
Every policyholder in good standing shall be entitled to one (1) vote in person or by ballot transmitted by mail, as shall be provided in the bylaws, in any election for directors or upon any other issues properly brought to the policyholders for consideration.
(b)
(1)
No officer, director or other person whose duty it is to determine the character of risk and upon whose decision the application for insurance shall be accepted or rejected shall receive as any part of the person's compensation a commission upon the premium, but the compensation shall be a fixed salary, and/or a share of the net profits of the county mutual insurance company that the board of directors may determine appropriate.
(2)
Nothing under subdivision (b)(1) shall be construed to prohibit a county mutual insurance company from providing for its directors, officers and other employees reasonable benefits, including, but not limited to, directors' compensation, health insurance benefits and retirement benefits. Such benefits may be offered by a county mutual insurance company.
(3)
The commissioner may promulgate rules to set appropriate expense ratios to address those expenses incurred in subdivisions (b)(1) and (2).
Acts 2006, ch. 689, §§ 3, 10.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-108 - Surplus or emergency fund - Investment of assets - Borrowing to cover losses

(a)
In the event that the commissioner determines the existing surplus to be inadequate, a county mutual insurance company shall seek to accumulate a surplus or emergency fund in an amount that might be deemed necessary by the commissioner.
(b)
A county mutual insurance company may invest its assets in the same manner as an insurance company licensed to write property and casualty lines of insurance as provided for by chapter 3, part 4 of this title.
(c)
A county mutual insurance company may borrow money for the purpose of paying extraordinary losses. A county mutual insurance company shall conduct its affairs in such a manner as to pay those losses as might normally be expected in the course of doing business and to accumulate a surplus that might be used to pay losses above normal losses. A county mutual insurance company may borrow money only when it incurs substantial, extraordinary losses, and must notify the commissioner of its intent to borrow money to pay losses at least ten (10) business days before borrowing the money.
Acts 2006, ch. 689, §§ 3, 11.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-110 - Required aggregate excess of loss reinsurance policy

All county mutual insurance companies shall be required to carry an aggregate excess of loss reinsurance policy of no less than five percent (5%) of business in force. The amount required for such a policy shall be reduced by the county mutual insurance company's accumulated surplus.
Acts 2006, ch. 689, §§ 3, 13.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-112 - Acquisition or merger

The acquisition or merger of a county mutual insurance company is subject to the same standards and procedures set forth in §
56-11-103
, and any rules promulgated thereunder.
Acts 2006, ch. 689, §§ 3, 15.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-113 - Licensing requirements - Requirements of managing general agents

(a)
A person shall not sell, solicit or negotiate insurance covering those risks listed under §
56-22-106(a)
, unless the person is licensed to sell property insurance under chapter 6, part 1 of this title.
(b)
A person shall not sell, solicit or negotiate insurance covering those risks listed under §
56-22-106(b)
, unless the person is licensed to sell casualty insurance under chapter 6, part 1 of this title.
(c)
Any person that seeks to enter into a contract for the exclusive or dominant right to manage or control a county mutual insurance company shall be considered the managing general agent of the county mutual insurance company and shall comply with the requirements that apply to managing general agents under chapter 6, part 5 of this title.
Acts 2006, ch. 689, §§ 3, 16.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-114 - Premium taxes - Additional taxes for writing fire coverage

(a)
All county mutual insurance companies shall pay a premium tax in accordance with chapter 4, part 2 of this title.
(b)
In addition to the premium taxes levied on county mutual insurance companies under subsection (a), any county mutual insurance company writing fire insurance and lines of business having fire coverages as a part of the risk rate shall pay additional taxes as found in §
56-4-208
for the purpose of executing the fire marshal law. For the purposes of this subsection (b), the following portions of the amounts required to be reported by line of business in the annual statement required by §
56-22-109
shall be considered premiums for insurance covering the peril of fire:
(1)
Fire lines, one hundred percent (100%);
(2)
Farmowners and homeowners multiple peril, fifty-five percent (55%); and
(3)
Combined coverages, including fire, extended coverages, vandalism, malicious mischief and theft, sixty percent (60%).
(c)
Payments for those premium taxes levied on county mutual insurance companies under subsection (a) shall be paid on a quarterly basis, with payments being due on or before June 1 for the first quarter of the calendar year, September 1 for the second quarter, December 1 for the third quarter and March 1 for the fourth quarter of the previous calendar year.
(d)
Should any county mutual insurance company fail or neglect to properly make the returns and payments required under this section, the county mutual insurance company shall be subject to the interest and penalties found in §
56-4-216
.
Acts 2006, ch. 689, §§3, 17; 2007 , ch. 344, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-115 - Examination of county mutual insurance company

(a)
The commissioner may investigate or examine the affairs of a county mutual insurance company to the same extent that the commissioner may investigate or examine the affairs of an insurance company doing business in this state. At least once every five (5) years, the commissioner shall examine the affairs of each county mutual insurance company holding a certificate of authority in this state as to both its financial condition and its compliance with the law.
(b)
After the completion of an examination undertaken under subsection (a), the requirements and procedures of §
56-1-411(d)
shall be followed.
(c)
A county mutual insurance company examined by the commissioner shall pay all costs of the examination, including, but not limited to, the reasonable fees of actuaries, accountants, attorneys and other professionals that the commissioner may enter into a contract with to perform examination services on behalf of the commissioner.
(d)
All working papers, recorded information, documents or copies thereof produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter shall be given confidential treatment and may not be made public by the commissioner or any other person, except to the extent provided under §
56-1-411
. Access may also be granted to the National Association of Insurance Commissioners under §
56-2-801
, or to any other state or federal agency or law enforcement authority as the commissioner deems appropriate.
Acts 2006, ch. 689, §§3, 18; 2012 , ch. 633, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-116 - Cease and desist order

(a)
In addition to all other powers granted under this chapter, the commissioner may issue an order requiring a county mutual insurance company to cease and desist from engaging in any act or practice found to be in violation of this chapter or any other applicable law, rule, regulation or order of the commissioner.
(b)
Any order issued pursuant to this section shall be accompanied by a notice to the county mutual insurance company as to the right to have a hearing. All hearings conducted pursuant to this chapter shall be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c)
Without limitation on other remedies provided by law, upon finding that any county mutual insurance company or other person has violated any cease and desist order issued by the commissioner, the commissioner may seek enforcement of the order through the attorney general and reporter in the chancery court of Davidson County.
Acts 2006, ch. 689, §§ 3, 19.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-117 - Violations - Hearings

(a)
The commissioner may, after notice and a hearing, levy a civil penalty in an amount not to exceed ten thousand dollars ($10,000) against a county mutual insurance company or an entity required to be licensed as a county mutual insurance company, upon a finding that the county mutual insurance company, the entity required to be licensed as a county mutual insurance company, an officer or director of the county mutual insurance company, or the entity required to be licensed as a county mutual insurance company:
(1)
Has violated this chapter or any rule promulgated under this chapter;
(2)
Has violated any order issued by the commissioner, including, but not limited to, those orders issued under §§
56-22-111
,
56-22-115
and
56-22-116
;
(3)
Is in a hazardous operating condition;
(4)
Has made a filing with the commissioner containing fraudulent or materially false or misleading statements of fact;
(5)
Has failed or refused to pay for the costs of any examination of the county mutual insurance company undertaken under this chapter;
(6)
Has been convicted of a felony; or
(7)
Has committed any unfair act or practice as set forth in §
56-8-103
or §
56-8-104
.
(b)
All hearings conducted pursuant to this section shall be conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c)
Each day of continued violation shall constitute a separate violation for purposes of determining the possible amount of penalty under this section.
Acts 2006, ch. 689, §§ 3, 20.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-118 - County mutual insurance companies subject to same proceedings and actions as insurance companies

The commissioner may subject a county mutual insurance company to any proceeding or action authorized pursuant to chapter 9 of this title, under the same terms as insurance companies. For all such purposes, county mutual insurance companies are deemed to meet the definition of insurance company set forth in chapter 9 of this title.
Acts 2006, ch. 689, §§ 3, 21.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-119 - Fraud

A director, an officer, a member, an insurance producer, or an employee of a county mutual insurance company who knowingly or intentionally, directly or indirectly, uses or employs, or allows another person to use or employ, money, funds, securities, or assets of the county mutual insurance company for private profit or gain commits a fraudulent insurance act under §
56-53-102
, subjecting the person to the criminal penalties found in §
56-53-104
.
Acts 2006, ch. 689, §§ 3, 22.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 22 - TENNESSEE COUNTY MUTUAL INSURANCE COMPANY ACT OF 2006 (§§ 56-22-101 — 56-22-120) › Section 56-22-120 - Rules and regulations

The commissioner is authorized to promulgate rules and regulations to effectuate the purposes of this chapter. All rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 2006, ch. 689, §§ 3, 23.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 23 - STATE STOCK FIRE INSURANCE COMPANIES (§§ 56-23-101 — 56-23-111) › Section 56-23-101 - Property, casualty and surety insurance - Certificate of authority

(a)
Every state stock fire insurance company organized and incorporated under the laws of this state and operating under this chapter, before commencing business, must file or deposit with the commissioner of commerce and insurance the following:
(1)
A properly certified copy of its charter;
(2)
Satisfactory evidence that it possesses and maintains capital in the amount of not less than nine hundred fifty thousand dollars ($950,000);
(3)
A duly executed instrument appointing agent for service of process, as required by §
56-2-103
; and
(4)
At least one hundred thousand dollars ($100,000) in cash or its equivalent, but the commissioner has the discretion to accept as the equivalent bonds of this state or bonds of the United States; all deposits required by this subdivision (a)(4) shall be subject to the same conditions as required in the case of stock or mutual life insurance companies.
(b)
The commissioner shall not approve any charter or issue a certificate of authority to any company under this chapter until the commissioner has found that:
(1)
The company has submitted a plan of operation; and
(2)
The incorporators, directors and proposed officers are of known character and there is no good reason to believe that they are affiliated, directly or indirectly, through ownership, control, management, reinsurance transactions or other insurance or business relations with any person or persons known to have been involved in the improper manipulation of assets, accounts, reinsurance or any matter inimical to the business of insurance.
(c)
The commissioner, if satisfied that all the foregoing conditions have been met, shall issue to the company a certificate of authority to do a property, casualty and surety insurance business, as defined in §
56-2-201
, under this chapter.
(d)
Subdivision (a)(2) does not apply to companies qualified and authorized as state mutual fire insurance companies under chapter 21 of this title prior to May 7, 1969, which thereafter convert to state stock fire insurance companies under chapter 21; provided, that any such company shall have immediately after its conversion, and shall maintain thereafter at all times, a combined capital and surplus, including both earned surplus and capital (contributed) surplus, of not less than three hundred thousand dollars ($300,000).
Acts 1973, ch. 293, § 1; T.C.A., § 56-4201.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 23 - STATE STOCK FIRE INSURANCE COMPANIES (§§ 56-23-101 — 56-23-111) › Section 56-23-102 - False swearing to statement to obtain certificate of authority - Perjury - Denial of right to do business - Revocation of certificate

(a)
False swearing to the statement required by §
56-23-101
shall be deemed perjury, and those who commit it shall be punished as in other cases of perjury.
(b)
The company in whose interest the false statement is made shall be denied the right to do business for twelve (12) months thereafter, and if a certificate of authority be obtained thereby for the company, it shall be revoked by the commissioner and the company prohibited from doing business for twelve (12) months next after the discovery of the false statement.
Acts 1973, ch. 293, § 2; T.C.A., § 56-4202.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 23 - STATE STOCK FIRE INSURANCE COMPANIES (§§ 56-23-101 — 56-23-111) › Section 56-23-103 - Ceding insurers credited pro rata unearned premium liability

For the purpose of determining the financial condition of a ceding insurer, only if the reinsurance is effected by the ceding insurer in any assuming insurer authorized to do such business in this state, or in any other state of the United States or the District of Columbia, the ceding insurer shall, in addition to any credit allowed against its loss reserves, receive credit for the reinsurance by way of deduction from its unearned premium liability, which liability shall be equal to the unearned portions of the gross premiums charged on unexpired or unterminated risks and policies.
Acts 1973, ch. 293, § 3; T.C.A., § 56-4203.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 23 - STATE STOCK FIRE INSURANCE COMPANIES (§§ 56-23-101 — 56-23-111) › Section 56-23-104 - Assuming insurers - Determination of financial condition

For the purpose of determining the financial condition of any assuming insurer, the insurer shall be charged with an amount in its unearned premium liability equal to the amount of the deductions specified in §
56-23-103
, and in its valuation reserve liability with an amount at least equal to the amount that it would be required to maintain if it were the direct insurer of the assumed risks on the basis specified in the reinsurance agreement.
Acts 1973, ch. 293, § 4; T.C.A., § 56-4204.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 23 - STATE STOCK FIRE INSURANCE COMPANIES (§§ 56-23-101 — 56-23-111) › Section 56-23-105 - Rates and rating organizations

Chapter 5 of this title shall apply to every stock fire insurance company operating under this chapter.
Acts 1973, ch. 293, § 5; T.C.A., § 56-4205.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 23 - STATE STOCK FIRE INSURANCE COMPANIES (§§ 56-23-101 — 56-23-111) › Section 56-23-106 - Annual reports of companies - Contents - Financial condition - Filing fee

Every company subject to this chapter shall make an annual report to the commissioner, by March 1 of each year as of December 31 of the preceding year, on blank forms prepared and furnished by the commissioner for that purpose, setting forth the transactions of the company during the previous year, showing its condition at the close of the year, and shall pay to the commissioner a fee of fifty dollars ($50.00) therefor at the time of filing the statement.
Acts 1973, ch. 293, § 6; T.C.A., § 56-4206.