reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-105 - Certificate of authority - Issuance - Duration

(a)
Upon receipt of an application for a certificate of authority, the commissioner shall issue a certificate pursuant to this chapter upon payment of the application fee prescribed in §
56-43-115
, if the commissioner is satisfied that the following conditions are met:
(1)
The persons responsible for the conduct of the affairs of the applicant are competent, trustworthy and of good reputation;
(2)
The applicant demonstrates the willingness and ability to assure that the promised benefits can be provided. In making this determination, the commissioner shall consider so far as applicable:
(A)
The adequacy of capital and surplus considered in relation to the other items in this subsection (a);
(B)
Any agreement with lawyers for the provision of legal services;
(C)
The financial soundness of the applicant's arrangements for legal services and the schedule of rates proposed to be used in connection with the arrangements;
(D)
Any agreement with another person authorized under this chapter, an insurer licensed under the general insurance law to do business in this state to provide reinsurance, or an agency of the federal or state government for insuring the payment of the cost of legal services or the provision for automatic applicability of an alternative coverage in the event the insurer is unable to perform its obligations;
(E)
Any surety bond or deposit of cash or securities as a guarantee that the obligations will be duly performed; and
(F)
If the applicant is licensed as an insurer under other insurance laws, whether the applicant has complied with the requirements of those laws.
(b)
A certificate of authority shall be perpetual and shall continue in force unless there are grounds for suspension or revocation.
Acts 1989, ch. 423, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-107 - Exclusive agency or management contracts

(a)
No insurer may enter into any exclusive agency contract or management contract unless the contract is first filed with the commissioner and not disapproved under this section within thirty (30) days after filing, or a reasonable extended period as the commissioner may specify by notice within the thirty (30) days.
(b)
The commissioner shall disapprove a contract under subsection (a) if the commissioner finds that:
(1)
It subjects the insurer to excessive charges;
(2)
The contract extends for an unreasonable period of time;
(3)
The contract does not contain fair and adequate standards of performance;
(4)
The persons empowered under the contract to manage the insurer are not sufficiently trustworthy, competent, experienced and free from conflict of interest to manage the insurer with due regard for the interests of its insureds, creditors or the public; or
(5)
The contract contains provisions that impair the interests of the insurer's insureds or creditors of the public in this state.
Acts 1989, ch. 423, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-108 - Reports by insurers

An insurer shall annually, on or before March 1, file with the commissioner a report verified by at least two (2) principal officers. The report shall be on forms prescribed by the commissioner and shall include:
(1)
A financial statement of the insurer's legal insurance business including:
(A)
Its balance sheet; and
(B)
Its receipts and disbursements for the preceding year;
(2)
Any material changes in the information submitted pursuant to §
56-43-105
;
(3)
Such information about the number of persons protected and terminated as may be prescribed by the commissioner; and
(4)
Such other information relating to the performance of the insurer as is necessary to enable the commissioner to carry out the commissioner's duties under this chapter.
Acts 1989, ch. 423, § 7.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-109 - Reserves

(a)
An insurer must maintain the reserves necessary for the sound operation of the business, including unearned premium reserves. The amount and manner of calculating these reserves shall be determined by rule by the commissioner in accordance with §
56-43-112
.
(b)
In establishing and enforcing reserve requirements, the commissioner shall prescribe and allow a reasonable phase-in period prior to mandating full compliance with the reserve requirements by any person transacting the business of legal insurance on January 1, 1990.
Acts 1989, ch. 423, § 8.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-110 - Investments

The investable funds generated through the transaction of the business of legal insurance by persons who are not licensed to transact other lines of insurance shall be invested in securities or other investments permitted by the laws of this state for the investment of assets of life insurance.
Acts 1989, ch. 423, § 9.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-111 - Applicability of other laws

(a)
The Tennessee Consumer Protection Act, compiled in title 47, chapter 18, applies to persons transacting the business of legal insurance, except as is inconsistent with this chapter.
(b)
The Uniform Insurers Rehabilitation and Liquidation Act of this title, shall apply to a person transacting the business of legal insurance under this chapter.
(c)
Subject to this chapter, §§
56-2-107
and
56-2-111
apply to persons transacting the business of legal insurance.
(d)
The insurance law applies generally to legal insurance offered by insurers licensed to write other kinds of insurance; provided, that legal insurance sold by the insurers under a certificate of authority obtained under this chapter shall be regulated by §§
56-43-102
- 56-43-107, 56-43-112 and 56-43-116 instead of corresponding sections of the insurance code.
(e)
(1)
Orders or rules or regulations of the commissioner issued under this chapter shall be subject to the general insurance laws and/or the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, relating to hearings and appeals.
(2)
Except as otherwise provided in this chapter, the general insurance law does not apply to insurers authorized under this chapter.
Acts 1989, ch. 423, §§ 10, 14, 19-21.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-112 - Rules and regulations

(a)
The commissioner may promulgate in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, reasonable rules as are necessary or proper to carry out this chapter.
(b)
The commissioner may, in accordance with subsection (a), promulgate reasonable rules and regulations to provide for the licensing of agents.
Acts 1989, ch. 423, §§ 11, 15.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-113 - Examinations

(a)
The commissioner shall make an examination of the affairs of any insurer as often as the commissioner deems it necessary for the protection of the interests of the people of this state.
(b)
The provisions concerning financial valuations and examinations of companies, compiled in chapter 1, part 4 of this title, apply to examinations conducted under this chapter.
Acts 1989, ch. 423, § 12.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-114 - Suspension, revocation or refusal to renew certificates

The commissioner may suspend, revoke or refuse to renew any certificate of authority to a person transacting the business of legal insurance under this chapter pursuant to chapters 1, 2 and 8 of this title.
Acts 1989, ch. 423, § 13.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-115 - Fees

Every person subject to this chapter shall pay to the commissioner the fees required by chapter 4 of this title.
Acts 1989, ch. 423, § 16.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-116 - Premiums

Legal insurance premiums are taxed at the rate of two and one half percent (2.5%).
Acts 1989, ch. 423, § 17.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-117 - Public documents

All applications, filings, and reports required under this chapter shall be treated as public documents.
Acts 1989, ch. 423, § 18.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-118 - Penalties

The penalty provisions set out in this title shall apply.
Acts 1989, ch. 423, § 22.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 44 - FILINGS WITH NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (§§ 56-44-101 — 56-44-104) › Section 56-44-101 - Applicability

This chapter applies to all domestic, foreign and alien insurers who are authorized to transact business in this state.
Acts 1991, ch. 142, § 5.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 44 - FILINGS WITH NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (§§ 56-44-101 — 56-44-104) › Section 56-44-102 - Insurers - Duty to file copy of annual statement convention blank with National Association of Insurance Commissioners

(a)
(1)
Each domestic, foreign and alien insurer who is authorized to transact insurance in this state shall annually, on or before March l of each year, file with the National Association of Insurance Commissioners (NAIC), and pay the fee established by the NAIC for filing, reviewing or processing of the information, a copy of its annual statement convention blank, together with the additional filings as prescribed by the commissioner for the preceding year.
(2)
The information filed with the NAIC shall be in the same format and scope as that required by the commissioner of commerce and insurance and shall include the signed jurat page and the actuarial certification. Any amendments and addenda to the annual statement filing subsequently filed with the commissioner shall also be filed with the NAIC. Each insurer doing business in more than one (1) state, and any other insurers as required by the commissioner, shall also file with the NAIC annual and quarterly financial statement information in computer readable format as required by the insurance regulatory information system.
(b)
Foreign insurers that are domiciled in a state that has a law substantially similar to subsection (a) shall be deemed in compliance with this section.
Acts 1991, ch. 142, § 5; 1995, ch. 363, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 44 - FILINGS WITH NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (§§ 56-44-101 — 56-44-104) › Section 56-44-103 - National Association of Insurance Commissioners (NAIC)

In the absence of actual malice, members of the NAIC, their duly authorized committees, subcommittees and task forces, their delegates, NAIC employees and all others charged with the responsibility of collecting, reviewing, analyzing and disseminating the information developed from the filing of the annual statement convention blanks shall be acting as agents of the commissioner under the authority of this chapter, and shall not be subject to civil liability for libel, slander or any other cause of action by virtue of their collection, review, and analysis or dissemination of the data and information collected from the filings required under this chapter.
Acts 1991, ch. 142, § 5.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 44 - FILINGS WITH NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (§§ 56-44-101 — 56-44-104) › Section 56-44-104 - Failure by insurer to file annual statement - Penalty

The commissioner may suspend, revoke or refuse to renew the certificate of authority of any insurer failing to file its annual statement when due, or within any extension of time that the commissioner, for good cause, may have granted.
Acts 1991, ch. 142, § 5.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-101 - Purpose

The purpose of this chapter is to regulate the formation and/or operation of risk retention groups and purchasing groups in this state formed pursuant to the federal "Liability Risk Retention Act of 1986" ("RRA 1986") (
15 U.S.C. § 3901
et seq.), to the extent permitted by such law.
Acts 1991, ch. 142, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-105 - Insurance insolvency guaranty fund - Covered risks - Loss or expense apportionment mechanisms

(a)
No risk retention group is required or permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its insureds or claimants against its insureds, receive any benefit from any such fund for claims arising under the insurance policies issued by the risk retention group.
(b)
When a purchasing group obtains insurance covering its members' risks from an insurer not authorized in this state or a risk retention group, the risks, wherever resident or located, shall not be covered by any insurance guaranty fund or similar mechanism in this state.
(c)
When a purchasing group obtains insurance covering its members' risks from an authorized insurer, only risks resident or located in this state shall be covered by the state guaranty fund subject to §
56-12-111
.
(d)
Notwithstanding §
56-41-105
to the contrary, the commissioner may require a risk retention group to participate, or exempt a risk retention group from participation, in any mechanism established or authorized under the law of this state for the equitable apportionment among insurers of liability insurance losses and expenses incurred on policies written through the mechanism, and the risk retention group shall submit sufficient information to the commissioner to enable the commissioner to apportion on a nondiscriminatory basis the risk retention group's proportionate share of the losses and expenses.
Acts 1991, ch. 142, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-106 - Countersignature

A policy of insurance issued to a risk retention group, or any member of that group, shall not be required to be countersigned.
Acts 1991, ch. 142, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-107 - Purchasing group and insurers subject to laws of this state - Exemptions

A purchasing group and its insurer or insurers are subject to all applicable laws of this state, except that a purchasing group and its insurer or insurers are exempt, in regard to liability insurance for the purchasing group, from any law that would:
(1)
Prohibit the establishment of a purchasing group;
(2)
Make it unlawful for an insurer to provide or offer to provide insurance on a basis providing, to a purchasing group or its members, advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages or other matters;
(3)
Prohibit a purchasing group or its members from purchasing insurance on a group basis described in subdivision (2);
(4)
Prohibit a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time;
(5)
Require that a purchasing group have a minimum number of members, common ownership or affiliation, or certain legal form;
(6)
Require that a certain percentage of a purchasing group obtain insurance on a group basis;
(7)
Otherwise discriminate against a purchasing group or any of its members; or
(8)
Require that any insurance policy issued to a purchasing group or any of its members be countersigned by an insurance agent or broker residing in this state.
Acts 1991, ch. 142, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-108 - Purchasing groups - Requirements for doing business in this state

(a)
A purchasing group that intends to do business in this state shall, prior to doing business, furnish notice to the commissioner, which notice shall:
(1)
Identify the state in which the group is domiciled;
(2)
Identify all other states in which the group intends to do business;
(3)
Specify the lines and classifications of liability insurance that the purchasing group intends to purchase;
(4)
Identify the insurance company or companies from which the group intends to purchase its insurance and the domicile of the company;
(5)
Specify the method by which, and the person or persons, if any, through whom insurance will be offered to its members whose risks are resident or located in this state;
(6)
Identify the principal place of business of the group; and
(7)
Provide other information that may be required by the commissioner to verify that the purchasing group is qualified under §
56-45-102(10)
.
(b)
A purchasing group shall, within ten (10) days, notify the commissioner of any changes in any of the items set forth in subsection (a).
(c)
The purchasing group shall register with and designate the commissioner, or other appropriate authority, as its agent, solely for the purpose of receiving service of legal documents or process, for which a filing fee shall be determined by the commissioner, except that the requirements do not apply in the case of a purchasing group that only purchases insurance that was authorized under the federal Products Liability Risk Retention Act of 1981 (
15 U.S.C. § 3901
et seq.), and:
(1)
That in any state of the United States:
(A)
Was domiciled before April 1, 1986; and
(B)
Is domiciled on and after October 27, 1986;
(2)
That:
(A)
Before October 27, 1986, purchased insurance from an insurance carrier licensed in any state; and
(B)
Since October 27, 1986, purchased its insurance from an insurance carrier licensed in any state; or
(3)
That was a purchasing group under the requirements of the Product Liability Risk Retention Act of 1981 (
15 U.S.C. § 3901
et seq.), before October 27, 1986.
(d)
Each purchasing group that is required to give notice pursuant to subsection (a) shall also furnish such information as may be required by the commissioner to:
(1)
Verify that the entity qualifies as a purchasing group;
(2)
Determine where the purchasing group is located; and
(3)
Determine appropriate tax treatment.
Acts 1991, ch. 142, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-109 - Purchasing groups - Restrictions - Disclosure requirements

(a)
A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in this state, unless the purchase is effected through a licensed agent or broker acting pursuant to the surplus lines laws and regulations of this state.
(b)
A purchasing group that obtains liability insurance from an approved surplus lines insurer in this state or a risk retention group shall inform each of the members of the group that have a risk resident or located in this state that the risk is not protected by an insurance insolvency guaranty fund in this state, and that the risk retention group or the insurer may not be subject to all insurance laws and regulations of this state.
(c)
No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole. Coverage may provide for a deductible or self-insured retention applicable to individual members.
(d)
Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits that are applicable to all purchases of group insurance.
Acts 1991, ch. 142, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-110 - Premium taxes - Rate - Entity responsible for payment

Premium taxes and taxes on premiums paid for coverage of risks resident or located in this state by a purchasing group or any members of the purchasing groups shall be:
(1)
Imposed at the same rate and subject to the same interest, fines and penalties as applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insureds; and
(2)
Paid first by the insurance source, and, if not by the source, by the agent or broker for the purchasing group, and, if not by the agent or broker, then by the purchasing group, and, if not by the purchasing group, then by each of its members.
Acts 1991, ch. 142, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-111 - Commissioner - Power to enforce laws

The commissioner is authorized to make use of any of the powers established under the insurance code of this state to enforce the laws of this state not specifically preempted by the Risk Retention Act of 1986, including the commissioner's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, impose penalties and seek injunctive relief. With regard to any investigation, administrative proceedings or litigation, the commissioner can rely on the procedural laws of this state. The injunctive authority of the commissioner, in regard to risk retention groups, is restricted by the requirement that any injunction be issued by a court of competent jurisdiction.
Acts 1991, ch. 142, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-112 - Persons who may solicit, procure or negotiate liability insurance coverage for risk retention groups and purchasing groups - Agents or brokers - Notice

(a)
No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance in this state from a risk retention group unless the person, firm, association or corporation is licensed as an insurance agent or broker in accordance with chapter 6 of this title.
(b)
(1)
No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance in this state for a purchasing group from an authorized insurer or a risk retention group chartered in a state unless the person, firm, association or corporation is licensed as an insurance agent or broker in accordance with chapter 6 of this title.
(2)
No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance coverage in this state for any member of a purchasing group under a purchasing group's policy unless the person, firm, association or corporation is licensed as an insurance agent or broker in accordance with chapter 6 of this title.
(3)
No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance from an approved surplus lines insurer on behalf of a purchasing group located in this state unless the person, firm, association or corporation is licensed as a surplus lines agent or an excess line broker in accordance with chapter 14 of this title.
(c)
For purposes of acting as an agent or broker for a risk retention group or purchasing group pursuant to subsections (a) and (b), the requirement of residence in this state does not apply.
(d)
Every person, firm, association or corporation licensed pursuant to chapter 6 of this title, on business placed with risk retention groups or written through a purchasing group, shall inform each prospective insured of the notice required by §
56-45-104(g)
, in the case of a risk retention group, and §
56-45-109(b)
, in the case of a purchasing group.
Acts 1991, ch. 142, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-113 - Federal district courts - Orders enforceable in this state

An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating in any state, or in all states or in any territory or possession of the United States, upon a finding that the risk retention group is in hazardous financial or financially impaired condition, is enforceable in the courts of this state.
Acts 1991, ch. 142, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 45 - RISK RETENTION GROUPS AND PURCHASING GROUPS (§§ 56-45-101 — 56-45-114) › Section 56-45-114 - Commissioner's authority to promulgate rules and regulations

The commissioner is authorized to promulgate, and from time to time amend, rules and regulations relating to risk retention groups as may be necessary or desirable to carry out this chapter. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 1991, ch. 142, § 6; 1993, ch. 253, § 11.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 1 - RISK-BASED CAPITAL FOR INSURERS ACT (§§ 56-46-101 — 56-46-113) › Section 56-46-101 - Short title

This part shall be known and may be cited as the "Risk-Based Capital for Insurers Act."
Amended by 2014 Tenn. Acts, ch. 559,s 2, eff. 3/21/2014.
Acts 1996, ch. 750, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 1 - RISK-BASED CAPITAL FOR INSURERS ACT (§§ 56-46-101 — 56-46-113) › Section 56-46-102 - Part definitions

As used in this part, unless the context otherwise requires:
(1)
"Adjusted RBC Report" means an RBC report that has been adjusted by the commissioner in accordance with §
56-46-103(e)
;
(2)
"Corrective order" means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required;
(3)
"Domestic insurer" means any insurance company domiciled in Tennessee;
(4)
"Foreign insurer" means any insurance company that is licensed to do business in Tennessee under this title but is not domiciled in Tennessee;
(5)
"Life and/or health insurer" means any insurance company licensed for those lines in Tennessee, or a property and casualty insurer writing only accident and health insurance;
(6)
"NAIC" means the National Association of Insurance Commissioners;
(7)
"Negative trend" means, with respect to a life and/or health insurer, negative trend over a period of time, as determined in accordance with the "Trend Test Calculation" included in the RBC Instructions;
(8)
"Property and casualty insurer" means any insurance company licensed in those lines in Tennessee, but does not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers;
(9)
"RBC Instructions" means the RBC Report including risk-based capital instructions adopted by the NAIC, as the RBC Instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC;
(10)
"RBC Level" means an insurer's Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control Level RBC where:
(A)
"Authorized Control Level RBC" means the number determined under the risk-based capital formula in accordance with the RBC Instructions;
(B)
"Company Action Level RBC" means, with respect to any insurer, the product of 2.0 and its Authorized Control Level RBC;
(C)
"Mandatory Control Level RBC" means the product of 0.70 and the authorized Control Level RBC; and
(D)
"Regulatory Action Level RBC" means the product of 1.5 and its authorized Control Level RBC;
(11)
"RBC Plan" means a comprehensive financial plan containing the elements specified in §
56-46-104(b)
. If the commissioner rejects the RBC Plan, and it is revised by the insurer, with or without the commissioner's recommendation, the plan shall be called the "Revised RBC Plan";
(12)
"RBC Report" means the report required in §
56-46-103
; and
(13)
"Total adjusted capital" means the sum of:
(A)
An insurer's statutory capital and surplus as determined in accordance with the statutory accounting applicable to the annual financial statements required to be filed pursuant to §
56-1-501
; and
(B)
The other items, if any, that the RBC Instructions may provide.
Amended by 2014 Tenn. Acts, ch. 559,Secs.s1, s2 eff. 3/21/2014.
Acts 1996, ch. 750, § 3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 1 - RISK-BASED CAPITAL FOR INSURERS ACT (§§ 56-46-101 — 56-46-113) › Section 56-46-103 - RBC Report - Calculation of RBC Levels

(a)
Every domestic insurer shall, on or prior to each March 1 (the "filing date"), prepare and submit to the commissioner a report of its RBC Levels as of the end of the calendar year just ended, in a form and containing the information that is required by the RBC Instructions. In addition, every domestic insurer shall file its RBC Report:
(1)
With the NAIC in accordance with the RBC Instructions; and
(2)
With the insurance commissioner in any state in which the insurer is authorized to do business, if the insurance commissioner has notified the insurer of its request in writing, in which case the insurer shall file its RBC Report not later than the later of:
(A)
Fifteen (15) days from the receipt of notice to file its RBC Report with that state; or
(B)
The filing date.
(b)
A life and health insurer's RBC shall be determined in accordance with the formula set forth in the RBC Instructions. The formula shall take into account, and may adjust for the covariance between:
(1)
The risk with respect to the insurer's assets;
(2)
The risk of adverse insurance experience with respect to the insurer's liabilities and obligations;
(3)
The interest rate risk with respect to the insurer's business; and
(4)
All other business risks and other relevant risks that are set forth in the RBC Instructions, determined in each case by applying the factors in the manner set forth in the RBC Instructions.
(c)
A property and casualty insurer's RBC shall be determined in accordance with the formula set forth in the RBC Instructions. The formula shall take into account and may adjust for the covariance between:
(1)
Asset risk;
(2)
Credit risk;
(3)
Underwriting risk; and
(4)
All other business risks and other relevant risks that are set forth in the RBC Instructions;
determined in each case by applying the manner set forth in the RBC Instructions.
(d)
An excess of capital over the amount produced by the risk-based capital requirements contained in this part and the formulas, schedules and instructions referenced in this part is desirable in the business of insurance. Accordingly, insurers should seek to maintain capital above the RBC levels required by this part. Additional capital is used and useful in the insurance business and helps to secure an insurer against various risks inherent in, or affecting, the business of insurance and not accounted for or only partially measured by the risk-based capital requirements contained in this part.
(e)
If a domestic insurer files an RBC Report that in the judgment of the commissioner is inaccurate, then the commissioner shall adjust the RBC Report to correct the inaccuracy and shall notify the insurer of the adjustment. The notice shall contain a statement of the reason for the adjustment. An RBC Report as so adjusted is referred to as an "Adjusted RBC Report."
Amended by 2014 Tenn. Acts, ch. 559,s 2, eff. 3/21/2014.
Acts 1996, ch. 750, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 1 - RISK-BASED CAPITAL FOR INSURERS ACT (§§ 56-46-101 — 56-46-113) › Section 56-46-106 - Authorized Control Level Events

(a)
"Authorized Control Level Event" means any of the following events:
(1)
The filing of an RBC Report by the insurer that indicates that the insurer's Total Adjusted Capital is greater than or equal to its Mandatory Control Level RBC but less than its Authorized Control Level RBC;
(2)
The notification by the commissioner to the insurer of an Adjusted RBC Report that indicates the event in subdivision (a)(1); provided, that the insurer does not challenge the Adjusted RBC Report under §
56-46-108
;
(3)
If, pursuant to §
56-46-108
, the insurer challenges an Adjusted RBC Report that indicates the event in subdivision (a)(1), notification by the commissioner to the insurer that the commissioner has, after a hearing, rejected the insurer's challenge;
(4)
The failure of the insurer to respond, in a manner satisfactory to the commissioner, to a corrective order; provided, that the insurer has not challenged the corrective order under §
56-46-108
; or
(5)
If the insurer has challenged a corrective order under §
56-46-108
and the commissioner has, after a hearing, rejected the challenge or modified the corrective order, the failure of the insurer to respond, in a manner satisfactory to the commissioner, to the corrective order subsequent to rejection or modification by the commissioner.
(b)
In the event of an Authorized Control Level Event with respect to an insurer, the commissioner shall:
(1)
Take the actions that are required under §
56-46-105
regarding an insurer with respect to which a Regulatory Action Level Event has occurred; or
(2)
If the commissioner deems it to be in the best interests of the policyholders and creditors of the insurer and of the public, take actions necessary to cause the insurer to be placed under regulatory control pursuant to chapter 9 of this title. In the event the commissioner takes such actions, the Authorized Control Level Event shall be deemed sufficient grounds for the commissioner to take action pursuant to chapter 9 of this title, and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in chapter 9 of this title. In the event the commissioner takes actions under this subsection (b) pursuant to an Adjusted RBC Report, the insurer shall be entitled to the protections that are afforded to insurers under chapter 9, part 2 of this title.
Acts 1996, ch. 750, § 7.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 1 - RISK-BASED CAPITAL FOR INSURERS ACT (§§ 56-46-101 — 56-46-113) › Section 56-46-107 - Mandatory Control Level Events

(a)
"Mandatory Control Level Event" means any of the following events:
(1)
The filing of an RBC Report that indicates that the insurer's Total Adjusted Capital is less than its Mandatory Control Level RBC;
(2)
Notification by the commissioner to the insurer of an Adjusted RBC Report that indicates the event in subdivision (a)(1); provided, that the insurer does not challenge the Adjusted RBC Report under §
56-46-108
; or
(3)
If, pursuant to §
56-46-108
, the insurer challenges an Adjusted RBC Report that indicates the event in subdivision (a)(1), notification by the commissioner to the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.
(b)
In the event of a Mandatory Control Level Event:
(1)
With respect to a life insurer, the commissioner shall take actions necessary to place the insurer under regulatory control pursuant to chapter 9 of this title. In that event, the Mandatory Control Level Event shall be deemed sufficient grounds for the commissioner to take action pursuant to chapter 9 of this title, and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in chapter 9 of this title. If the commissioner takes actions pursuant to an Adjusted RBC Report, the insurer shall be entitled to the protections of chapter 9, part 2 of this title pertaining to summary proceedings. Notwithstanding any of this subdivision (b)(1), the commissioner may forego action for up to ninety (90) days after the Mandatory Control Level Event if the commissioner finds there is a reasonable expectation that the Mandatory Control Level Event may be eliminated within the ninety-day period.
(2)
With respect to a property and casualty insurer, the commissioner shall take actions necessary to place the insurer under regulatory control pursuant to chapter 9 of this title, or in the case of an insurer that is writing no business and that is running-off its existing business, may allow the insurer to continue its run-off under the supervision of the commissioner. In either event, the Mandatory Control Level Event shall be deemed sufficient grounds for the commissioner to take action pursuant to chapter 9 of this title, and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in chapter 9 of this title. If the commissioner takes actions pursuant to an Adjusted RBC Report, the insurer shall be entitled to the protections of chapter 9, part 2 of this title pertaining to summary proceedings. Notwithstanding any of this subdivision (b)(2), the commissioner may forego action for up to ninety (90) days after the Mandatory Control Level Event if the commissioner finds there is a reasonable expectation that the Mandatory Control Level Event may be eliminated within the ninety-day period.
Acts 1996, ch. 750, § 8.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 1 - RISK-BASED CAPITAL FOR INSURERS ACT (§§ 56-46-101 — 56-46-113) › Section 56-46-108 - Hearings

(a)
The insurer shall have the right to a confidential departmental hearing, on a record, at which the insurer may challenge any determination or action by the commissioner, upon any of the following:
(1)
Notification to an insurer by the commissioner of an Adjusted RBC Report; or
(2)
Notification to an insurer by the commissioner that:
(A)
The insurer's RBC Plan or Revised RBC Plan is unsatisfactory; and
(B)
The notification constitutes a Regulatory Action Level Event with respect to the insurer; or
(3)
Notification to any insurer by the commissioner that the insurer has failed to adhere to its RBC Plan or Revised RBC Plan and that the failure has a substantial adverse effect on the ability of the insurer to eliminate the Company Action Level Event with respect to the insurer in accordance with its RBC Plan or Revised RBC Plan; or
(4)
Notification to an insurer by the commissioner of a Corrective Order with respect to the insurer.
(b)
The insurer shall notify the commissioner of its request for a hearing within five (5) days after the notification by the commissioner under subdivision (a)(1), (2), (3) or (4). Upon receipt of the insurer's request for a hearing, the commissioner shall set a date for the hearing, which date shall be no less than ten (10) nor more than thirty (30) days after the date of the insurer's request.
Acts 1996, ch. 750, § 9.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 1 - RISK-BASED CAPITAL FOR INSURERS ACT (§§ 56-46-101 — 56-46-113) › Section 56-46-110 - Construction with other laws - Rules - Exemptions

(a)
This part is supplemental to any other laws of this state, and shall not preclude or limit any other powers or duties of the commissioner under the laws, including, but not limited to, chapter 9 of this title.
(b)
The commissioner may adopt reasonable rules necessary for the implementation of this part.
(c)
The commissioner may exempt from the application of this part any domestic property and casualty insurer that:
(1)
Writes direct business only in this state;
(2)
Writes direct annual premiums of two million dollars ($2,000,000) or less; and
(3)
Assumes no reinsurance in excess of five percent (5%) of direct premium written.
Amended by 2014 Tenn. Acts, ch. 559,s 2, eff. 3/21/2014.
Acts 1996, ch. 750, § 11.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 1 - RISK-BASED CAPITAL FOR INSURERS ACT (§§ 56-46-101 — 56-46-113) › Section 56-46-111 - Foreign insurers

(a)
Any foreign insurer shall, upon the written request of the commissioner, submit to the commissioner an RBC Report as of the end of the calendar year just ended the later of:
(1)
The date an RBC Report would be required to be filed by a domestic insurer under this part; or
(2)
Fifteen (15) days after the request is received by the foreign insurer.
(b)
Any foreign insurer shall, at the written request of the commissioner, promptly submit to the commissioner a copy of any RBC Plan that is filed with the insurance commissioner of any other state.
(c)
In the event of a Company Action Level Event, Regulatory Action Level Event or Authorized Control Level Event with respect to any foreign insurer as determined under the RBC statute applicable in the state of domicile of the insurer, or, if no RBC statute is in force in that state, under this part, if the insurance commissioner of the state of domicile of the foreign insurer fails to require the foreign insurer to file an RBC Plan in the manner specified under that state's RBC statute, or, if no RBC statute is in force in that state, under §
56-46-104
, the commissioner may require the foreign insurer to file an RBC Plan with the commissioner. In this event, the failure of the foreign insurer to file an RBC Plan with the commissioner shall be grounds to order the insurer to cease and desist from writing new insurance business in this state.
(d)
In the event of a Mandatory Control Level Event with respect to any foreign insurer, if no domiciliary receiver has been appointed with respect to the foreign insurer under the rehabilitation and liquidation statute applicable in the state of domicile of the foreign insurer, the commissioner may make application to the chancery court of Davidson County pursuant to chapter 9 of this title with respect to the liquidation of property of foreign insurers found in this state, and the occurrence of the Mandatory Control Level Event shall be considered adequate grounds for the application.
Amended by 2014 Tenn. Acts, ch. 559,s 2, eff. 3/21/2014.
Acts 1996, ch. 750, § 12.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 1 - RISK-BASED CAPITAL FOR INSURERS ACT (§§ 56-46-101 — 56-46-113) › Section 56-46-112 - Immunity of commissioner and department

There shall be no liability on the part of, and no cause of action shall arise against, the commissioner or the department of commerce and insurance or its employees or agents for any action taken by them in the performance of their powers and duties under this part.
Amended by 2014 Tenn. Acts, ch. 559,s 2, eff. 3/21/2014.
Acts 1996, ch. 750, § 13.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 1 - RISK-BASED CAPITAL FOR INSURERS ACT (§§ 56-46-101 — 56-46-113) › Section 56-46-113 - When notices by commissioner which may result in regulatory action become effective

All notices by the commissioner to an insurer which may result in regulatory action under this part shall be effective upon dispatch if transmitted by registered or certified mail, or in the case of any other transmission shall be effective upon the insurer's receipt of such notice.
Acts 2014, ch. 559, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 46 - RISK-BASED CAPITAL (§§ 56-46-101 — 56-46-214) › Part 2 - RISK-BASED CAPITAL FOR HEALTH ORGANIZATIONS (§§ 56-46-201 — 56-46-214) › Section 56-46-202 - Annual report of RBC levels - Filing requirements - Determination of RBC - Adjustment of report

(a)
A domestic health organization shall, on or prior to March 1 of each year (the "filing date"), prepare and submit to the commissioner a report of its RBC levels as of the end of the previous calendar year, in a form and containing such information as is required by the RBC instructions. In addition, a domestic health organization shall file its RBC report:
(1)
With the NAIC in accordance with the RBC instructions; and
(2)
With the insurance commissioner in any state in which the health organization is authorized to do business, if the insurance commissioner has notified the health organization of its request in writing, in which case the health organization shall file its RBC report by the later of:
(A)
Fifteen (15) days from the receipt of notice to file its RBC report with that state; or
(B)
The filing date.
(b)
A health organization's RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take the following into account (and may adjust for the covariance between) determined in each case by applying the factors in the manner set forth in the RBC instructions:
(1)
Asset risk;
(2)
Credit risk;
(3)
Underwriting risk; and
(4)
All other business risks and such other relevant risks as are set forth in the RBC instructions.
(c)
An excess of capital, also known as net worth, over the amount produced by the risk-based capital requirements contained in this part and the formulas, schedules and instructions referenced in this part is desirable in the business of health insurance. Accordingly, health organizations should seek to maintain capital above the RBC levels required by this part. Additional capital is used in the insurance business and helps to secure a health organization against various risks inherent in, or affecting, the business of insurance and not accounted for or only partially measured by the risk-based capital requirements contained in this part.
(d)
If a domestic health organization files an RBC report that in the judgment of the commissioner is inaccurate, then the commissioner shall adjust the RBC report to correct the inaccuracy and shall notify the health organization of the adjustment. The notice shall contain a statement of the reason for the adjustment. An RBC report as so adjusted is referred to as an "adjusted RBC report."
Acts 2014, ch. 559, § 7.