reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 10 - MERGER, CONSOLIDATION AND EXCHANGE OF STOCK (§§ 56-10-101 — 56-10-303) › Part 3 - DISCLOSURES OF MATERIAL TRANSACTIONS (§§ 56-10-301 — 56-10-303) › Section 56-10-301 - Reporting required - Procedures

(a)
Every insurer domiciled in this state shall file a report with the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations or revisions of ceded reinsurance agreements unless the acquisitions and dispositions of assets or material nonrenewals, cancellations or revisions of ceded reinsurance agreements have been submitted to the commissioner for review, approval or information purposes pursuant to other provisions of the insurance laws, regulations, or other requirements.
(b)
The report required by subsection (a) is due within fifteen (15) days after the end of the calendar month in which any of the transactions listed in subsection (a) occur.
(c)
One (1) complete copy of the report, including any exhibits or other attachments, shall be filed with:
(1)
The insurance department of the insurer's state of domicile; and
(2)
The National Association of Insurance Commissioners.
(d)
All reports obtained by or disclosed to the commissioner pursuant to this part shall be given confidential treatment and shall not be subject to subpoena and shall not be made public by the commissioner, the National Association of Insurance Commissioners, or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the commissioner, after giving the insurer who would be affected notice and an opportunity to be heard pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, determines that the interest of policyholders, shareholders or the public will be served by publication, in which event the commissioner may publish all or any part in the manner the commissioner may deem appropriate.
Acts 1995, ch. 363, § 3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 10 - MERGER, CONSOLIDATION AND EXCHANGE OF STOCK (§§ 56-10-101 — 56-10-303) › Part 3 - DISCLOSURES OF MATERIAL TRANSACTIONS (§§ 56-10-301 — 56-10-303) › Section 56-10-302 - Acquisitions and dispositions

(a)
No acquisitions or dispositions of assets need be reported pursuant to §
56-10-301
if the acquisitions or dispositions are not material. For purposes of this part, a material acquisition, or the aggregate of any series of related acquisitions during any thirty-day period, or disposition, or the aggregate of any series of related dispositions during a thirty-day period, is one that is non-recurring and not in the ordinary course of business and involves more than five percent (5%) of the reporting insurer's total admitted assets as reported in its most recent statutory statement filed with the insurance department of the insurer's state of domicile.
(b)
(1)
Asset acquisitions subject to this part include every purchase, lease, exchange, merger, consolidation, succession or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials for such purpose.
(2)
Asset dispositions subject to this part include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, whether for the benefit of creditors or otherwise, abandonment, destruction or other disposition.
(c)
(1)
The following information is required to be disclosed in any report of a material acquisition or disposition of assets:
(A)
Date of the transaction;
(B)
Manner of acquisition or disposition;
(C)
Description of the assets involved;
(D)
Nature and amount of the consideration given or received;
(E)
Purpose of, or reason for, the transaction;
(F)
Manner by which the amount of consideration was determined;
(G)
Gain or loss recognized or realized as a result of the transaction; and
(H)
Name or names of the person or persons from whom the assets were acquired or to whom they were disposed.
(2)
Insurers are required to report material acquisitions and dispositions on a non-consolidated basis unless the insurer is part of a consolidated group of insurers that utilizes a pooling arrangement or one hundred percent (100%) reinsurance agreement that affects the solvency and integrity of the insurer's reserves, and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars ($1,000,000) total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement, and the net income of the business not subject to the pooling arrangement represents less than five percent (5%) of the insurer's capital and surplus.
Acts 1995, ch. 363, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 1 - INSURANCE HOLDING COMPANY SYSTEM ACT OF 1986 (§§ 56-11-101 — 56-11-119) › Section 56-11-109 - Promulgation of rules and regulations

The commissioner may promulgate rules, regulations and orders necessary to carry out this part.
Amended by 2014 Tenn. Acts, ch. 583,s 17, eff. 3/28/2014.
Acts 1986, ch. 572, § 9; T.C.A. §
56-11-209
.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 1 - INSURANCE HOLDING COMPANY SYSTEM ACT OF 1986 (§§ 56-11-101 — 56-11-119) › Section 56-11-112 - Assumption of control by commissioner - Insolvency

Whenever it appears to the commissioner that any person has committed a violation of this part that so impairs the financial condition of a domestic insurer or of a health maintenance organization as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, enrollees, providers, creditors, shareholders or the public, the commissioner may proceed as provided in chapter 9 of this title to take possession of the property of the domestic insurer or health maintenance organization and to conduct its business.
Amended by 2014 Tenn. Acts, ch. 583,s 1, eff. 3/28/2014.
Acts 1986, ch. 572, § 12; 2000, ch. 708, § 3j; T.C.A. § 56-11-212.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 1 - INSURANCE HOLDING COMPANY SYSTEM ACT OF 1986 (§§ 56-11-101 — 56-11-119) › Section 56-11-114 - Suspension, revocation or refusal to renew license

Whenever it appears to the commissioner that any person has committed a violation of this part which makes the continued operation of an insurer or health maintenance organization contrary to the interests of policyholders, enrollees, providers or the public, the commissioner may, after giving notice and an opportunity to be heard, determine to suspend, revoke or refuse to renew the insurer or health maintenance organization's license or authority to do business in this state for such period as the commissioner finds is required for the protection of policyholders, enrollees, providers or the public. Any such determination shall be accompanied by specific findings of fact and conclusions of law.
Amended by 2014 Tenn. Acts, ch. 583,s 1, eff. 3/28/2014.
Acts 1986, ch. 572, § 14; 2000, ch. 708, § 3l; T.C.A. § 56-11-214.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 1 - INSURANCE HOLDING COMPANY SYSTEM ACT OF 1986 (§§ 56-11-101 — 56-11-119) › Section 56-11-115 - Appeal of commissioner's action

Any person aggrieved by an act, determination, rule, regulation, order, or any other action of the commissioner pursuant to this part may appeal as set forth in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Amended by 2014 Tenn. Acts, ch. 583,s 1, eff. 3/28/2014.
Acts 1986, ch. 572, § 15; T.C.A. § 56-11-215.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 1 - INSURANCE HOLDING COMPANY SYSTEM ACT OF 1986 (§§ 56-11-101 — 56-11-119) › Section 56-11-117 - Foreign insurers or health maintenance organizations

(a)
Solely for purposes of this part, a foreign insurer or foreign health maintenance organization that participates in the TennCare program under Title XIX of the Social Security Act (
42 U.S.C. § 1396
et seq.), or any successor to the TennCare program is deemed to be a domestic insurer, and shall comply with any provisions of this part that apply to domestic insurers.
(b)
The confidentiality provisions of §
56-11-108
shall apply to all foreign insurers and foreign health maintenance organizations subject to this part pursuant to this section to the same and full extent as they apply to domestic insurers.
(c)
The commissioner shall have the authority to waive any portion of this part for such a foreign insurer or foreign health maintenance organization subject to this part pursuant to this section upon a determination that the foreign insurer or foreign health maintenance organization is subject to holding company requirements and standards adopted by statute or regulation in the jurisdiction of its domicile which are substantially similar to those contained in this part. The decision whether to exercise any authority under this subsection (c) is in the sole discretion of the commissioner.
(d)
A foreign insurer or foreign health maintenance organization deemed to be a domestic insurer under this section shall be considered a domestic insurer for the purposes of this part and shall not be considered a domestic insurer for any other purposes under this chapter, unless otherwise expressly stated.
Acts 2014, ch. 583, § 25.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 1 - INSURANCE HOLDING COMPANY SYSTEM ACT OF 1986 (§§ 56-11-101 — 56-11-119) › Section 56-11-118 - Construction with other laws

To the extent that this part conflicts with or is inconsistent with any laws in this title, this part shall control.
Acts 2014, ch. 583, § 25.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 1 - INSURANCE HOLDING COMPANY SYSTEM ACT OF 1986 (§§ 56-11-101 — 56-11-119) › Section 56-11-119 - Severability

If any provision of this part or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of this part which can be given effect without the invalid provisions or application, and for this purpose the provisions of this part are severable.
Acts 2014, ch. 583, § 25.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 2 - RISK MANAGEMENT AND OWN RISK AND SOLVENCY ASSESSMENT [Effective on January 1, 2015.] (§§ 56-11-201 — 56-11-210) › Section 56-11-201 - Purpose of part - Applicability - Confidentiality of ORSA summary report

(a)
The purpose of this part is to provide the requirements for maintaining a risk management framework and completing an Own Risk and Solvency Assessment (ORSA) and provide guidance and instructions for filing an ORSA Summary Report with the insurance commissioner of this state.
(b)
The requirements of this part shall apply to all insurers domiciled in this state and all health maintenance organizations licensed in this state unless exempt pursuant to §
56-11-206
.
(c)
The ORSA Summary Report will contain confidential and sensitive information related to an insurer, health maintenance organization or insurance group's identification of risks material and relevant to the insurer, health maintenance organization or insurance group filing the report. This information will include proprietary and trade secret information that has the potential for harm and competitive disadvantage to the insurer, health maintenance organization or insurance group if the information is made public. As such, the ORSA Summary Report shall be a confidential document filed with the commissioner and shared only as stated in this part and to assist the commissioner in the performance of the commissioner's duties, and that in no event shall the ORSA Summary Report be subject to public disclosure.
Acts 2014, ch. 583, § 26.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 2 - RISK MANAGEMENT AND OWN RISK AND SOLVENCY ASSESSMENT [Effective on January 1, 2015.] (§§ 56-11-201 — 56-11-210) › Section 56-11-202 - Part definitions

(a)
"Health maintenance organization" means a health maintenance organization as defined at §
56-32-102
.
(b)
"Insurance group," for the purpose of conducting an Own Risk and Solvency Assessment, means those insurers or health maintenance organizations and affiliates included within an insurance or health maintenance company holding company system as defined in part 1 of this chapter.
(c)
"Insurer" has the same meaning as set forth in §
56-1-102
, except that it shall not include agencies, authorities or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state.
(d)
"ORSA Guidance Manual" means the current version of the Own Risk and Solvency Assessment Guidance Manual developed and adopted by the National Association of Insurance Commissioners (NAIC) and as amended from time to time. A change in the ORSA Guidance Manual shall be effective on the January 1 following the calendar year in which the changes have been adopted by the NAIC.
(e)
"ORSA Summary Report" means a confidential high-level summary of an insurer, health maintenance organization or insurance group's ORSA.
(f)
"Own Risk and Solvency Assessment" or "ORSA" means a confidential internal assessment, appropriate to the nature, scale and complexity of an insurer, health maintenance organization or insurance group, conducted by that insurer, health maintenance organization or insurance group of the material and relevant risks associated with the insurer, health maintenance organization or insurance group's current business plan, and the sufficiency of capital resources to support those risks.
Acts 2014, ch. 583, § 26.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 2 - RISK MANAGEMENT AND OWN RISK AND SOLVENCY ASSESSMENT [Effective on January 1, 2015.] (§§ 56-11-201 — 56-11-210) › Section 56-11-203 - Risk management framework required

An insurer or health maintenance organization shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing and reporting on its material and relevant risks. This requirement may be satisfied if the insurance group of which the insurer or health maintenance organization is a member maintains a risk management framework applicable to the operations of the insurer or health maintenance organization.
Acts 2014, ch. 583, § 26.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 2 - RISK MANAGEMENT AND OWN RISK AND SOLVENCY ASSESSMENT [Effective on January 1, 2015.] (§§ 56-11-201 — 56-11-210) › Section 56-11-204 - When ORSA to be conducted

Subject to §
56-11-206
, an insurer or health maintenance organization, or the insurance group of which the insurer or health maintenance organization is a member, shall regularly conduct an ORSA consistent with a process comparable to the ORSA Guidance Manual. The ORSA shall be conducted no less than annually but also at any time when there are significant changes to the risk profile of the insurer or health maintenance organization or the insurance group of which the insurer or health maintenance organization is a member.
Acts 2014, ch. 583, § 26.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 2 - RISK MANAGEMENT AND OWN RISK AND SOLVENCY ASSESSMENT [Effective on January 1, 2015.] (§§ 56-11-201 — 56-11-210) › Section 56-11-205 - Submission of ORSA summary report

(a)
Upon the commissioner's request, and no more than once each year, an insurer or health maintenance organization shall submit to the commissioner an ORSA Summary Report or any combination of reports that together contain the information described in the ORSA Guidance Manual, applicable to the insurer, health maintenance organization or the insurance group of which it is a member. Notwithstanding any request from the commissioner, if the insurer or health maintenance organization is a member of an insurance group, the insurer or health maintenance organization shall submit the report or reports required by this subsection (a) if the commissioner is the lead state commissioner of the insurance group as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners.
(b)
The report or reports shall include a signature of the insurer or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's or health maintenance organization's enterprise risk management process attesting to the best of such person's belief and knowledge that the insurer or health maintenance organization applies the enterprise risk management process described in the ORSA Summary Report and that a copy of the report has been provided to the insurer's board of directors or the appropriate committee thereof.
(c)
An insurer or health maintenance organization may comply with subsection (a) by providing the most recent and substantially similar report or reports provided by the insurer or another member of an insurance group of which the insurer is a member to the commissioner of another state or to a supervisor or regulator of a foreign jurisdiction, if that report provides information that is comparable to the information described in the ORSA Guidance Manual. Any such report in a language other than English must be accompanied by a translation of that report into the English language.
Acts 2014, ch. 583, § 26.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 2 - RISK MANAGEMENT AND OWN RISK AND SOLVENCY ASSESSMENT [Effective on January 1, 2015.] (§§ 56-11-201 — 56-11-210) › Section 56-11-207 - Report to comply with ORSA Guidance Manual - Review of report

(a)
The ORSA Summary Report shall be prepared consistent with the ORSA Guidance Manual, subject to the requirements of subsection (b). Documentation and supporting information shall be maintained and made available upon examination or upon request of the commissioner.
(b)
The review of the ORSA Summary Report, and any additional requests for information, shall be made using similar procedures currently used in the analysis and examination of multi-state or global insurers or health maintenance organizations and insurance groups.
Acts 2014, ch. 583, § 26.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 2 - RISK MANAGEMENT AND OWN RISK AND SOLVENCY ASSESSMENT [Effective on January 1, 2015.] (§§ 56-11-201 — 56-11-210) › Section 56-11-209 - Failure to timely file ORSA summary report - Penalty

Any insurer or health maintenance organization failing, without just cause, to timely file the ORSA Summary Report as required in this part shall be required, after notice and hearing, to pay a penalty of one hundred dollars ($100) for each day's delay, to be recovered by the commissioner and the penalty so recovered shall be paid into the general revenue fund of this state. The maximum penalty under this section is ten thousand dollars ($10,000). The commissioner may reduce the penalty if the insurer or health maintenance organization demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer or health maintenance organization.
Acts 2014, ch. 583, § 26.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 11 - INSURANCE HOLDING COMPANIES AND RISK MANAGEMENT (§§ 56-11-101 — 56-11-210) › Part 2 - RISK MANAGEMENT AND OWN RISK AND SOLVENCY ASSESSMENT [Effective on January 1, 2015.] (§§ 56-11-201 — 56-11-210) › Section 56-11-210 - Severability

If any provision of this part, or the application thereof to any person or circumstance, is held invalid, such determination shall not affect the provisions or applications of this part which can be given effect without the invalid provision or application, and to that end the provisions of this part are severable.
Acts 2014, ch. 583, § 26.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-101 - Short title

This part shall be known and may be cited as the "Tennessee Insurance Guaranty Association Act."
Acts 1971, ch. 180, § 1; T.C.A., § 56-4001.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-102 - Purpose

The purpose of this part is to provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, and to provide an association to assess the cost of the protection among insurers.
Acts 1971, ch. 180, § 2; T.C.A., § 56-4002.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-103 - Scope

This part shall apply to all kinds of direct insurance, but shall not be applicable to:
(1)
Life, annuity, health or disability insurance;
(2)
Mortgage guaranty, financial guaranty or other forms of insurance offering protection against investment risks;
(3)
Fidelity or surety bonds, or any other bonding obligations;
(4)
Credit insurance, vendors' single interest insurance, or other collateral protection insurance or any similar insurance protecting the interests of a creditor arising out of a creditor-debtor transaction;
(5)
Insurance of warranties or service contracts, including insurance that provides for the repair, replacement, or service of goods or property, or indemnification for repair, replacement or service for the operational or structural failure of the goods or property due to a defect in materials, workmanship, or normal wear and tear or provides reimbursement for the liability incurred by the issuer of the agreements or service contracts that provide the benefits;
(6)
Title insurance;
(7)
Ocean marine insurance;
(8)
Any transaction or combination of transactions between a person, including affiliates of the person, and an insurer, including affiliates of the insurer, that involves the transfer of investment or credit risk unaccompanied by transfer of insurance risk;
(9)
Any insurance provided by or guaranteed by government;
(10)
Any insurance issued on a limited or unlimited assessable basis; or
(11)
Excess insurance.
Acts 1971, ch. 180, § 3; 1975, ch. 62, § 3; 1977, ch. 203, § 1; T.C.A., § 56-4003; Acts 1987, ch. 27, § 1; 1999, ch. 48, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-105 - Creation of association

(a)
There is created a nonprofit unincorporated legal entity to be known as the Tennessee insurance guaranty association.
(b)
All insurers defined as member insurers shall be and remain members of the association as a condition of their authority to transact insurance in this state.
(c)
The association shall perform its functions under a plan of operation established and approved under §
56-12-109
and shall exercise its powers through a board of directors established under §
56-12-107
.
(d)
For purposes of assessment, and the maintenance of records, the association shall be divided into two (2) separate accounts as follows:
(1)
The workers' compensation insurance account; and
(2)
The account for all other insurance to which this part applies.
Acts 1971, ch. 180, § 5; T.C.A., § 56-4005.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-106 - Board of directors - Selection - Qualifications - Expenses

(a)
The board of directors of the association shall consist of five (5) persons serving terms as established in the plan of operation. The members of the board shall be selected by the commissioner. Each board member so selected shall be a resident of this state and shall represent a company licensed to do business in this state. The last two (2) members of the board shall be an officer or employee of domestic insurance companies. Vacancies on the board shall be filled for the remaining period of the term in the same manner as initial appointments.
(b)
In making selections to the board, the commissioner shall consider, among other things, whether all member insurers are fairly represented.
(c)
Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors.
Acts 1971, ch. 180, § 6; T.C.A., § 56-4006.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-109 - Powers and duties of commissioner - Judicial review

(a)
The commissioner shall:
(1)
Notify the association of the existence of an insolvent insurer not later than three (3) days after receiving notice of the determination of the insolvency. The association shall be entitled to a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member company at the same time such complaint is filed with a court of competent jurisdiction; and
(2)
Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.
(b)
The commissioner may:
(1)
Require that the association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this part. Such notification shall be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation shall be sufficient;
(2)
(A)
Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or that fails to comply with the plan of operation; or
(B)
As an alternative, the commissioner may levy a forfeiture on any member insurer who fails to pay an assessment when due. Such forfeiture shall not exceed five percent (5%) of an unpaid assessment per month, but no forfeiture shall be less than one hundred dollars ($100) per month; and
(3)
Revoke the designation of any servicing facility if the commissioner finds claims are being handled unsatisfactorily.
(c)
Any final action or order of the commissioner under this part shall be subject to judicial review exclusively by common law writ of certiorari in the chancery court of Davidson County.
Acts 1971, ch. 180, § 9; T.C.A., § 56-4009; Acts 1989, ch. 36, § 1; 1999, ch. 48, § 8.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-110 - Effect of paid claims - Rights of association - Subrogation - Priorities - Statements

(a)
Any person recovering under this part shall be deemed to have assigned that person's rights under the policy to the association to the extent of that person's recovery from the association. Every insured or claimant seeking the protection of this part shall cooperate with the association to the same extent as that person would have been required to cooperate with the insolvent insurer. The association shall have no cause of action against the insured of the insolvent insurer for any sums it has paid out except those causes of action as the insolvent insurer would have had if the sums had been paid by the insolvent insurer and except as provided in subsection (b).
(b)
The association shall have the right to recover from the following persons the amount of any "covered claim" paid on behalf of such person pursuant to this part:
(1)
Any insured whose net worth on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer exceeds twenty-five million dollars ($25,000,000) and whose liability obligations to other persons are satisfied in whole or in part by payments made under this part; and
(2)
Any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this part.
(c)
The association and any similar organization in another state are claimants in the liquidation of an insolvent insurer for any amounts paid by them on covered claims obligations as determined under this part or similar laws in other states and shall receive dividends and any other distributions at the priority set forth in §
56-9-330
. The receiver, liquidator or statutory successor of an insolvent insurer shall be bound by determinations of covered claim eligibility under this part and by settlements of claims made by the association or a similar organization in another state. The court having jurisdiction shall grant such claims priority equal to that which the claimant would have been entitled in the absence of this part against the assets of the insolvent insurer. The expenses of the association or similar organization in handling claims shall be accorded the same priority as the liquidator's expenses for handling claims.
(d)
The association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the association and estimates of anticipated claims on the association that shall preserve the rights of the association against the assets of the insolvent insurer.
Acts 1971, ch. 180, § 10; T.C.A., § 56-4010; Acts 1999, ch. 48, § 9.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-111 - Nonduplication of recovery - Exhaustion of other remedies

(a)
Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer, which is also a covered claim, shall be required to exhaust first such person's right under such policy. Any amount payable on a covered claim under this part shall be reduced by the amount of any recovery under such insurance policy.
(b)
Any person having a claim that may be recovered under more than one (1) insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured, except that if it is a first party claim for damage to property with a permanent location, the person shall seek recovery first from the association of the location of the property, and if it is a workers' compensation claim, the person shall seek recovery first from the association of the residence of the claimant. Any recovery under this part shall be reduced by the amount of recovery from any other insurance guaranty association or its equivalent.
Acts 1971, ch. 180, § 11; T.C.A., § 56-4011.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-112 - Reports by board

(a)
The board of directors may, upon majority vote, make reports to the commissioner upon any matter germane to the solvency, liquidation, rehabilitation or conservation of any member insurer. Such reports shall be considered public documents.
(b)
The board of directors shall, at the conclusion of any insurer insolvency in which the association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the association, and submit such report to the commissioner.
Acts 1971, ch. 180, § 12; T.C.A., § 56-4012.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-113 - Examination of the association - Annual financial report

(a)
The association shall be subject to examination and regulation by the commissioner.
(b)
The board of directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the commissioner.
Acts 1971, ch. 180, § 13; T.C.A., § 56-4013.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-114 - Tax and fees exemption

The association shall be exempt from payment of all fees, except examination fees, and all taxes levied by this state or any of its subdivisions, except taxes levied on real or personal property.
Acts 1971, ch. 180, § 14; T.C.A., § 56-4014.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-115 - Deduction from premium taxes

Member insurers assessed a percentage of net direct written premiums for any preceding calendar year, as provided in §
56-12-107(a)(3)
, shall be allowed a credit against premium taxes imposed on such member insurers by §
56-4-205
, up to twenty-five percent (25%) of the net premium taxes due in any one (1) calendar year until the aggregate of all assessments paid to the guaranty association has been offset by such premium tax credits. The guaranty association shall certify to the commissioner on an annual basis the names of the member insurers and the assessments paid. The provisions herein are applicable to all insolvencies occurring after April 28, 1975; provided, that only premium taxes paid on and after March 1977, will be subject to credit as herein provided.
Acts 1971, ch. 180, § 15; 1975, ch. 63, § 1; T.C.A., § 56-4015.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-116 - Immunity

There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer, the association or its agents or employees, the board of directors, or the commissioner or the commissioner's representatives for any action taken by them in the performance of their powers and duties under this part.
Acts 1971, ch. 180, § 16; T.C.A., § 56-4016.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-117 - Stay of pending proceedings - Default judgment

(a)
All proceedings in which the association is obligated to defend by reason of this part shall be stayed for six (6) months from the date the insolvency is determined or such additional time as shall be granted either by the court in which the action is pending or by the chancery court of Davidson County, upon petition by the association for good cause shown to permit proper defense of such causes of action.
(b)
The association shall not be obligated to satisfy in part or in whole any decision, verdict, or finding based on the default of the insolvent insurer or its failure to defend an insured, but shall be permitted to defend such claim on its merits.
Acts 1971, ch. 180, § 17; 1975, ch. 62, § 7; 1977, ch. 203, § 4; T.C.A., § 56-4017.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-118 - Advertising by member insurers

No member insurer shall include any advertising matter in its advertisements in reference to the coverage afforded by the Tennessee insurance guaranty association.
Acts 1971, ch. 180, § 18; T.C.A., § 56-4018.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-119 - Credit for guaranty fund assessments

Assessments made by the Tennessee insurance guaranty association as provided in §
56-12-107(a)(3)
shall be allowed as a credit against premium taxes imposed on member insurers up to twenty-five percent (25%) of the net premium taxes due in any one (1) calendar year, until the aggregate of all assessments paid to the association have been offset by such premium tax credits.
Acts 1975, ch. 63, § 2; T.C.A., § 56-4019.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-120 - Unearned premium claims

(a)
All obligations for unearned premium claims shall include only that amount of each covered claim that is in excess of two hundred fifty dollars ($250) and is less than ten thousand dollars ($10,000).
(b)
(1)
Unearned premium claims arising out of workers' compensation policies shall be subject to the limitations of subsection (a).
(2)
Unearned premium claims shall not include credit adjustments developed under retrospective rating plans.
Acts 1989, ch. 316, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 1 - TENNESSEE INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-101 — 56-12-121) › Section 56-12-121 - Insolvent insurer

(a)
In no case shall a covered claim include any claim filed with the association, domiciliary receiver, ancillary receiver or liquidator, after the earlier of:
(1)
Eighteen (18) months after the date of the order of liquidation; or
(2)
The final date set by the court for the filing of claims against the liquidator or receiver of an insolvent insurer.
(b)
In no case shall a covered claim include any claim filed with the association, domiciliary, or ancillary receiver or a liquidator for protection afforded under the insured's policy for incurred-but-not-reported losses.
Acts 1995, ch. 240, § 3; 1999, ch. 48, § 10.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 2 - LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-201 — 56-12-220) › Section 56-12-201 - Short title

This part shall be known and may be cited as the "Tennessee Life and Health Insurance Guaranty Association Act."
Acts 1988, ch. 1032, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 2 - LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-201 — 56-12-220) › Section 56-12-202 - Purpose

(a)
The purpose of this part is to protect, subject to certain limitations, the persons listed in §
56-12-204(a)
against failure in the performance of contractual obligations, under life, health, and annuity policies, plans, or contracts specified in §
56-12-204(b)
, because of the impairment or insolvency of the member insurer that issued the policies, plans, or contracts.
(b)
To provide this protection, an association of member insurers is hereby created to pay benefits and to continue coverages as limited in this part.
(c)
Members of the association are subject to assessment to provide funds to carry out the purpose of this part, and shall provide such services as are necessary to implement the protections accorded to policyholders by this part.
Amended by 2019 Tenn. Acts, ch. 5,s 1, eff. 7/1/2019.
Acts 1988, ch. 1032, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 2 - LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-201 — 56-12-220) › Section 56-12-205 - Creation of association - Accounts

(a)
There is created a nonprofit legal entity to be known as the Tennessee life and health insurance guaranty association. All member insurers are and shall remain members of the association as a condition of their authority to transact insurance or a health maintenance organization business in this state. The association shall perform its function under the plan of operation established and approved pursuant to §
56-12-209
, and shall exercise its powers through a board of directors established by §
56-12-206
. For purposes of administration and assessment, the association shall maintain two (2) accounts:
(1)
The life insurance and annuity account, which includes the following subaccounts:
(A)
Life insurance account; and
(B)
Annuity account, excluding unallocated annuities; and
(2)
The health account.
(b)
The association is under the immediate supervision of the commissioner and subject to the applicable provisions of the insurance laws of this state. Meetings or records of the association may be opened upon majority vote of the board of directors of the association.
Amended by 2019 Tenn. Acts, ch. 5,s 4, eff. 7/1/2019.
Acts 1988, ch. 1032, § 5; 2010, ch. 713, § 3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 2 - LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-201 — 56-12-220) › Section 56-12-206 - Board of directors - Reimbursement

(a)
The board of directors of the association shall consist of not less than five (5) nor more than nine (9) member insurers serving terms as established in the plan of operation. The members of the board shall be selected by member insurers, subject to the approval of the commissioner. Vacancies on the board shall be filled for the remaining period of the term by a majority vote of the remaining board members, subject to the approval of the commissioner. To select the initial board of directors, and initially organize the association, the commissioner shall give notice to all member insurers of the time and place of the organizational meeting. In determining voting rights at the organizational meeting, each member insurer shall be entitled to one (1) vote in person or by proxy. If the board of directors is not selected within sixty (60) days after notice of the organizational meeting, the commissioner may appoint the initial members.
(b)
In approving selections or in appointing members to the board, the commissioner shall consider, among other things, whether all member insurers are fairly represented.
(c)
Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors in accordance with the state's travel regulations. Members of the board shall not otherwise be compensated by the association for their services.
Acts 1988, ch. 1032, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 12 - INSURANCE GUARANTY ASSOCIATIONS (§§ 56-12-101 — 56-12-220) › Part 2 - LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT (§§ 56-12-201 — 56-12-220) › Section 56-12-209 - Plan of operation

(a)
(1)
The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon the commissioner's written approval or within thirty (30) days if the commissioner has not disapproved it during such thirty-day period.
(2)
If an association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate this part. Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.
(b)
All member insurers shall comply with the plan of operation.
(c)
The plan of operation shall, in addition to requirements enumerated elsewhere in this part:
(1)
Establish procedures for handling the assets of the association;
(2)
Establish the amount and method of reimbursing members of the board of directors under §
56-12-206
;
(3)
Establish regular places and times for meetings including telephone conference calls of the board of directors;
(4)
Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors;
(5)
Establish the procedures whereby selections for the board of directors will be made and submitted to the commissioner;
(6)
Establish any additional procedures for assessments pursuant to §
56-12-208
; and
(7)
Contain additional provisions necessary or proper for the execution of the powers and duties of the association.
(d)
The plan of operation may provide that any or all powers and duties of the association, except those set forth in §§
56-12-207(k)(3)
and
56-12-208
, are delegated to a corporation, association, or other organization that performs or will perform functions similar to those of this association, or its equivalent, in two (2) or more states. Such a corporation, association, or organization shall be reimbursed for any payments made on behalf of the association and shall be paid for its performance of any function of the association. A delegation under this subsection (d) shall take effect only with the approval of both the board of directors and the commissioner, and may be made only to a corporation, association, or organization that extends protection not substantially less favorable and effective than that provided by this part.
Acts 1988, ch. 1032, § 9.