reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 4 - INVESTMENTS OF OTHER DOMESTIC INSURANCE COMPANIES (§§ 56-3-401 — 56-3-409) › Section 56-3-405 - Acquisition and conveyance of real property

Domestic insurance companies may acquire, hold and convey real property only for the following purposes and in the following manner:
(1)
The land and the building on the land in which it has its principal office and other real property that is requisite for its convenient accommodations in the transaction of its insurance business, the amount not to exceed ten percent (10%) of its admitted assets, subject, however, to the limitations of §
56-3-406
;
(2)
Real property that has been mortgaged to it in good faith by way of security for loans previously contracted or for moneys due;
(3)
Real property that has been conveyed to it in satisfaction of debts previously contracted in the course of its dealings;
(4)
Real property that has been purchased at sales on judgments, decrees, or mortgages obtained or made for those debts;
(5)
Real property that has been acquired for investment purposes; provided, that:
(A)
No real property may be acquired or held under the authority of this section unless at the time of acquisition it is already improved and income-producing or unless it is improved with due diligence after acquisition so as to produce an income;
(B)
The company shall not at any one (1) time have more than two percent (2%) of its admitted assets invested in a single piece or adjoining pieces of real property acquired or held under the authority of this section; and
(C)
No investments under the authority of this section shall be made in hotels, club houses, garages, schools, factories erected and designed for special purposes or agricultural properties, without specific approval in advance by the commissioner; and
(6)
In no event shall the aggregate of all of a company's holdings and investments, under the authority of §§
56-3-401
- 56-3-404, this section and §§
56-3-406
and
56-3-407
, exceed ten percent (10%) of the company's admitted assets; provided, that nothing in this section shall prevent the acquisition by the company of any property under subdivisions (2)-(4), but properties so acquired shall be held under §
56-3-406
, and the company shall list the book value of the properties as assets not admitted, to the extent the aggregate of the book value of real estate exceeds ten percent (10%) of the company's admitted assets.
Acts 1979, ch. 305, § 5; T.C.A., § 56-365.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 4 - INVESTMENTS OF OTHER DOMESTIC INSURANCE COMPANIES (§§ 56-3-401 — 56-3-409) › Section 56-3-406 - Disposition of real property

All property specified in §
56-3-405(2)-(4)
, which is not necessary for its accommodation in the convenient transaction of its business, shall be sold and disposed of within two (2) years after the company has acquired title to the property, or within two (2) years after the property has ceased to be necessary for the accommodation of its business; and it shall not hold the property for a longer period unless it procures a certificate from the commissioner authorizing an extension of time for the sale of the property. The commissioner is authorized to issue such a certificate extending the time for the sale of such property if in the commissioner's judgment it appears that the interest of the company will suffer materially by a forced sale of the property.
Acts 1979, ch. 305, § 6; T.C.A., § 56-366.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 4 - INVESTMENTS OF OTHER DOMESTIC INSURANCE COMPANIES (§§ 56-3-401 — 56-3-409) › Section 56-3-407 - Manner of investment exclusive

No domestic insurance company shall invest or loan its funds in any manner except as provided in §§
56-3-401
- 56-3-406.
Acts 1979, ch. 305, § 7; T.C.A., § 56-367.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 4 - INVESTMENTS OF OTHER DOMESTIC INSURANCE COMPANIES (§§ 56-3-401 — 56-3-409) › Section 56-3-408 - Prohibited actions and transactions

(a)
No domestic insurance company, whether incorporated by special act or under a general law of this state, shall underwrite or participate in the underwriting of an offering of securities or property by any other person; nor shall the company enter into any agreement to withhold from sale any of its property, but the disposition of its property shall be at all times within the control of its board of directors.
(b)
(1)
No investment or loan, except premium finance loans, shall be made by any such insurance company, unless the investment or loan has first been authorized by the board of directors or by a committee appointed by the board and charged with the duty of supervising the investment or loan.
(2)
Membership on the board of directors shall not be a requirement for eligibility to membership on the committee.
Acts 1979, ch. 305, § 8; T.C.A., § 56-368.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 4 - INVESTMENTS OF OTHER DOMESTIC INSURANCE COMPANIES (§§ 56-3-401 — 56-3-409) › Section 56-3-409 - Eligible investments

Any particular investment that the insurance company held on September 1, 1979, or was obligated to accept by a legally enforceable commitment effectuated prior to September 1, 1979, and that the insurance company was legally entitled to hold immediately prior to September 1, 1979, shall be deemed to be an eligible investment.
Acts 1979, ch. 305, § 9; T.C.A., § 56-369.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 5 - SEPARATE ACCOUNTS AND ALLOCATIONS (§§ 56-3-501 — 56-3-509) › Section 56-3-501 - Separate accounts - Allocation

(a)
(1)
Any domestic life insurance company may, subject to the approval of the commissioner, establish one (1) or more separate accounts and may allocate to the separate account or accounts any amounts paid to the company, including, but not limited to, proceeds applied under optional modes of settlement or under dividend options, which are to be applied to the terms of an individual or group contract issued in connection therewith to fund pension or profit-sharing plans or to provide life insurance or annuity benefits, and benefits incidental to the life insurance or annuities, payable in fixed or in variable amounts, or in both.
(2)
If and to the extent so provided under the applicable contracts, the assets of the separate account shall not be chargeable with liabilities arising out of any other business the company may conduct.
(b)
The company may provide for the owners of the contracts voting rights with respect to management of the separate accounts and investment of the assets of the accounts, and shall have the power to do all things necessary under any applicable state or federal law in order that the contracts may be lawfully sold or offered for sale.
(c)
This section shall not in any way affect existing laws pertaining to the voting rights of the company's policyholders.
Acts 1967, ch. 353, § 1; T.C.A., § 56-258; Acts 1968, ch. 450, § 1; 1970, ch. 493, § 1; T.C.A., § 56-312; Acts 1993, ch. 253, § 20.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 5 - SEPARATE ACCOUNTS AND ALLOCATIONS (§§ 56-3-501 — 56-3-509) › Section 56-3-502 - Investment of amounts allocated to separate accounts

The amounts allocated to each account and accumulations on the account may be invested and reinvested in any class of investments which may be authorized in the agreement without regard to any requirements or limitations prescribed by the laws of this state governing the investments of life insurance companies; provided, that to the extent that the company's reserve liability with regard to benefits guaranteed as to amount and duration and funds guaranteed as to principal amount or stated rate of interest is maintained in any separate account, a portion of the assets of the separate account at least equal to the reserve liability shall be invested in accordance with the laws of this state governing the investments of life insurance companies. The investments in the separate account or accounts shall not be taken into account in applying the investment limitations applicable to other investments of the company.
Acts 1967, ch. 353, § 2; T.C.A., §§ 56-259, 56-313.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 5 - SEPARATE ACCOUNTS AND ALLOCATIONS (§§ 56-3-501 — 56-3-509) › Section 56-3-503 - Gains and losses credited to or charged against allocation

The income, if any, and gains and losses, realized or unrealized, on each account shall be credited to or charged against the amounts allocated to the account in accordance with the agreement, without regard to other income, gains or losses of the company.
Acts 1967, ch. 353, § 3; T.C.A., §§ 56-260, 56-314.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 5 - SEPARATE ACCOUNTS AND ALLOCATIONS (§§ 56-3-501 — 56-3-509) › Section 56-3-504 - Valuation of assets allocated to separate account

Assets allocated to a separate account shall be valued at their market value on the date of valuation, or if there is no readily available market, then in accordance with the terms of the agreement; provided, that the portion of the assets of the separate account at least equal to the company's reserve liability with regard to the guaranteed benefits and funds referred to in §
56-3-502
, if any, shall be valued in accordance with the rules otherwise applicable to the company's assets.
Acts 1967, ch. 353, § 4; T.C.A., §§ 56-261, 56-315.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 5 - SEPARATE ACCOUNTS AND ALLOCATIONS (§§ 56-3-501 — 56-3-509) › Section 56-3-505 - Amounts allocated to be company owned

Amounts allocated to a separate account in the exercise of the power granted by this part shall be owned by the company.
Acts 1967, ch. 353, § 5; T.C.A., § 56-262; Acts 1968, ch. 450, § 2; T.C.A., § 56-316.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 5 - SEPARATE ACCOUNTS AND ALLOCATIONS (§§ 56-3-501 — 56-3-509) › Section 56-3-506 - Agreements providing for annuity benefits on a variable basis - Statements required

If the agreement provides for payment of benefits in variable amounts, it shall contain a statement of the essential features of the procedure to be followed by the company in determining the dollar amount of the variable benefits. The agreement, and any certificate in evidence of variable benefits issued under the agreement, shall state that the dollar amount may decrease or increase and shall contain on its first page a statement that the benefits under the agreement are on a variable basis.
Acts 1967, ch. 353, § 6; T.C.A., § 56-263; Acts 1970, ch. 493, § 2; T.C.A., § 56-317.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 5 - SEPARATE ACCOUNTS AND ALLOCATIONS (§§ 56-3-501 — 56-3-509) › Section 56-3-507 - Authorization for delivery of agreements providing benefits on a variable basis - Determination of qualification

No domestic life insurance company, and no other life insurance company admitted to transact business in this state, shall be authorized to deliver within this state any agreement providing benefits in variable amounts until the company has satisfied the commissioner that its condition or methods of operation in connection with the issuance of the agreements will not render its operation hazardous to the public or its policyholders in this state. In determining the qualification of a company requesting authority to deliver the agreements within this state, the commissioner shall consider, among other things:
(1)
The history and financial condition of the company;
(2)
The character, responsibility and general fitness of the officers and directors of the company; and
(3)
In the case of a company other than a domestic company, whether the statutes and regulations of the jurisdiction of its incorporation provide a degree of protection to policyholders and the public that is substantially equal to that provided by this part and the rules and regulations issued under this part.
Acts 1967, ch. 353, § 7; T.C.A., §§ 56-264, 56-318.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 5 - SEPARATE ACCOUNTS AND ALLOCATIONS (§§ 56-3-501 — 56-3-509) › Section 56-3-508 - Regulation of agreements - Rulemaking power - Licensing

The commissioner has the sole authority to regulate the issuance and sale of such agreements and to issue reasonable rules and regulations necessary to carry out the purposes and provisions of this part, including licensing the qualifications of the agents or salespersons.
Acts 1967, ch. 353, § 8; T.C.A., §§ 56-265, 56-319.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 5 - SEPARATE ACCOUNTS AND ALLOCATIONS (§§ 56-3-501 — 56-3-509) › Section 56-3-509 - Separate accounts - Insurance laws applicable - Required provisions of variable life agreements

Except for §§
56-7-401
,
56-7-2307(2), (7), (10) and (12)
, and
56-7-2309
, and except as otherwise provided in this part, all pertinent provisions of the insurance laws of this state apply to separate accounts and agreements issued in connection with the accounts. Any individual variable life insurance agreement delivered or issued for delivery in this state shall contain grace, reinstatement and nonforfeiture provisions appropriate to the agreement. The reserve liability for variable benefits shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.
Acts 1967, ch. 353, § 9; T.C.A., § 56-266; Acts 1970, ch. 493, § 3; T.C.A., § 56-320.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 7 - RESTRICTIONS ON BENEFICIAL OWNERS, DIRECTORS AND OFFICERS (§§ 56-3-701 — 56-3-708) › Section 56-3-701 - "Equity security" defined

As used in this part, "equity security" means any stock or similar security, or any security convertible, with or without consideration, into a stock or similar security, or carrying a warrant or right to subscribe or to purchase a stock or similar security; or a warrant or right; or any other security that the commissioner deems to be of similar nature and considers necessary or appropriate, by rules and regulations the commissioner prescribes in the public interest or for the protection of investors, to treat as an equity security.
Acts 1965, ch. 95, § 6; T.C.A., §§ 56-255, 56-337.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 7 - RESTRICTIONS ON BENEFICIAL OWNERS, DIRECTORS AND OFFICERS (§§ 56-3-701 — 56-3-708) › Section 56-3-702 - Equity securities of domestic stock insurance companies - Statements of beneficial owners, directors and officers

Every person who is directly or indirectly the beneficial owner of more than ten percent (10%) of any class of any equity security of a domestic stock insurance company, or who is a director or an officer of the company, shall file in the office of the commissioner within ten (10) days after the person becomes the beneficial owner, director, or officer, a statement, in the form the commissioner prescribes, of the amount of all equity securities of the company of which the person is the beneficial owner, and within ten (10) days after the close of each calendar month thereafter, if there has been a change in ownership during that month, shall file in the office of the commissioner a statement, in the form the commissioner prescribes, indicating the ownership at the close of the calendar month and the changes in ownership that have occurred during that calendar month.
Acts 1965, ch. 95, § 1; T.C.A., §§ 56-250, 56-332.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 7 - RESTRICTIONS ON BENEFICIAL OWNERS, DIRECTORS AND OFFICERS (§§ 56-3-701 — 56-3-708) › Section 56-3-703 - Profits from unfair use of information recoverable - Exceptions

(a)
For the purpose of preventing the unfair use of information that may have been obtained by the beneficial owner, director, or officer by reason of the relationship to the company, any profit realized by the person from any purchase and sale, or any sale and purchase, of any equity security of the company within any period of less than six (6) months, unless the security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the company, irrespective of any intention on the part of the beneficial owner, director, or officer in entering into the transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six (6) months.
(b)
Suit to recover the profit may be instituted at law or in equity in any court of competent jurisdiction by the company or by the owner of any security of the company in the name and in behalf of the company, if the company fails or refuses to bring suit within sixty (60) days after request or fails diligently to prosecute it thereafter; but no suit shall be brought more than two (2) years after the date the profit was realized.
(c)
This section shall not be construed to cover any transaction where the beneficial owner was not the beneficial owner both at the time of the purchase and sale, or the sale and purchase, of the security involved, or any transaction or transactions that the commissioner by rules and regulations exempts as not comprehended within the purpose of this section.
Acts 1965, ch. 95, § 2; T.C.A., §§ 56-251, 56-333.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 7 - RESTRICTIONS ON BENEFICIAL OWNERS, DIRECTORS AND OFFICERS (§§ 56-3-701 — 56-3-708) › Section 56-3-704 - Restrictions on sale of equity securities

It is unlawful for the beneficial owner, director, or officer, directly or indirectly, to sell any equity security of the company, if the person selling the security or the person's principal:
(1)
Does not own the security sold; or
(2)
If owning the security, does not deliver it against the sale within twenty (20) days thereafter, or does not within five (5) days after the sale deposit it in the mails or other usual channels of transportation; but no person shall be deemed to have violated this section if the person proves that, notwithstanding the exercise of good faith, the person was unable to make the delivery or deposit within that time, or that to do so would cause undue inconvenience or expense.
Acts 1965, ch. 95, § 3; T.C.A., §§ 56-252, 56-334.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 7 - RESTRICTIONS ON BENEFICIAL OWNERS, DIRECTORS AND OFFICERS (§§ 56-3-701 — 56-3-708) › Section 56-3-705 - Purchases and sales which are exempt

(a)
Section
56-3-703
does not apply to any purchase and sale, or sale and purchase, and §
56-3-704
does not apply to any sale of an equity security of a domestic stock insurance company not then or theretofore held by the dealer in an investment account, by a dealer in the ordinary course of business and incident to the establishment or maintenance by the dealer of a primary or secondary market, otherwise than on an exchange as defined in the Securities Exchange Act of 1934 (
15 U.S.C. § 78a
et seq.), for the security.
(b)
The commissioner may, by rules and regulations the commissioner deems necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.
Acts 1965, ch. 95, § 4; T.C.A., §§ 56-253, 56-335.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 7 - RESTRICTIONS ON BENEFICIAL OWNERS, DIRECTORS AND OFFICERS (§§ 56-3-701 — 56-3-708) › Section 56-3-706 - Foreign and domestic arbitrage transactions exempt

Sections
56-3-702
- 56-3-704 do not apply to foreign or domestic arbitrage transactions unless made in contravention of the rules and regulations the commissioner adopts in order to carry out the purposes of this part.
Acts 1965, ch. 95, § 5; T.C.A., §§ 56-254, 56-336.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 7 - RESTRICTIONS ON BENEFICIAL OWNERS, DIRECTORS AND OFFICERS (§§ 56-3-701 — 56-3-708) › Section 56-3-707 - Conditions exempting equity securities

Sections
56-3-702
- 56-3-704 do not apply to equity securities of a domestic stock insurance company if:
(1)
The securities are registered, or are required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934 (
15 U.S.C. § 78
l
); or
(2)
The domestic stock insurance company does not have any class of its equity securities held of record by one hundred (100) or more persons on the last business day of the year next preceding the year in which equity securities of the company would be subject to §§
56-3-702
- 56-3-704, except for this subdivision (2).
Acts 1965, ch. 95, § 7; T.C.A., §§ 56-256, 56-338.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 7 - RESTRICTIONS ON BENEFICIAL OWNERS, DIRECTORS AND OFFICERS (§§ 56-3-701 — 56-3-708) › Section 56-3-708 - Rules and regulations

(a)
The commissioner, with the approval of the attorney general and reporter and in conformity with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, has the power to make rules and regulations necessary for the execution of the functions vested in the commissioner by §§
56-3-701
- 56-3-707, and may for that purpose classify domestic stock insurance companies, securities, and other persons or matters within the commissioner's jurisdiction.
(b)
Nothing in §§
56-3-702
- 56-3-704 imposing any liability applies to any act done or omitted in good faith in conformity with any rule or regulation of the commissioner, notwithstanding that the rule or regulation may, after the act or omission, be amended or rescinded or determined by judicial or other authority to be invalid for any reason.
(c)
The commissioner, with the approval of the attorney general and reporter and in conformity with the Uniform Administrative Procedures also has the power to make rules and regulations necessary to regulate the solicitation of proxies, consents or authorizations in respect to those equity securities subject to §§
56-3-701
- 56-3-707 issued by domestic stock insurance companies.
Acts 1965, ch. 95, § 8; T.C.A., § 56-257; Acts 1967, ch. 394, § 1; T.C.A., § 56-339.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 8 - VOLUNTARY DEPOSIT OF SECURITIES (§§ 56-3-801 — 56-3-804) › Section 56-3-801 - Voluntary deposit of securities for protection of state policyholders and creditors

Any insurance company may deposit and maintain on deposit with the state treasurer, securities as defined in §
56-3-303(a)(1)-(4), (7) and (8)
, to be held for the exclusive protection of its policyholders and creditors in this state; provided, that the deposit shall not exceed one hundred percent (100%) of that portion of the insurance company's reserves as is fairly allocable to insurance on risks located in this state.
Acts 1973, ch. 104, § 1; T.C.A., § 56-355.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 8 - VOLUNTARY DEPOSIT OF SECURITIES (§§ 56-3-801 — 56-3-804) › Section 56-3-802 - Authority to hold securities

The commissioner is authorized to accept the deposits, and the state treasurer shall hold the deposits in the same manner as other deposits are held under §§
56-2-104
,
56-2-112
and other applicable sections of this title.
Acts 1973, ch. 104, § 2; T.C.A., § 56-356.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 8 - VOLUNTARY DEPOSIT OF SECURITIES (§§ 56-3-801 — 56-3-804) › Section 56-3-803 - Delivery back to insurance company

Upon a showing that the interest of Tennessee policyholders will in no way be impaired, an insurance company may demand, and, upon receipt of the demand, the commissioner may deliver over to the insurance company all or any portion of the securities deposited by the insurance company.
Acts 1973, ch. 104, § 3; T.C.A., § 56-357.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 8 - VOLUNTARY DEPOSIT OF SECURITIES (§§ 56-3-801 — 56-3-804) › Section 56-3-804 - Rules and regulations

Consistent with this title, the commissioner may adopt reasonable rules and regulations for the purpose of implementing this part.
Acts 1973, ch. 104, § 4; T.C.A., § 56-358.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 9 - DEPOSIT OF SECURITIES IN CLEARING CORPORATIONS (§§ 56-3-901 — 56-3-905) › Section 56-3-901 - Purpose

The purpose of this part is to authorize insurance companies to utilize modern systems for holding and transferring securities without physical delivery of securities certificates, subject to rules and regulations promulgated by the commissioner pursuant to this part.
Acts 2012, ch. 680, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 9 - DEPOSIT OF SECURITIES IN CLEARING CORPORATIONS (§§ 56-3-901 — 56-3-905) › Section 56-3-902 - Part definitions

As used in this part:
(1)
(A)
"Clearing corporation" means:
(i)
A corporation as defined in § 8-102(a) of the Uniform Commercial Code, codified in §
47-8-102(a)
, as adopted by the Uniform Law Commission and the American Law Institute, as amended from time to time; and
(ii)
"Treasury/reserve automated debt entry securities system" and "treasury direct" book-entry securities systems established pursuant to 5 U.S.C. Part 301 , 12 U.S.C. Part 391 and
31 U.S.C. § 3100
et seq.;
(B)
With respect to securities issued by institutions organized or existing under the laws of any foreign country or securities used to meet the deposit requirements pursuant to the laws of a foreign country as a condition of doing business therein, "clearing corporation" also means a corporation which is organized or existing under the laws of any foreign country and is legally qualified under such laws to effect transactions in securities by computerized book-entry;
(2)
"Commissioner" means the commissioner of commerce and insurance;
(3)
"Custodian" means a national bank, state bank, federal home loan bank, trust company or broker/dealer that participates in a clearing corporation; and
(4)
"Securities" means instruments as defined in § 8-102(a) of the Uniform Commercial Code, codified in §
47-8-102(a)
, as adopted by the Uniform Law Commission and the American Law Institute, as amended from time to time.
Amended by 2024 Tenn. Acts, ch. 494,s 11, eff. 2/21/2024.
Acts 2012 , ch. 680, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 9 - DEPOSIT OF SECURITIES IN CLEARING CORPORATIONS (§§ 56-3-901 — 56-3-905) › Section 56-3-903 - Use of book-entry systems

(a)
(1)
A domestic insurance company may deposit, or arrange for the deposit of, securities held in or purchased for its general account and its separate accounts in a clearing corporation.
(2)
When securities are deposited with a clearing corporation:
(A)
Certificates representing securities of the same class of the same issuer may be merged and held in bulk in the name of the nominee of such clearing corporation with any other securities deposited with such clearing corporation by any person, regardless of the ownership of such securities; and
(B)
Certificates representing securities of small denominations may be merged into one (1) or more certificates of larger denominations.
(3)
The records of any custodian through which an insurance company holds securities in a clearing corporation shall at all times show that such securities are held for such insurance company and for which accounts.
(4)
Ownership of, and other interest in, such securities may be transferred by bookkeeping entry on the books of such clearing corporation without physical delivery of certificates representing such securities.
(b)
The commissioner is authorized to promulgate rules and regulations governing the deposit by insurance companies of securities with clearing corporations, including establishing standards for national banks, state banks, federal home loan banks, trust companies and broker/dealers to qualify as custodians for insurance company securities.
Acts 2012 , ch. 680, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 9 - DEPOSIT OF SECURITIES IN CLEARING CORPORATIONS (§§ 56-3-901 — 56-3-905) › Section 56-3-904 - Deposit of securities by domestic insurance companies

(a)
(1)
Securities qualified for deposit under §
56-2-104
may be deposited with a clearing corporation.
(2)
Securities deposited with a clearing corporation and used to meet the deposit requirements set forth in §
56-2-104
shall be under the control of the commissioner and shall not be withdrawn by the insurance company without the approval of the commissioner.
(b)
Any insurance company holding securities as provided in subsection (a) shall provide to the commissioner evidence issued by its custodian through which the insurance company has deposited securities in a clearing corporation, in order to establish that:
(1)
The securities are actually recorded in an account in the name of the custodian; and
(2)
The records of the custodian reflect that such securities are held subject to the order of the commissioner.
Acts 2012, ch. 680, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 9 - DEPOSIT OF SECURITIES IN CLEARING CORPORATIONS (§§ 56-3-901 — 56-3-905) › Section 56-3-905 - Deposit of securities by insurance companies

(a)
(1)
Securities eligible for deposit under the insurance laws of this state relating to deposit of securities by an insurance company as a condition of commencing or continuing to do any insurance business in this state may be deposited with a clearing corporation.
(2)
Securities deposited with a clearing corporation and used to meet the deposit requirements under the insurance laws of this state shall be under the control of the commissioner and shall not be withdrawn by the insurance company without the approval of the commissioner.
(b)
Any insurance company holding such securities as provided in subsection (a), shall provide to the commissioner evidence issued by its custodian in order to establish that:
(1)
The securities are actually recorded in an account in the name of the custodian; and
(2)
The records of the custodian reflect that such securities are subject to the order of the commissioner.
Acts 2012, ch. 680, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 1 - FEES (§§ 56-4-101 — 56-4-106) › Section 56-4-101 - Schedule and applicability of fees

(a)
The commissioner shall collect and pay into the state treasury the following nonrefundable fees:
(1)
For receiving and reviewing each new application for admission from every foreign or domestic insurance company, including application for eligibility of surplus lines insurers, captive insurance companies, protected cells of captive insurance companies, and incorporated protected cells of captive insurance companies, six hundred seventy-five dollars ($675);
(2)
For issuing each new certificate of authority to a company, foreign or domestic, including letter of notification of eligibility of surplus lines insurers, upon application for admission or eligibility, as the case may be, four hundred forty dollars ($440);
(3)
For annual review for determination of continuing eligibility of surplus lines insurers, two hundred seventy dollars ($270);
(4)
For each company's annual statement, five hundred fifteen dollars ($515);
(5)
For amendments to the company's certificate of authority, ninety dollars ($90.00);
(6)
For each seal of office, with certificate, seven dollars ($7.00);
(7)
For copies of any paper on file or deposit with the commissioner or the commissioner's office, fifty cents (50¢) per page;
(8)
For receiving and reviewing each change of business plan or change in ownership for a captive insurance company, four hundred dollars ($400); and
(9)
For receiving and reviewing each change of ownership for a protected cell of a captive insurance company or an incorporated protected cell of a captive insurance company, one hundred twenty-five dollars ($125).
(b)
This section shall apply to all insurance companies, including state and county mutual fire insurance companies, title insurance companies, associations, fraternal benefit societies, captive insurance companies and surplus lines insurers maintaining eligibility status, notwithstanding any law or statute under which companies, associations and societies may have been organized.
Amended by 2015 Tenn. Acts, ch. 156,Secs.s17, s18 eff. 4/17/2015.
Acts 1895, ch. 160, § 27; Shan., § 3311; Code 1932, § 6131; Acts 1967, ch. 24, § 2; 1971, ch. 272, § 1; 1972, ch. 481, § 1; 1975, ch. 68, § 21; 1979, ch. 298, § 1; T.C.A. (orig. ed.), § 56-401; Acts 1983, ch. 262, § 1; 1985, ch. 215, § 1; 2001, ch. 333, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 1 - FEES (§§ 56-4-101 — 56-4-106) › Section 56-4-102 - Disposition of fees

(a)
The fees for the valuation of life insurance policies, which are provided in §
56-4-101
, shall be collected for the use and benefit of the state and shall be held by the commissioner as expendable receipts, and the expense of operation of the department, including the salaries and traveling expenses of the actuaries employed pursuant to §
56-1-207
, shall be paid out of the fees collected. At the end of each fiscal year, any remaining funds after the payment of the expense of operation of the department shall be remitted to the state treasurer and become a part of the general fund.
(b)
The fees for receiving and reviewing each new application for admission and the annual fee for review of continuing eligibility of surplus lines insurers shall be collected for use and benefit of the state and shall be held by the commissioner as expendable receipts, and all salaries and traveling expenses of the personnel employed in the processing and review for admission or eligibility shall be paid out of such fees collected. At the end of each fiscal year, any remaining funds after payment of salaries and expenses of the personnel shall be remitted to the state treasurer and become a part of the general fund.
Acts 1943, ch. 97, § 3; mod. C. Supp. 1950, § 6459.42 (Williams, § 6459.45); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-402; Acts 1983, ch. 262, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 1 - FEES (§§ 56-4-101 — 56-4-106) › Section 56-4-103 - Fraternal insurance companies to pay per diem fee and expense of annual valuation of policies

Any fraternal insurance societies or companies not subject to valuation fees as provided in §
56-4-101
shall pay a per diem fee and the expense of the actuary on each annual valuation in the same manner that insurance companies are required to pay fees and expenses to the examiner assigned by the commissioner, and the per diem fees and expenses shall not exceed the maximum compensation provided for the actuaries in §
56-1-207
.
Acts 1943, ch. 97, § 4; C. Supp. 1950, § 6459.43 (Williams, § 6459.46); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-403.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 1 - FEES (§§ 56-4-101 — 56-4-106) › Section 56-4-104 - Receipt of illegal fees - Issuance of fraudulent certificate - Penalty

If the commissioner exacts or receives, either directly or indirectly, any sum of money from any insurance company doing business in this state other than the fees allowed by law, or willfully issues a fraudulent or false certificate of soundness to the company; or, directly or indirectly, receives any money or other valuable thing for doing or not doing any official act as commissioner, other than the fees allowed by law, the commissioner commits a Class E felony.
Acts 1873, ch. 58, § 17; Shan., § 3345; Code 1932, § 6170; T.C.A. (orig. ed.), § 56-404; Acts 1989, ch. 591, §§ 1,6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 1 - FEES (§§ 56-4-101 — 56-4-106) › Section 56-4-105 - Refund of erroneously paid amounts

(a)
With respect to any revenues or receipts collected by the department, any other law to the contrary notwithstanding, the amounts determined to have been erroneously paid may be refunded by the procedure developed by the commissioner of finance and administration and approved by the comptroller of the treasury.
(b)
The procedure shall provide that no refund shall be made unless within three (3) years from December 31 of the year in which the erroneous payment was made, the refund is either requested by the claimant or made by the state on its own motion.
Acts 1984, ch. 633, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 1 - FEES (§§ 56-4-101 — 56-4-106) › Section 56-4-106 - Annual regulatory fee for credit life, accident, and health insurance

With regard to each insurer qualified to transact only the business of reinsuring credit life and credit accident and credit health insurance, the commissioner shall collect a nonrefundable annual regulatory fee of three thousand dollars ($3,000). One half (1/2) of the regulatory fee shall be collected on April 1, which, notwithstanding §
56-1-501
, shall also be the date on or before which the insurer's annual statement shall be filed, and the balance shall be collected on September 1 of each year, except that the initial regulatory fee collected shall be reduced pro rata to reflect the number of months during the year in which the certificate of authority has been in effect. The regulatory fees paid into the department under this section shall be held by the commissioner as expendable receipts for the purpose of administering chapter 7, part 9 of this title.
Acts 1988, ch. 667, § 3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 2 - TAXES (§§ 56-4-201 — 56-4-221) › Section 56-4-201 - Companies subject to tax - "Insurance company" defined

(a)
Every domestic or foreign insurance company writing life, fire, marine, fidelity, surety, casualty, liability, or other forms of insurance shall pay directly to the commissioner the taxes as provided for in this part.
(b)
As used in this part, "insurance company" means any insurance, fidelity or surety company, including any corporation, company, partnership, association, society, order, fraternal or otherwise, individual or aggregation of individuals engaging in, or proposing or attempting to engage in, any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships and corporations.
Acts 1945, ch. 3, § 1; C. Supp. 1950, § 1248.41 (Williams, § 1248.169); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed), § 56-405.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 2 - TAXES (§§ 56-4-201 — 56-4-221) › Section 56-4-202 - Associations exempt

Sections
56-4-201-56
-4-218 do not apply to fraternal benefit associations and societies as defined in chapter 25 of this title, nor to those exempt from the provisions provided in §
56-25-704
.
Acts 1945, ch. 3, § 7; C. Supp. 1950, § 1248.47 (Williams, § 1248.175); T.C.A. (orig. ed.), § 56-406; Acts 1990, ch. 703, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 2 - TAXES (§§ 56-4-201 — 56-4-221) › Section 56-4-203 - State purposes only

The tax imposed by this part shall be for state purposes only, and no county or city shall be authorized to levy or collect a like tax.
Acts 1953, ch. 49, § 1 (Williams, § 1248.169); T.C.A. (orig. ed.), § 56-407.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 2 - TAXES (§§ 56-4-201 — 56-4-221) › Section 56-4-204 - "Gross premiums" defined

As used in this part, "gross premiums" means maximum gross premiums as provided in the policy contracts, new and renewal, including policy or membership fees, whether paid in part or in whole by cash, automatic premium loans, dividends applied in any manner whatsoever, and without deduction or exclusion of dividends in any manner; but excluding premiums returned on cancelled policies, or on account of reduction in rates, or reductions in the amount insured or experience rating refunds on life insurance policies and disability insurance policies.
Acts 1945, ch. 3, § 1; C. Supp. 1950, § 1248.41 (Williams, § 1248.169); Acts 1977, ch. 220, § 1; T.C.A. (orig. ed.), § 56-412.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 2 - TAXES (§§ 56-4-201 — 56-4-221) › Section 56-4-206 - Tax on workers' compensation insurers

Every insurance company writing workers' compensation insurance under the Workers' Compensation Law, compiled in title 50, chapter 6, shall be subject to and pay a tax of four percent (4%) on gross premiums collected for workers' compensation insurance, plus a surcharge of four tenths of one percent (0.4%) on gross premiums, the surcharge to be earmarked for the administration of the Tennessee Occupational Safety and Health Act, compiled in title 50, chapter 3. This tax shall be paid at the same time and in the same manner as the tax levied upon insurance companies by §
56-4-205
; provided, that the surcharge of four tenths of one percent (0.4%) on the tax on workers' compensation insurance premiums levied by this section does not apply to any employer who employs ten (10) or fewer employees, unless the employer is in the business of construction or manufacturing.
Acts 1945, ch. 3, § 2; C. Supp. 1950, § 1248.42 (Williams, § 1248.170); T.C.A. (orig. ed.), § 56-409; impl. am. Acts 1980, ch. 534, § 1; Acts 1981, ch. 396, §§ 1, 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 2 - TAXES (§§ 56-4-201 — 56-4-221) › Section 56-4-207 - Tax on self-insurers under compensation law

(a)
If any employer covered by the Workers' Compensation Law, compiled in title 50, chapter 6, carries its own insurance as provided by that chapter, the employer shall pay to the commissioner four percent (4%) on the premium that the employer would be required to pay if the employer carried the full coverage insurance called for with licensed insurance companies; provided, that the tax so paid by any employer shall in no instance be less than five dollars ($5.00), and a surcharge of four tenths of one percent (0.4%) on the premium the employer would have been required to pay, the surcharge to be earmarked for the administration of the Tennessee Occupational Safety and Health Act, compiled in title 50, chapter 3. The tax shall be paid by the self-insurers to the commissioner on or before June 30 of each year. Any company or corporation electing to operate as a self-insurer and having been duly qualified as such subsequent to June 30 of any year shall pay the tax based on the estimated payroll for the balance of the year when the permit is issued; provided, that the surcharge of four tenths of one percent (0.4%) on the tax on workers' compensation insurance premiums levied by this section shall not apply to any employer who employs ten (10) or fewer employees, unless the employer is in the business of construction or manufacturing.
(b)
This section shall not apply to county or municipal governments.
Acts 1945, ch. 3, § 2; C. Supp. 1950, § 1248.42 (Williams, § 1248.170); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-410; impl. am. Acts 1980, ch. 534, § 1; Acts 1981, ch. 396, §§ 2, 4; 1984, ch. 962, § 1; 1985, ch. 354, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 2 - TAXES (§§ 56-4-201 — 56-4-221) › Section 56-4-208 - Additional payment for fire insurance

(a)
In addition to the premium taxes levied by §
56-4-205
, all companies writing fire insurance and lines of business having fire coverages as a part of the risk rate shall pay three fourths of one percent (0.75%) on that portion of the premium applicable to the fire risk for the purpose of executing the fire marshal law.
(b)
For the purpose of subsection (a), the following portions of the amounts required to be reported by line of business in the annual statement required by §
56-1-501
shall be considered premiums for insurance covering the peril of fire:
(1)
Fire lines, one hundred percent (100%);
(2)
Farmowners and homeowners multiple peril, fifty-five percent (55%);
(3)
Commercial multiple peril, fifty percent (50%);
(4)
Inland marine, twenty percent (20%);
(5)
Automobile physical damage, eight percent (8%); and
(6)
Aircraft physical damage, eight percent (8%).
(c)
This tax shall be paid at the same time and in the same manner as the tax levied upon insurance companies by §
56-4-205
.
Acts 1945, ch. 3, § 3; mod. C. Supp. 1950, § 1248.43 (Williams, § 1248.171); Acts 1976, ch. 742, § 1; T.C.A. (orig. ed.), § 56-411.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 2 - TAXES (§§ 56-4-201 — 56-4-221) › Section 56-4-211 - Credit for valuation of policies fees

The charge for valuation of life policies as contained in §
56-4-101
shall be allowed as a credit against the premium taxes collected under this part whenever the charges are paid to the commissioner as provided by that section; provided, that no credit shall be allowed for any valuation fees paid prior to January 1, 1945.
Acts 1945, ch. 3, § 4; C. Supp. 1950, § 1248.44 (Williams, § 1248.172); impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed), § 56-415.