reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-106 - Maintenance and preservation of records - Examination

(a)
Every licensee shall maintain corporate and accounting records, including complete records of its premium finance transactions, and the records shall be open to examination and investigation by the commissioner. The commissioner may at any time during regular business hours examine the records at any location at which the records are maintained.
(b)
Every licensee shall preserve its records of the premium finance transactions, including cards used in a card system, if any, for at least two (2) years after making the final entry in respect to any premium finance agreement. The preservation of records in photographic, microfilm or microfiche form shall constitute compliance with this requirement.
Amended by 2014 Tenn. Acts, ch. 736,s 37, eff. 7/1/2015.
Acts 1980, ch. 920, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-107 - Premium finance agreement - Contents

(a)
A premium finance agreement shall:
(1)
Be dated and signed by the insured or on behalf of the insured by a power of attorney, and its printed portion shall be in at least eight-point type;
(2)
Contain the name and place of business of the insurance agent negotiating the related insurance contract, the name and residence or the place of business of the insured as specified by the insured, the name and place of business of the premium finance company to which payments are to be made, a brief description of the insurance contracts involved and the amount of the premium; and
(3)
Set forth the following items where applicable:
(A)
The total amount of the premiums;
(B)
The amount of the down payment;
(C)
The principal balance (the difference between subdivisions (a)(3)(A) and (B));
(D)
The amount of the interest;
(E)
The balance payable by the insured (sum of subdivisions (a)(3)(C) and (D)); and
(F)
The number of installments required, the amount of each installment expressed in dollars, and the due date or period of the installments.
(b)
The items set out in subdivision (a)(3) need not be stated in the sequence or order in which they appear in subdivision (a)(3), and additional items may be included to explain the computations made in determining the amount to be paid by the insured. Compliance with the federal Truth In Lending Act (
15 U.S.C. § 1601
et seq.), will satisfy disclosure requirements of this section.
Acts 1980, ch. 920, § 7.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-108 - Interest charges - Computation - Maximum rates

(a)
A premium finance company shall not charge, or contract for an interest charge, other than as permitted by this chapter.
(b)
The interest is to be computed on the balance of the premiums due, after subtracting the down payment made by the insured in accordance with the premium finance agreement, from the effective date of the insurance contract, for which the premiums are being advanced, to and including the date when the final installment of the premium finance agreement is payable.
(c)
The maximum effective rate of interest under this chapter shall:
(1)
Be determined in accordance with the actuarial method;
(2)
In the case of precomputed interest, be calculated and determined as of the effective date of the insurance contract on the assumption that all scheduled payments will be made as contracted; and
(3)
Not be affected by the prepayment of the loan, in whole or in part.
(d)
The maximum effective rate of interest per annum under this chapter shall not exceed twenty-four percent (24%) per annum.
(e)
The term of a loan for the purposes of this section commences on the effective date of the insurance contract for which the premium is being advanced. Differences in the lengths of months are disregarded and, for any period less than a month, each day may be counted as one thirtieth (
1
/
30
) of a month.
(f)
Notwithstanding any premium finance agreement, any insured may prepay the obligation in full at any time. In this event, the insured shall receive a refund credit, which refund credit shall represent at least as great a proportion of the interest as the sum of the periodic balances after the month in which prepayment is made bears to the sum of all periodic balances under the schedules of installments in the agreement. Where the amount of the refund credit is less than one dollar ($1.00), no refund need be made.
Acts 1980, ch. 920, § 8; 1981, ch. 414, § 1; 1983, ch. 431, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-109 - Loan charges

No licensee under this chapter has the power to charge premium loan charges other than, or in amounts greater than, the following:
(1)
Licensees may charge, in the case of the precomputed loan, a service charge in an amount equal to four percent (4%) of the total amount of the loan, which charge may be deducted in advance from the principal of the premium loan; provided, that a licensee who contracts for the payment of interest on the balances from time to time outstanding, commonly referred to as a revolving or open-end account, shall be limited to contracting for a service charge not to exceed fifteen dollars ($15.00) and payable no more frequently than once per calendar year per premium loan account. This service charge shall be in lieu of all other compensation for services, expenses, detriments or commitments directly incident to the loan, except those charges that are otherwise specifically provided in this chapter. This charge is authorized and limited on the basis that it is generally reasonably related to the total costs and expenses that it is designed to cover, and in order to make the amount of the charges more certain and readily ascertainable by the registrants, their borrowers and the commissioner, and to that end registrants shall not be required to maintain detailed records with respect to the services, expenses, detriments or commitments covered thereby. This charge shall not, however, be imposed on that portion of a loan used to pay any existing loan or part thereof owing by the same borrower or spouse or both to the same licensee or any affiliated lender.
(2)
(A)
A premium finance agreement may provide for the payment by the insured of a delinquency charge of two dollars ($2.00) to a maximum of five percent (5%) of the delinquent installment on any installment, which is in default for a period of ten (10) days or more; provided, that the charge shall not be collected more than once for the same delinquency.
(B)
If the default results in the cancellation of any insurance contract listed in the agreement, the agreement may provide for the payment by the insured of a cancellation charge of five dollars ($5.00).
(3)
A premium finance agreement may provide for payment of collection costs, attorney's fees equal to fifteen percent (15%) of the outstanding indebtedness and any other charges that arose because one (1) party breached the contract.
(4)
None of the charges referred to in this section shall be considered directly or indirectly in determining whether a violation of the usury laws has occurred under a premium finance agreement.
Acts 1980, ch. 920, § 9; 1981, ch. 414, § 2; 1983, ch. 431, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-110 - Cancellation - Notice

(a)
When a premium finance agreement contains a power of attorney enabling the premium finance company to cancel any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be cancelled by the premium finance company unless the cancellation is effectuated in accordance with this section.
(b)
Not less than ten (10) days' written notice shall be mailed to the insured, at the insured's last known address as shown on the records of the premium finance company, of the intent of the premium finance company to cancel the insurance contract unless the default is cured within the ten-day period; provided, that if a default results from the refusal of a bank to honor a loan repayment check, the default shall be treated as a request of the insured for cancellation and the premium finance company shall not be required to provide an additional ten (10) days' written notice to the insured.
(c)
After expiration of the ten-day period, the premium finance company may thereafter cancel the insurance contract or contracts by mailing to the insurer a notice of cancellation. The insurance contract shall be cancelled as if the notice of cancellation had been submitted by the insured, but without requiring the return of the insurance contract or contracts. The premium finance company shall also mail a notice of cancellation to the insured at the insured's last known address as shown on the records of the premium finance company.
(d)
All statutory, regulatory and contractual restrictions providing that the insurance contract may not be cancelled unless notice is given to a governmental agency, mortgagee or other third party shall apply where cancellation is effected under this section. The insurer shall give the prescribed notice on behalf of itself or the insured to any governmental agency, mortgagee or other third party on or before the second business day after the day it receives the notice of cancellation, taking into consideration the number of days' notice required to complete the cancellation.
Acts 1980, ch. 920, § 10.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-111 - Refund of gross unearned premiums upon cancellation

(a)
Whenever a financed insurance contract is cancelled, the insurer shall return whatever gross unearned premiums are due under the insurance contract directly to the premium finance company for the account of the insured or insureds as soon as reasonably possible, but in no event shall the period for payment exceed thirty (30) days after the effective date of cancellation. In the event that the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the premium finance company shall refund the excess to the insured within thirty (30) days; provided, that no refund shall be required if it amounts to less than one dollar ($1.00). Failure by the insurer to remit the unearned premium to the finance company, as required by this subsection (a), shall make the insurer liable for any interest or finance fees that are assessed against the policyholder as a result of the failure to timely remit unearned premiums after the required period to remit the refund.
(b)
When cancellation of a financed insurance contract is requested by the premium finance company, the insurance company shall base the refund of the unearned premiums on a pro rata basis.
Acts 1980, ch. 920, § 11; 1995, ch. 238, § 1; 2001, ch. 184, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-112 - Perfection of assignment and security interest

(a)
A premium finance company, seller, building or savings and loan association, bank, trust company, industrial loan and thrift company or credit union authorized to do business in this state that finances insurance premiums, shall be deemed to have a perfected assignment and security interest in any premiums financed if the buyer or borrower signs a written agreement assigning a security interest in the premiums financed to the premium finance company, seller, seller's assignee, or lender. No filing or other recordation of the premium finance agreement or financing statement shall be necessary to perfect the validity of the agreement as a valid assignment and secured transaction as against creditors, subsequent purchasers, pledgees, encumbrancers, trustees in bankruptcy or any other insolvency proceeding under any law, or anyone having the status or power of the aforementioned or their successors or assigns.
(b)
Title 47, chapter 9, shall govern the relative priorities of security interests in, and any right of set-off against, funds advanced pursuant to a premium finance agreement or cash proceeds of a premium financed.
Amended by 2013 Tenn. Acts, ch. 121,s 2, eff. 4/12/2013.
Acts 1980, ch. 920, § 12; 1981, ch. 414, § 3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-113 - Penalties

Any premium finance company that willfully and knowingly violates the provisions of any section of this chapter commits a Class C misdemeanor.
Acts 1980, ch. 920, § 13; 1989, ch. 591, § 113.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-114 - Exemptions

This chapter does not apply to:
(1)
The financing of insurance premiums by any seller who sells goods or services pursuant to an installment sale contract wherein a time price differential is charged, or to any building or savings and loan association, bank, trust company, industrial loan and thrift company or credit union authorized to do business in this state, which finances insurance premiums incidental to other extensions of credit;
(2)
Any insurance company, association or exchange authorized to do business in this state that solely finances the insurance premiums for the insurance policies it issues or a subsidiary of an authorized insurer admitted in this state or a corporation under substantially the same management or control as an admitted insurer or group of insurers, where the subsidiary, managed or controlled company is engaged in the business of financing insurance premiums on policies issued only by its parent insurer or affiliated group of insurers; and
(3)
Any insurance agent or producing agent licensed to do business in this state who finances premiums on policies solely written by the agent or producing agent.
Acts 1980, ch. 920, § 14; 1981, ch. 414, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-115 - Reenactment - Short title

This chapter is reenacted in its entirety as amended by Acts 1981, ch. 414, and shall continue to be entitled the "Premium Finance Company Act of 1980."
Acts 1981, ch. 414, § 5.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-116 - Licensing through multi-state automated licensing system

(a)
In addition to any other powers imposed upon the commissioner by law, the commissioner is authorized to require persons subject to this chapter to be licensed through a multi-state automated licensing system. Pursuant to this authority, the commissioner may:
(1)
Promulgate any rules reasonably necessary for participation in, transition to, or operation of a multi-state automated licensing system;
(2)
Establish relationships or enter into agreements reasonably necessary for participation in, transition to, or operation of a multi-state automated licensing system. The agreements may include, but are not limited to, operating agreements, information sharing agreements, interstate cooperative agreements, and technology licensing agreements;
(3)
Require that applications for licensing under this chapter and renewals of such licenses be filed with a multi-state automated licensing system;
(4)
Require that any fees required to be paid under this chapter be paid through a multi-state automated licensing system;
(5)
Establish deadlines for transitioning licenses to a multi-state automated licensing system. The commissioner may deny any applications or renewal applications not filed with a multi-state automated licensing system after the deadlines have passed, notwithstanding any other deadlines established in this chapter. The commissioner shall provide reasonable notice of any transition deadlines to licensees; and
(6)
Take such further actions as are reasonably necessary to give effect to this section.
(b)
Nothing in this section authorizes the commissioner to require a person who is not subject to this chapter to submit information to, or participate in, a multi-state automated licensing system.
(c)
Notwithstanding any other provision of this section, the commissioner retains full authority and discretion to license persons under this chapter and to enforce this chapter. Nothing in this section reduces or derogates that authority and discretion.
(d)
Applicants for and holders of licenses issued under this chapter must pay all costs associated with submitting an application or transitioning a license to a multi-state automated licensing system, as well as all costs associated with maintaining and renewing any license issued by the commissioner on a multi-state automated licensing system.
Added by 2017 Tenn. Acts, ch. 122, s 14, eff. 7/1/2018.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-117 - Agent for channeling information

The commissioner is authorized to use a multi-state automated licensing system as an agent for channeling information, whether criminal or noncriminal in nature, and whether derived from or distributed to the United States department of justice, any other state or federal governmental agency, or any other source that the commissioner is authorized to request or distribute under this chapter.
Added by 2017 Tenn. Acts, ch. 122,s 14, eff. 7/1/2018.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 37 - PREMIUM FINANCE COMPANY ACT OF 1980 (§§ 56-37-101 — 56-37-118) › Section 56-37-118 - Privacy or confidentiality of shared information

In order to promote more effective regulation and reduce regulatory burden through supervisory information sharing:
(1)
The requirements under any federal or state law regarding the privacy or confidentiality of any information or material provided to a multi-state automated licensing system, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to such information or material, continue to apply to the information or material after it has been disclosed to a multi-state automated licensing system. The information or material may be shared with all state and federal regulatory officials with premium finance company oversight authority without the loss of privilege or confidentiality protections provided by federal or state law, including the protection available under §
45-1-120
;
(2)
For purposes of subdivision (1), the commissioner may enter into agreements or sharing agreements with other governmental agencies, the Conference of State Bank Supervisors, or other associations representing governmental agencies, as established by rule, regulation, or order of the commissioner;
(3)
Information or material that is subject to a privilege or confidentiality protection under subdivision (1) shall not be subject to:
(A)
Disclosure under any federal or state law governing disclosure to the public of information held by an officer or agency of the federal government or the respective state; or
(B)
Subpoena or discovery or admission into evidence in any private civil action or administrative process, unless the person to whom such information or material pertains, in the person's discretion, waives any applicable privilege held by a multi-state automated licensing system, in whole or in part;
(4)
This section supersedes any inconsistent provisions of title 10, chapter 7, part 5, pertaining to the records open to public inspection; and
(5)
This section does not apply with respect to information or material relating to publicly adjudicated disciplinary and enforcement actions against persons subject to this chapter that is included in a multi-state automated licensing system for access by the public.
Added by 2017 Tenn. Acts, ch. 122,s 14, eff. 7/1/2018.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 40 - INDEMNIFIED EMPLOYEE WELFARE BENEFIT PLANS (§§ 56-40-101 — 56-40-105) › Section 56-40-101 - Annual registration - Exclusion of catastrophic loss

(a)
Each plan that purchases a contract of insurance that provides for indemnification of claims made by plan participants, except in the event of a catastrophic loss, shall register annually with the department of commerce and insurance, in the manner and on forms prescribed by the department.
(b)
"Catastrophic loss," as used in this section, means any contract of insurance that provides for indemnification of claims made by plan participants in the amount of twenty-five thousand dollars ($25,000) or more per individual participant or an accumulated loss in any one (1) plan contract year in the amount of and over one hundred fifty thousand dollars ($150,000) for the employee plan.
Acts 1987, ch. 365, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 40 - INDEMNIFIED EMPLOYEE WELFARE BENEFIT PLANS (§§ 56-40-101 — 56-40-105) › Section 56-40-102 - Registration requirements

(a)
The registration requirements of this chapter include, but are not limited to:
(1)
The employer's name and insurance federal employer identification number;
(2)
The total number of employees covered by the employee welfare benefit plan;
(3)
The size of the insurance reserve fund under the plan;
(4)
An attached copy of insurance benefits provided to employees and their dependents under the plan; and
(5)
An attached copy of any indemnity supplemental insurance that insures the plan benefits, with disclosure of the point at which the indemnity insurance begins coverage of those plan benefits.
(b)
Registrations shall be filed and received in the office of the department of commerce and insurance no later than twelve o'clock (12:00) midnight of January 31 of each year.
Acts 1987, ch. 365, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 40 - INDEMNIFIED EMPLOYEE WELFARE BENEFIT PLANS (§§ 56-40-101 — 56-40-105) › Section 56-40-103 - Accuracy of information

The information registered and reported in accordance with §
56-40-102
shall be accurate as of the date of registration.
Acts 1987, ch. 365, § 3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 40 - INDEMNIFIED EMPLOYEE WELFARE BENEFIT PLANS (§§ 56-40-101 — 56-40-105) › Section 56-40-104 - Violations - Penalties

Any plan that violates this chapter shall be subject to a fine and/or a civil penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for each violation. Each year that a plan fails to register in accordance with this chapter constitutes a separate violation.
Acts 1987, ch. 365, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 40 - INDEMNIFIED EMPLOYEE WELFARE BENEFIT PLANS (§§ 56-40-101 — 56-40-105) › Section 56-40-105 - Rules and regulations

The department shall promulgate necessary and appropriate rules and regulations pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement the effect and intent of this chapter.
Acts 1987, ch. 365, § 5.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-101 - Chapter definitions

As used in this chapter, unless the context otherwise requires:
(1)
"Association" means the Tennessee property and casualty insurance association; and
(2)
"Insurance" means "property insurance" as defined in §
56-2-201
, and "casualty insurance" as defined in §
56-2-201
, except for:
(A)
Hazardous waste or environmental impairment insurance; and
(B)
Any kind of insurance that is available through the Tennessee automobile insurance plan or any other existing residual market mechanism as defined in chapter 5 of this title.
Acts 1987, ch. 439, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-102 - Voluntary risk sharing or market assistance plan

If the commissioner of commerce and insurance finds after a hearing that, in any part of this state, property and casualty insurance is not readily available in the voluntary market and that the public interest requires its availability, the commissioner may authorize formation of a voluntary risk sharing or market assistance plan under §
56-41-111
.
Acts 1987, ch. 439, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-103 - Tennessee property and casualty insurance association - Creation - Plan of operation

(a)
If, after public hearing, the commissioner finds that the voluntary risk sharing or market assistance plan has failed, or that no plan has been established, to restore availability of the needed insurance coverages, the commissioner may establish the Tennessee property and casualty insurance association as an unincorporated association. The purpose of the association shall be to provide a market for certain kinds of property and casualty insurance on a self-supported basis without subsidy from other kinds of insurance.
(b)
The association shall perform its functions under a plan of operation approved by the commissioner. The plan of operation shall:
(1)
Give consideration to the need for adequate and readily accessible coverage, to alternative methods of improving the market affected, to the preferences of insurers and agents, to the inherent limitations of the insurance mechanism, to the need for reasonable underwriting standards, and to the requirement of reasonable loss prevention measures;
(2)
Establish procedures that will create minimum interference with voluntary markets;
(3)
Spread the burden imposed by the association equitably and efficiently within the insurance industry; and
(4)
Establish procedures for applicants and participants to have grievances reviewed by an impartial body.
Acts 1987, ch. 439, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-104 - Board of directors of association

(a)
The administrative powers of the association are vested in a board of directors, approved by the commissioner, consisting of seven (7) members who shall be elected and votes shall be cast and counted on a weighted basis in accordance with the premiums written of each member insurer. In addition, there shall be appointed by the commissioner two (2) members who shall be licensed agents or a representative of an agent's association.
(b)
Members of the board of directors may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors and for reasonable and equitable compensation as may be prescribed by the terms of the plan of operation.
(c)
The board of directors shall submit to the commissioner a plan of operation for the association and make suitable or necessary amendments to the plan to assure the fair, reasonable and equitable administration of the association. The plan of operation shall become effective upon the commissioner's approval in writing. The commissioner has the authority to modify or amend the plan.
(d)
If the association fails to submit a plan of operation within a reasonable period of time, or if at any time thereafter the association fails to submit amendments to the plan of operation, the commissioner, after a public hearing, may promulgate a plan of operation that is, in the commissioner's discretion, necessary or advisable to effectuate this title.
Acts 1987, ch. 439, § 3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-105 - Plan of operation - Insurers and agents required to participate

(a)
The plan of operation shall require participation by all insurers licensed in Tennessee and transacting direct insurance of the type covered by the specific plan, and all agents appointed to represent the insurers in this state for the specified types of business, except that the commissioner may exclude classes of persons for administrative convenience or because it is not equitable or practicable to require them to participate in the plan. "Type of insurance" means personal or commercial property and casualty coverage as defined in this title.
(b)
The plan may provide for optional participation by insurers not required to participate under subsection (a).
Acts 1987, ch. 439, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-106 - Plan of operation - Information to be specified or provided

(a)
The plan of operation shall specify the basis of participation of insurers and agents and the conditions under which risks must be accepted.
(b)
Every participating insurer and agent shall provide to any person seeking coverage:
(1)
The kinds available under the plan of operation; and
(2)
The services prescribed in the plan of operation, including full information on the requirements and procedures for obtaining coverage under the plan of operation, assuming coverage cannot be placed in the voluntary market.
Acts 1987, ch. 439, § 5.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-107 - Plan of operation - Methods regarding risks, rates, claims and coverage - Premiums - Deficits

(a)
The plan of operation shall provide for the method of underwriting and classifying risks, making and filing rates, adjusting and processing claims, and any other insurance or investment function that is necessary for the purpose of providing essential insurance coverage.
(b)
All policies issued by the association shall be subject to a nonprofit group retrospective rating plan to be approved by the commissioner, under which the final premium for all policyholders of the association, as a group, will be equal to the administrative expenses, loss and loss adjustment expenses, plus a reasonable allowance for contingencies and servicing. Policyholders shall be given full credit for all investment income, net of expenses and a reasonable management fee on policyholder supplied funds. Any additional premium resulting from a retrospective adjustment will first be collected from the stabilization fund set forth in §
56-41-108
. If these funds are insufficient to pay the entire amount due, the balance will be recouped through surcharges upon policyholders in accordance with a procedure approved by the commissioner.
(c)
In providing for the recoupment of deficits that may be incurred by the association, an option shall be offered to an insured each policy year to pay a capital stabilization charge that shall not exceed one hundred percent (100%) of the premium charged to the insurer in that year. The commissioner shall determine the amount of the charge from the appropriate factors of loss experience and risks associated with the plan of operation and the insurer. An insured who pays the stabilization charge shall not be required to pay any assessment to recoup a deficit in the plan incurred in any policy year for which the charge is paid. The plan of operation shall provide for the return to the insured so much of the insured's payment as remains after all actual or potential liabilities under the policy have been discharged.
Acts 1987, ch. 439, § 6.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-108 - Stabilization reserve fund

(a)
There is created a stabilization reserve fund, to be administered in accordance with procedures submitted by the association and approved by the commissioner.
(b)
Each policyholder shall pay to the association a stabilization reserve fund charge equal to one half (1/2) of each premium due for insurance issued by the association until the fund reaches a level deemed appropriate by the commissioner. The means of payment shall be set forth in the plan of operation and shall be separately stated in the policy. The association shall cancel the policy of any policyholder who fails to pay the stabilization reserve fund charge.
(c)
The moneys held in trust shall be used solely for the purpose of discharging when due any retrospective premium charges payable by policyholders of the association under the group retrospective rating plan authorized by this chapter. Payment of retrospective premium charges shall be made by the board of directors upon certification to the board by the association of the amount due.
(d)
Any moneys remaining in the fund after all the retrospective premium charges have been paid shall be returned to policyholders under procedures authorized by the board of directors.
Acts 1987, ch. 439, § 7.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-110 - Payment of fees and taxes by association

(a)
The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real or personal property and as excepted in subsection (b).
(b)
Premium taxes shall apply to premiums received for insurance placed through the association.
Acts 1987, ch. 439, § 9.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-111 - Scope and types of voluntary plans

Insurers doing business in this state are authorized to prepare voluntary risk sharing or market assistance plans providing any specific kind, line or class of insurance coverage, or subdivision or combination of any specific kind, line or class of insurance coverage, for all or any part of the state in which the insurance is not readily available in the voluntary market and that the public interest requires to be available. Voluntary risk sharing or market assistance plans shall be submitted to the commissioner and may be put into operation only with the commissioner's approval. If the commissioner finds that a voluntary risk sharing or market assistance plan would sufficiently provide essential insurance coverage, the commissioner may authorize formulation of the plans in lieu of establishing the association.
Acts 1987, ch. 439, § 10.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-112 - Duration and effect of obligations and duties

All obligations and duties arising under the plan of operation and under policies issued by the association shall remain in full force and effect during their terms.
Acts 1987, ch. 439, § 11.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-113 - Immunity for good-faith statements and actions

There shall be no liability on the part of, and no cause of action of any nature shall arise against, the commissioner, or any of the commissioner's staff, the association or its directors, agents or employees, or against any participating insurer because of any statements made or actions taken in good faith in connection with any inspections, examinations, hearings, reports, and communications concerning the operation of this association.
Acts 1987, ch. 439, § 12.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 41 - JOINT UNDERWRITING/RISK SHARING (§§ 56-41-101 — 56-41-114) › Section 56-41-114 - Examination of organizations

The commissioner shall make an examination as may be required into the affairs of any organization set up under this agreement at least once every five (5) years. The examination shall be conducted and the report filed in the manner prescribed for insurance companies in this title. The expenses of the examination shall be paid by the organization established under this chapter in the manner prescribed by this title.
Acts 1987, ch. 439, § 13.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 42 - LONG-TERM CARE INSURANCE ACT (§§ 56-42-101 — 56-42-111) › Section 56-42-101 - Short title

This chapter shall be known and may be cited as the "Long-Term Care Insurance Act."
Acts 1988, ch. 873, § 3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 42 - LONG-TERM CARE INSURANCE ACT (§§ 56-42-101 — 56-42-111) › Section 56-42-102 - Purpose - Applicability

(a)
The purpose of this chapter is to promote the public interest, to promote the availability of long-term care insurance policies, to protect applicants for long-term care insurance, as defined, from unfair or deceptive sales or enrollment practices, to establish standards for long-term care insurance, to facilitate public understanding and comparison of long-term care insurance policies and to facilitate flexibility and innovation in the development of long-term care insurance coverage.
(b)
The requirements of this chapter apply to policies delivered or issued for delivery in this state on or after July 1, 2008. This chapter is not intended to supersede the obligations of entities subject to this chapter to comply with the substance of other applicable insurance laws insofar as they do not conflict with this chapter, except that laws and regulations designed and intended to apply to medicare supplement insurance policies shall not be applied to long-term care insurance.
Acts 1988, ch. 873, §§1, 2; 2008 , ch. 1058, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 42 - LONG-TERM CARE INSURANCE ACT (§§ 56-42-101 — 56-42-111) › Section 56-42-104 - Policies issued in other states

No group long-term care insurance coverage may be offered to a resident of this state under a group policy issued in another state to a group described in §
56-42-103(4)(D)
, unless this state or another state having statutory and regulatory long-term care insurance requirements substantially similar to those adopted in this state has made a determination that the requirements have been met.
Acts 1988, ch. 873, § 5.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 42 - LONG-TERM CARE INSURANCE ACT (§§ 56-42-101 — 56-42-111) › Section 56-42-107 - Incontestability period

(a)
For a policy or certificate that has been in force for less than six (6) months, an insurer may rescind a long-term care insurance policy or certificate or deny an otherwise valid long-term care insurance claim upon a showing of misrepresentation that is material to the acceptance for coverage.
(b)
For a policy or certificate that has been in force for at least six (6) months but less than two (2) years, an insurer may rescind a long-term care insurance policy or certificate or deny an otherwise valid long-term care insurance claim upon a showing of misrepresentation that is both material to the acceptance for coverage and that pertains to the condition for which benefits are sought.
(c)
After a policy or certificate has been in force for two (2) years, it is not contestable upon the grounds of misrepresentation alone. The policy or certificate may be contested only upon a showing that the insured knowingly and intentionally misrepresented relevant facts relating to the insured's health.
(d)
(1)
A long-term care insurance policy or certificate may be field issued if the compensation to the field issuer is not based on the number of policies or certificates issued.
(2)
For purposes of subdivision (d)(1), "field issued" means a policy or certificate issued by a producer or a third-party administrator pursuant to the underwriting authority granted to the producer or third party administrator by an insurer and using the insurer's underwriting guidelines.
(e)
If an insurer has paid benefits under the long-term care insurance policy or certificate, the benefit payments may not be recovered by the insurer in the event that the policy or certificate is rescinded.
(f)
In the event of the death of the insured, this section shall not apply to the remaining death benefit of a life insurance policy that accelerates benefits for long-term care. In this situation, the remaining death benefits under these policies shall be governed by §
56-7-2307(3)
. In all other situations, this section shall apply to life insurance policies that accelerate benefits for long-term care.
Acts 2008, ch. 1058, § 10.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 42 - LONG-TERM CARE INSURANCE ACT (§§ 56-42-101 — 56-42-111) › Section 56-42-108 - Nonforfeiture benefits

(a)
Except as provided in subsection (b), a long-term care insurance policy may not be delivered or issued for delivery in this state unless the policyholder or certificate holder has been offered the option of purchasing a policy or certificate including a nonforfeiture benefit. The offer of a nonforfeiture benefit may be in the form of a rider that is attached to the policy. In the event the policyholder or certificate holder declines the nonforfeiture benefit, the insurer shall provide a contingent benefit upon lapse that shall be available for a specified period of time following a substantial increase in premium rates.
(b)
When a group long-term care insurance policy is issued, the offer required in subsection (a) shall be made to the group policyholder; however, if the policy is issued as group long-term care insurance as defined in §
56-42-103(4)(D)
, including a continuing care retirement community or other similar entity, the offering shall be made to each proposed certificate holder.
(c)
The commissioner shall promulgate regulations specifying the type or types of nonforfeiture benefits to be offered as part of long-term care insurance policies and certificates, the standards for nonforfeiture benefits, and the rules regarding contingent benefit upon lapse, including a determination of the specified period of time during which a contingent benefit upon lapse will be available and the substantial premium rate increase that triggers a contingent benefit upon lapse as described in subsection (a).
Acts 2008, ch. 1058, § 11.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 42 - LONG-TERM CARE INSURANCE ACT (§§ 56-42-101 — 56-42-111) › Section 56-42-110 - Duties of commissioner - Rules and regulations

The commissioner shall issue reasonable regulations for the administration and enforcement of this chapter, including, but not limited to, rules to promote premium adequacy and to protect the policyholder in the event of substantial rate increases, and to establish minimum standards for producer education, marketing practices, producer compensation, producer testing, penalties and reporting practices for long-term care insurance.
Acts 2008, ch. 1058, § 13.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 42 - LONG-TERM CARE INSURANCE ACT (§§ 56-42-101 — 56-42-111) › Section 56-42-111 - Penalties

In addition to any other penalties provided by the laws of this state, any insurer and any producer found to have violated any requirement of this state relating to the regulation of long-term care insurance or the marketing of long-term care insurance shall be subject to a civil penalty of up to three (3) times the amount of any commissions paid for each policy involved in the violation or up to ten thousand dollars ($10,000), whichever is greater.
Acts 2008, ch. 1058, § 15.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-101 - Short title

This chapter shall be known and may be cited as the "Tennessee Legal Insurance Act."
Acts 1989, ch. 423, § 24.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-102 - Construction - Legislative intent

This chapter shall be interpreted liberally in order to:
(1)
Encourage the development of effective and economically sound methods for making legal services more readily available;
(2)
Protect the interests of the users of legal services and of the public of this state with a minimum of restrictions on experimentation with new forms of organization, administration, or benefits;
(3)
Seek to have the risk inherent in experimentation borne by the promoters of new plans rather than by the consumers;
(4)
Permit and encourage the providing of legal services through persons other than professional insurers subject to practical and reasonable financial and regulatory requirements;
(5)
Permit and encourage fair and effective competition among the various systems of financing legal services; and
(6)
Maintain a high level of quality and conformity to professional insurers subject to practical and reasonable financial and regulatory requirements.
Acts 1989, ch. 423, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 43 - TENNESSEE LEGAL INSURANCE ACT (§§ 56-43-101 — 56-43-118) › Section 56-43-104 - Certificate of authority - Required - Application

(a)
(1)
No person may transact the business of legal insurance in this state without first obtaining a certificate of authority:
(A)
Under this chapter; or
(B)
Under the general laws pertaining to insurance.
(2)
Any person may apply to the commissioner for, and obtain, a certificate of authority to transact the business of legal insurance in compliance with this chapter. This section does not by itself enlarge the powers of any corporation given by its articles of incorporation or charter, but does authorize a corporation formed under the general business, insurance or general nonprofit corporation laws of this state to include in its powers the authority to transact legal insurance.
(3)
Any application shall be in a form prescribed by the commissioner. If the applicant is not domiciled in this state, the application must be accompanied by a power of attorney duly executed by the applicant appointing the commissioner, and duly authorized deputies, as the true and lawful attorneys of the applicant in and for this state, upon whom all lawful process in any legal action or proceeding against the applicant on a cause of action arising in this state may be served.
(b)
This chapter does not apply to any person issuing group, blanket or franchise policies if fewer than ten percent (10%) of the certificate holders or insureds reside in this state and the person is regulated to a comparable extent by another state in which a larger number of certificate holders or insureds reside.
Acts 1989, ch. 423, § 3.