reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 10 - HEALTH BENEFIT PLANS (§§ 56-1-1001 — 56-1-1002) › Section 56-1-1001 - Definitions

As used in this part:
(1)
"Health benefit plan" means a policy, contract, certificate, or agreement entered into, offered by, or issued by an insurer to provide, deliver, arrange for, pay for, or reimburse any of the costs of healthcare services, including a vision or dental benefit plan and a nonprofit dental service plan, as defined in §
56-30-102
; and
(2)
"Plan sponsor" means an insured person, other than a regulated entity, who establishes, adopts, or maintains a health benefit plan that covers residents of this state, including a plan established, adopted, or maintained by an employer or jointly by an employer and one (1) or more employee organizations, an association, a committee, a joint board of trustees, or any similar group of representatives who establish, adopt, or maintain a plan.
Added by 2023 Tenn. Acts, ch. 104, s 1, eff. 7/1/2023.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 1 - DEPARTMENT OF COMMERCE AND INSURANCE (§§ 56-1-101 — 56-1-1002) › Part 10 - HEALTH BENEFIT PLANS (§§ 56-1-1001 — 56-1-1002) › Section 56-1-1002 - Electronic opt-out provisions

(a)
The plan sponsor of a health benefit plan may, on behalf of covered persons in the plan, provide consent to the delivery of all communications related to the plan by electronic means, including the electronic delivery of a health insurance identification card.
(b)
Before consenting on behalf of insureds a plan sponsor shall confirm that the party routinely uses electronic communications during the normal course of employment.
(c)
Before providing delivery by electronic means, the insurer for the health benefit plan shall:
(1)
Provide the insured with an opportunity to opt out of delivery by electronic means; and
(2)
Implement and adhere to a policy that contains the following criteria:
(A)
If the insurer becomes aware that the insured's email address at which the insured has consented to receive notices or documents is no longer valid, the insurer shall send physical notices or documents to the insured at the insured's mailing address on file with the insurer;
(B)
The insurer will retain records for five (5) years, including proof of the date of each electronic mailing and the email address to which each mailing was sent. The records must be retrievable for a period of five (5) years after the date of the mailing;
(C)
The insured may withdraw his or her consent to receive mailings electronically at any time;
(D)
All conditions have been satisfied to facilitate the electronic mailing of notices and documents, unless existing law requires notices and documents to be delivered by a particular method;
(E)
All conditions to facilitate the electronic mailing of notices and documents have been satisfied under the federal Electronic Signatures in Global and National Commerce Act (
15 U.S.C. § 7001
, et seq.); and
(F)
The insurer will not cancel, refuse to issue, or refuse to renew a policy because the applicant or insured refuses to agree to receive electronic mailings of notices and documents pursuant to this section.
(d)
This section does not apply to TennCare or any successor program provided for in title 71, chapter 5, or to the CoverKids Act of 2006 or any successor program provided for in title 71, chapter 3, part 11.
Added by 2023 Tenn. Acts, ch. 104, s 1, eff. 7/1/2023.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-101 - Applicability to foreign and domestic companies

This section, §§
56-2-102
- 56-2-104, 56-2-113 - 56-2-115, 56-2-201, and 56-2-301 shall be applicable to both domestic and foreign insurance companies unless otherwise specifically provided in a particular section or subsection.
Acts 1955, ch. 13, § 1; T.C.A., §§ 56-302, 56-201.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-102 - Requisites for commencing business - Foreign insurance companies qualifying as domestic corporations - Foreign credit life reinsurance companies

(a)
No domestic insurance company or foreign insurance company shall commence business in this state until it has complied with §
56-2-101
, this section, §§
56-2-103
,
56-2-104
,
56-2-113
- 56-2-115, 56-2-201, and 56-2-301, and has received from the commissioner a certificate of authority to do business.
(b)
Any company organized under the laws of any other state or country, and that is admitted to do business in this state for the purpose of writing insurance authorized by this chapter, upon complying with all of the requirements of law relative to the organization of domestic insurance companies and payment of fees by like domestic insurance corporations, and designating its principal place of business at a place in this state, may become a domestic corporation and be entitled to like certificates of its corporate existence and license to transact business in this state, and be subject in all respects to the authority and jurisdiction of this state.
(c)
A foreign credit life reinsurance company that meets the capital requirements of §
56-2-114(b)
and that has at least fifty percent (50%) of its outstanding voting stock owned by persons or entities domiciled in this state, shall be entitled to obtain certificates of its corporate existence and shall be licensed to transact its business in this state, and be subject in all respects to the authority and jurisdiction of this state, if the following conditions are met:
(1)
Approval by the commissioner of commerce and insurance in its state of domicile to change its state of domicile to this state;
(2)
Submission to the Tennessee commissioner of commerce and insurance of a certificate of good standing from its state of domicile;
(3)
Compliance with all of the requirements of law relative to the organization of domestic insurance companies and payment of fees required by domestic insurance companies; and
(4)
Designation of a place in this state as its principal place of business.
Acts 1895, ch. 160, § 9; Shan., § 3292; Code 1932, § 6107; C. Supp. 1950, § 6107; Acts 1951, ch. 212, § 1; mod. T.C.A. (orig. ed.), § 56-301; Acts 1955, ch. 13, § 1; 1978, ch. 511, § 1; T.C.A., § 56-202; Acts 1988, ch. 667, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-105 - Certificate of authority required - Exceptions

It is unlawful for any company to enter into a contract of insurance as an insurer or to transact insurance business in this state without a certificate of authority from the commissioner; provided, that this section shall not apply to:
(1)
Contracts procured by agents or brokers under the authority of the Surplus Lines Insurance Act, compiled in chapter 14 of this title;
(2)
Contracts of reinsurance;
(3)
Transactions in this state involving policies lawfully solicited, written and delivered outside of this state covering only subjects of insurance not resident, located or expressly to be performed in this state at the time of issuance or covering property in the course of transportation by land, air or water, to, from or through this state and including any preparation or storage incidental thereto, and which transactions are subsequent to the issuance of those policies;
(4)
Transactions in this state involving group or blanket insurance and group annuities where the master policy of the groups was lawfully issued and delivered in a state in which the company was authorized to transact insurance business;
(5)
Transactions in this state involving a policy issued prior to April 3, 1968;
(6)
Any life insurance or annuity company that holds a certificate of exemption from the commissioner as provided in §
56-2-106
; or
(7)
(A)
The procuring of contracts of insurance issued to an industrial insured;
(B)
For the purposes of subdivision (7)(A), an "industrial insured" is an insured:
(i)
Who procures the insurance of any risk or risks by use of the services of a full-time employee acting as an insurance manager or buyer;
(ii)
Whose aggregate annual premiums for insurance on all risks total at least twenty-five thousand dollars ($25,000); and
(iii)
Who has at least twenty-five (25) full-time employees.
Acts 1968, ch. 536, § 1; 1969, ch. 270, § 19; T.C.A., § 56-205.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-107 - Acts of unauthorized insurers constituting doing business in state

Any of the following acts in this state, effected by mail or otherwise by an unauthorized insurer, are included among those deemed to constitute transacting insurance business in this state:
(1)
The issuance or delivery of contracts of insurance to residents of this state;
(2)
The solicitation of applications for contracts of insurance;
(3)
The collection of premiums, membership fees, assessments or other considerations for contracts of insurance; or
(4)
The transaction of matters subsequent to the execution of contracts of insurance and arising out of them.
Acts 1968, ch. 536, § 2; T.C.A., § 56-207.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-108 - Violation of section 56-2-105 - Penalty

(a)
Any company that violates §
56-2-105
is subject to a fine or a civil penalty, or both, of not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000) for each violation.
(b)
Each day in which a violation occurs constitutes a separate violation.
Acts 1968, ch. 536, § 3; 1973, ch. 244, § 1; T.C.A., § 56-208.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-109 - No action to be maintained without certificate of authority

The failure of a company to obtain a certificate of authority shall not impair the validity of any act or contract of the company, and shall not prevent the company from defending any action at law or suit in equity in any court of this state; but no company transacting insurance business in this state without a certificate of authority shall be permitted to maintain an action at law or suit in equity in any court of this state to enforce any right, claim or demand arising out of the transaction of insurance business until the company has obtained a certificate of authority, nor shall an action at law or suit in equity be maintained in any court of this state by any successor or assignee of the company on any right, claim or demand originally held by the company until a certificate of authority has been obtained by the company or by a company that has acquired all or substantially all of its assets.
Acts 1968, ch. 536, § 4; T.C.A., § 56-209.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-110 - Injunction to prevent violation of section 56- 2-105

(a)
Whenever the commissioner believes, from evidence satisfactory to the commissioner, that any foreign or alien company is violating or is about to violate §
56-2-105
, the commissioner may, through the attorney general and reporter, cause a bill to be filed in the chancery court of Davidson County to enjoin and restrain the company from continuing the violation, engaging in the violation or doing any act in furtherance of the violation.
(b)
The court shall have jurisdiction of the proceeding and shall have the power to make and enter an order or decree awarding the preliminary or final injunctive relief as in its judgment is proper.
Acts 1968, ch. 536, § 5; T.C.A., § 56-210.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-111 - Liability for tax on gross premium

Any company violating §
56-2-105
shall be liable, with respect to any contract of insurance or transaction of insurance business as defined and limited in §
56-2-105
, for the payment of all taxes on gross premiums imposed in chapter 4 of this title.
Acts 1968, ch. 536, § 6; T.C.A., § 56-211.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-112 - Deposits in trust to secure policyholders

(a)
The state treasurer, in an official capacity, shall take and hold in trust deposits made by any domestic insurance company for the purpose of complying with the laws of any other state, to enable the company to do business in the other state, and shall also, in a like manner, take and hold any deposits made by a foreign insurance company under any law of the state.
(b)
The company making the deposits shall be entitled to the income of the deposits, and may, from time to time, with the consent of the state treasurer, when not forbidden by the law under which the deposits are made, change, in whole or in part, the securities that compose the deposit for other competent securities of equal value.
(c)
(1)
Upon the request of any domestic insurance company, the state treasurer may return to the company the whole or any portion of the securities of the company, when the state treasurer is satisfied that the securities so asked to be returned are subject to no liability, and not required to be longer held by any law or purpose of the original deposit.
(2)
The state treasurer may return to the trustees or other representatives, authorized for that purpose, of a foreign insurance company, any deposit made by the company, when it appears that the company has ceased to do business in the state, and is under no obligations to policyholders or other persons in the state or in the United States, for whose benefit the deposit was made.
Acts 1895, ch. 160, § 24; Shan., § 3308; Code 1932, § 6128; T.C.A. (orig. ed.), §§ 56-223, 56-212.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-113 - Period of organization before admission of foreign companies - Exceptions

(a)
No foreign insurance company transacting any of the kinds of insurance as defined in §
56-2-201
shall be admitted and authorized to do business in this state until it can satisfy the commissioner that it has been organized and actively engaged in the insurance business in the state of its incorporation for a period of three (3) years prior to the date of its application to be admitted and authorized to do business in this state.
(b)
Subsection (a) does not apply to a foreign insurance company that is:
(1)
The wholly-owned subsidiary of an insurance company or health maintenance organization admitted and authorized to do business in this state;
(2)
The continuing corporation resulting from a merger or consolidation of insurance companies at least one (1) of which, prior to the merger or consolidation, met all the requirements for admission and authorization to do business in this state, including the requirement of having been actively engaged in the insurance business in its state of incorporation for three (3) years;
(3)
The wholly-owned subsidiary of a holding company that also owns one hundred percent (100%) of the common capital stock, excluding qualifying shares required to be held by directors, of an insurance company or health maintenance organization admitted and authorized to do business in this state; or
(4)
A foreign insurance company originally chartered and licensed to transact business in this state, and making application to redomesticate to this state upon furnishing the following from the commissioner of commerce and insurance of its state of domicile:
(A)
Letter of approval to redomesticate;
(B)
Letter of intent to permit the company to transfer its business and assets to this state; and
(C)
A certificate of good standing.
(c)
"Owned" and "owns," as used in subsection (b), mean ownership either directly or indirectly through one (1) or more intermediaries.
(d)
The commissioner, in the commissioner's sole discretion, may waive the requirement in subsection (a) for any company, if the commissioner determines it is in the public interest.
Acts 1955, ch. 13, § 1, T.C.A., § 56-307; Acts 1959, ch. 201, § 1; 1967, ch. 25, § 1; 1972, ch. 585, § 1; 1975, ch. 167, § 1; T.C.A., § 56-213; Acts 1984, ch. 667, § 1; 1987, ch. 68, § 1; 2005, ch. 319, §§ 1, 2; 2010, ch. 780, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-114 - Capital requirements for insurance combinations and reinsurance

(a)
An insurer otherwise qualified therefor may be authorized to transact combinations of kinds of insurance while processing and maintaining capital, if a stock company, or surplus funds, if a mutual, reciprocal, or Lloyd's plan insurer, in the amount of one million dollars ($1,000,000).
(b)
To transact the business of reinsuring credit life and credit accident insurance and health insurance, an insurer must possess and maintain capital in the amount of one hundred fifty thousand dollars ($150,000); provided, that a company so authorized shall not be authorized to conduct any other line of business unless otherwise qualified.
Acts 1895, ch. 160, § 9, par. 2; 1901, ch. 131, § 1; 1907, ch. 493, § 1; Shan., § 3292; Code 1932, § 6107; Acts 1947, ch. 223, § 1; C. Supp. 1950, § 6107; Acts 1951, ch. 212, § 1; T.C.A. (orig. ed.), § 56-304; Acts 1955, ch. 13, § 1; 1967, ch. 31, § 5; T.C.A. (orig. ed.), § 56-214; Acts 1985, ch. 107, § 4; 1986, ch. 535, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-115 - Additional surplus requirement

In addition to the paid up capital stock or surplus as required under §§
56-2-103
and
56-2-114(a)
, all insurance companies doing business in this state shall possess and maintain bona fide surplus funds in the amount of one million dollars ($1,000,000), except for insurance companies authorized under §
56-2-114(b)
, which shall possess and maintain bona fide surplus funds equaling in amounts not less than fifty percent (50%) of the capital stock or surplus otherwise required by §
56-2-114(b)
.
Acts 1895, ch. 160, § 9, par. 2; 1901, ch. 131, § 1; 1907, ch. 493, § 1; Shan., § 3292; Code 1932, § 6107; Acts 1947, ch. 223, § 1; C. Supp. 1950, § 6107; Acts 1951, ch. 212, § 1; T.C.A. (orig. ed.), § 56-305; Acts 1955, ch. 13, § 1; T.C.A. (orig. ed.), § 56-215; Acts 1986, ch. 535, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-116 - Exemption of previously licensed companies - Termination of exemption for foreign insurance companies

(a)
No requirement of §§
56-2-101
- 56-2-103, 56-2-113 - 56-2-115, 56-2-201, and 56-2-301 not in effect on March 1, 1986, shall be considered applicable to any insurance company properly licensed to transact business in this state on that date.
(b)
Notwithstanding subsection (a), any foreign insurance company filing an annual statement under §
56-1-501
, not possessing the minimum capital and surplus required by §§
56-2-114
and
56-2-115
on and after January 1, 1987, shall cease to write any new business until the minimum capital and surplus required are met.
(c)
Subsection (b) shall not apply to the procedures and capital requirements of a casualty company for the exclusive purpose of writing bonds only.
(d)
Any domestic insurer otherwise exempt under subsection (a) that at any time meets the capital and surplus requirements under this chapter shall thereafter be required to maintain the required capital and surplus limits.
Acts 1955, ch. 13, § 6 (T.C.A. (supp.), § 56-322); 1967, ch. 31, § 6; 1977, ch. 127, §§ 1, 2; T.C.A, § 56-217; Acts 1986, ch. 535, §§ 3-5.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-117 - [Repealed]

Acts 1980, ch. 503, § 3; repealed by Acts 2012 , ch. 680, § 2, effective 7/1/2012.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-118 - Address and phone number of policyholder service office outside state

(a)
Every policy of life insurance, accident and health insurance, property insurance or casualty insurance issued after January 1, 1989, covering risks in this state by a company not maintaining a policyholder service office in this state, shall be accompanied by the complete address and telephone number, toll-free if available, of the policyholder service office of the company issuing the policy. In the event an insurance company that has a policyholder's service office in this state ceases to maintain the office, the company shall provide its policyholders residing in this state with a written notice containing the complete address and telephone number, toll-free if available, of the servicing agent or the nearest policyholder service office of the company.
(b)
The commissioner may promulgate rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to effectuate the purposes of this section.
(c)
Failure to include the information required by subsection (a) shall be a deceptive act or practice and the procedures and penalties established by chapter 8, part 1 of this title, shall be applicable.
Acts 1988, ch. 721, §§ 1-3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-119 - Insurance company's address to appear on insurance policy

(a)
On every policy of insurance covering risks in this state that is issued after July 1, 1991, by an insurance company doing business in this state, there shall be printed the address of the company's home office, regional office or service center.
(b)
Failure to include the information required by subsection (a) is a deceptive act or practice, and the procedures and penalties established by chapter 8, part 1 of this title are applicable.
Acts 1990, ch. 671, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-120 - Insurers - Financial requirements - Hearings

(a)
In addition to the minimum requirements set out in §§
56-2-114
and
56-2-115
, and notwithstanding any other law to the contrary, the commissioner may require, after notice and hearing, additional amounts so that an insurer's capital, surplus funds, or surplus as regards policyholders shall be reasonable in relation to the insurer's outstanding liabilities and premiums, and adequate to its financial needs. For purposes of this part, in determining whether an insurer's surplus as regards policyholders is reasonable in relation to the insurer's outstanding liabilities and premiums and adequate to its financial needs, the following factors, among others, shall be considered:
(1)
The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force and other appropriate criteria;
(2)
The extent to which the insurer's business is diversified among the several lines of insurance;
(3)
The number and size of risks insured in each line of business;
(4)
The extent of the geographical dispersion of the insurer's insured risks;
(5)
The nature and extent of the insurer's reinsurance program;
(6)
The quality, diversification and liquidity of the insurer's investment portfolio;
(7)
The recent past and projected future trend in the size of the insurer's investment portfolio;
(8)
The surplus as regards policyholders maintained by other comparable insurers;
(9)
The adequacy of the insurer's reserves; and
(10)
The quality and liquidity of investments in affiliates. The commissioner may treat the investments as a disallowed asset for purposes of determining the adequacy or surplus as regards policyholders whenever, in the commissioner's judgment, the investment so warrants.
(b)
Before the commissioner takes any action pursuant to this section, the commissioner shall give written notice to the insurer involved, stating specifically the nature of the alleged deficiency in capital and surplus. Within ten (10) days after receiving notice, the insurer may request a hearing, which shall be held within thirty (30) days of the request. The burden of proof shall be on the commissioner to show the inadequacy of capital and surplus by the preponderance of the evidence. After the hearing, or if the insurer fails to request a hearing, the commissioner, if the commissioner finds a deficiency, may enter an appropriate order under this section as the commissioner deems advisable.
(c)
When the commissioner takes action in any or all of the ways set out in this section, the party aggrieved may appeal from the action to the chancery court of Davidson County.
Acts 1991, ch. 142, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-121 - Exempt entities

(a)
A plan sponsored by a nonprofit corporation organized and created in this state primarily to promote programs for the improvement of the health of rural people in the state, which plan has provided health care benefits to the members of the corporation for a period in excess of ten (10) years, shall be deemed not to be insurance and not subject to this title, to the extent the plan, after July 1, 1993, provides the benefits under a self-funded arrangement; provided, that any stop-loss, excess or similar insurance coverage purchased as part of the plan shall be insurance subject to this title.
(b)
The provisions of this title to the contrary notwithstanding, a Program for All-Inclusive Care for the Elderly (PACE) project that is sponsored by a religious or charitable organization that is itself or is controlled by a person that is organized under § 501(c)(3) of the Internal Revenue Code (
26 U.S.C. § 501(c)(3)
), and that has had its application for the operation of a PACE program approved by the health care financing administration of the United States department of health and human services (HHS), and is operating under such approval, shall not be deemed to be engaged in any business required to be licensed pursuant to this title. This exemption applies only to business conducted pursuant to the approved PACE contract, and not to any other business that such organization conducts that is subject to this title.
Acts 1993, ch. 339, § 1; 1998, ch. 698, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-122 - Nonprofit health maintenance organization as subsidiary of certain hospital corporations

A nonprofit health maintenance organization that, with the approval of the commissioner, was created prior to January 1, 1981, by a corporation operated pursuant to chapter 28 or chapter 29 of this title may be treated by the corporation as a subsidiary solely for the purpose of determining the status of the nonprofit health maintenance organization as an admitted asset; provided, that the corporation otherwise has a net worth at least equal to the capital and surplus requirements for an insurance company under §§
56-2-114(a)
and
56-2-115
.
Acts 1997 , ch. 65, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-123 - Confirmation of verbal authorization for medical care

If verbal authorization is given to a health care provider, insured, or enrollee for medical care under any individual, franchise, blanket or group health insurance policy, medical service plan or contract, hospital service corporation contract, hospital and medical service corporation contract, fraternal benefit society, health maintenance organization, or managed care organization, the verbal authorization shall be confirmed by written authorization, facsimile transmission, or verbally by means of a confirmation number or other confirmation code.
Acts 1997, ch. 201, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-124 - Hold harmless requirements prohibited

No health insurer, prepaid group health plan, health maintenance organization, preferred provider organization or similar entity licensed under this part that provides or administers health insurance shall require, by contract or otherwise, any title 63 or title 68 licensee to indemnify or hold harmless the licensee under this title for tort or patent or copyright infringement liability that the licensee under this title incurs, experiences, or causes by act or omission, or by act or omission of the title 63 or title 68 provider to the extent the act or omission was pursuant to a directive of the licensee under this title.
Acts 1997, ch. 376, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 1 - GENERAL REQUIREMENTS FOR DOING BUSINESS (§§ 56-2-101 — 56-2-126) › Section 56-2-126 - Service contracts not to be construed as business of insurance

(a)
The marketing, sale, offering for sale, issuance, making, proposing to make and administration of a service contract shall not be construed to be the business of insurance and shall be exempt from regulation as insurance pursuant to this title.
(b)
(1)
For purposes of this section, "service contract" means a contract or agreement for a separately stated consideration for a specific duration to perform the service, repair, replacement or maintenance of property or indemnification for service, repair, replacement or maintenance, for the operational or structural failure due to a defect in materials, workmanship, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including, but not limited to, towing, rental, road hazard and emergency road service. "Service contract" includes motor vehicle extended service contracts and agreements. Service contracts may provide for the service, repair, replacement, or maintenance of property for damage resulting from power surges and accidental damage from handling.
(2)
(A)
For the purposes of this section, "service contract" also means a contract or agreement that provides one (1) or more of the following:
(i)
The repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming into contact with road hazards;
(ii)
The removal of dents, dings, or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding, or painting;
(iii)
The repair of chips or cracks in, or the replacement of, motor vehicle windshields as a result of damage caused by road hazards; or
(iv)
The replacement of a motor vehicle key or key-fob in the event that the key or key-fob becomes inoperable or is lost or stolen.
(B)
For purposes of subdivision (b)(2)(A), "road hazard" means a hazard that is encountered while driving a motor vehicle, which may include potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps.
(c)
A contract excluded from the definition of a "pre-need funeral contract" pursuant to §
62-5-403(9)(C)
is not a contract of insurance within the meaning of this title.
Amended by 2018 Tenn. Acts, ch. 623,s 1, eff. 4/2/2018.
Amended by 2017 Tenn. Acts, ch. 90,s 1, eff. 4/4/2017.
Acts 2011, ch. 71, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 2 - KINDS OF INSURANCE (§§ 56-2-201 — 56-2-210) › Section 56-2-202 - Kinds of property insurance authorized

(a)
The company has the power generally to insure against loss by fire, earthquakes, storms, floods, explosions, except the explosions of the kind contemplated in §
56-19-108(5)
, riots, civil commotions, and any and all other damages on all kinds and species of property.
(b)
This section shall apply to every insurance corporation heretofore or hereafter organized under the laws of this state.
(c)
All policies of insurance heretofore issued by insurance corporations organized under the laws of this state insuring against loss from any cause included in the authorization in subsection (a) are validated, insofar as the corporation was without specific charter power to insure against those losses.
Acts 1875, ch. 142, § 10; Shan., § 2260; Code 1932, § 3973; Acts 1937, ch. 109, §§ 1-3; mod. C. Supp. 1950, § 3973 (Williams, §§ 3973, 3973.1, 3973.2); T.C.A. (orig. ed.), § 56-219.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 2 - KINDS OF INSURANCE (§§ 56-2-201 — 56-2-210) › Section 56-2-203 - Life insurance - Annuity or contract loans - Trusts accepted and executed

The company has the further right to insure the lives of persons, and engage in the general business of life insurance, and, coupled with that right, the right to grant and sell annuity, or contract loans based on life annuity, with benefit of survivorship, and accept and execute all legal trusts that may be confided to it.
Acts 1875, ch. 142, § 10; Shan., § 2261; Code 1932, § 3974; T.C.A. (orig. ed.), §§ 56-206, 56-220.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 2 - KINDS OF INSURANCE (§§ 56-2-201 — 56-2-210) › Section 56-2-204 - Casualty, accident, sickness, theft and marine insurance

The company also has the power to insure:
(1)
Against all accidents:
(A)
To property in transit; and
(B)
To persons traveling or otherwise;
(2)
Against disabilities to persons by disease or sickness, or other bodily infirmities;
(3)
Against thefts of property;
(4)
Ships, steamboats, and other craft; and
(5)
Freight and sailors' wages, including all marine risks.
Acts 1875, ch. 142, § 10; 1889, ch. 224, § 1; Shan., § 2262; mod. Code 1932, § 3975; T.C.A. (orig. ed.), §§ 56-207, 56-221.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 2 - KINDS OF INSURANCE (§§ 56-2-201 — 56-2-210) › Section 56-2-205 - Insurance company may exercise one or all branches of authorized business

The corporation may, at its option, exercise one (1) or more or all of the branches of business in which it is authorized to engage.
Acts 1875, ch. 142, § 10; Shan., § 2263; mod. Code 1932, § 3976; T.C.A. (orig. ed.), §§ 56-208, 56-222.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 2 - KINDS OF INSURANCE (§§ 56-2-201 — 56-2-210) › Section 56-2-206 - Companies on Lloyd's plan authorized to do business

(a)
Associations of individuals, citizens of the United States, whether organized within this state or elsewhere within the United States, formed on the plan known as Lloyd's, whereby each associate underwriter becomes liable for a proportionate part of the whole amount insured by policy, may be authorized to transact insurance other than life in this state, in like manner and upon the same terms and conditions as are required of and imposed upon insurance companies of the United States, or one (1) of the states.
(b)
All Lloyd's, whether organized within this state or elsewhere in the United States, not having an actual, paid-up cash capital, shall make the same deposit, and upon the same terms and conditions as is required by §
56-2-405
of foreign insurance companies incorporated or associated under the laws of any government or state other than the United States or one (1) of the states.
Acts 1895, ch. 160, § 15; Shan., § 3298; Code 1932, § 6114; T.C.A. (orig. ed.), §§ 56-210, 56-224.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 2 - KINDS OF INSURANCE (§§ 56-2-201 — 56-2-210) › Section 56-2-207 - Reinsurance contracts - Liability of ceding and assuming insurers

(a)
(1)
Every insurer authorized to do an insurance, surety or bonding business in this state, called the "ceding insurer" in this title, may, subject to the limitations of this section, reinsure its risks and policy liabilities in any other insurer, called the "assuming insurer" in this title, with the effects prescribed in this section; but no prohibition or limitation contained in this section shall invalidate the contract or reinsurance as between the parties.
(2)
No credit shall be allowed, as an admitted asset or as a deduction from liability, to any ceding insurer for reinsurance made, ceded, renewed, or otherwise becoming effective after June 12, 1947, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contract or contracts reinsured without diminution, because of the insolvency of the ceding insurer nor unless, under the contract or contracts of reinsurance, the liability for the reinsurance is assumed by the assuming insurer or insurers as of the same effective date.
(3)
The reinsurance agreement may provide that the liquidator or receiver or statutory successor of an insolvent ceding insurer shall give written notice of the pendency of a claim against the insolvent ceding insurer on the policy or bond reinsured, within a reasonable time after the claim is filed in the insolvency proceeding and that during the pendency of the claim, any assuming insurer may investigate the claim and interpose, at its own expense, in the proceeding where the claim is to be adjudicated, any defense or defenses that it may deem available to the ceding company or its liquidator or receiver or statutory successor.
(4)
The expense thus incurred by the assuming insurer shall be chargeable, subject to court approval, against the insolvent ceding insurer as part of the expense of liquidation to the extent of a proportionate share of the benefit, which may accrue to the ceding insurer, solely as a result of the defense undertaken by the assuming insurer.
(b)
Where two (2) or more assuming insurers are involved in the same claim and a majority in interest elect to interpose defense to the claim, the expense shall be apportioned in accordance with the terms of the reinsurance agreement, as though the expense had been incurred by the ceding company.
(c)
Notwithstanding anything in this section to the contrary, a risk retention group may not reinsure its risks in another risk retention group unless all of the members of the ceding risk retention group are eligible for membership in the assuming risk retention group.
Amended by 2014 Tenn. Acts, ch. 559,s 8, eff. 3/21/2014.
Acts 1947, ch. 154, § 1; C. Supp. 1950, § 6105.1 (Williams, § 6459.70); T.C.A. (orig. ed.), §§ 56-211, 56-225.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 3 - RULES AND REGULATIONS (§§ 56-2-301 — 56-2-305) › Section 56-2-301 - Promulgation of rules and regulations

(a)
The commissioner is authorized to promulgate rules and regulations not in conflict with this section and §§
56-2-101
,
56-2-103
,
56-2-113
- 56-2-115, and 56-2-201 for the purpose of implementing those sections so as to regulate the writing of the various kinds and types of insurance provided for in those sections.
(b)
The commissioner is authorized to promulgate rules and regulations to allow for the filing of documents with the commissioner pursuant to this title through a designated filing depository.
(c)
Regulations promulgated pursuant to this section shall have the same force and effect of law.
Acts 1955, ch. 13, § 1; T.C.A., §§ 56-308, 56-216; Acts 2003, ch. 215, §§ 1, 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 3 - RULES AND REGULATIONS (§§ 56-2-301 — 56-2-305) › Section 56-2-302 - Notice of hearing on issuance of cease and desist order

Whenever the commissioner determines that a company, corporation, association, person, or entity of whatever nature is violating or is about to violate §
56-2-105
, the commissioner may issue a notice of hearing and charges requiring the company, corporation, association, person, or entity of whatever nature to show cause why an order should not issue requiring the person or entity to cease and desist the unauthorized business of insurance in this state.
Acts 1993, ch. 253, § 16.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 3 - RULES AND REGULATIONS (§§ 56-2-301 — 56-2-305) › Section 56-2-303 - Hearings

Any hearing conducted under this part shall be conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 1993, ch. 253, § 16.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 3 - RULES AND REGULATIONS (§§ 56-2-301 — 56-2-305) › Section 56-2-304 - Cease and desist orders

If the commissioner finds that public health, safety, or welfare imperatively requires emergency action, and incorporates a finding to that effect in an order, a summary cease and desist order may be issued pending proceedings for other actions under this part. These proceedings shall be promptly instituted and determined.
Acts 1993, ch. 253, § 16.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 4 - FOREIGN AND ALIEN INSURANCE COMPANIES (§§ 56-2-401 — 56-2-412) › Section 56-2-401 - Alien government controlled companies excluded - Definition

(a)
Any insurance company or other insurance entity that is financially owned or financially controlled by any alien or foreign government outside the continental limits of the United States or the territories of the United States is prohibited from doing any kind of insurance business in this state.
(b)
For the purposes of this section and §§
56-2-402
- 56-2-404, "alien or foreign government" means any foreign government or any state, province, municipality, or political subdivision of any foreign government, but does not apply to any insurance company organized under the laws of a foreign nation that is financially owned or financially controlled by the private citizens or private business interests of the foreign nation.
Acts 1955, ch. 3, § 1; T.C.A., §§ 56-323, 56-228.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 4 - FOREIGN AND ALIEN INSURANCE COMPANIES (§§ 56-2-401 — 56-2-412) › Section 56-2-402 - Issuance of license to company controlled by foreign government prohibited

The commissioner is forbidden to grant a license to any insurance company or other insurance entity that is financially owned or financially controlled by any alien or foreign government outside the continental limits of the United States or the territories of the United States, or to authorize the company or entity to transact any kind of insurance business in this state.
Acts 1955, ch. 3, § 2; T.C.A., §§ 56-324, 56-229.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 4 - FOREIGN AND ALIEN INSURANCE COMPANIES (§§ 56-2-401 — 56-2-412) › Section 56-2-403 - Penalty for violations

Any insurance company or other insurance entity that is financially owned or financially controlled by any alien or foreign government outside the continental limits of the United States or the territories of the United States, or any representative or agent of the company or entity, that violates §§
56-2-401
,
56-2-402
, this section and §
56-2-404
, commits a Class C misdemeanor.
Acts 1955, ch. 3, § 3; T.C.A., §§ 56-325, 56-230; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 4 - FOREIGN AND ALIEN INSURANCE COMPANIES (§§ 56-2-401 — 56-2-412) › Section 56-2-404 - Foreign government controlled company as public nuisance - Injunction

Any violation of §§
56-2-401
- 56-2-403 and this section by an insurance company or other insurance entity that is financially owned or financially controlled by any alien or foreign government outside the continental limits of the United States or the territories of the United States, or by any representative or agent of the company or entity, is declared to be a public nuisance, and the commissioner is authorized and empowered to enjoin the nuisance by injunctive proceedings in the chancery court in like manner as is provided by the general statutes pertaining to enjoining nuisances.
Acts 1955, ch. 3, § 4; T.C.A., §§ 56-326, 56-231.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 4 - FOREIGN AND ALIEN INSURANCE COMPANIES (§§ 56-2-401 — 56-2-412) › Section 56-2-405 - Admission of companies of other countries - Deposits

(a)
Any foreign company, if incorporated or associated under the laws of any government or state other than the United States, shall not be admitted until, besides complying with the conditions of §§
56-2-101
- 56-2-103, 56-2-113 - 56-2-115, 56-2-201 and 56-2-301, it has made a deposit with the state treasurer, or with the financial officer of some other state of the United States, a sum of not less than two hundred thousand dollars ($200,000).
(b)
The deposit must be in exclusive trust for the benefit and security of all the company's policyholders and creditors in the United States, and may be made in bonds of this state or of the United States, or of some state in the United States, or other good securities satisfactory to the commissioner.
(c)
The deposit shall be in lieu of any other deposit required of life insurance companies incorporated under the laws of any government or state other than the United States.
Acts 1895, ch. 160, § 10; 1909, ch. 181, § 1; Shan., § 3293; Code 1932, § 6109; T.C.A. (orig. ed.), §§ 56-310, 56-232; Acts 1989, ch. 36, § 3.