reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 10 - INSURANCE DATA SECURITY LAW. (§§ 56-2-1001 — 56-2-1011) › Section 56-2-1008 - Confidentiality

(a)
Documents, materials, or information in the department's control or possession that are furnished by a licensee, or an employee or agent acting on behalf of the licensee, pursuant to §
56-2-1004(9)
or §
56-2-1006(b)
, or that are obtained by the commissioner in connection with an investigation or examination pursuant to §
56-2-1007
:
(1)
Are confidential and not open for inspection by members of the public under title 10, chapter 7 or §
56-1-602
; and
(2)
Are not subject to subpoena, subject to discovery, or admissible in evidence in a private civil action, except that the commissioner may use the documents, materials, or information in the furtherance of regulatory or legal action by the commissioner.
(b)
The commissioner, or a person who received documents, materials, or information while acting under the authority of the commissioner, is not permitted or required to testify in a private civil action concerning documents, materials, or information made confidential under subsection (a).
(c)
Notwithstanding subsection (a), to assist in the commissioner's duties under this part, the commissioner may:
(1)
Share documents, materials, or information made confidential under subsection (a) with other state, federal, or international regulatory agencies or law enforcement authorities, the national association of insurance commissioners or its affiliates or subsidiaries, or a third-party consultant or vendor of the department, as long as the recipient agrees in writing to maintain the confidential nature of the documents, materials, or information;
(2)
Receive documents, materials, or information, including otherwise confidential documents, materials, or information, from the national association of insurance commissioners or its affiliates or subsidiaries, or from regulatory or law enforcement officials of other foreign or domestic jurisdictions, and the commissioner must maintain as confidential any document, material, or information received with notice or the understanding that it is confidential under the laws of the source jurisdiction; and
(3)
Enter into agreements governing sharing and use of documents, materials, or information consistent with this subsection (c).
(d)
A waiver of an applicable privilege or confidentiality does not occur as a result of the disclosure of documents, materials, or information by or to the commissioner under subsection (c).
(e)
This part does not prohibit the commissioner from releasing final, adjudicated actions open to public inspection under title 10, chapter 7 or §
56-1-602
to a database or other clearinghouse service maintained by the national association of insurance commissioners or its affiliates or subsidiaries.
Added by 2021 Tenn. Acts, ch. 345, s 1, eff. 7/1/2021.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 10 - INSURANCE DATA SECURITY LAW. (§§ 56-2-1001 — 56-2-1011) › Section 56-2-1009 - Exceptions

(a)
(1)
This part does not apply to:
(A)
A licensee who employs less than twenty-five (25) individuals, regardless of whether the individuals are employees or independent contractors;
(B)
A licensee with less than five million dollars ($5,000,000) in gross annual revenue; or
(C)
A licensee with less than ten million dollars ($10,000,000) in year-end total assets.
(2)
A licensee subject to and governed by the privacy, security, and breach notification rules issued by the United States department of health and human services, 45 CFR Parts 160 and 164, established pursuant to the federal Health Insurance Portability and Accountability Act of 1996 (
42 U.S.C. § 1320d
et seq.), and the federal Health Information Technology for Economic and Clinical Health (HITECH) Act (
42 U.S.C. § 300jj
et seq. and
42 U.S.C. § 17901
et seq.), and that maintains nonpublic information in the same manner as protected health information meets the requirements of §§
56-2-1004
and
56-2-1006(c)
if the licensee is compliant with, and submits a written statement certifying its compliance with, the federal Health Insurance Portability and Accountability Act of 1996 and the federal Health Information Technology for Economic and Clinical Health.
(3)
A licensee subject to Title V of the federal Gramm-Leach-Bliley Act of 1999 (
15 U.S.C. §§ 6801-6809
and
6821-6827
) that meets the requirements of §
56-2-1006(c)
if the licensee is compliant with, and submits a written statement certifying its compliance with, Title V of the federal Gramm-Leach-Bliley Act of 1999.
(4)
An employee, agent, representative, or designee of a licensee, who is also a licensee, is exempt from §
56-2-1004
if the activities of the employee, agent, representative, or designee are covered by the other licensee's information security program.
(b)
If a licensee ceases to qualify for an exception under subsection (a), then the licensee has one hundred eighty (180) days from the time the licensee no longer qualifies for the exception to comply with this part.
Added by 2021 Tenn. Acts, ch. 345, s 1, eff. 7/1/2021.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 10 - INSURANCE DATA SECURITY LAW. (§§ 56-2-1001 — 56-2-1011) › Section 56-2-1010 - Penalties

The commissioner may seek penalties under §
56-2-305
for a violation of this part.
Added by 2021 Tenn. Acts, ch. 345, s 1, eff. 7/1/2021.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 2 - INSURANCE COMPANIES (§§ 56-2-101 — 56-2-1011) › Part 10 - INSURANCE DATA SECURITY LAW. (§§ 56-2-1001 — 56-2-1011) › Section 56-2-1011 - Rules

The commissioner may promulgate rules to effectuate this part. The rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Added by 2021 Tenn. Acts, ch. 345, s 1, eff. 7/1/2021.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-101 - Investments of insurance companies organized after May 11, 1895

(a)
Every life insurance company doing business in this state, chartered by the laws of this state, shall be required for the better protection of the policyholders, to keep at all times the sum of one hundred thousand dollars ($100,000) invested in bonds, securities, or mortgages on real estate for double the amount loaned, to be certified as safe and worth this amount by the commissioner.
(b)
Insurance companies other than life, chartered by the laws of this state, shall not be allowed to transact business in this state unless possessed of at least fifty thousand dollars ($50,000) paid up, actual cash capital, or, in lieu of cash capital, a stock guaranty capital or surplus, above all liabilities, including reinsurance reserve, of not less than fifty thousand dollars ($50,000).
(c)
This section shall not apply to companies organized under the laws of this state prior to May 11, 1895, and actually engaged in the transaction of insurance business.
Acts 1895, ch. 160, § 13; Shan., § 3296; Code 1932, § 6112; T.C.A. (orig. ed.), §§ 56-214, 56-303.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-102 - [Repealed]

Repealed by 2018 Tenn. Acts, ch. 873, s 9, eff. 5/3/2018.
Acts 1907, ch. 454, § 2; 1925, ch. 66, § 1; Shan., § 3348a34; Code 1932, § 6209; T.C.A. (orig. ed.), § 56-215; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-304.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-103 - Officers must not be pecuniarily interested in investment or disposition of funds of domestic company

(a)
No director or other officer of any domestic insurance company organized under the laws of this state, and no member of a committee having any authority in the investment or disposition of its funds, shall accept, or be the beneficiary of, either directly or remotely, any fee, brokerage, commission, gift, or other consideration for or on account of any loan, deposit, purchase, sale, payment, or exchange made by or in behalf of the company, or be pecuniarily interested in the purchase, sale, or loan, either as borrower, principal, coprincipal, agent, or beneficiary, except that if a policyholder, the person shall be entitled to all the benefits accruing under the terms of the contract; provided, that this section shall not forbid the collection by attorneys of reasonable fees for the examination of titles and investigations of loans and investments. This section shall not bar a person who is an agent of an insurance company, in the normal course of business, from serving on the board or on a committee of an insurance company because the person receives commissions on insurance sales.
(b)
This section shall not bar or limit the ability of a director, officer, or committee member of an insurance company from:
(1)
Holding or owning stock or other ownership interest, if the stock or ownership interest has been disclosed to the insurance company, in a company or entity:
(A)
The shares of which are publicly traded on a national stock exchange or on an over-the-counter basis;
(B)
That is regulated by the federal reserve board, the federal deposit insurance corporation, the office of the comptroller of the currency, or the office of thrift supervision; or
(C)
That does business with the insurance company in the ordinary course of business and on terms no less favorable to the insurance company than are available to ordinary customers of the entity;
(2)
Receiving dividends or other distributions in the ordinary course of business from the stock or ownership interest; or
(3)
Serving as a director, officer, committee member, employee or agency of any entity listed in this subsection (b) and receiving fees or other compensation in the ordinary course of business for the service.
Acts 1917, ch. 124, § 1; Shan., § 3369a148; Code 1932, § 6441; T.C.A. (orig. ed.), §§ 56-221, 56-310; Acts 1995, ch. 219, § 1; 1995, ch. 221, § 7; 2005, ch. 101, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-104 - Investments of domestic company in which officers pecuniarily interested not to be allowed as an admitted asset

No funds of a company invested in violation of §
56-3-103
shall be allowed by the commissioner as an admitted asset of the company.
Acts 1917, ch. 124, § 2; Shan., § 3369a149; Code 1932, § 6442; T.C.A. (orig. ed.), §§ 56-222, 56-311.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-105 - Regulation of compensation of officers, agents and employees of life insurance companies and fraternal benefit societies

(a)
A domestic stock or mutual life insurance company or fraternal benefit society shall not:
(1)
Pay any salary, compensation or emolument to any director or trustee regardless of amount, or to any officer, employee or other person, firm or corporation amounting in any one (1) year to more than the amount set forth in the appropriate schedule of the annual statement filed with the commissioner pursuant to §
56-1-501
, unless the payment has first been authorized by a vote of the board of directors of the company or society;
(2)
Pay any other compensation or emolument to any officer, director or trustee of the company or society who is paid a salary for services of more than one hundred dollars ($100) per month; or
(3)
Enter into an agreement for a term longer than twelve (12) months from the date of the agreement with any officer, director, trustee or salaried employee of the company or society providing for the payment of any salary, compensation or emolument for any services rendered or to be rendered.
(b)
This section shall not prohibit the life insurance company or society from entering into an agreement with:
(1)
Any officer or employee of the company or society for the payment of deferred compensation beyond the period of twelve (12) months from the date of the agreement;
(2)
Any officer or employee of the company or society for a stock option plan, stock purchase plan, stock bonus plan, or other incentive compensation plan, if, before the plan is entered into or becomes effective, it is first approved by the commissioner;
(3)
Any agent, general agent or district manager of the company or society providing for the payment of commissions on the regular commission basis; or
(4)
Any agent of the company or society providing for the payment of renewal commissions.
(c)
No domestic or foreign life insurance company or society doing business in this state shall calculate or pay, directly or indirectly, the compensation of any officer, director or trustee of the company or society as a percentage of the premiums collected or the insurance written by the company or society unless it first obtains the approval of the commissioner.
Acts 1907, ch. 440, § 1; Shan., § 3348a25; Code 1932, § 6196; Acts 1959, ch. 84, § 1; 1961, ch. 34, § 1; 1967, ch. 30, § 1; 1969, ch. 161, § 1; impl. am. Acts 1971, ch. 137, § 2; 1977, ch. 11, § 1; T.C.A., §§ 56-231, 56-321; Acts 1981, ch. 269, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-106 - Pensions to officers, directors, or trustees, or to members of their families prohibited to domestic stock or mutual life insurance companies or fraternal benefit societies - Employees' retirement plans permitted

(a)
No domestic stock or mutual life insurance company or fraternal benefit society shall grant any pension to any officer, director or trustee of the company or society, or to any member of the person's family after the person's death, or to any other person whomsoever except that the company or society may provide for an employees' retirement plan for its employees, which plan may or may not require contributions from the employees.
(b)
Before the company or society enters into the employees' retirement plan, it shall first submit that plan to the commissioner for approval pursuant to the requirements of this section, and the plan shall not become effective until it has been so approved. After the effective date of the plan, the commissioner may, upon a finding that the plan no longer meets the requirements of this section, order the company or society to discontinue contributions to the plan for a specified time with renewal of the contributions to be subject to the commissioner's subsequent approval.
(c)
The commissioner shall approve, or continue the approval of, an employees' retirement plan that meets the following requirements:
(1)
No benefit payment can be made to any employee under the plan until the entire reserve required for the benefit payment to the employee has been accumulated and set aside; and
(2)
If the plan is established for any classification of the employees of the company or society, such as home office employees, detached office employees, field representatives, agents, etc., it provides for participation and benefits on a nondiscriminatory basis for all employees in each classification who may elect to participate in the plan.
(d)
As used in this section, "employees" includes all persons employed by the company or society in any capacity, but does not include any director or trustee of the company or society who serves in that capacity only.
Acts 1907, ch. 440, § 2; Shan., § 3348a26; Acts 1931, ch. 78, § 1; Code 1932, § 6197; 1933, ch. 150, § 1; 1939, ch. 72, § 1; C. Supp. 1950, § 6197; T.C.A. (orig. ed.), § 56-231; Acts 1969, ch. 161, § 2; impl. am. Acts 1971, ch. 137, § 2; 1978, ch. 559, § 1; T.C.A. (orig. ed.), § 56-322.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-107 - Disbursements by life insurance companies to be upon vouchers or affidavits

(a)
No life insurance company doing business in this state shall make any payment out of its funds amounting to one hundred dollars ($100) or more unless the payment is evidenced by a voucher signed by or on behalf of the person receiving the money and correctly describing the consideration for the payment. If the payment is for both services and other purposes, the voucher shall set forth an itemized statement of the specific services rendered and of all other expenditures. If the expenditure is in connection with any matter pending before any legislative or public body or before any department or officer of any state or government, the voucher shall correctly describe, in addition, the nature of the matter and the interest of the company.
(b)
When the voucher cannot be obtained, the expenditure shall be evidenced by an affidavit describing the character and object of the expenditure and stating the reason for not obtaining the voucher.
Acts 1907, ch. 439, § 1; Shan., § 3348a24; Code 1932, § 6195; T.C.A. (orig. ed.), §§ 56-224, 56-328.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-108 - Dividends - Unauthorized payment - Penalty

(a)
It is not lawful for the directors, trustees, or managers of any insurance company incorporated by the laws of this state to make any dividend except from the surplus profits.
(b)
Any dividend made contrary to this chapter shall subject the company making the dividend to a forfeiture of its charter, and each stockholder receiving it to a liability to the creditors of the company to the extent of double the amount of the dividend declared.
Acts 1895, ch. 160, § 25; Shan., § 3309; Code 1932, § 6129; T.C.A. (orig. ed.), §§ 56-234, 56-329.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-109 - Dividends - Illegal division - Directors' liability to creditors

Moneys received as premiums upon risks undetermined and outstanding, at the time of declaring any dividend, shall not be considered as profits, earned and divided as such; and if any loss should happen impairing the capital stock, no dividend shall be declared until the capital stock is made good; and if a dividend is declared, contrary to this prohibition, the directors consenting to the dividend shall be liable to make good to the creditors of the company, if their claims cannot otherwise be satisfied, the amount of dividends thus illegally divided.
Acts 1875, ch. 142, § 10; Shan., § 2266; Code 1932, § 3978; T.C.A. (orig. ed.), §§ 56-235, 56-330.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-110 - Unclaimed dividends - Publication

Every insurance company doing business in this state shall, on January 1 of each year, and for thirty (30) days thereafter, cause to be published, in one (1) newspaper printed in the city of Nashville, a full and accurate statement, verified by the oath of the presiding officer, of the dividends and profits declared and payable upon stocks, bonds, or other evidences of indebtedness that remain unclaimed by the person entitled to the dividends and profits.
Code 1858, § 1830; Shan., § 3346; Code 1932, § 6171; T.C.A. (orig. ed.), §§ 56-236, 56-331.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-111 - Certain insurance companies to report settlement or judgment in health care liability claims

(a)
Insurance companies providing insurance coverage against civil liability for the death or personal injury of any person as the result of negligence or health care liability in the rendering of professional services by a licensed physician, either doctor of osteopathic medicine or doctor of medicine, or by a licensed dentist shall report to the state board of medical examiners or state board of osteopathic examination or the state board of dentistry any settlement of a claim or judgment, sealed, confidential or otherwise, of five thousand dollars ($5,000) or more that arises out of a claim of negligence or health care liability on the part of an insured physician or dentist as distinguished from administrative matters. The report shall be made within thirty (30) days of the settlement or judgment and shall contain only the following information:
(1)
The name and address of the licensed physician or dentist;
(2)
The name and address of the plaintiff;
(3)
The name of the patient, if different from the plaintiff;
(4)
The name and location of the court in which a claim was filed, if any;
(5)
The amount of any judgment or settlement; and
(6)
The identity of the insurance company and the person filling out the report.
(b)
The reports shall be confidential, shall not be subject to public inspection, shall not be subject to subpoena or used as evidence in any legal proceeding, civil or criminal; provided, however, that the reported judgments and settlements contained in the reports, except those that are ordered sealed or to remain confidential by a court of competent jurisdiction, may be used to fulfill the requirements of the Health Care Consumer Right to Know Act of 1998, compiled in title 63, chapter 32, but may not be used to initiate or prosecute any administrative proceeding before the board for licensing health care facilities.
(c)
No insurance company, official, or other person authorized by an insurance company to issue the reports shall be liable for filing reports in accordance with this section, so long as the report is not disclosed to anyone other than authorized personnel of the state board of medical examiners, state board of osteopathic examination or the state board of dentistry, or the reported judgments and settlements contained in the reports, except those that are ordered sealed or to remain confidential by a court of competent jurisdiction are used to fulfill the requirements of the Health Care Consumer Right to Know Act of 1998.
Acts 1979, ch. 166, § 1; T.C.A., § 56-340; Acts 1996, ch. 713, § 1; 2004, ch. 902, § 3; 2012, ch. 798, § 18.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-112 - [Repealed]

Acts 1980, ch. 503, § 1; 1995, ch. 363, § 9; repealed by Acts 2012 , ch. 680, § 3, effective 7/1/2012.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-113 - Valuation of bonds

(a)
All bonds permitted by this chapter or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows:
(1)
If purchased at par, at the par value;
(2)
If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made, or in lieu of that method, according to the accepted method of valuation approved by the department; and
(3)
The purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage or express charges paid in the acquisition of the securities.
(b)
The department shall have full discretion in determining the method of calculating values according to the rules set forth in this section, but the method or valuation shall not be inconsistent with any applicable valuation or method used by insurers in general, or the method then currently formulated or approved by the National Association of Insurance Commissioners or its successor organization.
Acts 1991, ch. 142, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-114 - Valuation of securities

(a)
Securities, other than those referred to in §
56-3-113
, held by an insurer shall be valued, in the discretion of the department, at their market value, at their appraised value, or at prices determined by it as representing their fair market value. Nothing in this section applies to loans secured by mortgages upon improved real property or upon leasehold estates in improved real property, which shall continue to be valued on the basis of amortization to maturity.
(b)
Preferred or guaranteed stocks or shares, while paying full dividends, may be carried at a fixed value in lieu of market value, at the discretion of the department and in accordance with the method of valuation it approves.
(c)
Stock of a subsidiary corporation of an insurer shall not be valued at an amount in excess of the net value of the stock as based upon those assets only of the subsidiary that would be eligible under this chapter for investment of the funds of the insurer directly.
(d)
No valuations under this section shall be inconsistent with any applicable valuation or method then currently formulated or approved by the National Association of Insurance Commissioners or its successor organization.
(e)
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 violation, and fixing a time and place, at least ten (10) days thereafter, when a hearing on the matter shall be held. The burden of proof shall be on the commissioner to show the lack of statutory criteria by the preponderance of the evidence. After the hearing, or upon failure of the accused to appear at the hearing, the commissioner, if the commissioner finds a violation, may enter an appropriate order under this section as the commissioner deems advisable.
(f)
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, § 2.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-115 - Bonds or other evidences of debt of a domestic insurance company - Reinsurance liability - Limitations

Notwithstanding §
56-1-405
, where bonds or other evidences of debt having a fixed term and rate of interest, or shares of capital stock of a federal home loan bank, owned by a domestic insurance company are held by or on behalf of another person in connection with a reinsurance liability of, or an indebtedness incurred to a federal home loan bank by the domestic insurance company, the amount allowed as a credit against the liability or indebtedness shall be determined in the manner provided for in §
56-3-113
or §
56-3-303(a)(4)
, as applicable, and the commissioner may allow the excess, if any, of the amount of the bonds or other evidences of debt or shares of capital stock over the amount of the liability or indebtedness to constitute an admissible asset of the domestic insurance company, but only if and to the extent that the bonds or other evidences of debt or shares of capital stock would constitute admissible assets except for being so held in connection with a reinsurance liability or indebtedness to a federal home loan bank; provided, that the total amount of the excess that a domestic insurance company may take into account as an admissible asset shall not exceed thirty percent (30%) of the company's capital and surplus as determined on December 31 of the year preceding the date of the determination.
Acts 1999, ch. 394, § 2; 2006, ch. 534, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-116 - Property and casualty insurers - Risk limitations - Applicability

(a)
No insurance company engaged in the business of property and casualty insurance shall retain a maximum net amount on any single risk in excess of ten percent (10%) of the company's capital, or surplus funds, if the insurer is a mutual, reciprocal or Lloyd's plan insurer.
(b)
This section does not apply to any company organized pursuant to chapter 13 of this title except for risk retention groups as defined in
15 U.S.C. § 3901
et seq. and
42 U.S.C. § 9671
.
Amended by 2014 Tenn. Acts, ch. 559,s 9, eff. 3/21/2014.
Acts 1991, ch. 142, § 2; 1999, ch. 394, § 1; T.C.A. §
56-3-115
.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-117 - Foreign and alien insurers - Investments

(a)
The investments of foreign and alien insurers shall be as permitted by the laws of their domicile but shall be of a quality substantially as high as those required under §
56-2-120
or §§
56-3-113
- 56-3-116 and this section for similar funds of like domestic insurers.
(b)
For the purpose of this section, the domicile of an alien insurer, other than insurers formed under the laws of Canada, shall be that state designated by the insurer in writing filed with the commissioner at the time of admission to this state and may be any one (1) of the following states in which:
(1)
The insurer was first authorized to transact insurance;
(2)
The insurer's principal place of business is located in the United States; or
(3)
The larger deposits of trusteed assets of the insurer for the protection of its policyholders and creditors in the United States is held.
(c)
If the insurer makes no such designation, its domicile shall be deemed to be that state in which is located its principal place of business in the United States.
(d)
In the case of the insurer formed under the laws of Canada or a province of Canada, its domicile shall be deemed to be that province in which its head office is situated.
(e)
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 violation, and fixing a time and place, at least ten (10) days thereafter, when a hearing on the matter shall be held. The burden of proof shall be on the commissioner to show the lack of statutory criteria by the preponderance of the evidence. After the hearing, or upon failure of the accused to appear at the hearing, the commissioner, if the commissioner finds a violation, may enter an appropriate order under this section as the commissioner deems advisable.
(f)
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, § 2; 1999, ch. 394, § 1; T.C.A. §
56-3-116
.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 1 - GENERAL PROVISIONS (§§ 56-3-101 — 56-3-118) › Section 56-3-118 - Commissioner - Promulgation of rules and regulations

(a)
The commissioner is authorized to promulgate rules and regulations to prescribe minimum standards for the establishment of liabilities and reserves resulting from insurance contracts issued by an insurer, including, but not limited to, unearned premium reserves and liabilities for claims and losses unpaid and incurred but not reported claims. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(b)
The rules promulgated under this section shall contain provisions stating that before the commissioner takes any action pursuant to the rules and regulations, the commissioner shall give written notice to the insurer involved, stating specifically the nature of any alleged violation, and fixing a time and place, at least ten (10) days thereafter, when a hearing on the matter shall be held. The burden of proof shall be on the commissioner to show the lack of minimum standards under the rules promulgated under this section by the preponderance of the evidence. After the hearing, or upon failure of the accused to appear at the hearing, the commissioner, if the commissioner finds a violation, 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, § 2; 1999, ch. 394, § 1; T.C.A. §
56-3-117
.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 2 - CLAIMS OFFICE REQUIREMENTS (§§ 56-3-201 — 56-3-203) › Section 56-3-201 - Soliciting contracts by advertisements - Claims office required

(a)
Any life, accident, hospitalization and health insurance company doing business in this state that solicits applications or offers for contracts or contracts of insurance primarily by mail, radio, television, publication of advertisements in a newspaper, magazine, or by any other printed matter shall provide at least one (1) office for the handling of claims in one (1) of the following cities: Memphis, Nashville, Knoxville or Chattanooga.
(b)
Any insurance policy issued for delivery to a resident of this state shall contain information whereby a policyholder may locate the nearest claims office referred to in subsection (a).
Acts 1973, ch. 253, § 1; T.C.A., § 56-352.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 2 - CLAIMS OFFICE REQUIREMENTS (§§ 56-3-201 — 56-3-203) › Section 56-3-202 - Contracts made by resident agent

Sections
56-3-201
and
56-3-203
do not apply to solicitations, offers, or contracts that are taken or made directly by a duly licensed resident agent.
Acts 1973, ch. 253, § 2; T.C.A., § 56-353.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 2 - CLAIMS OFFICE REQUIREMENTS (§§ 56-3-201 — 56-3-203) › Section 56-3-203 - Failure to provide claims office - Penalty

Life, accident, hospitalization and health insurance companies that violate §
56-3-201
shall be fined no less than five hundred dollars ($500) nor more than one thousand dollars ($1,000) for each day a violation occurs in each city named in §
56-3-201
.
Acts 1973, ch. 253, § 3; T.C.A., § 56-354.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 3 - INVESTMENTS OF DOMESTIC LIFE INSURANCE COMPANIES (§§ 56-3-301 — 56-3-307) › Section 56-3-301 - Underwriting or participation by domestic life insurance company in offering of securities by another prohibited - Agreement to withhold property from sale prohibited - Regulations on loans

(a)
No domestic life insurance company, whether incorporated by special act or under a general law of this state, shall underwrite or participate in the underwriting of an offering of securities or property by any other person; nor shall the company enter into any agreement to withhold from sale any of its property, but the disposition of its property shall be at all times within the control of its board of directors.
(b)
(1)
No investment or loan, except policy loans, shall be made by the life insurance company, unless the investment or loan first has been authorized by the board of directors or by a committee appointed by the board and charged with the duty of supervising the investment or loan; provided, that the acquisition and disposal of short-term bonds, debentures, notes, commercial paper, certificates of deposits or similar evidences of indebtedness, having a remaining maturity of ninety (90) days or less, if in accordance with §
56-3-303
and if done under the general supervision and periodic review of the board or a committee appointed by the board, shall not require specific approval of the board or committee.
(2)
Membership on the board of directors shall not be a requirement for eligibility to membership on the committee.
Acts 1907, ch. 458, § 1; Shan., § 3348a28; Code 1932, § 6203; T.C.A. (orig. ed.), § 56-216; Acts 1967, ch. 204, § 1; T.C.A. (orig. ed.), § 56-305; Acts 1983, ch. 65, § 1.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 3 - INVESTMENTS OF DOMESTIC LIFE INSURANCE COMPANIES (§§ 56-3-301 — 56-3-307) › Section 56-3-305 - Domestic life insurance companies may acquire, hold and convey real estate - Purposes - Manner

(a)
A domestic life insurance company may acquire, hold and convey real property only for the following purposes and in the following manner:
(1)
The land and the building on the land in which it has its principal office and other real property that is requisite for its convenient accommodations in the transaction of its insurance business, the amount not to exceed ten percent (10%) of its admitted assets, subject, however, to the limitations of subsection (b);
(2)
Real property that has been mortgaged to it in good faith by way of security for loans previously contracted or for moneys due;
(3)
Real property that has been conveyed to it in satisfaction of debts previously contracted in the course of its dealings;
(4)
Real property that has been purchased at sales on judgments, decrees, or mortgages obtained or made for those debts;
(5)
Real property that has been acquired for investment purposes; provided, that:
(A)
No real property may be acquired or held under the authority of this subdivision (a)(5) unless at the time of acquisition it is already improved and income producing or unless it is improved with due diligence after acquisition so as to produce an income;
(B)
No company shall at any one (1) time have more than two percent (2%) of its admitted assets invested in a single piece or adjoining pieces of real property acquired or held under the authority of this subdivision (a)(5); and
(C)
No investments under the authority of this subdivision (a)(5) shall be made in hotels, club houses, garages, schools, factories erected and designed for special purposes or agricultural properties, without specific approval in advance by the commissioner.
(b)
In no event shall the aggregate of all of a company's holdings and investments, under the authority of subdivisions (a)(1)-(5), exceed ten percent (10%) of the company's admitted assets; provided, that nothing in this subsection (b) shall prevent the acquisition by the company of any property under subdivisions (a)(2)-(4), but properties so acquired shall be held under §
56-3-306
.
Acts 1907, ch. 458, § 3; Shan., § 3348a30; Code 1932, § 6205; Acts 1947, ch. 110, § 1; C. Supp. 1950, § 6205; T.C.A. (orig. ed.), § 56-218; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-307; Acts 1998, ch. 678, § 3.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 3 - INVESTMENTS OF DOMESTIC LIFE INSURANCE COMPANIES (§§ 56-3-301 — 56-3-307) › Section 56-3-306 - Time for disposal of real estate - Extension of time

Real property specified in §
56-3-305(a)(2)-(4)
, which is not necessary for its accommodation in the convenient transaction of its business, shall be sold and disposed of within five (5) years after the company has acquired title to the property, or within five (5) years after the property has ceased to be necessary for the accommodation of its business, and it shall not hold the property for a longer period unless it complies with either of the following:
(1)
It shall procure a certificate from the commissioner authorizing an extension of time for the sale of the property, which certificate the commissioner is authorized to issue if, in the commissioner's judgment, it appears that the interest of the company will suffer materially by a forced sale of the property; or
(2)
It shall elect to hold the real property as an investment for income purposes under §
56-3-305(a)(5)
, in which event thereafter the real property shall be considered to have been acquired at a cost equal to its book value at the time of the election and to be held under, and subject to, §
56-3-305(a)(5) and (b)
. The election in this subdivision (2) may be made only if at the time of election the real property would otherwise qualify as a permissible investment under §
56-3-305(a)(5)
.
Acts 1907, ch. 458, § 3; Shan., § 3348a31; Code 1932, § 6206; T.C.A. (orig. ed.), §§ 56-219, 56-308; Acts 1983, ch. 65, § 4.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 3 - INVESTMENTS OF DOMESTIC LIFE INSURANCE COMPANIES (§§ 56-3-301 — 56-3-307) › Section 56-3-307 - Investments or loans of domestic life insurance companies limited

No domestic life insurance company shall invest or loan its funds in any manner except as provided in §§
56-3-301
- 56-3-306, except that investments of domestic life insurance companies may include electronic computer or data processing machines or systems heretofore or hereafter purchased for use in connection with the business of the insurer; provided, that the machine or system shall have an original cost of at least fifty thousand dollars ($50,000), and that the amortized value of the machine or system at the end of any calendar year shall not be greater than the original purchase price less ten percent (10%) for each completed year after purchase.
Acts 1907, ch. 458, § 4; Shan., § 3348a32; Code 1932, § 6207; T.C.A. (orig. ed.), § 56-220; Acts 1959, ch. 83, § 1; T.C.A. (orig. ed.), § 56-309.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 4 - INVESTMENTS OF OTHER DOMESTIC INSURANCE COMPANIES (§§ 56-3-401 — 56-3-409) › Section 56-3-403 - Investments in foreign securities and investments

(a)
Domestic insurance companies may invest in, or otherwise acquire or loan upon, securities and investments in Canada that are substantially of the same kinds, classes and investment grades as those eligible for investment under §
56-3-402
; but the aggregate amount of the investments that are held at any time by the company shall not exceed ten percent (10%) of its admitted assets, except where a greater amount is permitted pursuant to subsection (b), in which case this subsection (a) shall not be applicable.
(b)
Any domestic insurance company that is authorized to do business in a foreign country or that has outstanding insurance, or reinsurance contracts or risks, resident or located in a foreign country may invest in, or otherwise acquire or loan upon, securities and investments in the foreign country that are substantially of the same kinds, classes and investment grades as those eligible for investment under §
56-3-402
; but the aggregate amount of the investments in a foreign country and of cash in the currency of the country that is at any time held by the company shall not, except as provided in §
56-3-404(a)(1)
, exceed one and one half (1.5) times the amount of its reserves and other obligations under the contracts or the amount that the company is required by law to invest in the country, whichever is greater.
(c)
In addition to the foreign investments permitted under §
56-3-404(a)(1) and (2)
, any domestic insurance company may invest in, or otherwise acquire or loan upon, securities and investments in foreign countries that are substantially of the same kinds, classes and investment grades as those eligible for investment under §
56-3-402
; but the aggregate amount of the investments made pursuant to this subsection (c) shall not exceed one percent (1%) of its admitted assets.
Acts 1979, ch. 305, § 3; T.C.A., § 56-363.
2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 3 - OPERATION OF INSURANCE COMPANIES (§§ 56-3-101 — 56-3-905) › Part 4 - INVESTMENTS OF OTHER DOMESTIC INSURANCE COMPANIES (§§ 56-3-401 — 56-3-409) › Section 56-3-404 - Acquisition of stock

(a)
Notwithstanding any of the provisions or limitations of this section or of any other section of this code, a domestic insurance company may, at the time of original issue or at any other time, with the approval of the commissioner, acquire and hold:
(1)
More than fifty percent (50%) of the shares of outstanding voting stock of any other solvent insurance company, domestic or foreign;
(2)
More than fifty percent (50%) of the shares of outstanding voting stock of any domestic or foreign business corporation other than an insurance company, which corporation was formed or acquired for, and necessary and incidental to, the convenient operation of its insurance business, the administration of any of its lawful investments or the lawful business of any affiliated company; provided, that the stock or shares in any real estate company and the real property owned by the company shall be subject to §§
56-3-405
and
56-3-406
, and the amount invested in the stock or shares shall be included with the aggregate of all the insurance company's holdings and investments for the purposes of §
56-3-405(6)
; or
(3)
Stock of an insurance company formed under the laws of a foreign country, but the aggregate amount of the holdings shall not exceed five percent (5%) of the admitted assets of the insurance company.
(b)
The total holdings of a domestic insurance company of shares of voting stock authorized to be acquired and held under this section, together with the investments made under the authority of §
56-3-402(3) and (4)
, shall not at any time exceed the amount by which the capital and surplus of the company exceed the minimum capital and surplus required for the kind of insurance it is authorized to transact in this state; provided, that for purposes of determining the holdings of the stock pursuant to this section, the value of the stock shall be computed at cost or at market value on the December 31 preceding, whichever is lower and that, if there is no market on that date, then at cost or book value on that date, whichever is lower.
Acts 1979, ch. 305, § 4; T.C.A., § 56-364.