Title 56, Insurance

(a) There is created a nonprofit unincorporated legal entity to be known as the Tennessee insurance guaranty association. (b) All insurers defined as member insurers shall be and remain members of the association as a condition of their authority to transact insurance in this sta…

(a) The board of directors of the association shall consist of five (5) persons serving terms as established in the plan of operation. The members of the board shall be selected by the commissioner. Each board member so selected shall be a resident of this state and shall represe…

(a) The association shall:(1) (A) Be obligated to the extent of the covered claims existing prior to the determination of insolvency and arising within thirty (30) days after the determination of insolvency, or before the policy expiration date if less than thirty (30) days after…

(a) (1) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective u…

(a) The commissioner shall:(1) Notify the association of the existence of an insolvent insurer not later than three (3) days after receiving notice of the determination of the insolvency. The association shall be entitled to a copy of any complaint seeking an order of liquidation…

(a) Any person recovering under this part shall be deemed to have assigned that person's rights under the policy to the association to the extent of that person's recovery from the association. Every insured or claimant seeking the protection of this part shall cooperate with the…

(a) Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer, which is also a covered claim, shall be required to exhaust first such person's right under such policy. Any amount payable on a covered claim …

(a) The board of directors may, upon majority vote, make reports to the commissioner upon any matter germane to the solvency, liquidation, rehabilitation or conservation of any member insurer. Such reports shall be considered public documents. (b) The board of directors shall, at…

(a) The association shall be subject to examination and regulation by the commissioner. (b) The board of directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the commissioner.

The association shall be exempt from payment of all fees, except examination fees, and all taxes levied by this state or any of its subdivisions, except taxes levied on real or personal property.

Member insurers assessed a percentage of net direct written premiums for any preceding calendar year, as provided in § 56-12-107(a)(3), shall be allowed a credit against premium taxes imposed on such member insurers by § 56-4-205, up to twenty-five percent (25%) of the net premiu…

There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer, the association or its agents or employees, the board of directors, or the commissioner or the commissioner's representatives for any action taken by them in …

(a) All proceedings in which the association is obligated to defend by reason of this part shall be stayed for six (6) months from the date the insolvency is determined or such additional time as shall be granted either by the court in which the action is pending or by the chance…

No member insurer shall include any advertising matter in its advertisements in reference to the coverage afforded by the Tennessee insurance guaranty association.

Assessments made by the Tennessee insurance guaranty association as provided in § 56-12-107(a)(3) shall be allowed as a credit against premium taxes imposed on member insurers up to twenty-five percent (25%) of the net premium taxes due in any one (1) calendar year, until the agg…

(a) All obligations for unearned premium claims shall include only that amount of each covered claim that is in excess of two hundred fifty dollars ($250) and is less than ten thousand dollars ($10,000). (b) (1) Unearned premium claims arising out of workers' compensation policie…

(a) In no case shall a covered claim include any claim filed with the association, domiciliary receiver, ancillary receiver or liquidator, after the earlier of:(1) Eighteen (18) months after the date of the order of liquidation; or(2) The final date set by the court for the filin…

This part is known and may be cited as the “Tennessee Life and Health Insurance Guaranty Association Act.”

(a) The purpose of this part is to protect, subject to certain limitations, the persons listed in § 56-12-204(a) against failure in the performance of contractual obligations, under life, health, and annuity policies, plans, or contracts specified in § 56-12-204(b), because of th…

(1) As used in this part:(1) “Account” means any of the accounts created under § 56-12-205;(2) “Association” means the Tennessee life and health insurance guaranty association created under § 56-12-205;(3) “Commissioner” means the commissioner of commerce and insurance;(4) “Contr…

(a) (1) This part provides coverage for the policies and contracts specified in subsection (b):(A) To persons who, regardless of where they reside except for nonresident certificate holders under group policies or contracts, are the beneficiaries, assignees, or payees, including …

(a) There is created a nonprofit legal entity to be known as the Tennessee life and health insurance guaranty association. All member insurers are and shall remain members of the association as a condition of their authority to transact insurance or a health maintenance organizat…

(a) The board of directors of the association shall consist of not less than five (5) nor more than nine (9) member insurers serving terms as established in the plan of operation. The members of the board shall be selected by member insurers, subject to the approval of the commis…

(a) If a member insurer is an impaired insurer, the association may, in its discretion, and subject to any conditions imposed by the association that do not impair the contractual obligations of the impaired insurer and that are approved by the commissioner:(1) Guarantee, assume,…

(a) For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the member insurers, separately for each account, at such time and for such amounts as the board finds necessary. Assessments are due no…

(a) (1) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective u…

(a) In addition to the duties and powers enumerated elsewhere in this part, the commissioner shall:(1) Upon request of the board of directors, provide the association with a statement of the premiums in this and any other appropriate states for each member insurer;(2) When an imp…

(a) To aid in the detection and prevention of insurer insolvencies or impairments, it shall be the duty of the commissioner to:(1) (A) Notify the commissioner of insurance, or other appropriate official, of all the other states, territories of the United States and the District o…

(a) (1) A member insurer may offset against any premium, franchise, excise or income tax liability or liabilities to this state an assessment described in § 56-12-208(h) to the extent of the lesser of:(A) Ten percent (10%) of the amount of such assessment for each of the ten (10)…

(a) Nothing in this part shall be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability. (b) Records shall be kept of all negotiations and meetings in which the association or …

(a) The association shall be subject to examination and regulation by the commissioner. (b) The board of directors shall submit to the commissioner each year, not later than one hundred twenty (120) days after the association's fiscal year, a financial report in a form approved b…

The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real property.

(a) There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer or its agents or employees, the association or its agents or employees, members of the board of directors, or the commissioner or the commissioner's repres…

(a) All proceedings in which the insolvent insurer is a party in any court in this state shall be stayed sixty (60) days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on any matters relative to its…

(a) No person, including a member insurer or agent or affiliate of a member insurer shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, or placed before the public in any newspap…

This part does not apply to any insurer that is insolvent or unable to fulfill its contractual obligations on July 1, 1989.

(a) The commissioner is authorized to promulgate rules and regulations to effectuate the purposes of this part. (b) All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.