Title 56, Insurance

(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.

(a) This chapter is known and may be cited as the “Revised Tennessee Captive Insurance Act.” (b) The purpose of this chapter is to establish the procedures for the organization and regulation of the operations of captive insurance companies within this state and thereby promote t…

(1) As used in this chapter, unless the context requires otherwise:(1) “Affiliated company” means any company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management;(2) “Agency cap…

(a) Any captive insurance company, when permitted by its organizational documents, may apply to the commissioner for a license to do any and all insurance comprised in §§ 56-2-201(2) and (4)-(7), 56-2-202, 56-2-203, and 56-2-204; provided, however, that:(1) No pure captive insura…

(a) No captive insurance company shall adopt a name that is the same, deceptively similar, or likely to be confused with or mistaken for any other existing business name registered in this state, nor any name likely to mislead the public. Any name adopted by a captive insurance c…

(a) No captive insurance company shall be issued a license unless it possesses and maintains unimpaired paid-in capital and surplus of:(1) In the case of a pure captive insurance company, not less than two hundred fifty thousand dollars ($250,000);(2) In the case of an associatio…

No captive insurance company shall pay a dividend out of, or other distribution with respect to, capital or surplus without the prior approval of the commissioner. Approval of an ongoing plan for the payment of dividends or other distributions shall be conditioned upon the retent…

(a) A pure captive insurance company or agency captive insurance company may be incorporated as a stock insurer with its capital divided into shares and held by the stockholders, as a nonprofit corporation with one (1) or more members, or as a limited liability company. (b) An as…

(a) No captive insurance companies shall be required to make any annual report except as provided in this chapter and as required by title 48 and title 61. (b) Prior to March 15 of each year, each captive insurance company shall submit to the commissioner a report of its financia…

(a) At least once every three (3) years, and whenever the commissioner determines it to be prudent, the commissioner shall visit each captive insurance company and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligati…

(a) The license of a captive insurance company may be suspended or revoked by the commissioner for any of the following reasons:(1) Insolvency or impairment of capital or surplus;(2) Failure to meet the requirements of § 56-13-105;(3) Refusal or failure to submit an annual report…

(a) Except as may be otherwise authorized by the commissioner, association captive insurance companies and risk retention groups shall comply with the investment requirements contained in §§ 56-3-401 — 56-3-409, as applicable. Notwithstanding any other provision of this title, th…

(a) Any captive insurance company may provide reinsurance as authorized by this title on risks ceded by any other insurer. (b) Any captive insurance company may take credit for the reinsurance of risks or portions of risks ceded to reinsurers complying with this title. If the rei…

(a) No captive insurance company shall be required to join a rating organization. (b) No captive insurance company shall be permitted to join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this state, nor shall any such captive insuran…

(a) Each captive insurance company shall pay to the department, on or prior to March 15 of each year, a tax at the rate of four-tenths of one percent (0.4%) on the first twenty million dollars ($20,000,000), and three-tenths of one percent (0.3%) on each dollar thereafter on the …

The commissioner may adopt and, from time to time, amend such rules relating to captive insurance companies as are necessary to enable the commissioner to carry out this chapter.

No provisions of this title, other than those contained in this chapter or expressly provided in this chapter, shall apply to captive insurance companies. Risk retention groups shall have the privileges and be subject to chapter 45 of this title in addition to the applicable prov…

The commissioner may adopt rules establishing standards to ensure that a parent or its affiliated company, or an industrial insured or its affiliated company, is able to exercise control of the risk management function of any controlled unaffiliated business to be insured by a pu…

(a) No captive insurance company shall make any material change or changes to its plan of operation until the department has approved the change or changes. (b) Each subsequent material change of plan of operation filed during each year is subject to the fee described in § 56-4-1…

Any municipality, metropolitan government, county, authority, utility district, or other public body generally classified as a governmental body or governmental entity, whether organized by private act or public act of the general assembly, or otherwise, or any agency, board, or …

(a) If, after providing notice consistent with the process established by § 4-5-320(c) and providing the opportunity for a contested case hearing held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3, the commissioner finds that…

The commissioner is authorized to promulgate rules and regulations necessary to effectuate the purposes of this chapter; provided, that, no rule promulgated pursuant to this chapter shall affect a special purpose financial captive (SPFC) insurance securitization, as defined and a…

(a) The regulation of captive insurance companies as authorized by this chapter is subject to audit by the comptroller of the treasury as otherwise provided by state law. Information submitted to the department by captive insurance companies subject to this chapter shall, without…

(a) Notwithstanding any other method authorized by law, a foreign or alien insurer may become a domestic captive insurance company by complying with all of the requirements of this chapter relative to the organization and licensing of a domestic captive insurance company of the s…

(a) As used in this section, “dormant captive insurance company” means any captive insurance company other than a captive risk retention group that has:(1) Ceased transacting the business of insurance, including the issuance of insurance policies; and(2) No remaining liabilities …

(a) For purposes of this section:(1) “Foreign” means outside the United States, its territories, or possessions;(2) “Foreign currency” means currency issued by a government outside the United States that is recognized by the United States as a legitimate government-issued currenc…

(a) One (1) or more sponsors may form a protected cell captive insurance company under this chapter. In addition to part 1 of this chapter, this part shall apply to protected cell captive insurance companies. (b) A protected cell captive insurance company shall be incorporated as…

(1) As used in this part, unless the context requires otherwise:(1) “General account” means all assets and liabilities of a protected cell captive insurance company not attributable to a protected cell;(2) “Participant” means a person or an entity, authorized to be a participant …

(1) In addition to the information required by § 56-13-103(c)(1), each applicant-protected cell captive insurance company shall file with the commissioner the following:(1) Materials demonstrating how the applicant will account for the loss and expense experience of each protecte…

(1) A protected cell captive insurance company formed or licensed under this chapter may establish and maintain one (1) or more incorporated or unincorporated protected cells, to insure risks of one (1) or more participants, subject to the following conditions:(1) (A) A protected…

(a) Associations, corporations, limited liability companies, partnerships, trusts, and other business entities may be participants in any protected cell captive insurance company formed or licensed under this chapter. (b) A sponsor may be a participant in a protected cell captive…