Title 56, Insurance

No insurer or health carrier may engage in an unfairly discriminatory act or practice, as defined in § 56-8-204, against a subject of abuse on the basis of that abuse status.

(a) Any of the following acts are prohibited as unfairly discriminatory:(1) Denying, refusing to issue, renew or reissue, canceling or otherwise terminating a health benefit plan, or restricting or excluding health benefit plan coverage, or adding a premium differential to any he…

(1) Underwriting in accordance with the standards set forth in this section shall be deemed not to be a violation of this part. Upon request of the commissioner, a health carrier or insurer of an individual or group policy that has taken an action that adversely affects a subject…

The commissioner shall conduct a reasonable investigation based on a written and signed complaint received by the commissioner and issue a prompt determination as to whether a violation of this part has occurred. If the commissioner finds from the investigation that a violation o…

(a) This chapter is known and may be cited as the “Insurers Rehabilitation and Liquidation Act.” (b) This chapter shall not be interpreted to limit the powers granted the commissioner by other provisions of the law. (c) This chapter shall be liberally construed to effect the purp…

(1) The proceedings authorized by this chapter may be applied to:(1) All insurers who are doing, or have done, an insurance business in this state, and against whom claims arising from that business may exist now or in the future;(2) All insurers who purport to do an insurance bu…

(1) As used in this chapter, unless the context otherwise requires:(1) “Ancillary state” means any state other than a domiciliary state;(2) “Commissioner” means the commissioner of commerce and insurance;(3) “Creditor” is a person having any claim, whether matured or unmatured, l…

(a) No delinquency proceeding shall be commenced under this chapter by anyone other than the commissioner and no court has jurisdiction to entertain, hear or determine any proceeding commenced by any other person. (b) No court of this state has jurisdiction to entertain, hear or …

(a) Any receiver appointed in a proceeding under this chapter may at any time apply for, and any court of general jurisdiction may grant, the restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to prevent:(1) The trans…

(a) (1) Any officer, manager, director, trustee, owner, employee or agent of any insurer, or any other persons with authority over, or in charge of, any segment of the insurer's affairs, shall cooperate with the commissioner in any proceeding under this chapter or any investigati…

Every proceeding heretofore commenced under the laws in effect before July 1, 1991, shall be deemed to have commenced under this chapter for the purpose of conducting the proceeding henceforth, except that, in the discretion of the commissioner, the proceeding may be continued, i…

(1) No insurer that is subject to any delinquency proceedings, whether formal or informal, administrative or judicial, shall:(1) Be released from the proceeding, unless the proceeding is converted into a judicial rehabilitation or liquidation proceeding;(2) Be permitted to solici…

(a) The receivership court shall receive as self-authenticated any of the following when offered by the commissioner:(1) Certified copies of the financial statements made by the insurer; and(2) Certified copies of examination reports of the insurer made by or on behalf of the com…

(a) The commissioner may file in the chancery court of Davidson County a petition alleging, with respect to a domestic insurer:(1) That there exists any grounds that would justify a court order for a formal delinquency proceeding against an insurer under this part;(2) That the in…

(a) In all proceedings and judicial reviews under § 56-9-201, all records of the insurer, other documents, and all insurance department files and court records and papers, so far as they pertain to, or are a part of, the record of the proceedings, shall be and remain confidential…

(1) The commissioner may apply by petition to the chancery court of Davidson County for an order authorizing the commissioner to rehabilitate a domestic insurer or an alien insurer domiciled in this state on any one (1) or more of the following grounds:(1) The insurer is in such …

(a) (1) An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the commissioner and the commissioner's successors in office the rehabilitator, and shall direct the rehabilitator immediately to take possession of the…

(a) The commissioner as rehabilitator may appoint one (1) or more special deputies, who have all the powers and responsibilities of the rehabilitator granted under this section, and the commissioner may employ such counsel, clerks and assistants as deemed necessary. The compensat…

(a) Any court in this state before which any action or proceeding in which the insurer is a party, or is obligated to defend a party, is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for ninety (90) days and any additional …

(a) Whenever the commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders or the public, or would be futile, the commissioner may petition the chancery court of Davidson County for an order of liqu…

(1) The commissioner may petition the chancery court of Davidson County for an order directing the commissioner to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis:(1) Of any ground for an order of rehabilitation as specified in § 56-9-301, wh…

(a) An order to liquidate the business of a domestic insurer shall appoint the commissioner and the commissioner's successors in office as liquidator and shall direct the liquidator immediately to take possession of the assets of the insurer and to administer them under the gener…

(a) All policies, including bonds and other noncancellable business, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation, shall continue in force only for the lesser of:(1) A period of thirty (30) days from the date of en…

The commissioner may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time the commissioner applies for a liquidation order. The court shall order dissolution of the corpo…

(a) The liquidator has the power to:(1) Appoint a special deputy or deputies to act for the liquidator under this chapter, and determine the deputy's reasonable compensation. The special deputy has powers of the liquidator granted by this section. The special deputy shall serve a…

(a) Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible by:(1) First class mail and either telegram or telephone to the insurance commissioner of each jurisdiction in which the insurer is doing bus…

(a) (1) Every person who receives notice in the form prescribed in § 56-9-311 that an insurer that the person represents as an agent is the subject of a liquidation order shall, within thirty (30) days of the notice, provide to the liquidator, in addition to the information the p…

(a) (1) Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, no action at law or equity or in arbitration shall be brought against the insurer or liquidator, whether in this state or elsewhere, nor shall any such …

(a) As soon as practicable after the liquidation order, but not later than one hundred twenty (120) days thereafter, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented from time to time as the liquidator may determi…

(a) (1) Every transfer made or suffered and every obligation incurred by an insurer within one (1) year prior to the filing of a successful petition for rehabilitation or liquidation under this chapter is fraudulent as to then existing and future creditors, if made or incurred wi…

(a) (1) After a petition for rehabilitation or liquidation has been filed, a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fa…

(a) (1) A preference is a transfer of any of the property of an insurer to or for the benefit of a creditor, for or on account of an antecedent debt, made or suffered by the insurer within one (1) year before the filing of a successful petition for liquidation under this chapter,…

(a) No claims of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment or encumbrance voidable under this chapter shall be allowed unless the creditor surrenders the preference, lien, conveyance, transfer, assignment or encumbrance. If the a…

(a) In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter, the credits and debts shall be set off and the balance only shall be allowed or paid, except as provided in subsection (b). (b…

(a) As soon as practicable, but not more than two (2) years from the date of an order of liquidation under § 56-9-307 of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth:(1) The reasonable value of the assets of the insurer;(2)…

(a) (1) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium is obligated to pay any earned premium due the insurer at the time of the declaration of insolvency, as shown on the records of the insurer. Th…

(a) Within one hundred twenty (120) days of a final determination of insolvency of an insurer by a court of competent jurisdiction of this state, the liquidator shall make application to the court for approval of a proposal to disburse assets out of marshalled assets, from time t…

(a) Proof of all claims shall be filed with the liquidator in the form required by § 56-9-324, on or before the last day for filing specified in the notice required under § 56-9-311, except that proof of claims for cash surrender values or other investment values in life insuranc…

(a) Proof of claim shall consist of a statement, signed by the claimant, that includes all of the following that are applicable:(1) The particulars of the claim including the consideration given for it;(2) The identity and amount of the security on the claim;(3) The payments made…

(a) The claim of a third party which is contingent only on the third party's first obtaining a judgment against the insured shall be considered and allowed as if there were no such contingency. (b) A claim may be allowed even if contingent, if it is filed in accordance with § 56-…

(a) Whenever any third party asserts a cause of action against an insured of an insurer in liquidation, the third party may file a claim with the liquidator. (b) Whether or not the third party files a claim, the insured may file a claim on the insured's own behalf in the liquidat…

(a) When a claim is denied in whole or in part by the liquidator, written notice of the determination shall be given to the claimant or the claimant's attorney by first class mail at the address shown in the proof of claim. Within thirty (30) days from the mailing of the notice, …

(a) Whenever a creditor whose claim against an insurer is secured, in whole or in part, by the undertaking of another person fails to prove and file that claim, the other person may do so in the creditor's name, and shall be subrogated to the rights of the creditor, whether the c…

(a) The value of any security held by a secured creditor shall be determined in one (1) of the following ways, as the court may direct:(1) By converting the same into money according to the terms of the agreement pursuant to which the security was delivered to the creditors; or(2…

(a) The priority of distribution of claims from the insurer's estate shall be in accordance with the order in which each class of claims is set forth in this section. Every claim in each class shall be paid in full or adequate funds retained for the payment before the members of …

(a) The liquidator shall review all claims duly filed in the liquidation and shall make further investigation as the liquidator deems necessary. The liquidator may compound, compromise or in any other manner negotiate the amount for which claims will be recommended to the court, …