§ 56-12-201. Short Title

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

§ 56-12-202. Purpose

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 the impairment or insolvency of the member insurer that issued the policies, plans, or […]

§ 56-12-203. Part Definitions

As used in this part: “Account” means any of the accounts created under § 56-12-205; “Association” means the Tennessee life and health insurance guaranty association created under § 56-12-205; “Commissioner” means the commissioner of commerce and insurance; “Contractual obligation” means an obligation under a policy or contract or certificate under a group policy or contract, […]

§ 56-12-204. Applicability — Limitations on Liability

This part provides coverage for the policies and contracts specified in subsection (b): 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 healthcare providers rendering services covered under health insurance policies or certificates, of persons covered under subdivision (a)(1)(B); […]

§ 56-12-205. Creation of Association — Accounts

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 organization business in this state. The association shall perform its function under […]

§ 56-12-206. Board of Directors — Reimbursement

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 commissioner. Vacancies on the board shall be […]

§ 56-12-207. Impaired or Insolvent Insurers

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: Guarantee, assume, reissue, or reinsure, or cause to be guaranteed, assumed, reissued, or reinsured, […]

§ 56-12-208. Assessments

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 not less than thirty (30) days after prior written […]

§ 56-12-209. Plan of Operation

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 upon the commissioner’s written approval or within thirty (30) days if the commissioner has not […]

§ 56-12-210. Powers and Duties of Commissioner — Judicial Review

In addition to the duties and powers enumerated elsewhere in this part, the commissioner shall: 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; When an impairment is declared and the amount of the impairment is determined, […]

§ 56-12-211. Detection and Prevention of Insurer Insolvencies and Impairments

To aid in the detection and prevention of insurer insolvencies or impairments, it shall be the duty of the commissioner to: Notify the commissioner of insurance, or other appropriate official, of all the other states, territories of the United States and the District of Columbia, when the commissioner takes any of the following actions against […]

§ 56-12-212. Right of Offset

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: Ten percent (10%) of the amount of such assessment for each of the ten (10) calendar years following the year in which such […]

§ 56-12-213. Liquidation, Rehabilitation, and Conservation Proceedings

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. Records shall be kept of all negotiations and meetings in which the association or its representatives discuss the activities of the association in carrying out […]

§ 56-12-214. Association Subject to Examination — Annual Report

The association shall be subject to examination and regulation by the commissioner. 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 by the commissioner and a report of its activities during the preceding […]

§ 56-12-215. Tax and Fee Exemption

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.

§ 56-12-216. Immunity From Liability

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 representatives, for any action or omission by them […]

§ 56-12-217. Stay of Proceedings — Default Judgments

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 powers or duties. As to judgment under […]

§ 56-12-218. Sales Promotions Listing Association Prohibited — Disclaimer Notice

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 newspaper, magazine, or other publication, or in the form of a notice, circular, […]

§ 56-12-219. Insurers Not Covered

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

§ 56-12-220. Rules and Regulations

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