§ 56-22-101. Short Title
This chapter shall be known and may be cited as the “Tennessee County Mutual Insurance Company Act of 2006.”
§ 56-22-102. Scope of Chapter
This chapter governs the qualifications and procedures for licensing and general regulatory requirements for county mutual insurance companies insuring risks and property in this state.
§ 56-22-103. Chapter Definitions
As used in this chapter, unless the context otherwise requires: “Certificate of authority” means a legal right granted by the commissioner and enjoyed by a county mutual insurance company to provide insurance as provided for in this chapter; “Commissioner” means the commissioner of commerce and insurance; “County mutual insurance company” means a person that is […]
§ 56-22-104. Unlawful to Transact Insurance Business Without Certificate of Authority
It is unlawful for any person to enter into a contract of insurance as a county mutual insurance company or transact insurance business in this state as a county mutual insurance company without a certificate of authority provided by the commissioner.
§ 56-22-105. Application for Certificate of Authority — Minimum Requirements
To apply for a certificate of authority, a person shall file with the commissioner an application on a form adopted by the commissioner, accompanied by a nonrefundable filing fee in the amount referenced in § 56-4-101(a)(1). A person in this state applying for a certificate of authority to act as a county mutual insurance company […]
§ 56-22-106. Authority Conferred by Certificate — Withdrawal of Permission to Write Insurance — Security Deposit — Risk Limitations — Extension of Business — Surplus Requirements — Use of Names — Insolvency Guaranty Funds
A certificate of authority granted pursuant to this chapter shall authorize the county mutual insurance company to insure losses or damage to property, including losses of use and occupancy, by fire, lightning, explosion, windstorm, hail, riot, civil commotion, aircraft, vehicles, collision, extended only to farm machinery, livestock, and other covered farm property, overturn of farm […]
§ 56-22-107. Elections — Commissions — Compensation — Benefits — Expense Ratios
Every policyholder in good standing shall be entitled to one (1) vote in person or by ballot transmitted by mail, as shall be provided in the bylaws, in any election for directors or upon any other issues properly brought to the policyholders for consideration. No officer, director or other person whose duty it is to […]
§ 56-22-108. Surplus or Emergency Fund — Investment of Assets — Borrowing to Cover Losses
In the event that the commissioner determines the existing surplus to be inadequate, a county mutual insurance company shall seek to accumulate a surplus or emergency fund in an amount that might be deemed necessary by the commissioner. A county mutual insurance company may invest its assets in the same manner as an insurance company […]
§ 56-22-109. Annual Statement — Compliance With Filing Requirements for Personal Risk Insurers — Cancellation of Policy of Insurance — Dividends
Every county mutual insurance company operating under this chapter shall file an annual statement with the commissioner on or before March 1 of each year that reports the company’s financial condition and business on December 31 of the previous year. The annual statement shall be submitted on a form the commissioner may prescribe and shall […]
§ 56-22-110. Required Aggregate Excess of Loss Reinsurance Policy
All county mutual insurance companies shall be required to carry an aggregate excess of loss reinsurance policy of no less than five percent (5%) of business in force. The amount required for such a policy shall be reduced by the county mutual insurance company’s accumulated surplus.
§ 56-22-111. Insolvency — Assessments by Other County Mutual Insurance Companies
If the assets of a county mutual insurance company are insufficient to pay its existing liabilities, including those liabilities incurred but not reported and other obligations, as well as maintain the reserves required under this chapter, the county mutual insurance company shall notify the commissioner immediately. Upon notice or determination by the commissioner of a […]
§ 56-22-112. Acquisition or Merger
The acquisition or merger of a county mutual insurance company is subject to the same standards and procedures set forth in § 56-11-103, and any rules promulgated thereunder.
§ 56-22-113. Licensing Requirements — Requirements of Managing General Agents
A person shall not sell, solicit or negotiate insurance covering those risks listed under § 56-22-106(a), unless the person is licensed to sell property insurance under chapter 6, part 1 of this title. A person shall not sell, solicit or negotiate insurance covering those risks listed under § 56-22-106(b), unless the person is licensed to […]
§ 56-22-114. Premium Taxes — Additional Taxes for Writing Fire Coverage
All county mutual insurance companies shall pay a premium tax in accordance with chapter 4, part 2 of this title. In addition to the premium taxes levied on county mutual insurance companies under subsection (a), any county mutual insurance company writing fire insurance and lines of business having fire coverages as a part of the […]
§ 56-22-115. Examination of County Mutual Insurance Company
The commissioner may investigate or examine the affairs of a county mutual insurance company to the same extent that the commissioner may investigate or examine the affairs of an insurance company doing business in this state. At least once every five (5) years, the commissioner shall examine the affairs of each county mutual insurance company […]
§ 56-22-116. Cease and Desist Order
In addition to all other powers granted under this chapter, the commissioner may issue an order requiring a county mutual insurance company to cease and desist from engaging in any act or practice found to be in violation of this chapter or any other applicable law, rule, regulation or order of the commissioner. Any order […]
§ 56-22-117. Violations — Hearings
The commissioner may, after notice and a hearing, levy a civil penalty in an amount not to exceed ten thousand dollars ($10,000) against a county mutual insurance company or an entity required to be licensed as a county mutual insurance company, upon a finding that the county mutual insurance company, the entity required to be […]
§ 56-22-118. County Mutual Insurance Companies Subject to Same Proceedings and Actions as Insurance Companies
The commissioner may subject a county mutual insurance company to any proceeding or action authorized pursuant to chapter 9 of this title, under the same terms as insurance companies. For all such purposes, county mutual insurance companies are deemed to meet the definition of insurance company set forth in chapter 9 of this title.
§ 56-22-119. Fraud
A director, an officer, a member, an insurance producer, or an employee of a county mutual insurance company who knowingly or intentionally, directly or indirectly, uses or employs, or allows another person to use or employ, money, funds, securities, or assets of the county mutual insurance company for private profit or gain commits a fraudulent […]
§ 56-22-120. Rules and Regulations
The commissioner is authorized to promulgate rules and regulations to effectuate the purposes of this chapter. All rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.