(a) No surplus lines agent shall place any coverage with a unauthorized insurer that is not an eligible surplus lines insurer as provided under this section.
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Terms Used In Tennessee Code 56-14-109

  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-14-102
  • Department: means the department of commerce and insurance. See Tennessee Code 56-14-102
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in a perceivable form. See Tennessee Code 1-3-105
  • State: includes any state in the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa. See Tennessee Code 56-14-102
  • Surplus lines agent: means an agent who is licensed under chapter 6, part 1 of this title who is granted a surplus lines license in accordance with this chapter. See Tennessee Code 56-14-102
  • Surplus lines insurer: means an unauthorized company in which a nonadmitted insurance coverage is placed or may be placed under this chapter. See Tennessee Code 56-14-102
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) No unauthorized insurer shall be or become an eligible surplus lines insurer, unless:

(1) The unauthorized insurer is a United States domiciled insurer and it is authorized to write the type of insurance in its domiciliary jurisdiction and one of the following criteria is met:

(A) The unauthorized insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of:

(i) The minimum capital and surplus requirements under the law of this state; or
(ii) Fifteen million dollars ($15,000,000); or
(B) If the unauthorized insurer does not satisfy the requirements of subdivision (b)(1)(A), the commissioner makes an affirmative finding that the unauthorized insurer is acceptable. The commissioner’s finding shall be based upon such facts as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. In no event shall the commissioner make an affirmative finding of acceptability when the unauthorized insurer’s capital and surplus is less than four million five hundred thousand dollars ($4,500,000); or
(2) The unauthorized insurer is not a United States domiciled insurer but is listed by the NAIC International Insurers Department.
(c) If, at any time the commissioner has reason to believe that any unauthorized insurer then on the list of eligible surplus lines insurers no longer meets conditions of eligibility, has willfully violated the laws of this state or does not conduct a proper claims practice, the commissioner may declare it ineligible.
(d) The commissioner shall promptly mail notice of all declarations made pursuant to subsection (c) to each surplus lines agent at the agent’s most recent address that is on record with the commissioner.
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