Tennessee Code 56-3-116 – Property and casualty insurers – Risk limitations

(a) No insurance company engaged in the business of property and casualty insurance shall retain a maximum net amount on any single risk in excess of ten percent (10%) of the company’s capital, or surplus funds, if the insurer is a mutual, reciprocal or Lloyd’s plan insurer.

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Terms Used In Tennessee Code 56-3-116

Property: includes both personal and real property. See Tennessee Code 1-3-105
Reciprocal: means the aggregation of subscribers under a common name. See Tennessee Code 56-16-102

(b) This section does not apply to any company organized pursuant to chapter 13 of this title except for risk retention groups as defined in 15 U.S.C. § 3901 et seq. and 42 U.S.C. § 9671.

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Tennessee Code 56-3-116 – Property and casualty insurers – Risk limitations – Applicability

Terms Used In Tennessee Code 56-3-116

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