(a) A purchasing group that intends to do business in this state shall, prior to doing business, furnish notice to the commissioner, which notice shall:

lawyer at desk

Ask an insurance law question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Tennessee Code 56-45-108

  • Commissioner: means the commissioner of commerce and insurance or the commissioner, director or superintendent of insurance in any other state. See Tennessee Code 56-45-102
  • Insurance: means primary insurance, excess insurance, reinsurance, surplus lines insurance and any other arrangement for shifting and distributing risk that is determined to be insurance under the laws of this state. See Tennessee Code 56-45-102
  • Person: means any association, aggregate of individuals, business, company, corporation, individual, joint-stock company, Lloyds-type organization, organization, partnership, receiver, reciprocal or interinsurance exchange, trustee or society. See Tennessee Code 56-16-102
  • Product liability: means liability for damages because of any personal injury, death, emotional harm, consequential economic damage, or property damage, including damages resulting from the loss of use of property, arising out of the manufacture, design, importation, distribution, packaging, labeling, lease or sale of a product, but does not include the liability of any person for those damages if the product involved was in the possession of the person when the incident giving rise to the claim occurred. See Tennessee Code 56-45-102
  • Purchasing group: means any group that:
    (A) Has as one (1) of its purposes the purchase of liability insurance on a group basis. See Tennessee Code 56-45-102
  • State: means any state of the United States or the District of Columbia. See Tennessee Code 56-45-102
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(1) Identify the state in which the group is domiciled;
(2) Identify all other states in which the group intends to do business;
(3) Specify the lines and classifications of liability insurance that the purchasing group intends to purchase;
(4) Identify the insurance company or companies from which the group intends to purchase its insurance and the domicile of the company;
(5) Specify the method by which, and the person or persons, if any, through whom insurance will be offered to its members whose risks are resident or located in this state;
(6) Identify the principal place of business of the group; and
(7) Provide other information that may be required by the commissioner to verify that the purchasing group is qualified under § 56-45-102(10).
(b) A purchasing group shall, within ten (10) days, notify the commissioner of any changes in any of the items set forth in subsection (a).
(c) The purchasing group shall register with and designate the commissioner, or other appropriate authority, as its agent, solely for the purpose of receiving service of legal documents or process, for which a filing fee shall be determined by the commissioner, except that the requirements do not apply in the case of a purchasing group that only purchases insurance that was authorized under the federal Products Liability Risk Retention Act of 1981 ( 15 U.S.C. § 3901 et seq.), and:

(1) That in any state of the United States:

(A) Was domiciled before April 1, 1986; and
(B) Is domiciled on and after October 27, 1986;
(2) That:

(A) Before October 27, 1986, purchased insurance from an insurance carrier licensed in any state; and
(B) Since October 27, 1986, purchased its insurance from an insurance carrier licensed in any state; or
(3) That was a purchasing group under the requirements of the Product Liability Risk Retention Act of 1981 ( 15 U.S.C. § 3901 et seq.), before October 27, 1986.
(d) Each purchasing group that is required to give notice pursuant to subsection (a) shall also furnish such information as may be required by the commissioner to:

(1) Verify that the entity qualifies as a purchasing group;
(2) Determine where the purchasing group is located; and
(3) Determine appropriate tax treatment.
  Previous section
Next section  
 Chapter 45 Contents