(a) If insurance coverages of insureds, whose home state is this state, cannot be procured from admitted companies after diligent effort, except if an exempt commercial purchaser, the coverages, designated as surplus lines insurance, may be procured from unauthorized companies, subject to the following conditions:

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Terms Used In Tennessee Code 56-14-103

  • Exempt commercial purchaser: means any person purchasing commercial insurance that, at the time of placement, meets the following requirements:
    (i) The person employs or retains a qualified risk manager to negotiate insurance coverage. See Tennessee Code 56-14-102
  • home state: means the home state, as determined pursuant to subdivision (9)(A), of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract. See Tennessee Code 56-14-102
  • 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 insurance: means any insurance coverage permitted by §. 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
  • Writing agent: means the licensed insurance agent who accepts the application for nonadmitted insurance directly or indirectly from the prospective insured. See Tennessee Code 56-14-102
(1) The insurance must be eligible for surplus lines under § 56-14-105;
(2) The insurer must be an eligible surplus lines insurer under § 56-14-109;
(3) The writing agent must be a licensed surplus lines agent; and
(4) Any other applicable provisions of this chapter must be followed.
(b) Any surplus lines insurance of an insured, whose home state is this state, shall be deemed to be insurance procured, or continued or renewed in this state for purposes of subsection (a).
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