Home ] Forms ] Statute ] State Sites ] Policies ] Members ] Liquidators ] Links ] Insureds ] Insolvencies ] Guaranty Funds ] FAQs ] Contact Us ] Claimants ] Attorneys ]


56-12-109. Powers and duties of commissioner - Judicial review. -

(a) The commissioner shall:

  1. Notify the association of the existence of an insolvent insurer not later than three (3) days after receiving notice of the determination of the insolvency. The association shall be entitled to a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member company at the same time such complaint is filed with a court of competent jurisdiction; and

  2. Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.

(b) The commissioner may:

  1. Require that the association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this part. Such notification shall be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation shall be sufficient;

  2. (A) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or that fails to comply with the plan of operation; or

    (B) As an alternative, the commissioner may levy a forfeiture on any member insurer who fails to pay an assessment when due. Such forfeiture shall not exceed five percent (5%) of an unpaid assessment per month, but no forfeiture shall be less than one hundred dollars ($100) per month; and

  3. Revoke the designation of any servicing facility if the commissioner finds claims are being handled unsatisfactorily.

(c) Any final action or order of the commissioner under this part shall be subject to judicial review exclusively by common law writ of certiorari in the chancery court of Davidson County.

[Acts 1971, ch. 180, 9; T.C.A., 56-4009; Acts 1989, ch. 36, 1; 1999, ch. 48 8.]

Return to Statute Page





Copyright 2006  Tennessee Insurance Guaranty Association  All rights reserved.

Copyright is not claimed as to the Tennessee Code provisions reproduced herein.




Legal Disclaimer:  Information on this site is provided to assist claimants, but is not legal advice, a comprehensive statement of the law or a detailed statement of TIGA policy and procedures, and reference should always be made to enabling legislation and case law. Certain information may not be current, and advice of legal counsel and insurance professionals is recommended.  TIGA  makes no warranty or guarantee concerning the accuracy of reliability of the content of this website or other linked or related websites.  Although TIGA has made every effort to produce the most complete up-to-date and accurate information on this website, such information is meant to be used for reference purposes only.  Any reference to the guaranty fund laws of any jurisdiction is for informational purposes only and is not a substitute for the official version of a statute or for legal advice.  Should you wish to view an official version of any guaranty fund statute, please contact the appropriate insurance department or ask your attorney to do so.