§ 50-6-1008 — Indemnification and recourse

(a) As used in this section, "insolvent self-insurer" includes the entity to which the certificate of authority was issued, any guarantor of the entity's liabilities under the certificate, and any employer who obtained employees from the insolvent self-insurer. (b) The association may obtain reimbursement from an insolvent self-insurer up to the amount of the employer's workers' compensation obligations paid and assumed by the association, including reasonable administrative and legal costs. This right includes, but is not limited to, a right to claim for wages and other necessities of life advanced to claimants as subrogee of the claimants in any action to collect against the self-insured as debtor. (c) The association may obtain from the security deposit of an insolvent self-insurer the amount of the employer's compensation obligations, including reasonable administrative and legal costs, paid or assumed by the association. (d) The association must be a party in interest in any action to obtain the security deposit for the payment of compensation obligations of an insolvent self-insurer. (e) The association has a cause of action against any person to recover compensation paid and liability assumed by the association, including, but not limited to, any excess insurance carrier of the insolvent self-insurer, and any person whose negligence or breach of any obligation contributed to any underestimation of the insolvent self-insurer's total accrued liability as reported to the commissioner. (f) The association may be a party in interest in any action brought by another person seeking damages resulting from the failure of an insolvent self-insurer to pay workers' compensation required by law.

Legislative History

Added by 2024 Tenn. Acts, ch. 666,s 1, eff. 4/9/2024.