(a)As used in this section, "limited credit life and credit accident and health reinsurer" means a domestic credit life and credit accident and health reinsurer that:
(1)Reinsures only credit life insurance or credit accident and health insurance as defined in § 56-2-201 , or both, in the manner provided for in § 56-2-114(b) ;
(2)Has been authorized by the commissioner to do so in Tennessee and is not so authorized in any other state; and (3) Secures all of its reinsurance reserve liabilities that have been assumed under a reinsurance agreement that has been approved by the commissioner with funds withheld or maintained in a trust fund that complies with §§ 56-2-207 , 56-2-208 and 56-2-209 and in an amount that is not less than one hundred ten percent (110%) of the amount of the liabili
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(a) As used in this section, "limited credit life and credit accident and health reinsurer" means a domestic credit life and credit accident and health reinsurer that: (1) Reinsures only credit life insurance or credit accident and health insurance as defined in § 56-2-201 , or both, in the manner provided for in § 56-2-114(b) ; (2) Has been authorized by the commissioner to do so in Tennessee and is not so authorized in any other state; and (3) Secures all of its reinsurance reserve liabilities that have been assumed under a reinsurance agreement that has been approved by the commissioner with funds withheld or maintained in a trust fund that complies with §§ 56-2-207 , 56-2-208 and 56-2-209 and in an amount that is not less than one hundred ten percent (110%) of the amount of the liabilities assumed. (b) (1) The responsibilities and obligations of a limited credit life and credit accident and health reinsurer under this title shall be modified as set out in this section. A limited credit life and credit accident and health reinsurer shall demonstrate its compliance with the requirements in subsection (a) in the annual statement filed with the commissioner for the preceding year and shall maintain assets to secure the liabilities in the percentage relationship at all times. In determining compliance with this requirement, the commissioner shall value securities in the manner prescribed in §§ 56-3-113 and 56-3-114 , and shall take into account only the securities that constitute admitted assets under chapter 3, part 3 of this title, and § 56-1-405 . (2) A company may not be a limited credit life and credit accident and health reinsurer during any period in which it is an affiliate of an insurer. In determining whether a company is an affiliate, tests provided for in § 56-11-101 shall be applied to determine a company's status. (c) Notwithstanding any contrary provision in this title, a limited credit life and credit accident and health reinsurer shall be excused from: (1) Filing personal financial statements to accompany insurance holding company forms under § 56-11-105 ; (2) Filing any audited financial statements pursuant to rules authorized by § 56-1-501(h) ; (3) Filing any risk-based capital reports under chapter 46 of this title; (4) Filing any management discussion and analysis; (5) Filing with respect to material transactions under §§ 56-10-301 - 56-10-303; (6) Filing any actuarial certification; (7) Any filing of its annual statement or quarterly statement with the National Association of Insurance Commissioners; and (8) Filing with respect to extraordinary dividends under § 56-11-106(b) . (d) The commissioner is excused from any obligation to perform regular examination of a limited credit life and credit accident and health reinsurer under § 56-1-408 , but shall retain the power to make an examination of any accounts, records, files, documents, and transactions pertaining to insurance of the limited credit life and credit disability reinsurer whenever the commissioner deems it prudent to do so under § 56-1-409 . (e) A limited credit life and credit accident and health reinsurer shall file with the commissioner copies of all reinsurance agreements, including amendments to the agreements, to which the reinsurer is a party. The agreement or amendment shall not be effective until and unless the agreement or amendment is approved by the commissioner; provided, however, that the agreement or amendment shall be deemed approved if the commissioner does not disapprove the agreement or amendment in writing within thirty (30) days after the reinsurer files a copy of the agreement or amendment with the commissioner. (f) The commissioner may approve a merger in which a limited credit life and credit accident insurance company is a constituent party without holding the otherwise required hearing on a merger of a limited credit life and credit accident and health reinsurer with another entity, unless the requirement of a hearing under § 56-10-104(b) applies to another party to the merger. (g) The commissioner may permit an applicant to seek a certificate of authority pursuant to a simplified and abbreviated application form under which the company seeking authority from the commissioner to engage in the business of being a limited credit life and credit accident and health reinsurer may apply for a certificate of authority to engage in the business. (h) This section shall apply to all reports and documents required to be filed after December 31, 2000.