§ 56-9-503 — Administrative supervision of insurers by commissioner - Grounds for supervision - Duration of supervision

Tennessee § 56-9-503

• Jurisdiction: Tennessee
• Title: 56

Text

(a) An insurer may be subject to administrative supervision by the commissioner if, upon examination or at any other time, it appears in the commissioner's discretion that: (1) The insurer's condition renders the continuance of its business hazardous to the public or to its insureds; (2) The insurer has exceeded its powers granted under its certificate of authority and applicable law; (3) The insurer has failed to comply with the applicable provisions of the insurance code; (4) The business of the insurer is being conducted fraudulently; or (5) The insurer gives its consent. (b) If the commissioner determines that the conditions set forth in subsection (a) exist, the commissioner shall: (1) Notify the insurer of the commissioner's determination; (2) Furnish to the insurer a written list of the requirements to abate this determination; and (3) Notify the insurer that it is under the supervision of the commissioner and that the commissioner is applying and effectuating this part. The action by the commissioner is subject to review pursuant to applicable state administrative procedures under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (c) If placed under administrative supervision, the insurer has sixty (60) days, or another period of time as designated by the commissioner, to comply with the requirements of the commissioner, subject to this chapter. (d) If it is determined, after notice and hearing, that the conditions giving rise to the supervision still exist at the end of the supervision period, the commissioner may extend the period. (e) If it is determined that none of the conditions giving rise to the supervision exist, the commissioner shall release the insurer from supervision.

Legislative History

Acts 1991, ch. 142, § 4.