Tennessee Code 56-3-301 – Underwriting or participation by domestic life insurance company in offering of securities by another prohibited – Agreement to withhold property from sale prohibited – Regulations on loans
(a) No domestic life insurance company, whether incorporated by special act or under a general law of this state, shall underwrite or participate in the underwriting of an offering of securities or property by any other person; nor shall the company enter into any agreement to withhold from sale any of its property, but the disposition of its property shall be at all times within the control of its board of directors.
Terms Used In Tennessee Code 56-3-301
Person: means an individual, a business entity, a multilateral development bank or a government or quasi-governmental body, such as a political subdivision or a government sponsored enterprise. See Tennessee Code 56-3-302
State: includes the several states, the District of Columbia, the Commonwealth of Puerto Rico and the possessions of the United States. See Tennessee Code 56-3-302
(b)(1) No investment or loan, except policy loans, shall be made by the life insurance company, unless the investment or loan first has been authorized by the board of directors or by a committee appointed by the board and charged with the duty of supervising the investment or loan; provided, that the acquisition and disposal of short-term bonds, debentures, notes, commercial paper, certificates of deposits or similar evidences of indebtedness, having a remaining maturity of ninety (90) days or less, if in accordance with § 56-3-303 and if done under the general supervision and periodic review of the board or a committee appointed by the board, shall not require specific approval of the board or committee.(2) Membership on the board of directors shall not be a requirement for eligibility to membership on the committee.
