(a) Every corporation now organized, or which may be organized, under the laws of this state, or any foreign corporation now or in the future doing business in this state, insuring title to real estate, or insuring owners, mortgagees, lessees or others against loss by reason of defective title to real estate, or encumbrances thereon, before engaging in the business, shall have a paid-up capital stock of not less than one hundred thousand dollars ($100,000) and shall deposit with the commissioner as provided in this section, the sum of one hundred thousand dollars ($100,000) in cash or securities of kind and character as provided in this section, out of either capital or surplus, which fund shall be known as “Title Insurance Fund”; and the insurer may, at any time, and from time to time, for the purpose of qualifying itself to do business in any other state or states, or for any other purpose, voluntarily increase the amount of the fund; provided, that the increase or increases, when made, shall become and remain a part of the fund in the same manner as if the sum to which the fund is so increased was the amount required by this chapter, until the purpose for which the additional deposit was made shall cease to exist, whereupon the insurer shall have the right to withdraw the additional sums so deposited upon submission to the commissioner of satisfactory evidence that the insurer is no longer required to maintain the same. In addition to the paid up capital stock set out in this subsection (a), the corporation shall establish and maintain a surplus account to the extent that the capital stock and surplus account is in the aggregate amount of not less than five hundred thousand dollars ($500,000); provided, that the surplus shall not be required of those corporations chartered by the secretary of state on or before January 1, 1980.
Terms Used In Tennessee Code 56-35-112
Commissioner: means the commissioner of commerce and insurance, and includes all deputies legally appointed and constituted to act in the commissioner's place and stead by other applicable law of the state. See Tennessee Code 56-35-102
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
Foreign: when used without limitation, includes all companies formed by authority of any other state or government. See Tennessee Code 56-1-102
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
Title insurance company: means any corporation, foreign or domestic, authorized by its charter to conduct a "title insurance business" as defined by this chapter and is sometimes referred to as "insurer" or "insurers. See Tennessee Code 56-35-102
United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) A foreign title insurance company that satisfies the commissioner that it has on deposit with the proper officer of some other state cash or securities of the kind and character required by this chapter for the protection of all policyholders and creditors of the insurer in the whole of the United States shall be relieved from the requirement of making deposits for such purpose in this state to the extent that it has the funds so deposited for such purposes in another state; provided, that the foreign insurance company shall file with the commissioner, in proper form, the current certificate of the proper officer with whom the cash or securities are deposited, stating the amount of the cash and the time and amount of each security so deposited, and the minimum worth which the officer is satisfied that the total deposit has and certifying that the deposit is being maintained in public custody and control pursuant to law in such state for the protection of the insurer’s policyholders and creditors in the whole of the United States.
