(a) Each subscriber insured under an assessable policy shall have a contingent assessment liability for payment of actual losses and expenses incurred while the subscriber’s policy was in force. This shall be in the amount provided for in the power of attorney or subscriber’s agreement.

Terms Used In Tennessee Code 56-16-112

  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
  • Subscriber: means a person obligated under a reciprocal insurance agreement. See Tennessee Code 56-16-102
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(b) The contingent assessment liability on any one (1) policy in any one (1) calendar year shall equal the premiums earned on the policy for that year multiplied by not less than one (1) nor more than ten (10).
(c) The contingent assessment liability shall not be joint, but shall be individual and several.
(d) Each assessable policy issued by the insurer shall plainly set forth a statement of the contingent assessment liability on the front of the policy in capital letters in no less than ten-point type.
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