(a) The insurer or insurance group has discretion over the responses to the CGAD inquiries, provided that the CGAD must contain the material information necessary to permit the commissioner to gain an understanding of the insurer’s or group’s corporate governance structure, policies, and practices. The commissioner may request additional information that the commissioner deems material and necessary to provide the commissioner with a clear understanding of the corporate governance policies, the reporting or information system, or the controls implementing those policies.
Terms Used In Tennessee Code 56-2-906
CGAD: means a confidential report filed by the insurer or insurance group in accordance with this part. See Tennessee Code 56-2-903
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.
Insurance group: means those insurers and affiliates included within an insurance holding company system as defined in §. See Tennessee Code 56-2-903
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
(b) Notwithstanding subsection (a), the CGAD must be prepared consistent with rules promulgated pursuant to this part. The rules must be consistent with subsection (c). Documentation and supporting information must be maintained and made available upon examination or upon the request of the commissioner.(c) Rules promulgated under this part must prescribe separate but suitable corporate governance reporting requirements for any insurer or insurance group that is not admitted to write insurance on a direct basis in any other jurisdiction and is either:
(1) Organized under the Tennessee Nonprofit Corporation Act, compiled in title 48, chapters 51-68; or(2) Governed by a board of which at least seventy-five percent (75%) of its voting directors receive no more than nominal compensation.
