(a) The maximum amount carried by any such company on any one (1) or more risks reasonably subject to one (1) fire shall not exceed the amounts prescribed in the following schedule when under the protection of a full paid fire department, not exceeding three fifths (3/5) of that amount when not under the protection of a full paid fire department:

Total amounts of fire insurance in force

Maximum single risk

When under $400,000 ………………..

$ 2,000

$400,000 and under $600,000 ………………..

3,000

$600,000 and under $900,000 ………………..

4,000

$900,000 and under $1,200,000 ………………..

5,000

$1,200,000 and under $1,500,000 ………………..

5,500

$1,500,000 and under $2,000,000 ………………..

6,000

$2,000,000 and under $2,500,000 ………………..

7,000

$2,500,000 and under $3,000,000 ………………..

8,000

$3,000,000 and under $3,500,000 ………………..

9,000

$3,500,000 and under $5,000,000 ………………..

10,000

$5,000,000 and over ………………..

12,500

Terms Used In Tennessee Code 56-21-123

  • Department: means the department of commerce and insurance. See Tennessee Code 56-1-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • 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
(b) When the insurance in force exceeds five million dollars ($5,000,000), the maximum permissible risk shall increase in the amount of one thousand dollars ($1,000) for each one million dollars ($1,000,000) of the amount of insurance in force; provided, that the maximum permissible risk shall in no case exceed thirty-five thousand dollars ($35,000). Notwithstanding any of the foregoing provisions, any state mutual fire insurance company having and maintaining seven hundred fifty thousand dollars ($750,000) in surplus funds, exclusive of contingent surplus funds, may insure any single risk up to fifty thousand dollars ($50,000). For purposes of this section, homeowners’ policies, farm owners’ policies and commercial multi-peril policies shall be considered permissible up to the limits of the property coverage.
(c) State mutual fire insurance companies not maintaining guaranty capital securities equal to or more than two hundred thousand dollars ($200,000), deposited prior to July 1, 1975, or maintaining seven hundred fifty thousand dollars ($750,000) in surplus funds, exclusive of contingent surplus funds, may retain up to ten percent (10%) of risks classified as vehicle insurance, casualty insurance and surety insurance. Ninety percent (90%) shall be reinsured with another state mutual fire insurance company or any casualty insurance company licensed to transact the specific lines of coverage to be reinsured in this state.
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