(a) Every policyholder in good standing shall be entitled to one (1) vote in person or by ballot transmitted by mail, as shall be provided in the bylaws, in any election for directors or upon any other issues properly brought to the policyholders for consideration.

Terms Used In Tennessee Code 56-22-107

  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-22-103
  • County mutual insurance company: means a person that is authorized to provide insurance coverage pursuant to this chapter. See Tennessee Code 56-22-103
  • insurance company: means any corporation, association, partnership or individual engaged as a principal in the business of insurance not licensed pursuant to this chapter. See Tennessee Code 56-22-103
  • Person: means an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of these acting in concert. See Tennessee Code 56-22-103
  • Policyholder: means a person who is insured by a county mutual insurance company. See Tennessee Code 56-22-103
  • Premium: means money given in consideration to a county mutual insurance company on account of or in connection with an insurance policy for a specified policy period. See Tennessee Code 56-22-103
(b)

(1) No officer, director or other person whose duty it is to determine the character of risk and upon whose decision the application for insurance shall be accepted or rejected shall receive as any part of the person’s compensation a commission upon the premium, but the compensation shall be a fixed salary, and/or a share of the net profits of the county mutual insurance company that the board of directors may determine appropriate.
(2) Nothing under subdivision (b)(1) shall be construed to prohibit a county mutual insurance company from providing for its directors, officers and other employees reasonable benefits, including, but not limited to, directors’ compensation, health insurance benefits and retirement benefits. Such benefits may be offered by a county mutual insurance company.
(3) The commissioner may promulgate rules to set appropriate expense ratios to address those expenses incurred in subdivisions (b)(1) and (2).
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