(a) An insurer must maintain the reserves necessary for the sound operation of the business, including unearned premium reserves. The amount and manner of calculating these reserves shall be determined by rule by the commissioner in accordance with § 56-43-112.

Terms Used In Tennessee Code 56-43-109

  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-43-103
  • Insurer: means any person who obtains a certificate of authority under this chapter. See Tennessee Code 56-43-103
  • Legal insurance: means the assumption of a contractual obligation to provide specified legal services or reimbursement for legal expenses in consideration of a specified payment for an interval of time, regardless of whether the payment is made by the beneficiaries individually or by a third person for them, in such a manner that the total cost incurred by assuming the obligation is to be spread directly or indirectly among a group of persons. See Tennessee Code 56-43-103
  • Person: means any natural or artificial person including, but not limited to, an individual, partnership, association, trust or corporation. See Tennessee Code 56-43-103
(b) In establishing and enforcing reserve requirements, the commissioner shall prescribe and allow a reasonable phase-in period prior to mandating full compliance with the reserve requirements by any person transacting the business of legal insurance on January 1, 1990.
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