Terms Used In Tennessee Code 56-16-203

  • Attorney: means the person designated and authorized by subscribers as the attorney-in-fact having authority to obligate them on reciprocal insurance contracts. See Tennessee Code 56-16-102
  • Person: means any association, aggregate of individuals, business, company, corporation, individual, joint-stock company, Lloyds-type organization, organization, partnership, receiver, reciprocal or interinsurance exchange, trustee or society. See Tennessee Code 56-16-102
  • 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
  • Reciprocal: means the aggregation of subscribers under a common name. See Tennessee Code 56-16-102
  • Subscriber: means a person obligated under a reciprocal insurance agreement. See Tennessee Code 56-16-102

The board of directors exercising the subscribers’ rights in a domestic reciprocal shall be selected under rules adopted by the subscribers. At least three fourths (3/4) of the board shall be composed of subscribers other than the attorney or any person employed by, representing or having a financial interest in the attorney. The board shall supervise the finances of the reciprocal and the reciprocal’s operations to the extent required to assure their conformity with the subscriber‘s agreement and power of attorney and shall exercise any other powers conferred on it by the subscriber’s agreement.