The commissioner may petition the chancery court of Davidson County for an order directing the commissioner to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis:

(1) Of any ground for an order of rehabilitation as specified in § 56-9-301, whether or not there has been a prior order directing the rehabilitation of the insurer;

Terms Used In Tennessee Code 56-9-306

  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-9-103
  • insolvent: means :
    (A) For an insurer issuing only assessable fire insurance policies:
    (i) The inability to pay any obligation within thirty (30) days after it becomes payable. See Tennessee Code 56-9-103
  • Insurer: means any person who has done, purports to do, is doing or is licensed to do an insurance business, and is or has been subject to the authority of, or to liquidation, rehabilitation, reorganization, supervision, or conservation by, any insurance commissioner. See Tennessee Code 56-9-103
  • State: means any state, district or territory of the United States and the Panama Canal Zone. See Tennessee Code 56-9-103
(2) That the insurer is insolvent; or
(3) That the insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors or the public.
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