12-3-908 - Insurance of public buildings Procedure for obtaining policies Reporting. - Tennessee Statutes

12-3-908. Insurance of public buildings Procedure for obtaining policies Reporting.

(a)  (1)  The policy or policies of insurance provided in this part shall be obtained by the state treasurer subject to the approval of the board of claims. Notwithstanding title 56, chapter 14, part 1, or any other law to the contrary, the state treasurer, with the approval of the board of claims, shall consider proposals from admitted carriers and nonadmitted surplus lines carriers. In order for nonadmitted carriers to be eligible for consideration under this section, at least two (2) admitted carriers must have declined to submit a proposal, and the nonadmitted carriers must:

          (A)  Have a minimum A.M. Best rating of “A XIV”; and

          (B)  Be a member of an insurance holding company system, as defined in § 56-11-201(b)(6), that has at least one affiliate carrier admitted in Tennessee as a property/casualty insurer.

     (2)  Should A.M. Best change or amend its rating methodology, then the board of claims shall adopt a minimum rating requirement that is equivalent to the rating as stated in subdivision (a)(1)(A). The state treasurer shall place the insurance directly with the companies without policies being countersigned, etc., notwithstanding § 56-2-409.

(b)  The state treasurer shall make periodic reports to the fiscal review committee of the general assembly and to the state building commission concerning the operations of the insurance program.

[Impl. am. Acts 1959, ch. 9, § 3; impl. am. Acts 1961, ch. 97, § 3; Acts 1971, ch. 425, § 5; T.C.A., §§ 12-346, 12-3-508; Acts 1994, ch. 669, § 7; 2001, ch. 89, § 4; 2007, ch. 168, § 1.]