56-12-205 - Creation of association Accounts. - Tennessee Statutes

56-12-205. Creation of association Accounts.

(a)  There is created a nonprofit legal entity to be known as the Tennessee life and health insurance guaranty association. Provisions of this part relative to the Tennessee life and health insurance guaranty association shall be read as supplemental to the provisions of part 1 of this chapter. All member insurers shall be and remain members of the association as a condition of their authority to transact insurance in this state. The association shall perform its function under the plan of operation established and approved pursuant to § 56-12-209, and shall exercise its powers through a board of directors established by § 56-12-206. For purposes of administration and assessment, the association shall maintain four (4) accounts:

     (1)  The life insurance account;

     (2)  The health insurance account;

     (3)  The annuity account excluding unallocated annuity contracts and defined contribution government plans qualified under § 403(b) of the Internal Revenue Code, codifed in 26 U.S.C. § 403(b); and

     (4)  The defined contribution plan account, meaning defined contribution plans qualified under § 403(b) of the Internal Revenue Code, codified in 26 U.S.C. § 403(b).

(b)  The association shall come under the immediate supervision of the commissioner and shall be subject to the applicable provisions of the insurance laws of this state. Meetings or records of the association may be opened upon majority vote of the board of directors of the association.

[Acts 1988, ch. 1032, § 5.]