56-13-119 - Forms of minimum surplus required. - Tennessee Statutes

56-13-119. Forms of minimum surplus required.

(a)  With the exception of mutual captive insurance companies, a captive insurance company issued a certificate of authority under this chapter may hold the minimum accumulated surplus required by § 56-13-116 in the form of an irrevocable letter of credit in the form prescribed by regulation of the commissioner, which letter of credit has been approved for that purpose by the commissioner and has been issued by a national bank or a state bank.

(b)  Mutual captive insurance companies shall hold the minimum guaranty capital surplus required by § 56-13-116 in the form of cash or securities that qualify as legal investments for domestic stock casualty companies; provided, that the prohibition of this section against letters of credit for mutual captive insurance companies does not apply to any mutual captive insurance company whose members or insureds are the type member organization described in § 56-13-102(3)(C).

[Acts 1978, ch. 616, § 20; T.C.A., § 56-4519; Acts 1981, ch. 299, § 14; 1986, ch. 723, § 6.]