56-9-308 - Liquidation order Continuation or termination of insurance policies. - Tennessee Statutes

56-9-308. Liquidation order Continuation or termination of insurance policies.

(a)  All policies, including bonds and other noncancellable business, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation, shall continue in force only for the lesser of:

     (1)  A period of thirty (30) days from the date of entry of the liquidation orders;

     (2)  The expiration of the policy coverage;

     (3)  The date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy;

     (4)  The date when the liquidator has effected a transfer of the policy obligation pursuant to § 56-9-310(a)(10); or

     (5)  The date proposed by the liquidator and approved by the court to cancel coverage.

(b)  An order of liquidation under § 56-9-307 shall terminate coverage at the time specified in subsection (a) for purposes of any other statute.

(c)  Policies of life or health insurance or annuities shall continue in force for the period and under the terms that are provided for by any applicable guaranty association or foreign guaranty association.

(d)  Policies of life or health insurance or annuities or any period of coverage of the policies not covered by a guaranty association or foreign guaranty association shall terminate under subsections (a) and (b).

[Acts 1991, ch. 142, § 4.]