56-9-505 - Acts the commissioner may prohibit during period of supervision. - Tennessee Statutes

56-9-505. Acts the commissioner may prohibit during period of supervision.

During the period of supervision, the commissioner or the commissioner's designated appointee shall serve as the administrative supervisor. The commissioner may provide that the insurer may not do any of the following things during the period of supervision, without the prior approval of the commissioner or the commissioner's appointed supervisor:

     (1)  Dispose of, convey or encumber any of its assets or its business in force;

     (2)  Withdraw any of its bank accounts;

     (3)  Lend any of its funds;

     (4)  Invest any of its funds;

     (5)  Transfer any of its property;

     (6)  Incur any debt, obligation or liability;

     (7)  Merge or consolidate with another company;

     (8)  Approve new premiums or renew any policies;

     (9)  Enter into any new reinsurance contract or treaty;

     (10)  Terminate, surrender, forfeit, convert or lapse any insurance policy, certificate or contract, except for nonpayment of premiums due;

     (11)  Release, pay or refund premium deposits, accrued cash or loan values, unearned premiums, or other reserves on any insurance policy, certificate or contract;

     (12)  Make any material change in management; or

     (13)  Increase salaries and benefits of officers or directors or the preferential payment of bonuses, dividends or other payments deemed preferential.

[Acts 1991, ch. 142, § 4.]