67-5-1204 - New insurance companies Application. - Tennessee Statutes

67-5-1204. New insurance companies Application.

(a)  During the first fifteen (15) full years an insurance company is in business, its apportionment ratio, determined in accordance with § 67-5-1203(b)(2), shall be reduced proportionately at the rate of one-fifteenth (1/15) for each full year that fifteen (15) exceeds the number of full years it has been in business.

(b)  The period of fifteen (15) full years shall be measured from the earliest date the company, or any predecessor insurance company of which the company is the continuing corporation, was authorized and qualified to do insurance business subject to the maximum fifteen (15) years of reduced assessments as set forth in subsection (c).

(c)  This section shall not apply to any insurance company formed as a successor in interest to any insurance company that has already received a reduction in its apportionment ratio for the entirety of the fifteen (15) years permitted pursuant to subsection (a); provided, however, that any insurance company formed as a successor in interest in the year 2006 shall be entitled to receive the reduction to its apportionment ratio provided in subsection (a) during the first five (5) full years of its existence to the same extent as a new insurance company not formed as a successor in interest.

[Acts 1968, ch. 431, § 4; T.C.A., § 67-732; Acts 2009, ch. 361, §§ 1, 2.]