Tennessee § 56-12-205 - Creation of association — Accounts.

§ 56-12-205. Creation of association — Accounts.

There is created a nonprofit legal entity to be known as the Tennessee life and health insurance guaranty association. All member insurers are and shall remain members of the association as a condition of their authority to transact insurance or a health maintenance organization business 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 two (2) accounts: The life insurance and annuity account, which includes the following subaccounts: Life insurance account; and Annuity account, excluding unallocated annuities; and The health account. The association is under the immediate supervision of the commissioner and 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; 2010, ch. 713, § 3; 2019, ch. 5, § 4. Compiler's Notes. The Tennessee life and health insurance guaranty association, created by this section, terminates June 30, 2022. See §§ 4-29-112 , 4-29-243 . Acts 2019, ch. 5, § 8 provided that sections 2 through 6 of the act, which amended §§ 56-12-203 , 56-12-204 , 56-12-205 , 56-12-207 , and 56-12-208 , shall not apply to any member insurer that is impaired or insolvent on July 1, 2019. Amendments. The 2019 amendment rewrote (a) which read: “(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 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 ( 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 ( 26 U.S.C. § 403(b) )”; in (b), substituted “association is under the immediate supervision of the commissioner and subject to” for “association shall come under the immediate supervision of the commissioner and shall be subject to”; and deleted former (c), which read: “(c) Effective January 1, 2011, the association shall maintain the following three (3) accounts:“(1) A life insurance account;“(2) An annuity account; and“(3) A health insurance account.” Effective Dates. Acts 2019, ch. 5, § 9. July 1, 2019.