Tennessee § 56-19-116 - Assets not equal to unearned premium reserve and other liabilities — Assessment of members — Increase.

§ 56-19-116. Assets not equal to unearned premium reserve and other liabilities — Assessment of members — Increase.

A mutual company not possessed of assets at least equal to the unearned premium reserve and other liabilities shall make an assessment upon its members liable to assessment to provide for the deficiency, the assessment to be against each such member in proportion to the liability as expressed in the member's policy; provided, that the commissioner may, by written order, relieve the company from an assessment or other proceeding to restore the assets during the time fixed in that order; and provided further, that any domestic company that is deficient in providing the unearned premium reserve required hereby may, notwithstanding the deficiency, come under this chapter on the condition that it shall each year thereafter reduce the deficiency at least fifteen percent (15%) of the original amount, and in this case it may increase its assessments accordingly. Acts 1919, ch. 108, § 13; Shan. Supp., § 3369a58b19; Code 1932, § 6331; T.C.A. (orig. ed.), § 56-1716. Collateral References. Agent's misrepresentations as defense to actions for premiums or assessments. 136 A.L.R. 5 . Assessments, liability to, of policyholders in mutual insurance companies. 137 A.L.R. 945 . Delay in payment of dues or assessments, validity of contractual stipulation for payment of additional amount in case of. 41 A.L.R. 979 . Fire insurance, liability of member of mutual company as affected by period of membership. 53 A.L.R. 343 . Insolvency of insurer at time of issuing policy as defense against collection of assessments. 170 A.L.R. 1008 . Limit of liability of members of insurance association. 10 A.L.R. 750 . Setoff of loss under mutual insurance policy against premium or assessment. 31 A.L.R. 1281 .