Tennessee § 56-27-114 - Administrative expenses.
Full text of Tennessee Tennessee Code Annotated § 56-27-114 — Administrative expenses., with citation guidance and answers to common questions.
§ 56-27-114. Administrative expenses.
All acquisition and administrative expenses incurred in connection with the medical service corporation shall at all times be limited after the second year of operation to not exceed twenty-five percent (25%) of the total net premium income of the corporation. The expenses, during the first year, shall be limited to thirty-five percent (35%), and during the second year, the expenses shall be limited to thirty percent (30%). All acquisition and administrative expenses incurred shall be subject to the approval of the commissioner. “Administrative expenses,” as used in this section, includes all expenditures except payments for subscribers' claims. Claim service expense shall be separately classified and included in administrative expense, unless otherwise ordered by the commissioner. No such corporation shall disburse as administrative expenses during any one (1) year a sum greater than the percentage limited by this section of payments received from subscribers during that calendar year. Acts 1945, ch. 113, § 15; C. Supp. 1950, § 4186.31 (Williams, § 4186.32); T.C.A. (orig. ed.), § 56-2914.
Source: official Tennessee text · Last verified 2026-08-27
Frequently Asked Questions About Tennessee § 56-27-114
What does Tennessee Code Annotated § 56-27-114 cover?
Section 56-27-114 ("Administrative expenses.") is part of the Tennessee Code Annotated, the codified statutory law of Tennessee. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Tennessee § 56-27-114?
A common citation format is "Tennessee Code Annotated § 56-27-114" (Tennessee). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Tennessee law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Tennessee official source linked on this page or consult a licensed Tennessee attorney.
How does Tennessee § 56-27-114 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Tennessee can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Tennessee.