- Tennessee does maintain a list of foreign eligible surplus lines insurers (see Other Comments section #1).
- Tennessee does not have a Surplus Lines Association.
- Tennessee does not have an Export List.
- Tennessee does have an industrial insured exemption (see Appendix C) and has also implemented the NRRA exempt commercial purchaser exemption (§ 56-14-102(8)).
- Surplus lines tax: 5%.
- Tennessee does not allow domestic surplus lines insurers in the state.
Eligibility and Filing Requirements (Alien Insurers Only):
Alien surplus lines insurers are ineligible in Tennessee unless listed by the NAIC International Insurers Department.
Eligibility and Filing Requirements (Foreign Insurers Only):
- Annual Statement/Report (late or incomplete filings subject to a penalty of $100 per day).
- Filing or Other Renewal Fees: $675 application fee; $440 upon licensure – letter of notification of eligibility; $515 annual statement (foreign) and $270 – annual review fee.
- Capital and Surplus Minimum: $15,000,000 except where commissioner makes an affirmative decision.
- Certificate of Compliance Evidencing Authorization issued by domiciliary state.
Types of Insurance Exempted from Authorized Insurer Regulation:
- Transactions in Tennessee involving policies lawfully solicited, written and delivered outside of Tennessee covering only subjects of insurance not resident, located or expressly to be performed in Tennessee at the time of issuance or covering property in the course of transportation by land, air or water, to, from or through Tennessee and including any preparation or storage incidental thereto, and which transactions are subsequent to the issuance of such policies.
- Contracts of insurance issued to an industrial insured or directly procured by citizens of this state.
- Agents/Industrial Insureds/direct procurement are liable for premium and/or surplus lines tax for 1 and 2 above.
Other Comments or Requirements:
- The eligibility list is located at: https://www.tn.gov/commerce/insurance/types-of-insurance-companies/surplus-lines.html.
- A $15 fee is imposed for serving process on the Commissioner of Insurance in his capacity as agent of record for an insurance company.
- Broker must also have a non-resident P&C license in Tennessee and pay a $120 fee.
- The following kinds of insurance are not eligible for surplus lines placements in Tennessee:
• Primary personal auto;
• Workers’ compensation, except for excess workers’ compensation.
- The continuing eligibility review information for foreign surplus lines companies is also available at the following website: https://www.tn.gov/commerce/insurance/types-of-insurance-companies/surplus-lines.html.
- Every new or renewed insurance contract certificate, cover note or other confirmation of insurance procured and delivered as a surplus lines coverage must bear the name and address of the writing agent and shall have stamped, affixed or printed upon it the following: “This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as a surplus line coverage pursuant to the Tennessee insurance statutes.”
Such document must show the description and location of the subject of the insurance, coverage, conditions and term of the insurance, the premium and rate charged and premium taxes to be collected from the insured, and the name and address of the insured and insurer. If the direct risk is assumed by more than one (1) insurer, the document must state the name and address and proportion of the entire direct risk assumed by each insurer.
- Under Interpretive Opinion No. 05-15, “group surplus lines certificates of insurance issued to citizens of the State of Tennessee are considered insurance policies in this state and are subject to Tennessee’s gross premium taxation payment requirements.”