56-13-103 - Scope.
56-13-103. Scope.
(a) The business of a captive insurance company licensed pursuant to this chapter is limited to:
(1) Making insurance, as provided in § 56-13-104, subject to the prohibitions in subdivision (b)(1)(A), on the risks, hazards and liabilities:
(A) If a pure captive insurance company, of its parent, subsidiary companies of its parent, and associated or affiliated companies of its parent and companies, organizations, associations, or other legal entities whose purposes and operations are similar to the parent of the pure captive insurance company; or
(B) If an association captive insurance company, industrial insured captive insurance company, or a mutual captive insurance company, of the association, the member organizations of the association, the parents of the member organizations, and their affiliated and associated companies, and the industrial insureds that comprise the industrial insured group, and their affiliated companies; and
(2) Making reinsurance, as provided in § 56-13-104, subject to the prohibition in subsection (c).
(b) (1) No captive insurance company may make insurance except:
(A) For professional liability, property, casualty, errors and omissions and comprehensive general liability, providing personal insurance coverage for individuals, except where the individual is a parent; and
(B) Where the insurance or reinsurance coverage is made for companies, organizations, associations or other legal entities providing guarantees for financial losses due to insolvency or liquidation of credit unions. No captive insurance company may make or issue directly to any credit union in this state or credit union member in this state a policy of insurance or reinsurance; provided, that this limitation does not apply to any policy or contract of insurance or reinsurance made or issued to the state credit union share insurance corporation.
(2) Any association captive insurance company that is described in § 56-13-102(3)(C) or mutual captive insurance company whose member organizations or insureds are the type member organizations described in § 56-13-102(3)(C) may make workers' compensation, directors' and officers' liability, and public officials' liability insurance in addition to the insurance permitted to be made under subdivisions (b)(1)(A) and (B).
(c) No captive insurance company may make insurance or reinsurance on a personal motor vehicle or homeowner's insurance coverage or any component of that coverage.
[Acts 1978, ch. 616, § 4; 1979, ch. 147, §§ 1, 2; T.C.A., § 56-4503; Acts 1981, ch. 299, §§ 3, 4; 1982, ch. 706, § 1; 1986, ch. 723, § 2; 1989, ch. 266, § 3.]