56-13-115 - Grounds and procedure for suspension or revocation of certificate.
56-13-115. Grounds and procedure for suspension or revocation of certificate.
(a) The certificate of authority of a captive insurance company to do business in this state may be revoked or suspended by the commissioner for any reason specified in this chapter. Specifically, the certificate may be suspended or revoked by the commissioner for any of the following reasons:
(1) Insolvency or impairment, as defined in § 56-9-103;
(2) Failure to meet the requirements of § 56-13-116;
(3) Refusal or failure to submit an annual report, as required by § 56-13-113, or any other report required by law or by lawful order of the commissioner;
(4) Failure to comply with its own charter or bylaws, if the failure renders its operation hazardous to the public or to its policyholders;
(5) Failure to submit to examination or any legal obligation relative to examination;
(6) Use of methods that, although not otherwise specifically proscribed by law, nevertheless renders its operation hazardous or its condition unsound with respect to its policyholders; or
(7) Failure otherwise to comply with the laws of this state, if the failure renders its operation hazardous to its policyholders.
(b) If the commissioner finds upon examination, hearing or other evidence that any captive insurance company has committed any of the acts specified in subsection (a), the commissioner may suspend or revoke the certificate of authority, if the commissioner deems it in the best interest of the public and the policyholders of the company, notwithstanding any other provision of this title. Notice of any revocation or suspension shall be published in one (1) or more daily newspapers in this state having a general state circulation. Before suspending or revoking any certificate of authority of an insurance company, the commissioner shall grant the company fifteen (15) days in which to show cause why the action should not be taken.
[Acts 1978, ch. 616, § 16; T.C.A., § 56-4515.]