56-13-117 - Security deposits Certificates.
56-13-117. Security deposits Certificates.
(a) The commissioner shall receive and hold on deposit, in the manner provided in this chapter, the securities or letters of credit of captive insurance companies that are deposited by the company under this chapter for the purpose of securing policyholders. All securities or letters of credit so offered for deposit shall belong to and be the sole property of the company and shall be free and clear of any claims whatsoever, and the commissioner shall determine the same by proper inquiry.
(b) The commissioner shall furnish to the company a certificate, under the commissioner's hand and official seal, certifying that the commissioner holds the securities or letters of credit in trust for the benefit of the policyholders of the company.
[Acts 1978, ch. 616, § 18; T.C.A., § 56-4517.]