56-3-408 - Prohibited actions and transactions.
56-3-408. Prohibited actions and transactions.
(a) No domestic insurance company, whether incorporated by special act or under a general law of this state, shall underwrite or participate in the underwriting of an offering of securities or property by any other person; nor shall the company enter into any agreement to withhold from sale any of its property, but the disposition of its property shall be at all times within the control of its board of directors.
(b) (1) No investment or loan, except premium finance loans, shall be made by any such insurance company, unless the investment or loan has first been authorized by the board of directors or by a committee appointed by the board and charged with the duty of supervising the investment or loan.
(2) Membership on the board of directors shall not be a requirement for eligibility to membership on the committee.
[Acts 1979, ch. 305, § 8; T.C.A., § 56-368.]