Tennessee regulators have issued a new form to allow large companies to qualify as an exempt commercial risk policyholder and purchase insurance that is not regulated by the state.
As of July 1, a new section was added to Tennessee’s Insurance Code that created a new class of companies that allowed them to obtain a certificate letting them purchase commercial insurance policies whose rates and forms are not filed and approved by the state.
The section also spells out the penalties if the insurer fails to comply with the requirements, meet the qualification criteria, and file for the annual certificate.
To obtain the certificate and qualify as an exempt commercial risk policyholder, the company must employ a licensed agent and purchase a commercial policy that provides the services of a risk manager.
The company must also have a net worth of more than $10 million at the time the insurance policy is issued and generate net revenue of more than $15 million in the preceding year. The company must also employ more than 25 employees per individual company or 50 employees per holding company.
The company must also pay more than $250,000 in commercial risk premium in the preceding fiscal year of commercial risk, excluding any premiums paid for accident and health insurance and workers’ compensation and employer’s liability insurance.