Tennessee: Senate Passes County Mutual Modernization Bill; Moves to House

For the past three years, NAMIC has worked closely with representatives of the Tennessee Association of Mutual Insurance Companies and the Department of Insurance on crafting county mutual legislation; and on April 20, the Tennessee Senate passed Senate Bill 3504 out of its chamber by a vote of 31-1, sending it on to the House for consideration.

The bill completely rewrites the current county mutual insurance company chapter, allowing county mutuals to write broader coverages and expand into more counties if certain reserve levels are met. In return, county mutuals must agree to license their producers, adopt new accounting standards, and have their rates and forms approved by the Department of Insurance. The law also contains a guaranty fund-like provision where county mutuals would bail out a county mutual that became insolvent.

A companion bill, House Bill 3084, is expected to be heard by the House Commerce Committee on Tuesday.

Direct questions to NAMIC Senior State Affairs Manager David Reddick.

Posted: Monday, April 24, 2006 12:00:00 AM. Modified: Monday, April 24, 2006 10:02:20 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.