Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-67 - Insurance Holding Company System Regulations with Reporting Forms and Instructions
Section 0780-01-67-.18 - ADEQUACY OF SURPLUS

The factors set forth in T.C.A. § 56-11-206(d) are not intended to be an exhaustive list. In determining the adequacy and reasonableness of an insurer's surplus no single factor is necessarily controlling. The Commissioner instead will consider the net effect of all of these factors plus other factors bearing on the financial condition of the insurer. In comparing the surplus maintained by other insurers, the Commissioner will consider the extent to which each of these factors varies from company to company and in determining the quality and liquidity of investments in subsidiaries, the Commissioner will consider the individual subsidiary and may discount or disallow its valuation to the extent that the individual investments so warrant.

Authority: T.C.A. §§ 56-2-301, 56-11-206(d) and 56-11-209.