The officers of the corporation shall not enter into any contract or agreement, or make any debt of any kind, except for payment of losses or damages as provided in § 56-20-104, that will require an assessment of more than fifty cents (50¢) on each one hundred dollars ($100) of insurance in force. Neither shall the officers of any such company use for current expenses any money assessed for losses or damages, and all money for the expenses raised by assessment must be so stated in the notices calling for the assessment.
Structure 2021 Tennessee Code
Chapter 20 - Mutual or Assessment Fire Insurance Companies
§ 56-20-101. Documents Filed With Commissioner
§ 56-20-102. Policy Provisions
§ 56-20-103. Obligations of Insured — Uniformity
§ 56-20-105. Limitation on and Use of Assessments
§ 56-20-106. Notice of Assessments — Time of Payment — Expense and Cost of Collection
§ 56-20-107. Collection of Assessments by Officers — Individual Liability for Neglect
§ 56-20-108. Actions to Recover Assessments — Penalty and Interest
§ 56-20-109. Lien for Assessments — Rights of Subsequent Purchaser, or Junior Lienholder
§ 56-20-110. Exclusion From Membership — Policies Cancelled or Withdrawn — Effect
§ 56-20-111. Liability for Assessments Made Before Exclusion — Penalty — Limitation of Actions
§ 56-20-113. Annual Statement to Commissioner
§ 56-20-114. Examination by Commissioner — Payment of Expenses — Prosecution of Offending Officers
§ 56-20-115. Fees of Commissioner
§ 56-20-116. Extension of Business Operations
§ 56-20-117. Exemption From Deposit and Surplus Requirements