Tennessee Commissioner of Commerce Bond Update

TennesseeSB 2299 is a new bill that was presented in the State of Tennessee relating to the Commissioner of Commerce and Insurance. The new bill, as presented, would have authorized the Commissioner of Commerce and Insurance to promulgate regulations for a substitute security system for workers’ compensation plans, requiring self-insured members of staff to secure all or a fraction of their self-insurance plan using a state guaranty fund. Involvement in the fund would have been obligatory. The law was replaced and as enacted, the new bill terminates some of the particulars regarding the security that may be acquired under present law and allows the Commissioner to implement policy relating to these specifics. The revoked law stated that surety bonds must be issued by an insurer licensed to do business within the State that sustains an “A” rating from A.M. Best Company. The previous law also required 90 days notification for termination. SB 2299 did not alter the quantity required or the forms of security that will be authorized. The new bill became active on July 1st, 2009.