Section 0780-01-83-.06 - EXCESS INSURANCE REQUIREMENTS(1) In addition to any other requirements imposed under this Chapter, an Employer shall obtain and maintain excess insurance, both specific and aggregate, in an amount sufficient to cover its liabilities for losses not paid by the Employer and as set by a qualified actuary.(a) Excess insurance policies issued pursuant to this Rule shall be issued by an insurance company holding a certificate of authority issued by the Commissioner to transact such business in this State.(b) Excess insurance policies issued pursuant to this Rule shall contain the following provisions:1. A cancellation provision requiring notice to the Commissioner at least sixty (60) days prior to any cancellation or termination;2. A non-renewal provision requiring notice to the Commissioner at least sixty (60) days before the end of the policy;3. A provision allowing the Commissioner to assume the rights and responsibilities of the Employer under the policy in the event of the insolvency of the Employer; and4. A provision requiring all of the following benefits to which an injured Employee is entitled to be applied toward reaching the retention amount:(i) Payments made by the Employer;(ii) Payments due and owing by the Employer; and(ii) Payments made on behalf of the Employer by any form of security as required by this Chapter.(c) An Employer shall notify the Commissioner not later than ten (10) days after the date on which the Employer has notice of the cancellation or termination of an excess insurance policy required under this Rule.(2) The Commissioner may order an Employer to increase its levels of excess insurance if, in the Commissioner's opinion, such is necessary to prevent the Employer from being considered to be financially hazardous.Tenn. Comp. R. & Regs. 0780-01-83-.06
Original rule filed August 11, 2005; effective October 25, 2005.Authority: T.C.A. §§ 50-6-405(b)(1)-(b)(2), 50-6-405(b)(8), 50-6-405(f), and 50-6-405(h).