WeVote
Log In

Bill

Bill

SB 2601

Insurance Companies, Agents, Brokers, Policies - As enacted, increases from $100,000 to $250,000 the retained risk limit for a single risk covered by a policy of insurance issued by a county mutual insurance company. - Amends TCA Title 56, Chapter 22.

114th Regular Session (2025-2026) Introduced by Steve Southerland

Tennessee raises county mutual insurers' retained risk limit from $100,000 to $250,000 per policy to increase financial flexibility and competitive capacity.

Pub. Ch. 739
#agents #brokers #insurancecompanies #policies
0
WeVote Research Nonpartisan
Bill Summary · SB 2601

Legislative bill overview

SB 2601 increases the retained risk limit for county mutual insurance companies from $100,000 to $250,000 per single risk policy. This change applies to insurance policies issued under Tennessee Code Annotated Title 56, Chapter 22, which governs mutual insurance company operations in the state.

Why is this important

County mutual insurance companies are member-owned insurers that typically operate in rural or specialized markets. Increasing retained risk limits allows these companies to cover larger losses internally rather than immediately transferring risk to reinsurers, potentially reducing costs and improving competitiveness while maintaining their financial stability within statutory frameworks.

Potential points of contention

  • Consumer protection concerns: Higher retained risk limits mean county mutuals keep more risk on their books; if an insurer becomes insolvent, policyholders may face coverage gaps or delayed claims despite state guaranty funds
  • Market competitiveness: Larger risk retention could entrench smaller insurers' market positions or create unequal playing fields compared to national carriers bound by different regulations
  • Actuarial soundness: The 150% increase may not reflect updated loss experience or inflation adjustments since the original $100,000 cap was established, potentially underestimating adequate reserves

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.