Tennessee: premium trust account rules
What Tennessee requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 56-6-112; 56-6-116
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
Any money which an insurance producer receives for insurance policies shall be held in a fiduciary capacity and shall not be misappropriated, converted or improperly withheld.
Penalties for diversion
The commissioner may place on probation, suspend, revoke or refuse to issue or renew any license if the licensee improperly withholds, misappropriates, or converts any money received during the course of insurance business. In addition to or in lieu of any denial, suspension, or revocation of license, the commissioner may assess a civil penalty of $1,000 for each violation, but not to exceed an aggregate penalty of $100,000.
This reference is not legal advice. Citations and summaries are transcribed from the NAIC's Fiduciary Responsibilities—Premiums chart (Spring 2025) and reflect that chart's own review dates, which vary by jurisdiction. Statutes change, and the chart may lag the current code. Confirm the current text of any provision with the jurisdiction's insurance department or your own counsel before relying on it.
Tie out a Tennessee trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Tennessee's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.
Trust account reconciliation worksheetKeep your trust account provably in balance
Policy Balance Hub tracks premium held in trust against what you owe each carrier, so the reconciliation an examiner asks for already exists.