Insurance Companies, Agents, Brokers, Policies - As enacted, revises the criteria by which certain domestic insurance companies may invest or acquire an interest in foreign investment assets, real property, and certain m, the official text

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PUBLIC CHAPTER NO. 71

                                                     SENATE BILL NO. 696

                                                      By Johnson, Stevens

                                             Substituted for: House Bill No. 161

                                                           By McCalmon

AN ACT to amend Tennessee Code Annotated, Title 56, Chapter 3, Part 4, relative to investments by
          insurance companies.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 56-3-403(c), is amended by deleting the
language "one percent (1 %)" and substituting "twenty percent (20%)".

          SECTION 2. Tennessee Code Annotated, Section 56-3-402(15), is amended by deleting the
language "five percent (5%)" and substituting "ten percent (10%)".

          SECTION 3. Tennessee Code Annotated, Section 56-3-402, is amended by adding the
following new subdivision:

                    (17)(A) In a money market fund, as defined by 17 CFR 270.2a-7 under the Investment
                    Company Act of 1940 (15 U.S.C. §§ 80a-1 et seq.), that may be either of the following:

                                        (i) A government money market fund that is a money market fund that:

                                                  (a) Invests only in obligations issued, guaranteed, or insured by
                                        the federal government of the United States or collateralized repurchase
                                        agreements composed of these obligations; and

                                                  (b) Qualifies for investment without a reserve under the
                                        Purposes and Procedures Manual of the National Association of
                                        Insurance Commissioners (NAIC) Investment Analysis Office or, if it is
                                        no longer being published, the successor publication to the Purposes
                                        and Procedures Manual of the NAIC Investment Analysis Office; or

                                        (ii) A Class 1 money market fund that is a money market fund that
                              qualifies for investment using the bond Class 1 reserve factor under the
                              Purposes and Procedures Manual of the NAIC Investment Analysis Office or, if
                              it is no longer being published, the successor publication to the Purposes and
                              Procedures Manual of the NAIC Investment Analysis Office.

                              (B) For the purposes of complying with this subdivision (17), money market
                    funds qualifying for listing within these categories must conform to the Purposes and
                    Procedures Manual of the NAIC Investment Analysis Office or, if it is no longer being
                    published, the successor publication to the Purposes and Procedures Manual of the
                    NAIC Investment Analysis Office.

          SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.
         SENATE BILL NO. 696

PASSED:  March 10, 2025

                                      RANDY )llcNALLY
                         SPEAKER OF THE SENATE

                         CAMER9N SEXTON, SPEAKER
                         HOUSE OF REPRESENTATIVES

r/luLcL APPROVED this {).Sir/,. day of  2025

         , --·'ERNOR