# Tenn. Code Ann. § 56-13-106: Restrictions on dividends on or distributions from capital or surplus

> Tennessee · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-106

## Section

- **Citation:** Tenn. Code Ann. § 56-13-106
- **Heading:** Restrictions on dividends on or distributions from capital or surplus
- **Jurisdiction:** Tennessee
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TN Code / Title 56 / Chapter 13 / Section 56-13-106

## Text

No captive insurance company shall pay a dividend out of, or other distribution with respect to, capital or surplus without the prior approval of the commissioner. Approval of an ongoing plan for the payment of dividends or other distributions shall be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by the commissioner. A captive insurance company may otherwise make such distributions as are in conformity with its purposes and approved by the commissioner. Acts 2011, ch. 468, § 1.
No captive insurance company shall pay a dividend out of, or other distribution with respect to, capital or surplus without the prior approval of the commissioner. Approval of an ongoing plan for the payment of dividends or other distributions shall be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by the commissioner. A captive insurance company may otherwise make such distributions as are in conformity with its purposes and approved by the commissioner.
Acts 2011, ch. 468, § 1.

## Nearby sections

- [Tenn. Code Ann. § 56-13-101 Short title - Purpose](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-101.md)
- [Tenn. Code Ann. § 56-13-102 Chapter definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-102.md)
- [Tenn. Code Ann. § 56-13-103 Names of companies - Certificate of authority](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-103.md)
- [Tenn. Code Ann. § 56-13-104 Names of companies - "Certificate of Authority"](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-104.md)
- [Tenn. Code Ann. § 56-13-105 Capital and surplus requirements](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-105.md)
- [Tenn. Code Ann. § 56-13-106 Restrictions on dividends on or distributions from capital or surplus](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-106.md)
- [Tenn. Code Ann. § 56-13-107 Organization of captive insurance company](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-107.md)
- [Tenn. Code Ann. § 56-13-108 Annual reports](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-108.md)
- [Tenn. Code Ann. § 56-13-109 Inspection and examination - Audits](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-109.md)
- [Tenn. Code Ann. § 56-13-110 License suspension or revocation](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-110.md)
- [Tenn. Code Ann. § 56-13-111 Investment requirements](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-111.md)
- [Tenn. Code Ann. § 56-13-112 Reinsurance](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-112.md)
- [Tenn. Code Ann. § 56-13-113 Membership in rating organizations - Exemption from compulsory associations](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-113.md)
- [Tenn. Code Ann. § 56-13-114 Taxation](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C13_S56-13-106. Check the current official text before relying on it. Not legal advice.