# Tenn. Code Ann. § 56-14-105: Eligibility for surplus lines insurance > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-105 ## Section - **Citation:** Tenn. Code Ann. § 56-14-105 - **Heading:** Eligibility for surplus lines insurance - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 56 / Chapter 14 / Section 56-14-105 ## Text (a) No insurance coverage shall be eligible for surplus lines insurance unless the full amount of insurance required is not procurable, after a diligent effort has been made to do so, from among the authorized companies licensed to transact and actually writing such kind and class of insurance in this state, and the amount of insurance eligible for surplus lines shall be only the amount in excess of the amount procurable from licensed insurers. (b) Subsection (a) shall not apply to exempt commercial purchasers if the surplus lines agent procuring or placing the policy has disclosed to the exempt commercial purchaser that such insurance may or may not be available from admitted companies that may provide greater protection with more regulatory oversight, and the exempt commercial purchaser has subsequently requested in writing that the surplus lines agent procure or place such insurance from a nonadmitted company. (c) Policy or contract forms shall not be eligible unless the use: (1) Is reasonably necessary for the principal purposes of the coverage; (2) Would not be contrary to the purposes of the coverage; or (3) Would not be contrary to the purposes of this chapter with respect to the reasonable protection of authorized companies from unwarranted competition by unauthorized companies. (d) The following kinds of insurance shall not be eligible for surplus lines insurance: (1) Primary personal automobile liability; (2) Surety; and (3) Workers' compensation, except as provided in subsection (a). Acts 1969, ch. 270, § 5; T.C.A., § 56-3805; Acts 2001, ch. 220, §§ 2, 3; 2011, ch. 446, § 1. (a) No insurance coverage shall be eligible for surplus lines insurance unless the full amount of insurance required is not procurable, after a diligent effort has been made to do so, from among the authorized companies licensed to transact and actually writing such kind and class of insurance in this state, and the amount of insurance eligible for surplus lines shall be only the amount in excess of the amount procurable from licensed insurers. (b) Subsection (a) shall not apply to exempt commercial purchasers if the surplus lines agent procuring or placing the policy has disclosed to the exempt commercial purchaser that such insurance may or may not be available from admitted companies that may provide greater protection with more regulatory oversight, and the exempt commercial purchaser has subsequently requested in writing that the surplus lines agent procure or place such insurance from a nonadmitted company. (c) Policy or contract forms shall not be eligible unless the use: (1) Is reasonably necessary for the principal purposes of the coverage; (2) Would not be contrary to the purposes of the coverage; or (3) Would not be contrary to the purposes of this chapter with respect to the reasonable protection of authorized companies from unwarranted competition by unauthorized companies. (1) Is reasonably necessary for the principal purposes of the coverage; (2) Would not be contrary to the purposes of the coverage; or (3) Would not be contrary to the purposes of this chapter with respect to the reasonable protection of authorized companies from unwarranted competition by unauthorized companies. (d) The following kinds of insurance shall not be eligible for surplus lines insurance: (1) Primary personal automobile liability; (2) Surety; and (3) Workers' compensation, except as provided in subsection (a). (1) Primary personal automobile liability; (2) Surety; and (3) Workers' compensation, except as provided in subsection (a). Acts 1969, ch. 270, § 5; T.C.A., § 56-3805; Acts 2001, ch. 220, §§ 2, 3; 2011, ch. 446, § 1. ## Nearby sections - [Tenn. Code Ann. § 56-14-101 Short title - Applicability](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-101.md) - [Tenn. Code Ann. § 56-14-102 Chapter definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-102.md) - [Tenn. Code Ann. § 56-14-103 Surplus lines insurance authorized](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-103.md) - [Tenn. Code Ann. § 56-14-104 Surplus lines agent's license](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-104.md) - [Tenn. Code Ann. § 56-14-105 Eligibility for surplus lines insurance](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-105.md) - [Tenn. Code Ann. § 56-14-106 Verified report of surplus lines insurance transactions - Procedure for effecting surplus lines contracts](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-106.md) - [Tenn. Code Ann. § 56-14-107 Requirements for surplus lines contracts](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-107.md) - [Tenn. Code Ann. § 56-14-108 Eligibility of surplus lines insurers](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-108.md) - [Tenn. Code Ann. § 56-14-109 Unauthorized insurers](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-109.md) - [Tenn. Code Ann. § 56-14-110 Validity of contracts](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-110.md) - [Tenn. Code Ann. § 56-14-111 Liability of surplus lines insurer for losses and unearned premiums](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-111.md) - [Tenn. Code Ann. § 56-14-112 Actions against insurer - Service of process](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-112.md) - [Tenn. Code Ann. § 56-14-113 Premiums subject to a gross premium tax - Amount](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-113.md) - [Tenn. Code Ann. § 56-14-114 Advertising](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-114.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C14_S56-14-105. Check the current official text before relying on it. Not legal advice.