# Tenn. Code Ann. § 56-2-109: No action to be maintained without certificate of authority

> Tennessee · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-109

## Section

- **Citation:** Tenn. Code Ann. § 56-2-109
- **Heading:** No action to be maintained without certificate of authority
- **Jurisdiction:** Tennessee
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TN Code / Title 56 / Chapter 2 / Section 56-2-109

## Text

The failure of a company to obtain a certificate of authority shall not impair the validity of any act or contract of the company, and shall not prevent the company from defending any action at law or suit in equity in any court of this state; but no company transacting insurance business in this state without a certificate of authority shall be permitted to maintain an action at law or suit in equity in any court of this state to enforce any right, claim or demand arising out of the transaction of insurance business until the company has obtained a certificate of authority, nor shall an action at law or suit in equity be maintained in any court of this state by any successor or assignee of the company on any right, claim or demand originally held by the company until a certificate of authority has been obtained by the company or by a company that has acquired all or substantially all of its assets. Acts 1968, ch. 536, § 4; T.C.A., § 56-209.
The failure of a company to obtain a certificate of authority shall not impair the validity of any act or contract of the company, and shall not prevent the company from defending any action at law or suit in equity in any court of this state; but no company transacting insurance business in this state without a certificate of authority shall be permitted to maintain an action at law or suit in equity in any court of this state to enforce any right, claim or demand arising out of the transaction of insurance business until the company has obtained a certificate of authority, nor shall an action at law or suit in equity be maintained in any court of this state by any successor or assignee of the company on any right, claim or demand originally held by the company until a certificate of authority has been obtained by the company or by a company that has acquired all or substantially all of its assets.
Acts 1968, ch. 536, § 4; T.C.A., § 56-209.

## Nearby sections

- [Tenn. Code Ann. § 56-2-101 Applicability to foreign and domestic companies](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-101.md)
- [Tenn. Code Ann. § 56-2-102 Requisites for commencing business - Foreign insurance companies qualifying as domestic corporations - Foreign credit life reinsurance companies](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-102.md)
- [Tenn. Code Ann. § 56-2-103 Qualifications necessary to do business - Commissioner to accept process - Deposit of securities](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-103.md)
- [Tenn. Code Ann. § 56-2-104 Contents of statement - Deposits](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-104.md)
- [Tenn. Code Ann. § 56-2-105 Certificate of authority required - Exceptions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-105.md)
- [Tenn. Code Ann. § 56-2-106 Certificate of exemption](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-106.md)
- [Tenn. Code Ann. § 56-2-107 Acts of unauthorized insurers constituting doing business in state](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-107.md)
- [Tenn. Code Ann. § 56-2-108 Violation of Section 56-2-105 - Penalty](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-108.md)
- [Tenn. Code Ann. § 56-2-109 No action to be maintained without certificate of authority](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-109.md)
- [Tenn. Code Ann. § 56-2-110 Injunction to prevent violation of Section 56-2-105](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-110.md)
- [Tenn. Code Ann. § 56-2-111 Liability for tax on gross premium](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-111.md)
- [Tenn. Code Ann. § 56-2-112 Deposits in trust to secure policyholders](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-112.md)
- [Tenn. Code Ann. § 56-2-113 Period of organization before admission of foreign companies - Exceptions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-113.md)
- [Tenn. Code Ann. § 56-2-114 Capital requirements for insurance combinations and reinsurance](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C2_S56-2-109. Check the current official text before relying on it. Not legal advice.