# Tenn. Code Ann. § 56-3-105: Regulation of compensation of officers, agents and employees of life insurance companies and fraternal benefit societies > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-105 ## Section - **Citation:** Tenn. Code Ann. § 56-3-105 - **Heading:** Regulation of compensation of officers, agents and employees of life insurance companies and fraternal benefit societies - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 56 / Chapter 3 / Section 56-3-105 ## Text (a) A domestic stock or mutual life insurance company or fraternal benefit society shall not: (1) Pay any salary, compensation or emolument to any director or trustee regardless of amount, or to any officer, employee or other person, firm or corporation amounting in any one (1) year to more than the amount set forth in the appropriate schedule of the annual statement filed with the commissioner pursuant to § 56-1-501 , unless the payment has first been authorized by a vote of the board of directors of the company or society; (2) Pay any other compensation or emolument to any officer, director or trustee of the company or society who is paid a salary for services of more than one hundred dollars ($100) per month; or (3) Enter into an agreement for a term longer than twelve (12) months from the date of the agreement with any officer, director, trustee or salaried employee of the company or society providing for the payment of any salary, compensation or emolument for any services rendered or to be rendered. (b) This section shall not prohibit the life insurance company or society from entering into an agreement with: (1) Any officer or employee of the company or society for the payment of deferred compensation beyond the period of twelve (12) months from the date of the agreement; (2) Any officer or employee of the company or society for a stock option plan, stock purchase plan, stock bonus plan, or other incentive compensation plan, if, before the plan is entered into or becomes effective, it is first approved by the commissioner; (3) Any agent, general agent or district manager of the company or society providing for the payment of commissions on the regular commission basis; or (4) Any agent of the company or society providing for the payment of renewal commissions. (c) No domestic or foreign life insurance company or society doing business in this state shall calculate or pay, directly or indirectly, the compensation of any officer, director or trustee of the company or society as a percentage of the premiums collected or the insurance written by the company or society unless it first obtains the approval of the commissioner. Acts 1907, ch. 440, § 1; Shan., § 3348a25; Code 1932, § 6196; Acts 1959, ch. 84, § 1; 1961, ch. 34, § 1; 1967, ch. 30, § 1; 1969, ch. 161, § 1; impl. am. Acts 1971, ch. 137, § 2; 1977, ch. 11, § 1; T.C.A., §§ 56-231, 56-321; Acts 1981, ch. 269, § 1. (a) A domestic stock or mutual life insurance company or fraternal benefit society shall not: (1) Pay any salary, compensation or emolument to any director or trustee regardless of amount, or to any officer, employee or other person, firm or corporation amounting in any one (1) year to more than the amount set forth in the appropriate schedule of the annual statement filed with the commissioner pursuant to § 56-1-501 , unless the payment has first been authorized by a vote of the board of directors of the company or society; (2) Pay any other compensation or emolument to any officer, director or trustee of the company or society who is paid a salary for services of more than one hundred dollars ($100) per month; or (3) Enter into an agreement for a term longer than twelve (12) months from the date of the agreement with any officer, director, trustee or salaried employee of the company or society providing for the payment of any salary, compensation or emolument for any services rendered or to be rendered. (1) Pay any salary, compensation or emolument to any director or trustee regardless of amount, or to any officer, employee or other person, firm or corporation amounting in any one (1) year to more than the amount set forth in the appropriate schedule of the annual statement filed with the commissioner pursuant to § 56-1-501 , unless the payment has first been authorized by a vote of the board of directors of the company or society; emolument to any director or trustee regardless of amount, or to any officer, employee or other person, firm or corporation amounting in any one (1) year to more than the amount set forth in the appropriate schedule of the annual statement filed with the commissioner pursuant to § 56-1-501 , unless the payment has first been authorized by a vote of the board of directors of the company or society; (2) Pay any other compensation or emolument to any officer, director or trustee of the company or society who is paid a salary for services of more than one hundred dollars ($100) per month; or (3) Enter into an agreement for a term longer than twelve (12) months from the date of the agreement with any officer, director, trustee or salaried employee of the company or society providing for the payment of any salary, compensation or emolument for any services rendered or to be rendered. (b) This section shall not prohibit the life insurance company or society from entering into an agreement with: (1) Any officer or employee of the company or society for the payment of deferred compensation beyond the period of twelve (12) months from the date of the agreement; (2) Any officer or employee of the company or society for a stock option plan, stock purchase plan, stock bonus plan, or other incentive compensation plan, if, before the plan is entered into or becomes effective, it is first approved by the commissioner; (3) Any agent, general agent or district manager of the company or society providing for the payment of commissions on the regular commission basis; or (4) Any agent of the company or society providing for the payment of renewal commissions. (1) Any officer or employee of the company or society for the payment of deferred compensation beyond the period of twelve (12) months from the date of the agreement; (2) Any officer or employee of the company or society for a stock option plan, stock purchase plan, stock bonus plan, or other incentive compensation plan, if, before the plan is entered into or becomes effective, it is first approved by the commissioner; (3) Any agent, general agent or district manager of the company or society providing for the payment of commissions on the regular commission basis; or (4) Any agent of the company or society providing for the payment of renewal commissions. (c) No domestic or foreign life insurance company or society doing business in this state shall calculate or pay, directly or indirectly, the compensation of any officer, director or trustee of the company or society as a percentage of the premiums collected or the insurance written by the company or society unless it first obtains the approval of the commissioner. Acts 1907, ch. 440, § 1; Shan., § 3348a25; Code 1932, § 6196; Acts 1959, ch. 84, § 1; 1961, ch. 34, § 1; 1967, ch. 30, § 1; 1969, ch. 161, § 1; impl. am. Acts 1971, ch. 137, § 2; 1977, ch. 11, § 1; T.C.A., §§ 56-231, 56-321; Acts 1981, ch. 269, § 1. ## Nearby sections - [Tenn. Code Ann. § 56-3-101 Investments of insurance companies organized after May 11, 1895](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-101.md) - [Tenn. Code Ann. § 56-3-102 [Repealed]](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-102.md) - [Tenn. Code Ann. § 56-3-103 Officers must not be pecuniarily interested in investment or disposition of funds of domestic company](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-103.md) - [Tenn. Code Ann. § 56-3-104 Investments of domestic company in which officers pecuniarily interested not to be allowed as an admitted asset](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-104.md) - [Tenn. Code Ann. § 56-3-105 Regulation of compensation of officers, agents and employees of life insurance companies and fraternal benefit societies](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-105.md) - [Tenn. Code Ann. § 56-3-106 Pensions to officers, directors, or trustees, or to members of their families prohibited to domestic stock or mutual life insurance companies or fraternal benefit societies - Employees' retirement plans permitted](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-106.md) - [Tenn. 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Code Ann. § 56-3-113 Valuation of bonds](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-113.md) - [Tenn. Code Ann. § 56-3-114 Valuation of securities](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-114.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-105. Check the current official text before relying on it. Not legal advice.