# 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 > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-106 ## Section - **Citation:** Tenn. Code Ann. § 56-3-106 - **Heading:** 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 - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 56 / Chapter 3 / Section 56-3-106 ## Text (a) No domestic stock or mutual life insurance company or fraternal benefit society shall grant any pension to any officer, director or trustee of the company or society, or to any member of the person's family after the person's death, or to any other person whomsoever except that the company or society may provide for an employees' retirement plan for its employees, which plan may or may not require contributions from the employees. (b) Before the company or society enters into the employees' retirement plan, it shall first submit that plan to the commissioner for approval pursuant to the requirements of this section, and the plan shall not become effective until it has been so approved. After the effective date of the plan, the commissioner may, upon a finding that the plan no longer meets the requirements of this section, order the company or society to discontinue contributions to the plan for a specified time with renewal of the contributions to be subject to the commissioner's subsequent approval. (c) The commissioner shall approve, or continue the approval of, an employees' retirement plan that meets the following requirements: (1) No benefit payment can be made to any employee under the plan until the entire reserve required for the benefit payment to the employee has been accumulated and set aside; and (2) If the plan is established for any classification of the employees of the company or society, such as home office employees, detached office employees, field representatives, agents, etc., it provides for participation and benefits on a nondiscriminatory basis for all employees in each classification who may elect to participate in the plan. (d) As used in this section, "employees" includes all persons employed by the company or society in any capacity, but does not include any director or trustee of the company or society who serves in that capacity only. Acts 1907, ch. 440, § 2; Shan., § 3348a26; Acts 1931, ch. 78, § 1; Code 1932, § 6197; 1933, ch. 150, § 1; 1939, ch. 72, § 1; C. Supp. 1950, § 6197; T.C.A. (orig. ed.), § 56-231; Acts 1969, ch. 161, § 2; impl. am. Acts 1971, ch. 137, § 2; 1978, ch. 559, § 1; T.C.A. (orig. ed.), § 56-322. (a) No domestic stock or mutual life insurance company or fraternal benefit society shall grant any pension to any officer, director or trustee of the company or society, or to any member of the person's family after the person's death, or to any other person whomsoever except that the company or society may provide for an employees' retirement plan for its employees, which plan may or may not require contributions from the employees. (b) Before the company or society enters into the employees' retirement plan, it shall first submit that plan to the commissioner for approval pursuant to the requirements of this section, and the plan shall not become effective until it has been so approved. After the effective date of the plan, the commissioner may, upon a finding that the plan no longer meets the requirements of this section, order the company or society to discontinue contributions to the plan for a specified time with renewal of the contributions to be subject to the commissioner's subsequent approval. section, and the plan shall not become effective until it has been so approved. After the effective date of the plan, the commissioner may, upon a finding that the plan no longer meets the requirements of this section, order the company or society to discontinue contributions to the plan for a specified time with renewal of the contributions to be subject to the commissioner's subsequent approval. (c) The commissioner shall approve, or continue the approval of, an employees' retirement plan that meets the following requirements: (1) No benefit payment can be made to any employee under the plan until the entire reserve required for the benefit payment to the employee has been accumulated and set aside; and (2) If the plan is established for any classification of the employees of the company or society, such as home office employees, detached office employees, field representatives, agents, etc., it provides for participation and benefits on a nondiscriminatory basis for all employees in each classification who may elect to participate in the plan. (1) No benefit payment can be made to any employee under the plan until the entire reserve required for the benefit payment to the employee has been accumulated and set aside; and (2) If the plan is established for any classification of the employees of the company or society, such as home office employees, detached office employees, field representatives, agents, etc., it provides for participation and benefits on a nondiscriminatory basis for all employees in each classification who may elect to participate in the plan. (d) As used in this section, "employees" includes all persons employed by the company or society in any capacity, but does not include any director or trustee of the company or society who serves in that capacity only. Acts 1907, ch. 440, § 2; Shan., § 3348a26; Acts 1931, ch. 78, § 1; Code 1932, § 6197; 1933, ch. 150, § 1; 1939, ch. 72, § 1; C. Supp. 1950, § 6197; T.C.A. (orig. ed.), § 56-231; Acts 1969, ch. 161, § 2; impl. am. Acts 1971, ch. 137, § 2; 1978, ch. 559, § 1; T.C.A. (orig. ed.), § 56-322. ## 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. Code Ann. § 56-3-107 Disbursements by life insurance companies to be upon vouchers or affidavits](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-107.md) - [Tenn. Code Ann. § 56-3-108 Dividends - Unauthorized payment - Penalty](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-108.md) - [Tenn. Code Ann. § 56-3-109 Dividends - Illegal division - Directors' liability to creditors](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-109.md) - [Tenn. Code Ann. § 56-3-110 Unclaimed dividends - Publication](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-110.md) - [Tenn. Code Ann. § 56-3-111 Certain insurance companies to report settlement or judgment in health care liability claims](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-111.md) - [Tenn. Code Ann. § 56-3-112 [Repealed]](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C3_S56-3-112.md) - [Tenn. 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_S56-3-106. Check the current official text before relying on it. Not legal advice.