The Tennessee Department of Commerce and Insurance (TDCI) will hold a public rulemaking hearing on Tuesday, Oct. 20, 2026, at 9 a.m. Central in Conference Room 1-B of the Davy Crockett Tower, 500 James Robertson Parkway, Nashville. The subject is Chapter 0780-01-41, Tennessee Captive Insurance Companies, and the notice covers amendments, new rules, and a repeal.
A captive is an insurance company formed to insure the risks of its owner or a related group, often a larger business or an association. Captives are not something most households buy. But if you own or advise a business that uses one, or is considering one, these rules shape the paperwork, the oversight, and the timeline.
| Proposal | What the notice says |
|---|---|
| New Rule .04 | Annual actuarial opinion on loss reserves and loss expense reserves |
| New Rule .09 | Service-provider definition; possible waiver of the in-person annual meeting |
| New Rule .18 | Applications deemed abandoned after six months |
| New Rule .19 | Backdating allowed if review is completed within 45 days |
| Repeal | Appendix A, Tennessee Captive Insurer Annual Report |
| Hearing | Oct. 20, 2026, 9:00 a.m. Central, Davy Crockett Tower Room 1-B |
Reserve opinions every year
A proposed new rule requires each captive to file an annual actuarial opinion on whether its loss reserves and loss expense reserves are reasonable. For protected cell captives, the opinion must also identify any cell whose reserves are inadequate or redundant. The person signing must be a Fellow of the Casualty Actuarial Society, a member in good standing of the American Academy of Actuaries, or someone who has shown the commissioner competence in loss reserve evaluation.
Service providers and virtual annual meetings
The proposal defines “service providers” to include captive managers, auditors, accountants, attorneys, actuaries, investment advisers, managing general underwriters, and others who handle underwriting, rates, premium, claims, or financial statements.
A captive that engages at least two distinct service providers, keeps its principal place of business in Tennessee, and appoints a registered agent may be eligible for a waiver of the in-person annual meeting requirement. With the commissioner’s written approval, it could meet virtually. If the commissioner rejects a service provider, the captive gets at least 30 days to win approval of a replacement.
Applications: a clock and a backdating window
- Abandonment. An application is deemed abandoned if the applicant does not finish the process within six months of filing the initial materials. The Department keeps the fees, and a new application and new fees are required.
- Backdating. The commissioner may approve backdating a Certificate of Authority if the review is completed within 45 days of the date its organizational documents were filed with the Secretary of State.
Audit and reporting changes
The audit amendments define “material transactions” in captive financial statements as those that, on an annual aggregate basis, involve more than 5% of admitted assets or 25% of surplus as regards policyholders, whichever is less. The notice also repeals Appendix A, the Tennessee Captive Insurer Annual Report, in its entirety.
What business owners can do
- If your company owns or participates in a Tennessee captive, ask your captive manager to walk through the proposal before Oct. 20.
- Questions about the notice go to TDCI associate counsel Catherine A. Tabor, the contact listed on the notice.
- For background on Tennessee captives, see TDCI says 2025 was Tennessee’s sixth straight year of captive insurance growth., TDCI lists Klutch Insurance Company as a domestic captive RRG in Tennessee., and TDCI lists Blue Horizon Partners as a South Carolina risk retention group.
- If a captive is more than you need, traditional commercial coverage may fit better: What is Commercial Insurance and Why Is It Important?
Related reading from All Seasons
- TDCI says 2025 was Tennessee’s sixth straight year of captive insurance growth.
- TDCI lists Klutch Insurance Company as a domestic captive RRG in Tennessee.
- TDCI lists Blue Horizon Partners as a South Carolina risk retention group.
- What is Commercial Insurance and Why Is It Important?
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
When is TDCI's captive insurance rulemaking hearing?
Tuesday, Oct. 20, 2026, at 9:00 a.m. Central in Conference Room 1-B of the Davy Crockett Tower, 500 James Robertson Parkway, Nashville.
Which rules are affected?
Chapter 0780-01-41, Tennessee Captive Insurance Companies. The notice covers amendments, new rules, and a repeal.
What is the new reserve requirement?
Proposed Rule .04 would require each captive to file an annual actuarial opinion on the reasonableness of its loss reserves and loss expense reserves.
Who can sign the reserve opinion?
A Fellow of the Casualty Actuarial Society, a member in good standing of the American Academy of Actuaries, or an individual who has demonstrated loss reserve competence to the commissioner.
Could a captive hold its annual meeting online?
A captive with at least two distinct service providers, a Tennessee principal place of business, and a registered agent may be eligible for a waiver and, with written approval, could meet virtually.
What happens if a captive application stalls?
It is deemed abandoned if not completed within six months of filing. The Department keeps the fees, and a new application and fees are required.
Who is the TDCI contact on the notice?
Catherine A. Tabor, Associate Counsel, Tennessee Department of Commerce and Insurance.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
