Tennessee House Bill HB0161

Tennessee 2025-2026 Regular Session

• Introduced: 1/15/25
• Refer: 1/27/25
• Refer: 2/12/25
• Refer: 2/26/25
• Chaptered: 4/8/25
• Passed: 4/8/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 56, Chapter 3, Part 4, relative to investments by insurance companies.

Summary

HB0161 revises Tennessee’s insurance company investment rules in Title 56, Chapter 3, Part 4. The bill increases the percentage limits for certain permitted investments, including raising one cap from 1% to 20% and another from 5% to 10%. It also adds a new category allowing insurance companies to invest in specified money market funds, including government money market funds and Class 1 money market funds, so long as those funds meet National Association of Insurance Commissioners (NAIC) standards. The measure is aimed at updating and broadening the investment options available to insurers while keeping those investments tied to recognized regulatory classifications and reserve requirements. It takes effect immediately upon becoming law, reflecting a policy choice to allow insurers more flexibility in managing assets without waiting for a delayed implementation date.

Impact

The bill amends Tennessee Code Annotated sections 56-3-402 and 56-3-403, changing statutory investment percentage limits and expanding the list of allowable insurer investments. It affects insurance companies regulated in Tennessee by permitting larger allocations in certain investment categories and by expressly authorizing investment in qualifying money market funds under NAIC guidance. The practical effect is to loosen some investment restrictions while preserving oversight through NAIC-based standards.

Sentiment

The bill appears to have been broadly supported and noncontroversial. It passed the Insurance Subcommittee 6-0, the House Insurance Committee 18-0, and the House floor on consent calendar passage with 94-0, indicating unanimous or near-unanimous agreement at each stage. The lack of recorded opposition or committee discussion suggests the measure was viewed as a technical or routine update to insurance investment law rather than a contentious policy change.

Contention

No significant opposition is reflected in the available record. The only likely area of policy interest is the balance between giving insurers greater investment flexibility and maintaining prudent limits to protect solvency and policyholders. Any concern would likely come from regulators or consumer advocates focused on risk exposure, but the unanimous votes and NAIC-based restrictions indicate those concerns were either minimal or addressed in the bill’s design.