House Bill 161 amends Tennessee Code Annotated regarding the investment regulations for insurance companies. The bill increases the allowable investment limits by changing the percentage from "one percent (1%)" to "twenty percent (20%)" in Section 56-3-403(c) and from "five percent (5%)" to "ten percent (10%)" in Section 56-3-402(15). These changes aim to provide insurance companies with greater flexibility in their investment strategies.

Additionally, the bill introduces a new subdivision in Section 56-3-402 that outlines specific criteria for investments in money market funds. It defines two types of money market funds: government money market funds and Class 1 money market funds, both of which must adhere to the guidelines set forth in the Purposes and Procedures Manual of the National Association of Insurance Commissioners (NAIC) Investment Analysis Office. This new provision is intended to ensure that insurance companies can invest in secure and regulated financial instruments while complying with established standards. The act will take effect upon becoming law.

Statutes affected:
Introduced: 56-3-403(c), 56-3-403, 56-3-402(15), 56-3-402