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PUBLIC CHAPTER NO. 71
SENATE BILL NO. 696
By Johnson, Stevens
Substituted for: House Bill No. 161
By McCalmon
AN ACT to amend Tennessee Code Annotated, Title 56, Chapter 3, Part 4, relative to investments
by insurance companies.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 56-3-403(c), is amended by deleting the
language "one percent (1 %)" and substituting "twenty percent (20%)".
SECTION 2. Tennessee Code Annotated, Section 56-3-402(15), is amended by deleting the
language "five percent (5%)" and substituting "ten percent (10%)".
SECTION 3. Tennessee Code Annotated, Section 56-3-402, is amended by adding the
following new subdivision:
(17)(A) In a money market fund, as defined by 17 CFR 270.2a-7 under the
Investment Company Act of 1940 (15 U.S.C. §§ B0a-1 et seq.), that may be either of
the following:
(i) A government money market fund that is a money market fund that:
(a) Invests only in obligations issued, guaranteed, or insured by
the federal government of the United States or collateralized
repurchase agreements composed of these obligations; and
(b) Qualifies for investment without a reserve under the
Purposes and Procedures Manual of the National Association of
Insurance Commissioners (NAIC) Investment Analysis Office or, if it is
no longer being published, the successor publication to the Purposes
and Procedures Manual of the NAIC Investment Analysis Office; or
(ii) A Class 1 money market fund that is a money market fund that
qualifies for investment using the bond Class 1 reserve factor under the
Purposes and Procedures Manual of the NAIC Investment Analysis Office or,
if it is no longer being published, the successor publication to the Purposes
and Procedures Manual of the NAIC Investment Analysis Office.
(B) For the purposes of complying with this subdivision (17), money market
funds qualifying for listing within these categories must conform to the Purposes and
Procedures Manual of the NAIC Investment Analysis Office or, if it is no longer being
published, the successor publication to the Purposes and Procedures Manual of the
NAIC Investment Analysis Office.
SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it. PASSED:
SENATE BILL NO. 696
March 10, 2025
RANDY )llcNALL Y
SPEAKER OF THE SENATE
CAMER9N SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
APPROVED this {).Sir/,. day of r/luLcL 2025
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