TCA § 56-2-502 — Service of process on foreign and alien companies — Definitions

As used in this section and §§ 56-2-503 and 56-2-504 : “Alien insurance company” means an insurance company organized under the laws of any country other than the United States or territory or insular possession of the United States or of the District of Columbia; “Doing business in this state” by any foreign or alien insurance company means the doing in this state by the company of any act whatsoever, whether interstate or intrastate in nature, including the soliciting, making, or delivering of insurance contracts in this state, by an agent, mail or otherwise; “Foreign insurance company” means an insurance company organized under the laws of any state of the United States, other than this state, or under the law of any territory or insular possession of the United States or the District of Columbia; and “Insurance company” means an insurance or surety company, including mutual companies, and includes a corporation, company, partnership, association, social, fraternal or otherwise, order, individual or aggregation of individuals engaging in or proposing or attempting to engage in any kind of insurance or surety business, including the exchange of reciprocal or interinsurance contracts between individuals, partnerships and corporations. Acts 1947, ch. 119, §§ 1, 2; C. Supp. 1950, § 6211.1 (Williams, §§ 6459.48, 6459.49); T.C.A. (orig. ed.), §§ 56-319, 56-243. Law Reviews. Conflict of Laws — 1959 Tennessee Survey (John W. Wade), 12 Vand. L. Rev. 1090. NOTES TO DECISIONS 1. Constitutionality. 2. Construction. 3. Application. 4. Doing Business in Tennessee. 5. Validity of Judgments. 1. Constitutionality. Sections 56-2-502 — 56-2-504 are not unconstitutional as an improper attempt to regulate the use of the United States mail. Schutt v. Commerical Travelers Mut. Acci. Asso., 229 F.2d 158, 1956 U.S. App. LEXIS 3553 (2d Cir. N.Y. 1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956). Service of process under the provisions of §§ 56-2-502 — 56-2-504 upon insurance company doing mail order business in Tennessee was not a violation of due process. Schutt v. Commerical Travelers Mut. Acci. Asso., 229 F.2d 158, 1956 U.S. App. LEXIS 3553 (2d Cir. N.Y. 1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956). 2. Construction. A broad and liberal interpretation of §§ 56-2-502 — 56-2-504 consistent with the terms of the statute should be adopted in order that Tennessee residents holding policies issued by companies covered by the statute will not be forced to pursue their remedies in distant states. Schutt v. Commerical Travelers Mut. Acci. Asso., 229 F.2d 158, 1956 U.S. App. LEXIS 3553 (2d Cir. N.Y. 1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956). 3. Application. It was the intention of the general assembly to authorize substituted service under §§ 56-2-502 — 56-2-504 on whatever foundation of activities within the state that might be deemed by the supreme court to be the minimum consistent with standards of due process. Schutt v. Commerical Travelers Mut. Acci. Asso., 229 F.2d 158, 1956 U.S. App. LEXIS 3553 (2d Cir. N.Y. 1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956). Where accident insurance policy was delivered outside the state before enactment of §§ 56-2-502 — 56-2-504 but insured died in Tennessee after residing in this state for a number of years and remitting insurance premiums by mail from this state to office of foreign insurance company, the mode of service provided by these sections was available in suit upon policy. Schutt v. Commerical Travelers Mut. Acci. Asso., 229 F.2d 158, 1956 U.S. App. LEXIS 3553 (2d Cir. N.Y. 1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956). 4. Doing Business in Tennessee. Mailing of premium notices and remittance of premium payments and submission of proofs of death were activities which involved foreign accident insurance company at one end or the other of such transactions and constituted doing of business in Tennessee. Schutt v. Commerical Travelers Mut. Acci. Asso., 229 F.2d 158, 1956 U.S. App. LEXIS 3553 (2d Cir. N.Y. 1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956). Where only facts in record were to the effect that defendant insurance company issued insurance contract to Alabama citizen in Alabama covering motor vehicle registered in Alabama which motor vehicle was involved in accident in Tennessee, record did not establish that insurance company was doing business in Tennessee so that personal jurisdiction could not be obtained over insurance company by service on commissioner of insurance (now commissioner of commerce and insurance). Willis v. State Farm Mut. Auto. Ins. Co., 221 Tenn. 1, 423 S.W.2d 855, 1968 Tenn. LEXIS 443 (1968). 5. Validity of Judgments. Judgment against foreign insurance company doing business in Tennessee based on service under the provisions of §§ 56-2-502 — 56-2-504 and entered pro confesso was entitled to full faith and credit in foreign court. Schutt v. Commerical Travelers Mut. Acci. Asso., 229 F.2d 158, 1956 U.S. App. LEXIS 3553 (2d Cir. N.Y. 1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956), cert. denied, Commercial Travelers Mut. Acci. Asso. v. Schutt, 351 U.S. 940 , 76 S. Ct. 836 , 100 L. Ed. 1466 , 1956 U.S. LEXIS 940 (1956). Collateral References. Subjecting foreign insurance company to service of process in action on policy as due process of law. 44 A.L.R.2d 416.