Section 0780-01-70-.08 - EXAMINATION AUTHORITY AND RECORD KEEPING REQUIREMENTS(1) The commissioner has the authority to examine such charitable organizations' assets, liabilities and other affairs as they pertain to charitable gift annuity agreements entered into pursuant to Title 56, Chapter 52 and this Chapter in determining whether such charitable organizations are in compliance with the laws or regulations applicable to them. Reasonable expenses of such examinations shall be assessed against the charitable organization.(2) The commissioner has the authority to investigate the affairs of any person acting as a charitable organization in this State in order to determine whether such person is in violation of this Title 56, Chapter 52 and this Chapter.(3) Each charitable organization shall maintain its accounts, books and records in a form and manner approved by the commissioner for a period of not less than five (5) years.(4) All charitable organizations licensed under this Chapter 56, Title 52 and this Chapter must maintain a copy of the signed statement as required by T.C.A. § 56-52-109 for the life of the charitable gift annuity.(5) All examinations shall be conducted pursuant to T.C.A. § 56-1-411. Once the examination report is completed and the rebuttal period has expired, the commissioner shall fully consider and review the report, together with any written submissions or rebuttals and any relevant portions of the examiner's work papers and enter an order:(a) Adopting the examination report as filed or with modification or corrections. If the examination report reveals that the company is operating in violation of any law, regulation or prior order of the commissioner, the commissioner may order the company to take any action the commissioner considers necessary and appropriate to cure such violation;(b) Rejecting the examination report with directions to the examiners to reopen the examination for purposes of obtaining additional data, documentation or information, and refiling pursuant to T.C.A. § 56-1-411(c)(2); or(c) Calling for an investigatory hearing with no less than twenty (20) days' notice to the company for purposes of obtaining additional documentation, data, information and testimony.(6) If the examination reveals that the company is operating in violation of any law, regulation or prior order, the commissioner in such written order may require the company to take any action the commissioner considers necessary or appropriate in accordance with the report of examination or the hearing, if any, on such. That order shall be subject to judicial review in accordance with the provisions of title 27, chapter 9.(7) Nothing contained in this Title 56, Chapter 52 and this Chapter shall prevent or be construed as prohibiting the commissioner from disclosing the examination report after an order adopting an examination report has been entered. The confidentiality and privileges provisions found in T.C.A. §§ 56-1-411 and 56-8-107 shall also apply.Tenn. Comp. R. & Regs. 0780-01-70-.08
Public necessity rule filed February 2, 2009; effective through July 17, 2009. Public necessity rule filed February 2, 2009, and effective through July 17, 2009, expired effective July 18, 2009; rule reverted to its previous status. Original rule filed May 5, 2009; effective July 19, 2009.Authority: T.C.A. §§ 56-1-411, 56-8-107, 56-52-101 through 56-52-111 and 2008 Public Acts, Chapter 831.