Tennessee Code Annotated
Tenn. Code Ann. § 56-4-218 (2026)
Reciprocity of treatment
✓ current as of May 2026
- (a) When, by the laws of any other state or foreign country, any premium or income or other taxes, or any fees, fines, penalties, licenses, deposit requirements or other obligations, prohibitions or restrictions are imposed upon Tennessee insurance companies doing business in the other state or foreign country, or upon their agents in the other state or foreign country, that are in excess of the taxes, fees, fines, penalties, licenses, deposit requirements or other obligations, prohibitions or restrictions imposed upon the insurance companies of the other state or foreign country doing business in this state, or that might seek to do business in this state, or upon their agents in the state, so long as the laws continue in force, the same premium or income or other taxes, or fees, fines, penalties, licenses, deposit requirements or other obligations, prohibitions and restrictions of whatever kind shall be imposed upon the companies of the other state or foreign country doing business in this state, or upon their agents in this state. The commissioner shall compute the burden of premium taxes on the basis of the basic premium tax rate levied by the laws of the other state or foreign country for the kind of business transacted without reduction in the basic premium rate for investments that a like Tennessee company may qualify for or as a result of investments the company may have made in Tennessee securities. Any tax, license or other obligation imposed by any city, county or other political subdivision of a state or foreign country on the Tennessee insurance companies shall be deemed to be imposed by the state or foreign country within the meaning of this section, and the commissioner, for the purpose of this section, shall compute the burden of the tax, license or other obligation on an aggregate statewide or foreign countrywide basis as an addition to the rate of tax and to the charges that are or would be payable by similar Tennessee insurance companies in the state or foreign country. This section shall be applied on a retaliatory basis without consideration of any reciprocity an insurance company domiciled in another state or foreign country may claim due to lower premium or income or other taxes, or lower fees, fines, penalties, licenses, deposit requirements or other obligations, prohibitions or restrictions that are imposed upon the insurance companies of other states or foreign countries doing business in this state. Each foreign insurance company doing business in this state shall furnish, over the signature and oath of its responsible officers, the necessary information for the computation of the taxes upon forms prescribed by the commissioner. The commissioner may issue any and all necessary regulations to carry out the purposes of this section. This section shall not apply to ad valorem taxes on real or personal property, to personal income taxes, or to any examination fees provided in § 56-1-413.
- (b) The time, period and manner of payment of the retaliatory tax shall be the same in all cases as that of the gross premium tax provided for in § 56-4-205, and no interest charges or credits shall be made or allowed for use or loss of use of funds due to any conflict of the time, period or manner of payment in this state and the time, period or manner in a foreign state or country.
- (c) Notwithstanding any other provision under this title, claims challenging liability imposed by this section must be brought in the chancery court of Davidson County pursuant to the procedures set out in title 67, chapter 1, part 9.
Amended by 2017 Tenn. Acts, ch. 423,s 1, eff. 5/18/2017.
Amended by 2015 Tenn. Acts, ch. 155,s 14, eff. 1/1/2016.
Acts 1945, ch. 3, § 9; C. Supp. 1950, § 1248.49 (Williams, § 1248.177); Acts 1953, ch. 49, § 2; 1957, ch. 185, § 1; 1965, ch. 232, § 1; 1979, ch. 314, § 1; T.C.A. (orig. ed.), § 56-423; Acts 1985, ch. 354, § 2.
Notes of Decisions
Cited in 13
cases, 1982–2015 · leading case: Valley Forge Ins. Co. v. State of Tennessee, 475 S.W.3d 240 (Tenn. 2015).
Valley Forge Ins. Co. v. State of Tennessee, 475 S.W.3d 240 (Tenn. 2015). “See Tenn. Code Ann. § 56-4-218 (2008) (authorizing the State, under certain circumstances, to impose retaliatory taxes on foreign insurance companies).”
Repub. Ins. Co. v. Oakley, 637 S.W.2d 448 (Tenn. 1982). “4 Plaintiffs take the position that since their deficiency, if found, was due to the reciprocity statute, T.C.A., § 56-4-218, this penalty statute does not apply because it applies only to taxes imposed by T.”
Metro. Life Ins. v. Ins. Comm'r, 473 A.2d 933 (Md. Ct. Spec. App. 1984). “1983); Tenn.Code Ann. § 56-4-218 (1980); Utah Code Ann.”
Zurich Am. Ins. Co. v. State of Tennessee (Tenn. Ct. App. 2014). “Tenn. Code Ann. § 56-4-218 . This appeal concerns the Department’s assessment of retaliatory taxes on the Claimants.”
N. Ins. Co. of NY v. State of Tennessee (Tenn. Ct. App. 2014). “Tenn. Code Ann. § 56-4-218 . This appeal concerns the Department’s assessment of retaliatory taxes on the Claimants.”
Great Am. Ins. Co. of New York v. State of Tennessee (Tenn. Ct. App. 2014). “Tenn. Code Ann. § 56-4-218 . This appeal concerns the Department’s assessment of retaliatory taxes on Claimant.”
Am. Home Assurance Co. v. State of Tennessee (Tenn. Ct. App. 2014). “Tennessee has enacted a retaliatory tax law, Tenn. Code Ann. § 56-4-218 (a), which states in pertinent part: When, by the laws of any other state or foreign country, any premium or income or other taxes, or any fees, fines, penalties, licenses, deposit requirements or other…”
Valley Forge Ins. Co. v. State of Tennessee (Tenn. Ct. App. 2014). “M2013-00897-COA-R3-CV - Filed July 31, 2014 Five separate groups of Pennsylvania-domiciled insurance companies filed five separate tax refund claims in which each challenges the imposition of retaliatory insurance premium taxes by the Tennessee Department of Commerce and…”
Old Repub. Ins. Co. v. State of Tennessee (Tenn. Ct. App. 2014). “M2013-00904-COA-R3-CV - Filed July 31, 2014 Five separate groups of Pennsylvania-domiciled insurance companies filed five separate tax refund claims in which each challenges the imposition of retaliatory insurance premium taxes by the Tennessee Department of Commerce and…”
Chartis Cas. Co. v. State of Tennessee (Tenn. Ct. App. 2014). “M2013-00885-COA-R3-CV - Filed July 31, 2014 Five separate groups of Pennsylvania-domiciled insurance companies filed five separate tax refund claims in which each challenges the imposition of retaliatory insurance premium taxes by the Tennessee Department of Commerce and…”
Am. Cas. Co. of Reading, Pennsylvania v. State of Tennessee (Tenn. Ct. App. 2014). “M2013-00898-COA-R3-CV - Filed July 31, 2014 Five separate groups of Pennsylvania-domiciled insurance companies filed five separate tax refund claims in which each challenges the imposition of retaliatory insurance premium taxes by the Tennessee Department of Commerce and…”
ACE Am. Ins. Co. v. State of Tennessee (Tenn. Ct. App. 2014). “M2013-00930-COA-R3-CV - Filed July 31, 2014 Five separate groups of Pennsylvania-domiciled insurance companies filed five separate tax refund claims in which each challenges the imposition of retaliatory insurance premium taxes by the Tennessee Department of Commerce and…”
— Tenn. Code Ann. § 56-4-218(a) — 1 case
Valley Forge Ins. Co. v. State of Tennessee, 475 S.W.3d 240 (Tenn. 2015). “See Tenn. Code Ann. § 56-4-218 (2008) (authorizing the State, under certain circumstances, to impose retaliatory taxes on foreign insurance companies).”
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