Tenn. Code Ann. § 56-3-116: Property and casualty insurers - Risk limitations - Applicability

(a) No insurance company engaged in the business of property and casualty insurance shall retain a maximum net amount on any single risk in excess of ten percent (10%) of the company's capital, or surplus funds, if the insurer is a mutual, reciprocal or Lloyd's plan insurer.

(b) This section does not apply to any company organized pursuant to chapter 13 of this title except for risk retention groups as defined in 15 U.S.C. § 3901 et seq. and 42 U.S.C. § 9671 .