Tenn. Code Ann. § 8-27-601: Municipal corporations and special school districts authorized to provide insurance for employees and officials - Persons eligible

(a) All municipal corporations and special school districts are hereby expressly authorized to provide group life, hospitalization, disability, or medical insurance for all employees and officials of such municipal corporations and special school districts and for the dependents of these employees and officials. All persons employed as teachers, principals, superintendents and otherwise in the municipal or special school district school system shall be eligible for all insurance programs and benefits conferred by this part.

(b) For the purpose of the application of this part, "municipal corporation or special school district employee" may include, subject to the approval of the legislative body of the municipal corporation or special school district, retired municipal corporation or special school district employees, officials, and their surviving spouses. Where any municipal corporation or special school district has offered such coverage prior to May 10, 1994, no further action by the legislative body shall be required.