2017 Tennessee Code
Title 44 - Animals and Animal Husbandry
Chapter 14 - Sheep Producers' Indemnity Law
§ 44-14-104. Powers and limitations of association.

Universal Citation: TN Code § 44-14-104 (2017)
  • Each association organized hereunder has the following powers and limitations:
    • (1) Indemnity Limited. The indemnity allowed shall in no instance exceed the value of the animal;
    • (2) Losses Prior to Membership. The association shall not protect the member from losses occurring prior to membership in the association;
    • (3) Losses While Member in Arrears. The association shall not indemnify a member for losses sustained while the member is in arrears in payment of membership fees, but the member shall be considered to be suspended and without protection until the fees are paid, but shall continue to be liable for all fees due the association;
    • (4) Loss Caused by Design of Assured. The association shall not be responsible for any loss caused by the design of the assured;
    • (5) Liability for Assessment. No member shall be liable for assessments to pay losses and expenses accruing previous to the time of the member's membership in the association, nor for losses and expenses accruing after membership ceases;
    • (6) Joint or Concurrent Indemnity. In all cases of other indemnity against loss by dogs upon the sheep protected in the association, whether prior or subsequent to the date of protection in the association, in the event of loss by dogs, the member will not be entitled to recover on the indemnity in the association any greater portion of the loss sustained than the indemnity in the association shall bear to the whole amount of indemnity on the sheep;
    • (7) Must Cover All Sheep. The member shall schedule for indemnity all the sheep that the member owns within the territory of the association that are one (1) year of age and over. Lambs produced from ewes insured in the association shall be protected according to the schedule of indemnity payments until one (1) year of age, so long as ownership does not change, without the payment of any fees;
    • (8) Funds. If, at the end of the fiscal year, there are sufficient funds above and beyond those to be expended for indemnity claims, a reasonable reserve fund shall be set aside; then, if there are still additional funds, the remainder shall be credited to the members pro rata (on a basis as paid into the association) on the ensuing year's fees. If there are not sufficient funds from the fees collected that are available at the end of the fiscal year to pay the indemnity claims as approved in full, then all indemnity payments shall be reduced pro rata;
    • (9) Term of Indemnity. All indemnity shall date from the date of issuance of certificate of membership. This indemnity ceases at midnight Central Standard Time (12:00 CST) of the last day of the fiscal year;
    • (10) Renewal of Indemnity. Indemnity shall be renewed only when the member pays all protective fees and otherwise fulfills all requirements as stipulated in the bylaws;
    • (11) Liability of the Association. The association shall in no instance be liable for loss from other causes than death of sheep caused by dogs;
    • (12) Cancellation of Membership. A member may, at any time upon written request to the secretary and the payment of all valid claims against the member, have the member's membership in the association cancelled;
    • (13) Cancellation of Indemnity. The association may, upon five (5) days' notice, for any cause deemed sufficient by the board of directors or its representatives, cancel the indemnity of any member or any part thereof; and
    • (14) Additional Powers. The association has the power to:
      • (A) Do each and everything necessary, suitable or proper for the accomplishment of any one (1) of the purposes or the attainment of any one (1) of the subjects herein enumerated, or conducive to or expedient for the interest or benefit of the association, and to contract accordingly;
      • (B) Exercise and possess all powers, rights and privileges necessary or incidental to the purposes for which the association is organized or to the activities in which it is engaged; and
      • (C) Have any other rights, powers and privileges granted by the laws of this state to other corporations, except such as are inconsistent with the express provisions of this chapter.
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