Tennessee Code Title 56. Insurance § 56-41-108

(a) There is created a stabilization reserve fund, to be administered in accordance with procedures submitted by the association and approved by the commissioner.

(b) Each policyholder shall pay to the association a stabilization reserve fund charge equal to one half ( 1/2 ) of each premium due for insurance issued by the association until the fund reaches a level deemed appropriate by the commissioner. The means of payment shall be set forth in the plan of operation and shall be separately stated in the policy. The association shall cancel the policy of any policyholder who fails to pay the stabilization reserve fund charge.

(c) The moneys held in trust shall be used solely for the purpose of discharging when due any retrospective premium charges payable by policyholders of the association under the group retrospective rating plan authorized by this chapter. Payment of retrospective premium charges shall be made by the board of directors upon certification to the board by the association of the amount due.

(d) Any moneys remaining in the fund after all the retrospective premium charges have been paid shall be returned to policyholders under procedures authorized by the board of directors.