NASHVILLE, Tenn. – Tennessee’s top insurance regulator on Friday ordered two subsidiaries of UnumProvident Corp., the nation’s largest disability insurer, to move their books and records to the state to comply with its laws.

Tennessee Commerce and Insurance Commissioner Paula Flowers also said examinations found that three Chattanooga-based UnumProvident subsidiaries are financially solvent.

Provident Life and Casualty Co. has net assets of $570 million and liabilities of $503 million; Provident Life and Accident Co. had $8.7 billion in assets and $7.7 billion in liabilities as of Dec. 31, 2000; and Provident National Assurance Co. has net assets of $28.2 million and liabilities of $8.5 million.

“We’re pleased with the findings and are committed to working with the department to comply with the directive and to determine how to work together effectively and efficiently in the future,” said UnumProvident spokesman Jim Sabourin.

A state examination of the company’s claims handling and market conduct is continuing, and likely will be completed before the end of the year, department spokeswoman Paula Wade said.

Hundreds of lawsuits have been filed by policyholders who contend the company routinely denies claims and requires its medical employees to support the denials. Several states are conducting investigations and Georgia insurance officials imposed a $1 million fine on UnumProvident Corp.

UnumProvident – created by the 1999 merger of the Unum Corp. of Portland, Maine, and The Provident Companies, based in Chattanooga – claims about 30 percent of the nation’s disability insurance business.

Company officials have said they process 400,000 claims annually.