Tennessee Claims Handling & Insurance Bad Faith

Tennessee has a statutory bad-faith penalty for covered losses

Section 56-7-105 permits additional liability of up to 25% of the loss when a covered loss remains unpaid for 60 days after demand, the refusal was not in good faith, and the refusal caused additional expense, loss or injury.

The 60-day demand requirement matters

The statutory remedy is proof-sensitive. Preserve the written demand, date received, insurer responses, coverage position, payment history and evidence of additional loss or expense.

A disputed claim is not automatically bad faith

A reasonable coverage dispute or need for investigation does not automatically establish bad faith. Analyze entitlement to benefits, the information available to the insurer, the adequacy of investigation and the reason for delay or refusal.

Preserve the claim-handling chronology

Create a dated claim chronology with every material request, response, document, evaluation and payment. That chronology supports both a statutory analysis under §56-7-105 and any separate contract or common-law issues.

PUBLIC-INTEREST LEGAL EDUCATION

VictimsGuide does not provide legal services or create an attorney-client relationship. Insurance requirements, deadlines, remedies and controlling authority can change. Verify current primary authority, policy language and the law applicable to the particular event before legal reliance.