Tennessee Claims Compliance
Key regulatory requirements, correspondence deadlines, and mandated forms for Tennessee (TN).
Quick Reference
Key Deadlines
Requirements
- Mandated Forms
- Catastrophe Rules
- Separate P&C / Life & Health
- Fraud Warning
- Depreciation Notice
- E-Delivery (yes)
Regulatory Authority
Tennessee Department of Commerce and Insurance (TDCI)
Phone: (800) 342-4029 or (615) 741-2218; Website: https://www.tn.gov/commerce/resources-services/file-a-complaint.html; Address: Consumer Insurance Services, 500 James Robertson Parkway, 4th/10th Floor, Nashville, TN 37243
Bad Faith: Tenn. Code Ann. § 56-7-105
Lines of Business
Key Statutes
- Tenn. Code Ann. §§ 56-8-101 to 56-8-114
- Tenn. Comp. R. & Regs. 0780-01-05-.01 to 0780-01-05-.16
Tennessee handles claims correspondence according to specific state regulations. Requirements vary depending on the line of business and specific claim circumstances.
Acknowledgment
Every claim must be acknowledged within 30 calendar days of receipt. The acknowledgment should identify the insurance policy and coverage at issue.
Denial
A written denial must be issued within 60 calendar days. The denial must reference the specific policy provisions, conditions, or exclusions relied upon.
Statutory Language
Specific fraud warning required.
LOB-Specific Requirements
Regulatory requirements for Tennessee, grouped by line of business. Select a chip to filter.
- SOL Notice In Denial Required
- Yes
- DOI Contact In Letters Required
- Conditional (see details)
- Unfair Claims Practices Act RefStatutory
- Tenn. Code Ann. § 56-8-105
- Prompt Payment Statute RefStatutory
- Tenn. Code Ann. § 56-7-105
- HO Specific Requirements
- When adjusting losses on an ACV basis for residential fire and extended coverage, the insurer must determine ACV as replacement cost less depreciation (Tenn. Comp. R. & Regs. 0780-01-05-.10(2)(a))
- Depreciation Notice Required
- Yes
- Proof Of Loss RequirementsStatutory
- Insurer must provide necessary claim forms within C15 of a request, along with reasonable explanations regarding their use (Tenn. Code Ann. § 56-8-105(13))
- Suit Limitation Period
- Contractual limitation period begins to run (accrues) only after the insurer denies the claim or the policy's immunity/loss settlement period expires (case law)
Tennessee Case Law
Published decisions that shape claim-handling and correspondence practice in Tennessee. Pair these with the statutory deadlines above.
- Case Law
State Auto. Ins. Co. of Columbus, Ohio v. Rowland
427 S.W.2d 30 (1968)
Status UpdatesCyber. Available at: https://law.justia.com/cases/tennessee/supreme-court/1968/427-s-w-2d-30-2.html
- Diminished ValueCommercial Auto
. In Black, the plaintiffs argued that a line of older Tennessee cases established a common-law precedent for diminished value coverage. However, the Tennessee Court of Appeals disagreed, focusing strictly on the principles of contract interpretation .
- Case LawClosing LettersAuto
Tennessee statutes and regulations are considered incorporated into insurance contracts . Therefore, if an insurer violates Tenn. Comp. R. & Regs. 0780-01-05-.08 by failing to advise a claimant of a denial or the findings of an investigation within the statutory timeframes , the plaintiff may successfully plead a breach of contract based on the regulatory violation .
- Case LawDiminished ValueCommercial Auto
. In Bloodworth, the court indicated that an owner could recover for diminished value under a UM/UIM policy if they could satisfy a rigorous evidentiary burden . The plaintiff must definitively prove:
- Case LawReservation of RightsGeneral Liability
. In Givens, the Tennessee Supreme Court ruled that an insurer possesses absolutely no right to control the "methods or means" chosen by an attorney to defend the insured . The court explicitly noted that an attorney retained by an insurer operates as an independent contractor vis-à-vis the insurer .
- Case LawDiminished ValueCommercial Auto
the Tennessee Court of Appeals explicitly ruled that a plaintiff may be awarded either the repair costs or the diminution in pre- and post-accident market value, but not both . The court dealt a blow to inherent diminished value claims by stating, "Unlike the Restatement provision, decrease in value measured after the repair is not a recognized element of allowable damages in Tennessee" .
Show 7 more cases
- Case LawReservation of RightsGeneral Liability
which affirmed the validity of non-waiver agreements and established that an insurer can participate in litigation without waiving its defenses only if the insured has actual notice of the reservation .
- Case LawBad FaithStatus UpdatesCommercial PropertyHomeownersInland / Ocean Marine
ruled that a plaintiff may recover both the statutory bad faith penalty and common law punitive damages based on a breach of contract claim, provided the insurer's conduct was intentional, fraudulent, malicious, or reckless .
- Case LawBad FaithWorkers' Comp
the Sixth Circuit Court of Appeals ruled that the punitive damages cap violates the right to a jury trial under the Tennessee Constitution, striking it down for federal diversity cases . However, the Tennessee Supreme Court later signaled support for statutory damage caps in McClay v. Airport Management Services (2020), creating a state-federal split.
- Case LawBad FaithWorkers' Comp
creating a state-federal split. Currently, the cap is enforced in Tennessee state courts but may be challenged in federal courts .
- Case LawBad FaithHomeowners
JD Supra - Lindenberg Punitive Damages Exclusivity Split
- Case LawReservation of RightsGeneral Liability
. In Richards, the insured argued that the insurer should be estopped from denying coverage because the ROR letter allegedly relied on incorrect legal reasoning .
- Case LawReservation of RightsGeneral Liability
the Sixth Circuit, applying Tennessee law, noted that the reservation of rights must "fairly inform" the insured of the insurer's position .
Historical court cases are for reference only and may be superseded, distinguished, or abrogated.
Applicable Letter Templates
No letter templates currently found for this jurisdiction.