Legislative Reaction To Recent Court Decisions

In response to a couple of cases rendered earlier this year, the Tennessee legislature has adopted Senate Bill 2271, which has two important impacts. The statute was signed into law by Governor Haslam on May 10, 2012. For a PDF copy, click here

The new law provides that the signature of an applicant for or party to an insurance contract which states the type, amount, or terms of condition of coverage actually creates a rebuttable presumption that the statements provided by the person so signing bind all insureds and that the person signing such document has read, understands, and accepts the contents of the document. 

 

Secondly, the new law provides that the payment of premium by an insured also creates a rebuttable presumption that the coverage provided has been accepted by all insureds. 

 

This should have some immediate impact in coverage cases dealing with the knowledge of an insured as to certain coverages. 

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Comments (1) Read through and enter the discussion with the form at the end
Lee Wright - November 7, 2012 5:04 PM

Can you give the cases to which this legislation was intended to respond, please?

Be happy to:

1. Morrison v. Allen, 338 S.W. 3d 417 (Tenn. 2011)

and

2. Allstate v. Tarrant, 363 S.W. 3d 508 (Tenn. 2012)

Parks

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