2009

One of the issues that arises far too often in cases I handle is lack of understanding of the purpose or role of documents called “Certificates of Insurance.” A “Certificate of Insurance” is not an insurance policy – it has no insuring provision, no exclusions, and typically no terms or conditions. These “Certificates” are usually issued by…

While I acknowledge Clift v. Fulton Fire Insurance Company, 315 S.W.2d 9 (Tenn. Ct. App. 1958), cert. denied, provides a rule for allowing valuation of property under a somewhat “elastic” standard of “value to the owner,” this ambiguous standard should not apply where the valuation provisions of property coverage are specifically set forth…

The Tennessee legislature has listed certain certain practices which constitute unfair acts or practices in the business of insurance.  See T.C.A. § 56-8-105.  The statute, known as the Unfair Claims Settlement Practices Act, creates standards and rules by which insurance companies must abide when settling claims.  For example, the Unfair Claims Settlement Practices Act…

On April 30, 2009, the Tennessee Court of Appeals issued yet another opinion on the topic of misrepresentations on insurance applications.  The case is Tennessee Farmers Mut. Ins. Co. v. Farrar (view slip opinion here). 

First, it should be noted that T.C.A. 56-7-103 provides that a misrepresentation on an application voids the policy if…

Policyholders all too often underestimate the importance of keeping a diary of the various events that occur during the course of a claim.  Why is it important?  First, it is a simple fact that memories fade with time.  Although claims should be resolved promptly, they often are not.  The process can be complicated with numerous…

According to an April 28, 2009 report by the National Association of Insurance Commissioners ("NAIC"), the top ten reasons consumers complain about their insurance coverage are as follows:

  1. Claim Handling – Delays
  2. Claim Handling – Denial of Claim
  3. Claim Handling – Unsatisfactory Settlement/Offer
  4. Claim Handling – Other
  5. Underwriting – Premium & Rating
  6. Underwriting – Cancellation
  7. Policyholder

…

Parks Chastain recently authored a post here in which he opined that Tennessee’s valued policy statute should apply only to losses caused by fire, not wind.  I disagree. 

Tennessee’s valued policy statutes (T.C.A. 56-7-801 through 803) were enacted in 1927, and last edited just a few years later.  Read together, these statutory provisions, known as the…