In a post several days ago, the co-author of this blog, Parks Chastain, commented that Tennessee’s statutory bad faith penalty should rarely be awarded against an insurer. In reaching this conclusion, he noted a 1961 federal district court case that stated that the the bad faith penalty should not be awarded unless the insurer’s conduct
good faith claims handling
The Statutory Bad Faith Penalty Should Rarely Be Awarded Against An Insurer
By Parks Chastain on
Posted in Bad Faith
Tennessee Code Annotated § 56-7-105 provides that when an insurance company refuses to pay a loss within 60 days after demand, the company shall be liable to the holder of the policy, in addition to the loss and interest thereon, in a sum not exceeding twenty-five (25%) percent of the liability for the loss, …