In the event it is made to appear to the court or jury trying the cause that the action of the policyholder in bringing the suit was not in good faith, and recovery under the policy is not had, the policyholder shall be liable to the insurance company, corporation, firm, or person in a sum not exceeding twenty-five percent (25%) of the amount of the loss claimed under the policy; provided, that the liability, within the limits prescribed, shall, in the discretion of the court or jury trying the cause, be measured by the additional expense, loss, or injury inflicted upon the defendant by reason of the suit.
Tenn. Code Ann. § 56-7-106
Liability of policyholders when action not brought in good faith
Known as the Tennessee Insurance Law
The act spans §§ 56-10-101 to 56-8-206 (1,220 sections).
Applied in 1 court decision — leading case State Auto Property & Casualty Insurance v. Hargis (2015)
Most recently applied in State Auto Property & Casualty Insurance v. Hargis (May 2015)
Acts 1901, ch. 141, § 2; Shan., § 3369a142; Code 1932, § 6435; T.C.A
Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.