Tennnessee High Court: Presumption Law Protects Agents, Carriers
Under Tennessee law, policyholders who pay their premiums create a legal presumption that they have accepted the terms of coverage. The statute limits lawsuits by underinsured policyholders who thought they had enough coverage but found after a loss that they did not.
The Tennessee Supreme Court ruled this month that the presumption created by Tennessee Code Annotated Section 56-7-135(b) applies to insurance agents as well as insurance carriers.
The high court reversed the Court of Appeals and granted summary judgment against a lawsuit filed by a couple who say they their insurance agent for excess uninsured motorist coverage when they bought a policy, but discovered they didn’t have the coverage only after the wife was injured in an accident that wasn’t her fault.
Tennessee Supreme Court Holds Insureds Presumably Accepted Coverage As Written In Action Against Insurance Agent For Negligent Failure To Procure An Insurance Policy As Directed fairfieldsuntimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fairfieldsuntimes.com Daily Mail and Mail on Sunday newspapers.