Tennessee Injury Lawyer Blog

In 2008, Mrs. Parsons was killed in a Tennessee car accident while occupying her vehicle. The person who collided into her vehicle did not have car insurance.

Mrs. Parson’s vehicle was covered under a GMAC policy that provided uninsured motorist (UIM) benefits in the amount of $100,000. Mr. and Mrs. Parsons also had UIM coverage under State Farm with coverage limits of $250,000, but the insurance policy specifically excluded insured parties occupying vehicles not covered under the policy.

Mrs. Parsons was an “insured” under the policy and, ordinarily, would be covered.

After the death of Mrs. Parsons, Mr. Parsons brought an insurance claim in Tennessee against the uninsured motorist (Parsons v. Newton) and sought benefits under his State Farm policy for damages exceeding the policy limits under the GMAC policy (i.e., $150,000). State Farm denied coverage based on the exclusion contained within the policy. Although the trial court found the exclusion unlawful, the Tennessee Court of Appeals reversed the lower court’s decision to grant UIM benefits to Mr. Parsons.

The language of T. C. A. § 56-7-1201 seemed to be on State Farm’s side. Under subsection (b)(2), “only the limits of uninsured motorist coverage on the vehicle in which the insured was an occupant shall apply.”Despite this language, Mr. Parsons argued that the exclusion did not apply because enforcement of the exclusion would run counter to public policy to provide broad UIM coverage to those who have been injured by an uninsured motorist.

The appeals court, however, rejected this argument, finding a legislative intent to provide Tennessee motorists “with less than broad coverage.”

Indeed, many are surprised to find their “friendly” UIM provider sitting on the opposite side of the court room when bringing a claim against an uninsured motorist. It is simply not in their interest to fight for your rights.

If you have had the misfortune to have been involved in a car accident with an uninsured motorist, you will want someone on your side. The skilled Knoxville auto accident attorneys at Baker Associates have plenty of experience in helping our clients to build a strong case while pressing insurance companies to pay benefits that our clients expect. Call our personal injury firm today for a free consultation.

Tennessee’s bad faith statute imposes upon Tennessee insurance companies a penalty of 25 percent if a loss covered under the insurance contract occurs and the insurance company refuses in bad faith to pay the loss within 60 days after a demand has been made by the holder of the policy. This means the plaintiff must prove that the insurance company had no legitimate reason for denying the claim. Further, the plaintiff must show that the company’s bad faith inflicted additional expense, loss, or injury. This additional loss requirement is satisfied by proof of any costs associated with having to prosecute the insurance claim in Tennessee.

Estate of Wilson v. Arlington Auto Sales is a good example of a successful case tried in Tennessee courts under the bad faith statute. In that case, the insurance agent represented to the plaintiff that she would be covered under a life insurance contract despite her cancer. When her survivor attempted to make a Tennessee insurance claim under the contract, the insurance company refused to pay the claim without first trying to determine the terms of the contract that had been formed between the deceased and the insurance agent. Based on these facts, the court held that the insurer’s refusal to pay the claim within 60 days of the insured's death was in bad faith and exposed it to an additional liability of 25 percent of her total claim under the insurance contract.

Having acted in bad faith, the insurance company can also be liable under the Tennessee Consumer Protection Act (CPA) for having engaged in “deceptive or unfair” business practices. This is important because the CPA allows an attorney who takes your case to recoup attorney’s fees, which encourages attorneys to take a case even when the claim is relatively small.

If you believe that your insurance company has wrongly denied your claim, you may have a private right of action against your insurance company for breach of the insurance company’s contractual and statutory duty to act in good faith. Enforce your rights under Tennessee law; call the skilled and experienced Knoxville personal injury attorneys at Baker Associates today for a free consultation.

One very important, yet often overlooked aspect of automobile insurance protection is uninsured/underinsured motorist coverage. In the event that you or your passengers are injured in a Tennessee auto accident, having this coverage can determine whether or not you are compensated for your injuries.

Uninsured motorist coverage protects a driver in the event that the other party to an accident has no insurance. It can also protect a driver in the event that the other party’s insurance company denies their claim. In this case, the victim’s insurance company would provide compensation for their injuries, up to the limits of the policy. In most cases, this protection is afforded for injuries such as bodily injury, lost wages, and pain-and-suffering. If you are injured in an accident and the other driver is uninsured, it may be impossible to recover any compensation for your injuries. This is where a sound uninsured motorist policy will help.

Underinsured motorist coverage protects a driver in the event that they are in an accident and the other party’s insurance policy is insufficient to cover all expenses. In this case, the victim’s insurance company would supplement the payments by the other party’s insurance company, up to the victim’s policy limit. For example, if you are injured in an accident and incur $250,000 in injuries, but the other party’s insurance policy only provides $100,000 in compensation, your insurance company will provide the remaining $150,000, assuming that you have at least $250,000 in coverage.

Most states’ mandatory insurance policies do not provide for uninsured/underinsured motorist coverage. Additionally, the minimum coverage requirements of most states do not require drivers to hold more than $25,000-$50,000 in liability coverage. Many times, this is grossly insufficient to cover the damages in an accident. Uninsured/underinsured motorist coverage can provide the protection needed to avoid having to pay for injuries out of pocket.

Don’t rely on the insurance companies to tell you about all of the recovery options available to you. Contact one of our personal injury lawyers in Knoxville today for a free consultation if you have a question about a potential insurance claim or a Tennessee auto accident.