Insurance Disputes Laws in Tennessee.

Tennessee's distinctive statutory bad-faith remedy: 25% penalty on the claim amount plus reasonable attorney fees where an insurer refuses to pay a claim within 60 days of demand without a reasonable basis. Replaces common-law bad-faith tort in Tennessee.

Tennessee does NOT recognize a separate tort of common-law bad faith. Plaintiffs must rely on the statutory bad-faith penalty under § 56-7-105. A distinctive limitation compared to most states.

Prohibits specified unfair claim settlement practices. Enforcement through TN Department of Commerce and Insurance.

Tennessee requires UM coverage at the same limits as liability. UIM must be offered but may be rejected in writing.