What is Tennessee's law on standard of review (erisa)?

De novo unless the plan grants discretion; then abuse-of-discretion applies. (Firestone v. Bruch, 489 U.S. 101 (1989))

Tennessee law

Long-Term Disability & ERISA Laws in Tennessee.

Most private long-term disability (LTD) insurance is employer-sponsored and governed by ERISA, which preempts state contract and bad-faith claims. ERISA claims must exhaust internal appeals and are reviewed under a deferential standard if the plan grants discretion. Individual (non-ERISA) policies are governed by Tennessee contract law and may support the statutory bad-faith penalty under Tenn. Code § 56-7-105 (25% penalty plus attorney fees). Tennessee does NOT recognize a separate common-law bad-faith tort.

Last verified: 2026-04-17

State law

Key Tennessee Statutes

ERISA Preemption29 U.S.C. § 1144

ERISA preempts state-law breach of contract and bad-faith claims for employer-sponsored LTD plans.

Tennessee Bad Faith PenaltyTenn. Code § 56-7-105

For non-ERISA individual LTD policies, Tennessee's statutory 25% penalty plus attorney fees applies where an insurer refuses to pay a claim within 60 days without reasonable basis. No separate common-law bad-faith tort available.

Standard of Review (ERISA)Firestone v. Bruch, 489 U.S. 101 (1989)

De novo unless the plan grants discretion; then abuse-of-discretion applies.

State law

Official Sources

U.S. Department of Labor — EBSA TN Department of Commerce and Insurance

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in Tennessee.

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Long-Term Disability & ERISA Laws in Tennessee.

Key Tennessee Statutes

Official Sources

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