Tennessee House Bill HB1318

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 2/2/23
• Refer: 3/7/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 56, Chapter 2, relative to insurance settlement payments.

Impact

By enacting HB1318, the proposed changes would create a standard procedure for notifying claimants about their settlement payments. This amendment is anticipated to enhance transparency within the insurance settlement process, benefiting claimants by keeping them informed of the settlements they are entitled to receive. Importantly, the bill also allows the commissioner of commerce and insurance to promulgate rules for its implementation, which could further outline specifics on compliance and regulation.

Summary

House Bill 1318 aims to amend Tennessee Code Annotated, specifically Title 56, Chapter 2, concerning insurance settlement payments. This bill introduces new provisions that require insurance companies to provide written notice to claimants at the time of settlement payments for third-party liability claims. The goal is to ensure that claimants are adequately informed at the moment their claims are settled.

Conclusion

Overall, while the bill seeks to improve the insurance settlement notification process, the legal protections it affords claimants against insurance companies might not meet the expectations of all stakeholders involved. The impact of HB1318 will depend on how the rules are implemented and whether they sufficiently protect the interests of claimants in the state.

Contention

There are some notable clarifications included in the bill. HB1318 explicitly states that it does not create a cause of action against insurance companies for failure to serve notice as described in its provisions. This means that while the requirement exists, failing to meet this requirement would not necessarily lead to legal ramifications for the insurance companies or invalidate settlements. This clause could be a point of contention among advocates who believe that stronger protections for claimants should be included.