AN ACT to amend Tennessee Code Annotated, Title 8; Title 9 and Title 56, relative to insurance.
Impact
If enacted, SB0511 would specifically impact the operations of state agencies regarding their insurance policies. The amendment would empower the state to facilitate and coordinate the purchase of insurance not only for individual state agencies but also among various state bodies. The overarching intent is to bolster the financial capability of the state to address potential claims, thereby reducing legal and financial risks associated with contractual and tort claims against the state and its employees.
Summary
Senate Bill 511 (SB0511) is a legislative proposal that seeks to amend existing provisions in the Tennessee Code Annotated pertaining to insurance. The bill focuses on enhancing the responsibilities of the state with respect to the review, approval, and procurement of insurance policies designed to cover claims against the state or its employees arising from contractual and tort liabilities. By defining the scope of authority for state agencies in handling these insurance matters, the bill aims to streamline the process and ensure more effective management of claims payments.
Contention
One notable point of contention related to SB0511 may arise from the potential implications it has on budgetary allocations for state agencies. By centralizing the procurement of insurance policies, there may be concerns about efficiency and transparency in how resources are allocated and utilized across state agencies. Additionally, discussions around the effectiveness of the insurance coverage provided and its adequacy in protecting the state against various forms of liability are likely to be significant points of debate among lawmakers and stakeholders.