Tennessee Code Annotated
Tenn. Code Ann. § 55-12-105 (2026)
Security deposit following accident - Acceptable proof of financial security - Revocation of registration or operating privileges for failure to deposit security - Notice - Appeal
✓ current as of May 2026
- (a) The commissioner shall, upon receiving an accident report of an accident occurring in this state that has resulted in bodily injury, or death, or damage to the property of any one (1) person in excess of one thousand five hundred dollars ($1,500), and upon determining that there is a reasonable possibility of a judgment against the owner, operator, or both, and upon receiving notice of a claim filed against the owner, operator, or both, revoke the license and shall request the commissioner of revenue to immediately revoke all registrations of the owner, operator, or both, of a motor vehicle involved in the accident, and in case of a nonresident, the privilege of operating a motor vehicle within this state and of the use within this state of any motor vehicle owned by the nonresident, unless the operator, owner, or both, deposits security in a sum that shall be sufficient in the judgment of the commissioner, and in no event less than one thousand five hundred dollars ($1,500), to satisfy any judgment or judgments resulting from the accident that may be recovered against the operator, owner, or both.
- (b) The following, and only the following, shall be acceptable proof of financial security:
- (1) Filing of written proof of insurance coverage with the commissioner on forms approved by the commissioner;
- (2) The deposit of cash with the commissioner of no less than the amount specified in § 55-12-102, or in the total amount of all damages suffered, whichever is less, subject to a minimum deposit of one thousand five hundred dollars ($1,500);
- (3) The execution and filing of a bond with the commissioner of no less than the amount specified in § 55-12-102, or in the total amount of all damages suffered, whichever is less, subject to a minimum bond of one thousand five hundred dollars ($1,500); or
- (4) The submission to the commissioner of notarized releases executed by all parties who had previously filed claims with the department as a result of the accident.
- (c) Any notice of revocation issued under this section shall be sent by United States mail to the last known address of the operator and owner not less than twenty (20) days prior to the effective date of revocation, and shall state the amount required as security, and that the operator, owner, or both are entitled to an administrative hearing conducted by the commissioner of safety or the commissioner's delegate pursuant to a request under § 55-12-103(a). Any request for an administrative hearing must be submitted in writing on or before the effective date of the proposed revocation.
- (d) Notwithstanding this section to the contrary, if an accident results in damage to state or local government property in excess of four hundred dollars ($400), then this section shall apply, and if a deposit of cash or an execution and filing of a bond is made as proof of financial security, then the minimum security deposit or bond is five hundred dollars ($500).
Amended by 2018 Tenn. Acts, ch. 555,Secs.s5, s8 eff. 1/1/2019.
Amended by 2018 Tenn. Acts, ch. 555,s 4, eff. 1/1/2019.
Acts 1977, ch. 446, § 5; T.C.A., § 59-1255; Acts 1983, ch. 53, § 3; 1986, ch. 842, § 18; 1989, ch. 263, § 4; 2007, ch. 484, § 80.
Notes of Decisions
Cited in 9
cases, 1987–2016 · leading case: Edward Martin v. Gregory Powers, 505 S.W.3d 512 (Tenn. 2016).
Edward Martin v. Gregory Powers, 505 S.W.3d 512 (Tenn. 2016). “2005) (citing Tenn. Code Ann. §§ 55-12-105 , -139). ―The purpose of Tennessee‘s Financial Responsibility Law is to protect innocent members of the public from the negligence of motorists on the roads and highways.”
Burress v. Sanders, 31 S.W.3d 259 (Tenn. Ct. App. 2000). “See Tenn. Code Ann. § 55-12-105 (b)(2). Motorists seeking to demonstrate financial responsibility by proving that they are insured may submit a written certificate of insurance.”
Purkey v. Am. Home Assurance Co., 173 S.W.3d 703 (Tenn. 2005). “Tenn.Code Ann. § 55-12-105; see also id. § 55-12-139.”
Pritchard v. Eberhardt (In Re Eberhardt), 92 B.R. 773 (Bankr. E.D. Tenn. 1988). “Tenn. Code Ann. § 55-12-105 (b) (Supp.1987).”
Norton v. Tennessee Dep't of Saf. (In Re Norton), 76 B.R. 624 (Bankr. M.D. Tenn. 1987). “Acceptable proof of financial security includes insurance coverage, a deposit of cash, a bond, or releases by all parties.”
Norton v. Tennessee Dep't of Saf. (In Re Norton), 84 B.R. 119 (M.D. Tenn. 1988). “§ 55-12-105. Proof of such financial-security may be in the form of a written proof of pertinent insurance coverage, or the deposit with such Commissioner of adequate cash or a sufficient bond therefor, or a notarized release of such claim by all parties, T.”
Burress v. Sanders (Tenn. Ct. App. 1993). “If the Commissioner later determines that there exists a reasonable possibility that the motorist who reported the accident will be ordered to pay damages, Tenn. Code Ann. § 55-12-105 (a) (1998) empowers the Commissioner to revoke the license and registration of resident…”
Maria Nelson v. Dept. of Saf. (Tenn. Ct. App. 2000). “Nelson was required to provide proof of financial responsibility under section 55-12-105 of the Tennessee Code; (2) whether Ms.”
Mississippi Farm Mut. v. Latonia & Thomas Jones (Tenn. Ct. App. 1997). “§ 55-12-105(a) (1993). If the motorist fails to provide a security deposit, the commissioner revokes the motorist’s driver’s license and registrations.”
Tenn. Code Ann. § 55-12-105(a): 3 cases
Burress v. Sanders, 31 S.W.3d 259 (Tenn. Ct. App. 2000). “See Tenn. Code Ann. § 55-12-105 (b)(2). Motorists seeking to demonstrate financial responsibility by proving that they are insured may submit a written certificate of insurance.”
Pritchard v. Eberhardt (In Re Eberhardt), 92 B.R. 773 (Bankr. E.D. Tenn. 1988). “Tenn. Code Ann. § 55-12-105 (b) (Supp.1987).”
Mississippi Farm Mut. v. Latonia & Thomas Jones (Tenn. Ct. App. 1997). “§ 55-12-105(a) (1993). If the motorist fails to provide a security deposit, the commissioner revokes the motorist’s driver’s license and registrations.”
Tenn. Code Ann. § 55-12-105(b): 3 cases
Edward Martin v. Gregory Powers, 505 S.W.3d 512 (Tenn. 2016). “2005) (citing Tenn. Code Ann. §§ 55-12-105 , -139). ―The purpose of Tennessee‘s Financial Responsibility Law is to protect innocent members of the public from the negligence of motorists on the roads and highways.”
Norton v. Tennessee Dep't of Saf. (In Re Norton), 84 B.R. 119 (M.D. Tenn. 1988). “§ 55-12-105. Proof of such financial-security may be in the form of a written proof of pertinent insurance coverage, or the deposit with such Commissioner of adequate cash or a sufficient bond therefor, or a notarized release of such claim by all parties, T.”
Norton v. Tennessee Dep't of Saf. (In Re Norton), 76 B.R. 624 (Bankr. M.D. Tenn. 1987). “Acceptable proof of financial security includes insurance coverage, a deposit of cash, a bond, or releases by all parties.”
Tenn. Code Ann. § 55-12-105(b)(3): 1 case
Burress v. Sanders, 31 S.W.3d 259 (Tenn. Ct. App. 2000). “See Tenn. Code Ann. § 55-12-105 (b)(2). Motorists seeking to demonstrate financial responsibility by proving that they are insured may submit a written certificate of insurance.”
Tenn. Code Ann. § 55-12-105(c): 1 case
Norton v. Tennessee Dep't of Saf. (In Re Norton), 76 B.R. 624 (Bankr. M.D. Tenn. 1987). “Acceptable proof of financial security includes insurance coverage, a deposit of cash, a bond, or releases by all parties.”
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