Tenn. Code Ann. § 55-12-122 (2026)

• (a) An owner's policy of liability insurance shall designate, by explicit description or by appropriate reference, all motor vehicles with respect to which coverage is thereby granted; and shall insure the person named therein, and any other person using the motor vehicle or motor vehicles with the express or implied permission of the named insured, against loss from the liability imposed by law for damages arising out of the ownership, maintenance, or use of the motor vehicle or motor vehicles within the United States or the Dominion of Canada, subject to limits, exclusive of interest and costs, with respect to each such motor vehicle, which are set forth in § 55-12-102.

• (b) An operator's policy of liability insurance shall insure the person named as insured therein against loss from the liability imposed upon the insured by law for damages arising out of the use by the insured of any motor vehicle not owned by the insured within the same territorial limits and subject to the same limits of liability as are set forth above with respect to an owner's policy of liability insurance.

• (c) A motor vehicle liability policy shall state the name and address of the named insured, the coverage afforded by the policy, the premium charged therefor, the policy period and the limits of liability, and shall contain an agreement or endorsement that insurance is provided thereunder in accordance with the coverage defined in this part with respect to bodily injury and death or property damage, or both, and is subject to all of this part.

• (d) The motor vehicle liability policy need not insure any liability under any workers' compensation law nor any liability on account of bodily injury to or death of an employee of the insured while engaged in the employment, other than domestic, of the insured, or while engaged in the operation, maintenance or repair of the vehicle nor any liability for damage to property owned by, rented to, in charge of, or transported by the insured.

• (e) Every motor vehicle liability policy shall be subject to the following provisions, which need not be contained therein:
  • (1) The liability of the insurance carrier, with respect to the insurance required by this part, shall become absolute whenever injury or damage covered by the motor vehicle liability policy occurs. The policy may not be cancelled or annulled as to the liability by any agreement between the insurance carrier and the insured after the occurrence of the injury or damage. No statement made by the insured or on behalf of the insured and no violation of the policy provisions shall defeat or void the policy. Further, absent a finding of fault on the part of the insured, the policy may not be cancelled or annulled solely due to involvement in a not at fault accident;
  • (2) The satisfaction by the insured of a judgment for the injury or damage shall not be a condition precedent to the right or duty of the insurance carrier to make payment on account of the injury or damage;
  • (3) The insurance carrier shall have the right to settle any claim covered by the policy, and if the settlement is made in good faith, the amount thereof shall be deductible from the limits of liability specified in subsection (a); and
  • (4) The policy, the written application thereof, if any, and any riders or endorsements that do not conflict with this part, shall constitute the entire contract between the parties.

• (f) Any policy that grants the coverage required for a motor vehicle liability policy may also grant any lawful coverage in excess of or in addition to the coverage specified for a motor vehicle liability policy, and the excess or additional coverage shall not be subject to this part. With respect to a policy that grants the excess or additional coverage, "motor vehicle liability policy" applies only to that part of the coverage that is required by this section.

• (g) Any motor vehicle liability policy may provide that the insured shall reimburse the insurance carrier for any payment the carrier would not have been obligated to make under the terms of the policy except for this part.

• (h) Any motor vehicle liability policy may provide for the proration of the insurance thereunder with other valid and collectible insurance.

• (i) The requirements for a motor vehicle liability policy may be fulfilled by the policies of one (1) or more insurance carriers which policies together meet these requirements.

• (j) Any binder issued pending the issuance of a motor vehicle liability policy shall be deemed to fulfill the requirements for the policy.

Acts 1977, ch. 446, § 22; T.C.A., § 59-1272; Acts 1983, ch. 53, § 8; 1997, ch. 394, § 1.