Tennessee Code Annotated
Tenn. Code Ann. § 56-7-105 (2026)
Additional liability upon insurers and bonding companies for bad-faith failure to pay promptly
✓ current as of May 2026
- (a) The insurance companies of this state, and foreign insurance companies and other persons or corporations doing an insurance or fidelity bonding business in this state, in all cases when a loss occurs and they refuse to pay the loss within sixty (60) days after a demand has been made by the holder of the policy or fidelity bond on which the loss occurred, shall be liable to pay the holder of the policy or fidelity bond, in addition to the loss and interest thereon, a sum not exceeding twenty-five percent (25%) on the liability for the loss; provided, that it is made to appear to the court or jury trying the case that the refusal to pay the loss was not in good faith, and that the failure to pay inflicted additional expense, loss, or injury including attorney fees upon the holder of the policy or fidelity bond; and provided, further, that the additional liability, within the limit prescribed, shall, in the discretion of the court or jury trying the case, be measured by the additional expense, loss, and injury including attorney fees thus entailed.
- (b) In any action against an unauthorized foreign or alien insurer or bonding company upon a contract of insurance or fidelity bond issued or delivered in this state to a resident of this state or to a corporation authorized to do business in this state, if the insurer or bonding company has failed for thirty (30) days after demand prior to commencement of the action to make payment in accordance with the terms of the contract or fidelity bond, and it appears to the court that the refusal was vexatious and without reasonable cause, the court may allow to the plaintiff a reasonable attorney fee and include the fee in any judgment that may be rendered in the action. The fee shall not exceed twelve and one-half percent (12.5%) of the amount that the court or jury finds the plaintiff is entitled to recover against the insurer or bonding company, but in no event shall the fee be less than twenty-five dollars ($25.00). Failure of an insurer or bonding company to defend the action shall be deemed prima facie evidence that its failure to make payment was vexatious and without reasonable cause.
Acts 1901, ch. 141, § 1; Shan., § 3369a141; Code 1932, § 6434; Acts 1955, ch. 2, § 4; T.C.A. (orig. ed.), § 56-1105; Acts 1981, ch. 354, § 1; 2000, ch. 701, § 1.
Notes of Decisions
Cited in 183
cases (46 in the last 5 years), 1982–2026 · leading case: Win Myint & wife Patti KI. Myint v. Allstate Ins. Co., 970 S.W.2d 920 (Tenn. 1998).
Win Myint & wife Patti KI. Myint v. Allstate Ins. Co., 970 S.W.2d 920 (Tenn. 1998). “1 In contrast, the insurer insists that Tenn.Code Ann. § 56-7-105, 2 commonly known as the “bad faith statute,” is the exclusive remedy for the bad faith denial of an insurance claim.”
Tamarin Lindenberg v. Jackson Nat'l Life Ins. Co., 912 F.3d 348 (6th Cir. 2018). “I would take advantage of that mechanism to learn from Tennessee’s highest court how it would interpret its statutes and its Constitution.”
John Riad v. Erie Ins. Exch., 436 S.W.3d 256 (Tenn. Ct. App. 2013). “This court has held that before recovery pursuant to Tennessee Code Annotated section 56-7-105 is permitted a plaintiff must prove that (1) the policy of insurance must, by its terms, have become due and payable, (2) a formal demand for payment must have been made, (8) the…”
Cracker Barrel Old Country Store, Inc. v. Cincinnati Ins., 590 F. Supp. 2d 970 (M.D. Tenn. 2008). “Defendant argues in its instant Motion that Plaintiffs Third Claim must be dismissed with prejudice because there is no bad faith action by an insured against an insurer under the common law of Tennessee.”
Ginn v. Am. Heritage Life Ins. Co., 173 S.W.3d 433 (Tenn. Ct. App. 2005). “in all cases when a loss occurs and they refuse to pay the loss within sixty *443 (60) days after a demand has been made by the holder of the policy or fidelity bond on which the loss occurred, shall be liable to pay the holder of the policy or fidelity bond, in addition to the…”
Productive MD, LLC v. Aetna Health, Inc., 969 F. Supp. 2d 901 (M.D. Tenn. 2013). “Violation of the Tennessee Prompt Pay Act, Tenn.Code Ann. § 56-7-109; 5. Bad faith failure to pay first-party claims in violation of Tenn.”
Peggy Welshans Williamson, & Vanessa Welshans v. Aetna Life Ins. Co., 481 F.3d 369 (6th Cir. 2007). “§ 47-18-104 , and the Tennessee “bad faith” statute, Tenn.Code Ann. § 56-7-105. Specifically, plaintiffs alleged that Aetna wrongfully denied health insurance benefits for Williamson’s daughter, Wel-shans, pursuant to an employee health plan administered by Aetna.”
Hurley v. Tennessee Farmers Mut. Ins. Co., 922 S.W.2d 887 (Tenn. Ct. App. 1995). “T.C.A. § 56-7-105 (1994) provides in part: (a) The insurance companies of this state, and foreign insurance companies and other persons or corporations doing an insurance or fidelity bonding business in this state, in all cases when a loss occurs and they refuse to pay the loss…”
Am. Guarantee & Liab. Ins. Co. v. Norfolk S. Ry. Co., 278 F. Supp. 3d 1025 (E.D. Tenn. 2017). “Tenn. Code Ann. § 56-7-105 . In order for an insured to recover for an insurer’s bad faith, the insured has to show: “(1) the policy of insurance must, by its terms, have become due and payable, (2) a formal demand for payment must have been made, (3) the insured must have…”
Daniels v. Erie Ins. Grp., 291 F. Supp. 3d 835 (M.D. Tenn. 2017). “) The plaintiffs filed this lawsuit on June 30, 2016, asserting claims for breach of the Policy and bad faith in violation of Tenn. Code Ann. § 56-7-105 , and seeking compensatory damages, a statutory bad faith penalty, and punitive damages.”
Sisk v. Valley Forge Ins. Co., 640 S.W.2d 844 (Tenn. Ct. App. 1982). “Mrs. Jones then filed this action against Valley Forge and Corroon & Black for negligence and breach of insurance contract.”
Gaston v. Tennessee Farmers Mut. Ins. Co., 120 S.W.3d 815 (Tenn. 2003). “§ 56-7-105 (2000). At a jury trial, Brown testified that he had received a copy of the August 19, 1996 demand letter to CNL, but that he did not contact the Gastons because he believed it would be more advisable to “wait until [he] heard back from Mr.”
— Tenn. Code Ann. § 56-7-105(a) — 37 cases
Ginn v. Am. Heritage Life Ins. Co., 173 S.W.3d 433 (Tenn. Ct. App. 2005). “in all cases when a loss occurs and they refuse to pay the loss within sixty *443 (60) days after a demand has been made by the holder of the policy or fidelity bond on which the loss occurred, shall be liable to pay the holder of the policy or fidelity bond, in addition to the…”
Stooksbury v. Am. Nat'l Prop. & Cas. Co., 126 S.W.3d 505 (Tenn. Ct. App. 2003).
Tamarin Lindenberg v. Jackson Nat'l Life Ins. Co., 912 F.3d 348 (6th Cir. 2018). “I would take advantage of that mechanism to learn from Tennessee’s highest court how it would interpret its statutes and its Constitution.”
Paul v. Ins. Co. of North Am., 675 S.W.2d 481 (Tenn. Ct. App. 1984).
John Riad v. Erie Ins. Exch., 436 S.W.3d 256 (Tenn. Ct. App. 2013). “This court has held that before recovery pursuant to Tennessee Code Annotated section 56-7-105 is permitted a plaintiff must prove that (1) the policy of insurance must, by its terms, have become due and payable, (2) a formal demand for payment must have been made, (8) the…”
— Tenn. Code Ann. § 56-7-105(a)(1989) — 2 cases
Win Myint & wife Patti KI. Myint v. Allstate Ins. Co., 970 S.W.2d 920 (Tenn. 1998). “1 In contrast, the insurer insists that Tenn.Code Ann. § 56-7-105, 2 commonly known as the “bad faith statute,” is the exclusive remedy for the bad faith denial of an insurance claim.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.