Tennessee Code Annotated

Tenn. Code Ann. § 56-7-111 (2026)

Property or casualty insurance - General contractor as a payee

✓ current as of May 2026

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When insured property losses in excess of one thousand dollars ($1,000) accrue to the owners of dwellings or other structures insured under policies of property or casualty insurance as defined in § 56-2-201, the insurance company shall name the general contractor, as defined in § 62-6-102, of any uncompleted construction or building contract as a payee on the draft to the owner covering payment for the loss. The insurance company shall name the general contractor as payee on the draft pursuant to this section regardless of whether the work that was performed or is yet to be performed is less than twenty-five thousand dollars ($25,000).

Acts 1974, ch. 705, § 1; T.C.A., § 56-1169; Acts 1998, ch. 706, § 1.

Notes of Decisions

Cited in 4 cases (2 in the last 5 years), 2020–2021 · leading case: Affordable Constr. Servs., Inc. v. Auto-Owners Ins. Co. (Tenn. 2021).

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Affordable Constr. Servs., Inc. v. Auto-Owners Ins. Co. (Tenn. 2021). · cites it 56× “of any uncompleted construction or building contract as a payee on the draft to the owner covering payment for the loss.”

Affordable Constr. Servs., Inc. v. Auto-Owners Ins. Co. (W.D. Tenn. 2020). · cites it 27× “) Defendant contends that the previous state court ruling in the Second Lawsuit found that Grand Valley had not entered into a contract with Plaintiff, and, therefore, Defendant had no duty to include Plaintiff’s name on the check under Tenn. Code Ann. § 56-7-111 . Plaintiff has…”

Affordable Constr. Servs., Inc. v. Auto-Owners Ins. Co. (W.D. Tenn. 2021). · cites it 11× “Plaintiff further alleged that, pursuant to Tenn. Code Ann. § 56-7-111 ,1 Defendant Owners should have paid it directly, rather than issuing a settlement check in a previous lawsuit solely to Third-Party Defendant Grand Valley.”

Affordable Constr. Servs., Inc. v. Auto-Owners Ins. Co. (W.D. Tenn. 2020). · cites it 4× “Plaintiff alleges in the present complaint that, pursuant to Tenn. Code Ann. § 56-7-111 ,3 Defendant should have paid it directly, rather than issuing the check to Third-Party Defendant Grand Valley.”

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