Tennessee Legislature Enacts Amendments Increasing Minimum Financial Responsibility Limits for Auto Policies

Tennessee Legislature Enacts Amendments Increasing Minimum Financial Responsibility Limits for Auto Policies

 

The Tennessee Legislature has enacted Senate Bill 504, increasing the minimum amount of coverage from $15,000 to $25,000 for property damage in any one accident that is required for a split-limit motor vehicle insurance policy to qualify as proof of financial security under the financial responsibility law. The Governor signed the bill on April 14, 2022, and it took effect immediately upon coming law.

According to the amendment, after December 31, 2022, proof of responsibility shall mean:

  • A written proof of liability insurance coverage provided by a single limit policy with a limit of not less than sixty-five thousand dollars ($65,000) applicable to one (1) accident;
  • A split-limit policy with a limit of not less than twenty-five thousand dollars ($25,000) for bodily injury to or death of one (1) person, not less than fifty thousand dollars ($50,000) for bodily injury to or death of two (2) or more persons in any one (1) accident, and not less than twenty-five thousand dollars ($25,000) for damage to property in any one accident;
  • A deposit of cash with the commissioner in the amount of sixty-five thousand dollars ($65,000); or
  • The execution and filing of a bond with the commissioner in the amount of sixty-five thousand dollars ($65,000).

It also states that an insured holding a policy that complies with the insurance requirements of the financial responsibility law on December 31, 2022 is not in violation of the law if the policy meets the limits specified in subdivisions (12)(D)(i)(a)-(d) as of the first renewal after December 31, 2022.

  

Link to Senate Bill 504