# Tenn. Code Ann. § 56-7-102: Policies to contain entire contract - Exceptions - Construed as Tennessee contracts - Rules of construction - Duty to defend - Determination of obligations - Assignment > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-102 ## Section - **Citation:** Tenn. Code Ann. § 56-7-102 - **Heading:** Policies to contain entire contract - Exceptions - Construed as Tennessee contracts - Rules of construction - Duty to defend - Determination of obligations - Assignment - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 56 / Chapter 7 / Section 56-7-102 ## Text (a) Every policy of insurance, issued to or for the benefit of any citizen or resident of this state on or after July 1, 1907, by any insurance company or association doing business in this state, except fraternal beneficiary associations and mutual insurance companies or associations operating on the assessment plan, or policies of industrial insurance, shall contain the entire contract of insurance between the parties to the contract, and every contract so issued shall be held as made in this state and construed solely according to the laws of this state. (b) A policy of insurance is a contract and the rules of construction used to interpret a policy of insurance are the same as any other contract. (c) A policy of insurance must be interpreted fairly and reasonably, giving the language of the policy of insurance its ordinary meaning. (d) A policy of insurance must be construed reasonably and logically as a whole. (e) An insurance company's duty to defend depends solely on the allegations contained in the underlying complaint describing acts or events covered by the policy of insurance. This subsection (e) does not impose a duty to defend on an insurance company that has no duty to defend pursuant to this title or that has an express exclusion of the duty to defend in the policy of insurance. (f) An insurance company may determine its obligations under a policy of insurance as to any and all parties or claimants through a declaratory judgment action, an interpleader claim or action, or both. The filing of such action or claim creates a rebuttable presumption the insurance company is acting in good faith when making a determination of its obligations under a policy of insurance. (g) Except as provided in § 56-7-120 , the rights, duties, or benefits provided by a policy of insurance issued under this title may be assigned only as expressly provided by the terms of the policy of insurance or as otherwise expressly allowed by the insurer. Amended by 2021 Tenn. Acts, ch. 67, s 1, eff. 3/29/2021. Amended by 2019 Tenn. Acts, ch. 121, s 1, eff. 4/9/2019. Amended by 2018 Tenn. Acts, ch. 588, s 1, eff. 3/22/2018. Acts 1907, ch. 441, § 1; Shan., § 3275a1; mod. Code 1932, § 6086; T.C.A. (orig. ed.), § 56-1102. (a) Every policy of insurance, issued to or for the benefit of any citizen or resident of this state on or after July 1, 1907, by any insurance company or association doing business in this state, except fraternal beneficiary associations and mutual insurance companies or associations operating on the assessment plan, or policies of industrial insurance, shall contain the entire contract of insurance between the parties to the contract, and every contract so issued shall be held as made in this state and construed solely according to the laws of this state. (b) A policy of insurance is a contract and the rules of construction used to interpret a policy of insurance are the same as any other contract. (c) A policy of insurance must be interpreted fairly and reasonably, giving the language of the policy of insurance its ordinary meaning. (d) A policy of insurance must be construed reasonably and logically as a whole. (e) An insurance company's duty to defend depends solely on the allegations contained in the underlying complaint describing acts or events covered by the policy of insurance. This subsection (e) does not impose a duty to defend on an insurance company that has no duty to defend pursuant to this title or that has an express exclusion of the duty to defend in the policy of insurance. (f) An insurance company may determine its obligations under a policy of insurance as to any and all parties or claimants through a declaratory judgment action, an interpleader claim or action, or both. The filing of such action or claim creates a rebuttable presumption the insurance company is acting in good faith when making a determination of its obligations under a policy of insurance. urance. (f) An insurance company may determine its obligations under a policy of insurance as to any and all parties or claimants through a declaratory judgment action, an interpleader claim or action, or both. The filing of such action or claim creates a rebuttable presumption the insurance company is acting in good faith when making a determination of its obligations under a policy of insurance. (g) Except as provided in § 56-7-120 , the rights, duties, or benefits provided by a policy of insurance issued under this title may be assigned only as expressly provided by the terms of the policy of insurance or as otherwise expressly allowed by the insurer. Amended by 2021 Tenn. Acts, ch. 67, s 1, eff. 3/29/2021. Amended by 2019 Tenn. Acts, ch. 121, s 1, eff. 4/9/2019. Amended by 2018 Tenn. Acts, ch. 588, s 1, eff. 3/22/2018. Acts 1907, ch. 441, § 1; Shan., § 3275a1; mod. Code 1932, § 6086; T.C.A. (orig. ed.), § 56-1102. ## Nearby sections - [Tenn. Code Ann. § 56-7-101 Contract of insurance - Definition - Restrictions and limitations - Exceptions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-101.md) - [Tenn. Code Ann. § 56-7-102 Policies to contain entire contract - Exceptions - Construed as Tennessee contracts - Rules of construction - Duty to defend - Determination of obligations - Assignment](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-102.md) - [Tenn. Code Ann. § 56-7-103 Misrepresentation or warranty will not void policy - Exceptions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-103.md) - [Tenn. Code Ann. § 56-7-104 Hostilities shall not invalidate policy](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-104.md) - [Tenn. Code Ann. § 56-7-105 Additional liability upon insurers and bonding companies for bad-faith failure to pay promptly](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-105.md) - [Tenn. Code Ann. § 56-7-106 Liability of policyholders when action not brought in good faith](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-106.md) - [Tenn. Code Ann. § 56-7-107 Suit on certificate issued under group insurance policy - Copy of policy attached to defendant's answer](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-107.md) - [Tenn. Code Ann. § 56-7-108 Mortality tables](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-108.md) - [Tenn. Code Ann. § 56-7-109 Definitions - Timely reimbursement of health insurance claims](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-109.md) - [Tenn. Code Ann. § 56-7-110 Part definitions - Correction of payment errors - Retroactive denial of reimbursements](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-110.md) - [Tenn. Code Ann. § 56-7-111 Property or casualty insurance - General contractor as a payee](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-111.md) - [Tenn. Code Ann. § 56-7-112 Deferred individual annuity contracts - Minimum guaranteed surrender value](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-112.md) - [Tenn. Code Ann. § 56-7-113 Inquiry by homeowner's insurance policyholder not grounds for premium increase or cancellation of policy - Communications necessitating investigation - Violation constitutes unfair trade practice](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-113.md) - [Tenn. Code Ann. § 56-7-114 Certificates of insurance](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-114.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C7_S56-7-102. Check the current official text before relying on it. Not legal advice.