TN Insurance Bulletin (1988-09-01): Punitive Damages

STATE OF TENNESSEE

DEPARTMENT OF COMMERCE AND INSURANCE

500 JAMES ROBERTSON PARKWAY

NASHVILLE, TENNESSEE 37219

NED McWHERTER

GOVERNOR

ELAINE A. McREYNOLDS

COMMISSIONER

B U L L E T I N

TO:

All Ins urance Companies Doing Business in th e

Sta te of Tennessee and Other Interested Par ties

FR:

RE:

Elai ne A. McReynolds, Commissioner

~~~

Depa rtment of Commerce and Insurance~j'l

Puni tiv e Damages

DA:

Sept emb er 1, 1988

Noti ce

was

given

by

the

Department

of

Commerce

and

Insurance

o n

March

12,

1986

that

effective

July

1 ,

1987

companies wo uld be permitted to file exclusions of punitive

damages

c ove rage if they so desired.

By Notic e dated April

28,

1987

th e

date

for

the

permission

of

pu nitive

damage

exclusion s was extended until July 1, 1988.

The

Dep artment

has

now

decided

to

maint ain

the

past

policy an d c ontinue to disallow punitive damages exclusions.

In

t he

event the Commissioner determines after careful

considera tio n of all relevant facts, that a lin e or type of

coverage

is

otherwise

unavailable,

the

Commissioner

may

consider

li mited

exceptions

to

this

policy.

Pollution

liability

po licies

may

continue

the

current

exception

and

cover only c ompensatory damages.

does

not

apply

permitted

by

This

n otice

coverage

wh ich

is

compensat ory damages.

EAM/cmf

to

uninsur ed

statute

to

motorists

cover

only

Lc· l

..

~~ .