Tennessee § 29-20-403 - Liability insurance authorized — Compensation for injury — Limits — Limits of liability for self-insuring entities.

§ 29-20-403. Liability insurance authorized — Compensation for injury — Limits — Limits of liability for self-insuring entities.

Any governmental entity may purchase insurance to cover its liability under this chapter. Every policy or contract of insurance purchased by a governmental entity as authorized by this chapter shall provide: Minimum limits of not less than forty thousand dollars ($40,000) for bodily injury or death of any one (1) person in any one (1) accident and not less than eighty thousand dollars ($80,000) for bodily injury or death of any two (2) or more persons in any one (1) accident; provided, that in cases arising out of the ownership, maintenance, and use of automobiles, the minimum limit shall be not less than one hundred thousand dollars ($100,000) because of bodily injury or death of one (1) person in any one (1) accident, and to a limit of not less than three hundred thousand dollars ($300,000) because of bodily injury or death of two (2) or more persons in any one (1) accident, and to a limit of not less than fifty thousand dollars ($50,000) for injury to or destruction of property of others in any one (1) accident. In the event the governmental entity is unable to purchase insurance to cover its obligations hereunder, except through an assigned risk pool, then for purposes of § 29-20-311 the limits of liability shall be twenty thousand dollars ($20,000) for injury to any one (1) person resulting from one (1) accident and forty thousand dollars ($40,000) for all injuries resulting from one (1) accident with a limit of ten thousand dollars ($10,000) for property damages resulting from any one (1) accident. If insurance is not purchased through an assigned risk pool then the greater limits above apply; and Subdivision (b)(1)(A) applies only to actions arising before July 1, 1987; and Minimum limits of not less than one hundred thirty thousand dollars ($130,000) for bodily injury or death of any one (1) person in any one (1) accident, occurrence or act and not less than three hundred fifty thousand dollars ($350,000) for bodily injury or death of all persons in any one (1) accident, occurrence or act, and in cases arising out of the ownership, maintenance and use of automobiles to a limit of not less than fifty thousand dollars ($50,000) for injury to or destruction of property of others in any one (1) accident, occurrence or act. This subdivision (b)(2)(A) applies to any action arising on or after July 1, 1987, but before July 1, 2002; and Minimum limits of not less than fifty thousand dollars ($50,000), except as provided otherwise in this section, for injury to or destruction of property of others in any one (1) accident; Minimum limits of not less than two hundred fifty thousand dollars ($250,000) for bodily injury or death of any one (1) person in any one (1) accident, occurrence or act, and not less than six hundred thousand dollars ($600,000) for bodily injury or death of all persons in any one (1) accident, occurrence or act, and eighty-five thousand dollars ($85,000) for injury or destruction of property of others in any one (1) accident, occurrence or act. This subdivision (b)(3) shall apply to any action arising on or after July 1, 2002, but before July 1, 2007; Minimum limits of not less than three hundred thousand dollars ($300,000) for bodily injury or death of any one (1) person in any one (1) accident, occurrence or act, and not less than seven hundred thousand dollars ($700,000) for bodily injury or death of all persons in any one (1) accident, occurrence or act, and one hundred thousand dollars ($100,000) for injury or destruction of property of others in any one (1) accident, occurrence or act. This subdivision (b)(4) shall apply to any action arising on or after July 1, 2007; Any governmental entity electing to self-insure its liability shall have the same limits of liability as if insurance had been purchased. Acts 1973, ch. 345, § 24; T.C.A., § 23-3327; Acts 1982, ch. 950, §§ 1, 2; 1987, ch. 405, §§ 5, 6; 1992, ch. 821, § 1; 1999, ch. 377, § 1; 2001, ch. 424, §§ 1, 2. Code Commission Notes. Former subsection (d), concerning payment for injuries resulting from an October 10, 1997, incident, was deleted as obsolete by the code commission in 2000. Compiler's Notes. Acts 1992, ch. 821, § 2 provided that the amendment by that act applies only to actions arising on and after July 1, 1992. Acts 2001, ch. 424, § 4, provided that the state share of the cost pursuant to article II, § 24 of the Constitution of Tennessee for any increased expenditure required by a county by the provisions of the act shall be provided from the unallocated tax revenue of state-shared taxes enumerated in § 9-6-301 (now § 9-4-5301 ). Acts 2001, ch. 424, § 5, provided that the amendments to this section would not take effect unless House Bill No. 1555/Senate Bill No. 1013, relating to the definition of “health care practitioner” for purposes of the governmental tort liability act was also enacted and became effective. House Bill No. 1555/Senate Bill No. 1013 was enacted as Acts 2001, ch. 419, effective June 27, 2001. Cross-References. Definition of “health care practitioner” for purposes of governmental tort liability act, § 29-20-310 . Textbooks. Tennessee Jurisprudence, 19 Tenn. Juris., Municipal Corporations, § 79. Law Reviews. State Liability at the Tennessee Claims Commission: Balancing Sovereign Immunity and Individual Rights of Redress (Steven W. Feldman), 37 No. 8 Tenn. B.J. 19 (2001). Torts — Bowers v. City of Chattanooga: Planning-Operational Distinctions in Determining Discretionary Function Immunity Under the Tennessee Governmental Tort Liability Act (Harold W. Fonville II), 24 Mem. St. U.L. Rev. 167 (1993). Attorney General Opinions. Tennessee Valley Public Power Association insurance program, OAG 84-090 (3/15/84). Legality and amount of county appropriation to settle litigation, OAG 84-121 (4/10/84). There is no statutory requirement for volunteer parent-drivers to carry the same amount of liability insurance coverage as the school system; it would be within a local school board's discretion to establish a policy requiring volunteer parent-drivers to have a specific amount of liability insurance when, under the auspices of the school involved, they volunteer to transport students to “away” sporting or other similar events, OAG 04-136 (8/24/04). Under T.C.A. §§ 29-20-407 and 12-3-1209 , a local governmental entity may only purchase liability insurance without the necessity of any legally required public bidding if the liability insurance is purchased through a plan authorized and approved by any organization of governmental entities representing cities and counties. OAG 13-65, 2013 Tenn. AG LEXIS 68 (8/23/13).