Tennessee § 56-7-102 - Policies to contain entire contract — Exceptions — Construed as Tennessee contracts — Rules of construction — Duty to defend — Determination of obligations.

§ 56-7-102. Policies to contain entire contract — Exceptions — Construed as Tennessee contracts — Rules of construction — Duty to defend — Determination of obligations.

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. 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. A policy of insurance must be interpreted fairly and reasonably, giving the language of the policy of insurance its ordinary meaning. A policy of insurance must be construed reasonably and logically as a whole. 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. 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. Acts 1907, ch. 441, § 1; Shan., § 3275a1; mod. Code 1932, § 6086; T.C.A. (orig. ed.), § 56-1102; Acts 2018, ch. 588, § 1; 2019, ch. 121, § 1. Amendments. The 2018 amendment added (b)-(e). The 2019 amendment added (f). Effective Dates. Acts 2018, ch. 588, § 2. March 22, 2018. Acts 2019, ch. 121, § 2. April 9, 2019. Textbooks. Tennessee Jurisprudence, 5 Tenn. Juris., Beneficial and Benevolent Associations, § 24; 15 Tenn. Juris., Insurance, §§ 17, 25, 28, 96, 101; 22 Tenn. Juris., Rescission, Cancellation and Reformation, § 54. Law Reviews. Accident and Health Insurance — Duty to Submit to Medical Treatment to Cure Disability, 16 Tenn. L. Rev. 353. Revisiting Tennessee's Innocent Coinsured Doctrine (Lex A. Coleman), 36 No. 7 Tenn. B.J. 20 (2000).