INSURANCE BAD FAITH DEMAND LETTER – TENNESSEE

To: [Insurance Company Name, Claims Department Address]
From: [Insured/Claimant Name, via Counsel if applicable]
Date: [DATE]
Claim Number: [CLAIM NUMBER]
Policy Number: [POLICY NUMBER]
Insured: [INSURED NAME]
Date of Loss: [DATE OF LOSS]
Claim Type: [First-Party / UM-UIM / Property]

1. INTRODUCTION

This letter demands immediate payment. Continued bad faith refusal to pay will trigger statutory penalties.

2. FACTUAL BACKGROUND

• Date of Loss: [DATE] — [describe loss]
• Coverage: [$LIMITS]
• Status: [Unpaid / Underpaid / Denied]

3. LEGAL BASIS – TENNESSEE BAD FAITH

Statutory Penalty (Tenn. Code Ann. § 56-7-105)

If an insurer refuses to pay a loss and that refusal is not in good faith, the insurer must pay:
- 25% of the liability as a penalty; plus
- Reasonable attorney's fees.

Unfair Claims Practices (Tenn. Code Ann. § 56-8-104)

Tennessee prohibits unfair claims settlement practices.

4. DAMAGES

• Policy benefits: [$AMOUNT]
• 25% bad faith penalty
• Attorney's fees
• Interest and costs

5. DEADLINE

Payment due by: [DATE – 30 days]

Signed:
[Name / Attorney]
[Contact Information]