(a)

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Terms Used In Tennessee Code 56-53-107

  • Attorney: means the person designated and authorized by subscribers as the attorney-in-fact having authority to obligate them on reciprocal insurance contracts. See Tennessee Code 56-16-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Conviction: A judgement of guilt against a criminal defendant.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Department: means the department of commerce and insurance. See Tennessee Code 56-1-102
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fraud: Intentional deception resulting in injury to another.
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Insurer: includes , but is not limited to, an insurance company, self-insurer, reinsurer, reciprocal exchange, interinsurer, risk retention group, Lloyd's insurer, fraternal benefit society, surety, medical service, health maintenance organization, dental, optometric or any other similar health service plan, and any other legal entity engaged or purportedly engaged in the business of insurance, including any person or entity that falls within the definition of "insurer" found within this title. See Tennessee Code 56-53-101
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Pattern or practice: means repeated, routine or generalized in nature, and not merely isolated or sporadic. See Tennessee Code 56-53-101
  • Person: means a natural person, company, corporation, unincorporated association, partnership, professional corporation, agency of government and any other entity. See Tennessee Code 56-53-101
  • Plaintiff: The person who files the complaint in a civil lawsuit.
  • Reporter: Makes a record of court proceedings and prepares a transcript, and also publishes the court's opinions or decisions (in the courts of appeals).
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
(1) Any person injured in the person’s business or property by reason of a violation of § 56-53-103 may recover for the injury from the person or persons violating § 56-53-103, in any appropriate court having jurisdiction, the following:

(A) Return of any profit, benefit, compensation or payment received by the person violating § 56-53-103 directly resulting from the violation; and
(B) Reasonable attorneys’ fees, related legal expenses, including internal legal expenses and court costs.
(2) An action maintained under subdivision (a)(1) may neither be certified as a class action nor be made part of a class action.
(b)

(1) Any person injured in the person’s business or property by reason of a violation of § 56-53-102 may recover for the injury from the person or persons violating § 56-53-102, in any appropriate court having jurisdiction, the following:

(A) Return of any profit, benefit, compensation or payment received by the person violating § 56-53-102 directly resulting from the violation;
(B) Reasonable attorneys’ fees, related legal expenses, including internal legal expenses and court costs;
(C) All other economic damages directly resulting from the violation of § 56-53-102;
(D) Reasonable investigative fees based on a reasonable estimate of the time and expense incurred in the investigation of the violation or violations of § 56-53-102 proved at trial; and
(E) A penalty of no less than one hundred dollars ($100) and no greater than ten thousand dollars ($10,000).
(2) An action maintained under subdivision (b)(1) may neither be certified as a class action nor be made part of a class action.
(c) Any person injured in the person’s business or property by a person violating § 56-53-102, upon a showing of clear and convincing evidence that the violation was part of a pattern or practice of such violations, shall be entitled to recover threefold the injured person’s economic damages. An action for treble damages must be brought within three (3) years of the violation. One third (1/3) of the treble damages awarded shall be payable to the state to be used solely for the purpose of investigation and prosecution of violations of this chapter or other fraudulent behavior relating to insurance transactions, or for public education relating to insurance fraud. An action maintained under this subsection (c) may neither be certified as class action nor be made part of a class action, unless the violations of § 56-53-102 giving rise to the action resulted in criminal conviction of the violator or violators under § 56-53-104.
(d)

(1) The attorney general and reporter, district attorney general or other prosecutorial agency shall have authority to maintain civil proceedings on behalf of the department of commerce and insurance and any victims of violations of § 56-53-102. In the action, the court shall proceed as soon as practicable to the hearing and determination of the hearing. Pending final determination, the court may at any time enter restraining orders or prohibitions, or take other actions, including the acceptance of satisfactory performance bonds, as it deems proper.

(A) The circuit and chancery courts of the state shall have jurisdiction to prevent and restrain violations of § 56-53-102 by issuing appropriate orders.
(B) In any action commenced under this subsection (d), the court, upon finding that any person has violated § 56-53-102, shall levy a fine of up to five thousand dollars ($5,000) for each violation.
(2) Any court in which a prosecution for violation of § 56-53-102 is pending shall have authority to stay or limit proceedings in any civil action regarding the same or related conduct. Any court in which is pending a civil action brought pursuant to this subsection (d) may stay or limit proceedings in actions brought pursuant to subsections (a)-(c) regarding the same or related conduct or may transfer the actions or consolidate them before itself or allow the plaintiffs in the actions to participate in the action brought pursuant to this subsection (d), as it shall prescribe.
(e) Any cause of action under this section for violation of § 56-53-102 or § 56-53-103 must be brought within five (5) years of the commission of the acts constituting the violation, or within five (5) years of the time the plaintiff discovered, or with reasonable diligence could have discovered, the acts, whichever is later.
(f) An insurer shall not pay damages awarded under this section, or provide a defense or money for a defense, on behalf of an insured under a contract of insurance or indemnification. A third party who has asserted a claim against an insured shall have no cause of action under this section against the insurer of the insured arising out of the insurer’s processing or settlement of the third party’s claim. An obligee under a surety bond shall not have a cause of action under this section against the surety arising out of the surety’s processing or settlement of the obligee’s claim against the bond.
(g) Any person injured in the person’s business or property by reason of a violation of § 56-53-102 or § 56-53-103 may recover under only one (1) of the subsections of this section.
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