(a) Every private passenger automobile liability insurance policy shall be subject to this part.
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Terms Used In Tennessee Code 56-7-1302

  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • Nonpayment of premium: means failure of the named insured to discharge when due any obligations in connection with the payment of premiums on a policy of automobile liability insurance or any installment of the premium, whether the premium is payable directly to the insurer or its agent or indirectly under any premium finance plan or extension of credit. See Tennessee Code 56-7-1301
  • Person: means any association, aggregate of individuals, business, company, corporation, individual, joint-stock company, Lloyds-type organization, organization, partnership, receiver, reciprocal or interinsurance exchange, trustee or society. See Tennessee Code 56-16-102
  • Private passenger automobile liability insurance policy: means a policy delivered or issued for delivery in this state, insuring a natural person as named insured, or one (1) or more related individuals resident of the same household, and under which the insured vehicles therein designated are of the following types only:
    (A) A motor vehicle of the private passenger or station wagon type that is not used as a public or livery conveyance for passengers, nor rented to others. See Tennessee Code 56-7-1301
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) Unless the policy has been in effect less than sixty (60) days at the time notice of cancellation is mailed, and it is not a renewal policy, the company shall not exercise its right to cancel the insurance afforded in the policy unless the cancellation is based on one (1) or more of the following reasons:

(1) Nonpayment of premium;
(2)

(A) The policy was obtained through a material misrepresentation;
(B) The named insured failed to disclose fully the insured’s motor vehicle accidents and moving traffic violations for the preceding thirty-six (36) months if called for in the application; or
(C) The named insured failed to disclose in the written application or in response to inquiry by the insured’s broker or by the insurer or its agent information necessary for the acceptance or proper rating of the risk;
(3)

(A) Any insured violated any of the terms or conditions of the policy;
(B) Any insured made a false or fraudulent claim or knowingly aided or abetted another in the presentation of a false or fraudulent claim; or
(C) If, after the effective date of the insurance, the policy is extended, with or without charge, to provide coverage for the operation of an automobile by a person or persons not listed on the original application, or a supplement to the application, the company shall be allowed sixty (60) days, after written request to the company for insurance on the driver or drivers, to accept or reject the additional risk and, if the additional risk is not acceptable to the company, the policy may be cancelled; provided, that notice shall be mailed within sixty (60) days from the date of the request;
(4) The named insured or any other operator, either resident in the same household, or who customarily operates an automobile insured under the policy:

(A) Has had a driver’s license or motor vehicle registration suspended or revoked within the thirty-six (36) months prior to notice of cancellation;
(B) Is or becomes subject to epilepsy or heart attacks, and cannot produce a certificate from a physician testifying to the person’s unqualified ability to operate a motor vehicle; or
(C) Is or has been convicted of or forfeits bail, during the thirty-six (36) months immediately preceding the effective date of the policy or during the policy period, for:

(i) Any felony;
(ii) Criminal negligence resulting in death, homicide or assault, arising out of the operation of a motor vehicle;
(iii) Operating a motor vehicle while in an intoxicated condition or while under the influence of drugs;
(iv) Leaving the scene of an accident without stopping to report;
(v) Theft of a motor vehicle;
(vi) Making false statements in an application for a driver license; or
(vii) A third violation, committed within a period of thirty-six (36) months, of:

(a) Any ordinance, law or regulation limiting the speed of motor vehicles; or
(b) Any of the motor vehicle laws of any state, the violation of which constitutes a misdemeanor, whether or not the violations were repetitions of the same offense or were different offenses; or
(5) The insured automobile is:

(A) Altered so as to increase the risk substantially;
(B) Used as an authorized emergency vehicle; or
(C) Subject to an inspection law and has not been inspected or, if inspected, has failed to qualify.
(c) No automobile liability insurance policy may be cancelled solely because the driver was involved in a collision not adjudicated the driver’s fault.
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