TN Insurance Bulletin (1988-09-01): Punitive Damages

STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE 500 JAMES ROBERTSON PARKWAY NASHVILLE, TENNESSEE 37219 NED McWHERTER GOVERNOR ELAINE A. McREYNOLDS COMMISSIONER B U L L E T I N TO: All Ins urance Companies Doing Business in th e Sta te of Tennessee and Other Interested Par ties FR: RE: Elai ne A. McReynolds, Commissioner ~~~ Depa rtment of Commerce and Insurance~j'l Puni tiv e Damages DA: Sept emb er 1, 1988 Noti ce was given by the Department of Commerce and Insurance o n March 12, 1986 that effective July 1 , 1987 companies wo uld be permitted to file exclusions of punitive damages c ove rage if they so desired. By Notic e dated April 28, 1987 th e date for the permission of pu nitive damage exclusion s was extended until July 1, 1988. The Dep artment has now decided to maint ain the past policy an d c ontinue to disallow punitive damages exclusions. In t he event the Commissioner determines after careful considera tio n of all relevant facts, that a lin e or type of coverage is otherwise unavailable, the Commissioner may consider li mited exceptions to this policy. Pollution liability po licies may continue the current exception and cover only c ompensatory damages. does not apply permitted by This n otice coverage wh ich is compensat ory damages. EAM/cmf to uninsur ed statute to motorists cover only Lc· l .. ~~ .