TBA Law Blog


Posted by: Stacey Shrader Joslin on Apr 26, 2021

The Tennessee Supreme Court ruled on Monday that a general contractor has no private right of action against an insurance company for violation of a state law that requires insurers to include contractors as payees on benefit checks sent to property owners. The court said the record shows that the General Assembly intended enforcement of Tennessee Code Annotated section 56-7-111 be through a criminal penalty not a private lawsuit. The law requires an insurance company to name the general contractor as a payee on an insurance proceeds check in cases where property owners have losses of more than $1,000 to a home or other structure under a policy of property or casualty insurance.