Tennessee Insurance Claim Demand Letter Template

Tennessee's bad faith statute (Tenn. Code Ann. § 56-7-105) penalizes insurers who delay or deny valid claims. Build your demand letter now to demand payment of the covered claim.

Demand Letter Structure

1. Sender Information
[Your full name or company name]
[Mailing address]
[Email address]
[Phone number]
2. Date
[Date the letter is sent]
3. Recipient Information
[Recipient name or company name]
[Recipient mailing address]
4. Subject Line / Re:
[Re: Insurance Claim — Demand for Resolution]
5. Statement of Claim
[Brief statement identifying the insurance claim dispute and the parties' relationship]
6. Date(s) of Incident
[Specific date, date range, or description of when the events occurred]
7. Description of Events
[Chronological, factual account of what happened, what was agreed, and how the recipient failed to perform]
8. Contract or Legal Reference
[Citation to the contract, agreement, invoice number, or statute that supports the claim — optional but strengthens the letter]
9. Demand for Relief
[Specific demand — typically payment of the covered claim, itemized where possible]
10. Response Deadline
[Number of days the recipient has to respond — typically 7, 15, or 30 days from the date of the letter]
11. Consequences of Non-Response
[Statement that, if the demand is not met by the deadline, the sender will pursue arbitration, mediation, or litigation]
12. Governing State
This dispute is governed by the laws of Tennessee.
13. Closing & Signature
[Sincerely / Respectfully,]
[Signature]
[Printed name and title]
14. Enclosures
[Supporting documents — for a insurance claim claim, typically the insurance policy, claim correspondence, denial letter, supporting loss documentation]
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Template Details

Claim Category
Insurance Claim
Governing State
Tennessee
Typical Use
Pre-litigation notice and settlement demand
Common Evidence
The insurance policy, claim correspondence, denial letter, supporting loss documentation

This template is provided for informational purposes only and does not constitute legal advice.

About Insurance Claim Demand Letters

A demand letter is a formal notice sent to an insurance company when they have denied or underpaid a claim. In Tennessee, policyholders must act within the state's six-year statute of limitations for written contracts (Tenn. Code Ann. § 28-3-109). Sending a demand letter can spur the insurer to pay the covered claim without litigation. It also establishes a record that you attempted to resolve the dispute, which is important if you later file a lawsuit in General Sessions Court. Under Tennessee's insurance bad faith law (Tenn. Code Ann. § 56-7-105), an insurer that refuses to pay in bad faith may be liable for a penalty of up to 25% of the claim. So a clear, well-documented demand letter can pressure the insurer to settle promptly.

An effective Tennessee insurance claim demand letter should reference the policy number, claim number, and the specific coverage under which the claim is made. It should explain why the denial was wrong, citing the policy language and attaching supporting evidence: the insurance policy, claim correspondence, denial letter, and any loss documentation such as photos, repair estimates, or medical records. The letter should demand payment of the covered claim by a specific date—typically 15 to 30 days—and warn that if the insurer fails to comply, you will pursue all available remedies, including filing a complaint with the Tennessee Department of Commerce and Insurance or suing in General Sessions Court (for claims up to $25,000) or circuit court. Mentioning Tenn. Code Ann. § 56-7-105 bad faith penalties strengthens your position.

Frequently Asked Questions

In Tennessee, insurance policies are generally considered written contracts. The statute of limitations for breach of a written contract is six years (Tenn. Code Ann. § 28-3-109). This means you have six years from the date of the insurer's denial or breach to file a lawsuit. However, it is wise to send a demand letter and act promptly to preserve evidence and witnesses.

A typical demand letter gives the insurer 15 to 30 days to respond or pay. Tennessee's Unfair Claims Settlement Practices Act (found in Tenn. Code Ann. § 56-8-101 et seq.) requires insurers to acknowledge and act upon communications within a reasonable time, generally considered 30 days. Stating a clear deadline like 21 days shows you are serious and starts the clock for potential bad faith claims under Tenn. Code Ann. § 56-7-105.

In Tennessee, General Sessions Court serves as small claims court and can hear cases where the amount in controversy does not exceed $25,000. This includes insurance claim disputes. If your covered claim is $25,000 or less, you can file suit without an attorney. Be aware that court costs and service fees apply, but the process is relatively simple. For amounts over $25,000, you would file in circuit or chancery court and likely need a lawyer.

Attach your complete insurance policy (declarations page and relevant endorsements), all claim correspondence with the insurer, the formal denial letter, and any supporting loss documentation such as photos, repair estimates, receipts, police reports, or medical records. In Tennessee, showing that you provided all necessary proof of loss as required by the policy strengthens your case and can trigger bad faith penalties if the insurer still refuses to pay without a reasonable basis (Tenn. Code Ann. § 56-7-105).

Your demand must be clear and specific. State the exact dollar amount you claim is owed under the policy, citing the coverage limits and deductibles. If you are seeking additional damages like bad faith penalties under Tenn. Code Ann. § 56-7-105, mention that as a separate item but note that the penalty is up to 25% of the claim and requires a finding of bad faith by a court. Always base your demand on documented losses.

Send the letter to the insurance company's claims department address listed on the denial letter or policy. Address it to the specific adjuster handling your claim, if known, and include the claim number. For a Tennessee-domiciled insurer, you can look up their registered agent and physical address on the Tennessee Department of Commerce and Insurance website. If the insurer is a non-admitted carrier, send it to their main office. Sending via certified mail with return receipt provides proof of delivery, which is crucial if you later need to show the insurer received your demand.

If the insurer does not respond or refuses to pay, you can file a complaint with the Tennessee Department of Commerce and Insurance, which investigates unfair claims practices. You may also file a lawsuit in the appropriate court. For claims up to $25,000, you can sue in General Sessions Court. If you win, and the court finds the insurer acted in bad faith, you may recover up to 25% penalty on the claim amount under Tenn. Code Ann. § 56-7-105, plus court costs and attorney fees in some cases.

Ignoring a demand letter is a violation of Tennessee's unfair claims settlement practices and can be used as evidence of bad faith. You should proceed to file suit in General Sessions Court (for claims $25,000 or less) or hire an attorney for larger claims. A court may consider the insurer's failure to respond as a lack of reasonable basis for denial, potentially triggering the bad faith penalty under §56-7-105. Document all attempts to contact them.

You do not need a lawyer to send a demand letter or to file a case in General Sessions Court for amounts up to $25,000. The court has simplified procedures designed for self-represented litigants. However, for larger claims or complex coverage disputes, consulting an experienced Tennessee insurance attorney is advisable. Bad faith litigation can be complicated, and an attorney can help calculate the full value of your claim including penalties.

Generally, Tennessee law does not allow emotional distress damages in a simple breach of contract insurance claim. You can demand only the actual loss covered under the policy plus, in cases of bad faith, the statutory penalty under Tenn. Code Ann. § 56-7-105. However, if the insurer's conduct was particularly egregious, you might have a separate tort claim, but that requires proving intentional infliction of emotional distress, which is difficult. Your demand letter should focus on the covered claim and the bad faith penalty.
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