Plain English Breakdown
The official source material does not provide specific details about the cost implications for local governments in terms of increased insurance premiums.
Increasing Insurance Limits for Governmental Tort Liability
This bill amends Tennessee law to increase the minimum insurance limits that local governmental entities must purchase to cover their liability under the Tennessee Governmental Tort Liability Act, effective July 1, 2025.
What This Bill Does
- Revises the current law by requiring policies or contracts of insurance purchased by a governmental entity to provide increased minimum limits for bodily injury or death and property damage starting from July 1, 2025.
- Raises the minimum insurance limits for bodily injury or death to $750,000 for one person and $1.5 million for all persons involved in an incident.
- Increases property damage coverage from $100,000 to $250,000.
Who It Names or Affects
- Local governmental entities that purchase insurance under the Tennessee Governmental Tort Liability Act.
- People who file claims against local government entities for bodily injury, death, or property damage.
Terms To Know
- Tennessee Governmental Tort Liability Act
- A law that sets rules for when and how people can sue the Tennessee state government for injuries or damages caused by its actions.
- Minimum limits
- The lowest amount of insurance coverage a policy must provide, as set by law.
Limits and Unknowns
- This bill only affects local governmental entities and does not apply to the state government or private companies.
- It is unclear how much this change will cost local governments in terms of increased insurance premiums.