Plain English Breakdown
The bill did not pass and therefore has no effective date.
Tort Liability and Reform Act
This bill revises Tennessee's governmental tort liability law to increase insurance coverage limits for local governments starting July 1, 2025.
What This Bill Does
- Revises the Tennessee Governmental Tort Liability Act to require local governmental entities to purchase insurance with increased minimum limits for bodily injury or death and property damage starting July 1, 2025.
- Raises the minimum insurance coverage limit for one person's injury or death from $300,000 to $750,000.
- Boosts the total coverage limit for multiple people's injuries or deaths in an incident from $700,000 to $1.5 million.
- Increases property damage coverage from $100,000 to $250,000.
Who It Names or Affects
- Local governmental entities in Tennessee that purchase insurance under the Tennessee Governmental Tort Liability Act.
- People who sue local governments for injuries or damages starting July 1, 2025.
Terms To Know
- Tort
- A civil wrong or wrongful act that results in injury to another person's body, property, rights, or reputation.
- Governmental Tort Liability Act
- A law that sets rules for when and how a government can be sued if it causes harm to someone.
Limits and Unknowns
- The bill did not pass in the Senate Judiciary Committee, so these changes are not currently in effect.
- It is unclear how much this will cost local governments to increase their insurance coverage limits.