Insurance, Motor Vehicles

Plain English Breakdown

The bill summary and text do not specify if the protection from liability extends to partner nonprofit organizations beyond their use of church-owned vehicles.

Community Faith Transportation and Service Protection Act

This act provides state-backed secondary liability insurance for faith-based organizations when their vehicles are used for community services.

What This Bill Does

• Provides state-backed secondary liability coverage to faith-based organizations when their vehicles are used for healthcare access, food security, disability assistance, elder care, or social services.
• Requires the coverage to be administered through a risk management fund with minimum limits of $1 million per occurrence for bodily injury and $250,000 per occurrence for property damage.
• Protects faith-based organizations, clergy members, and board members from liability unless harm is caused by gross negligence or willful misconduct.
• Allows partner 501(c)(3) nonprofit organizations to use church-owned vehicles without creating additional liability exposure for the faith-based organization.
• Prohibits private insurance providers from denying coverage or increasing premiums based on community service vehicle usage.

Who It Names or Affects

• Faith-based organizations that own or lease motor vehicles used for community services.
• Private insurance providers issuing policies to faith-based organizations.
• Partner nonprofit organizations using church-owned vehicles for community services.

Terms To Know

Community service use

The use of a vehicle to provide transportation or delivery related to healthcare access, food security, disability assistance, elder care, or social services.

Faith-based organization

A church, synagogue, mosque, or religious nonprofit organization recognized under 26 U.S.C. § 501(c)(3).

Limits and Unknowns

• The act applies to policies issued, renewed, or amended on or after July 1, 2026.
• Rules for coverage requirements must be promulgated by the department of commerce and insurance.

Official Summary Text

This bill provides that a
faith-based organization that owns or leases a motor vehicle is deemed, by operation of law, to have state-backed secondary liability coverage when the vehicle is used for
healthcare access, food security, disability assistance, elder care, or social services (together, a "
community service use
")
, including when operated by a partner
501(c)(3)
nonprofit organization.
Such coverage applies when (i) t
he vehicle is used for a community service use
,
(
ii
)
t
he driver holds a valid driv
er license
,
and

(
iii
)
t
he activity is not conducted for private profit.
The
coverage mandated under this
bill must b
e administered through the risk management fund

and
b
e for no

less than
, f
or bodily injury,
$1
million per occurrence and
, for
property damage, $250,000 per occurrence.

This bill provides that a
faith-based organization, clergy member, or board member of a faith-based organization is not liable for injury, loss, or damage arising from a vehicle operated for
a
community service use unless the harm was caused by
gross
negligence or
wi
llful or reckless misconduct.

A partner
501(c)(3)
nonprofit organization using a church-owned vehicle for
such
community service use is a permitted user for purposes of the coverage and does not create additional liability exposure for the fai
th-based organization.

This bill prohibits a
private insurance provider that receives an application for coverage from a faith-based organization, and an insurance policy issued by the private insurance provider to a faith-based organization
, from (i) d
eny
ing
coverage solely because the vehicle for which insurance is sought is or will be operated for
a
community service use;

(
ii
)
e
xclud
ing
nonprofit organization or charitable use from coverage; or

(
iii
)
c
ancel
ing
or increas
ing
premiums due to participation in a community service
transportation program.

A provision in an insurance policy issued by a private insurer to a faith-based organization that violates or conflicts with
such
requirements is void and unenforceable.

RULEMAKING

This bill requires

t
he department of commerce and insurance
to
promulgate rules to effectuate this
bill
. The rules must include coverage requirements, including minimum safety standards, driver eligibility, and accident reporting procedures, and a means by which faith-based organizations can apply for coverage.

APPLICABILITY

This bill
applies to policies issued, renewed, or amended on or after
July 1, 2026.

Current Bill Text

HOUSE BILL 2345
By Harris

SENATE BILL 2671
By Akbari
SB2671
011507
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 9,
Chapter 8; Title 55 and Title 56, relative to
insurance for vehicles used by faith-based
organizations.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. This act is known and may be cited as the "Community Faith
Transportation and Service Protection Act."
SECTION 2. Tennessee Code Annotated, Title 56, Chapter 7, Part 11, is amended by
adding the following as a new section:
(a) As used in this section:
(1) "Community service use" means the use of a vehicle to provide
transportation or delivery related to:
(A) Healthcare access;
(B) Food security;
(C) Disability assistance;
(D) Elder care; or
(E) Social services;
(2) "Faith-based organization" means a church, synagogue, mosque, or
religious nonprofit organization recognized under 26 U.S.C. § 501(c)(3); and
(3) "Partner nonprofit organization" means a 501(c)(3) organization that
is exempt from federal income taxation under § 501(a) of the Internal Revenue
Code (26 U.S.C. § 501(a)), as an organization described in § 501(c)(3) of the
Internal Revenue Code (26 U.S.C. § 501(c)(3)).

- 2 - 011507

(b) A faith-based organization that owns or leases a motor vehicle is deemed, by
operation of law, to have state-backed secondary liability coverage when the vehicle is
used for community service use, including when operated by a partner nonprofit
organization.
(c) The coverage described under subsection (b) applies when:
(1) The vehicle is used for a community service use;
(2) The driver holds a valid driver license; and
(3) The activity is not conducted for private profit.
(d) The coverage mandated under this section must:
(1) Be administered through the risk management fund, established
under § 9-8-409; and
(2) Be for not less than:
(A) For bodily injury, one million dollars ($1,000,000) per
occurrence; and
(B) For property damage, two hundred fifty thousand dollars
($250,000) per occurrence.
(e) A faith-based organization, clergy member, or board member of a faith-based
organization is not liable for injury, loss, or damage arising from a vehicle operated for
community service use unless the harm was caused by:
(1) Gross negligence, or
(2) Willful or reckless misconduct.
(f) A partner nonprofit organization using a church-owned vehicle for community
service use is a permitted user for purposes of the coverage described under subsection
(b) and does not create additional liability exposure for the faith-based organization.
(g)

- 3 - 011507

(1) A private insurance provider that receives an application for coverage
from a faith-based organization shall not, and an insurance policy issued by the
private insurance provider to a faith-based organization must not:
(A) Deny coverage solely because the vehicle for which
insurance is sought is or will be operated for community service use;
(B) Exclude nonprofit organization or charitable use from
coverage; or
(C) Cancel or increase premiums due to participation in a
community service transportation program.
(2) A provision in an insurance policy issued by a private insurer to a
faith-based organization that violates or conflicts with the requirements of
subdivision (g)(1) is void and unenforceable.
SECTION 3. The department of commerce and insurance shall promulgate rules to
effectuate this act. The rules must include coverage requirements, including minimum safety
standards, driver eligibility, and accident reporting procedures, and a means by which faith-
based organizations can apply for coverage. The rules must be promulgated in accordance
with the Uniform Administrative Procedures Act, compiled in Title 4, Chapter 5.
SECTION 4. If any provision of this act or the application of any provision of this act to
any person or circumstance is held invalid, the invalidity does not affect other provisions or
applications of the act that can be given effect without the invalid provision or application, and to
that end, the provisions of this act are severable.
SECTION 5. This act takes effect July 1, 2026, the public welfare requiring it, and
applies to policies issued, renewed, or amended on or after that date.