Court reviews whether an insurance company's refusal to pay insurance proceeds was made in bad faith

TONY WILLIAMS ET AL. v. TENNESSEE FARMERS LIFE REASSURANCE COMPANY ET AL. (Tenn. Ct. App. August 1, 2012)

This action was filed after the defendant, a life insurance company, denied payment of benefits on the grounds that the decedent/insured made material misrepresentations in her application for life insurance. The specific basis for the denial was that the insured allegedly failed to disclose “methadone treatment for a narcotic addiction.”

The trial court found there was no proof that the insured was taking methadone at the time of the application or that she was ever treated for “drug related problems.” On this basis, the trial court concluded the insured did not make any misrepresentations in her application for life insurance and ordered the defendant to pay the death benefit plus pre-judgment interest. We affirm.

Opinion available at:
https://www.tba.org/sites/default/files/williamst_080112.pdf

Court reviews an insurance company's refusal to pay proceeds based on misrepresentations made in the initial application for coverage

EDWARD G. ROCHELLE v. GRANGE MUTUAL CASUALTY COMPANY, ET AL. (Tenn. Ct. App. August 1, 2012)

This appeal results from the grant of summary judgment in favor of Appellee insurance company. Appellee denied Appellant’s claim for fire loss on the ground that Appellant made material misrepresentations in the application for insurance. The trial court determined that Appellant took contradictory positions in his examination under oath and in his discovery deposition on the question of whether his application for insurance was completed when he signed it, or whether he signed it in blank before it was completed by the insurance agent.

The trial court determined that Appellant’s inconsistent statements were not effective to create a dispute of material fact for purposes of summary judgment. We conclude that the motion for summary judgment was improperly granted. Reversed and remanded.

Opinion available at:
https://www.tba.org/sites/default/files/rochellee_080112.pdf

Court reviews whether plaintiff properly alleged his breach of contract, misrepresentation, and TN Consumer Act violation claims

JAMES WATRY v. ALLSTATE PROPERTY AND CAUSALITY INSURANCE COMPANY, AN ILLINOIS CORPORATION (Tenn. Ct. App. December 29, 2011)

Insured was injured by an automobile driven by an uninsured motorist. Insured filed a claim with Insurer seeking uninsured motorist coverage benefits and settled for an amount that was less than his actual damages. Insured then sued Insurer seeking damages for fraudulent misrepresentation, breach of contract, and violation of the Tennessee Consumer Act. Insurer filed a motion for judgment on the pleadings which the trial court granted. We affirm the trial court's judgment because Insured failed to allege sufficient facts to support any of his causes of action.

Opinion available at:
http://www.tba2.org/tba_files/TCA/2011/watry_122911.pdf

Court reviews whether plaintiff's misrepresentations in his application for disability benefits increased an insurance company's risk of loss

ROY L. LAWHON, v. MOUNTAIN LIFE INSURANCE COMPANY (Tenn. Ct. App. November 21, 2011)

Plaintiff made claim for credit disability insurance coverage after he became disabled, and defendant insurance company denied benefits on the grounds of misrepresentations in the application for insurance, which he had executed. The Trial Court ruled in favor of plaintiff on the grounds that misrepresentations in the application did not increase the risk of loss. On appeal, we reverse the Trial Court's Judgment because the misrepresentations contained in the application for insurance increase defendant's risk of loss under the statute.

Full opinion is available at:
http://www.tba2.org/tba_files/TCA/2011/lawhonr_112111.pdf

Court Reviews Summary Judgment Ruling in an Insurance Case Involving Misrepresentation

CECILIA OWENSBY, ET AL. v. STATE FARM FIRE AND CASUALTY COMPANY, ET AL. (Tenn. Ct. App. September 15, 2010)

Cecilia and Charles Owensby had a homeowners insurance policy issued by State Farm Fire and Casualty Company ("State Farm"). After their house burned down, the Owensbys filed a claim pursuant to the policy. State Farm eventually denied the claim, asserting that Cecilia Owensby had made four material misrepresentations when applying for the insurance and that each of these misrepresentations increased State Farm's risk of loss. The plaintiffs asserted that any inaccurate information contained on the application was the fault of the insurance agent who filled out the application on Cecilia Owensby's behalf. The plaintiffs sued both State Farm and Darius Miller ("Miller"), the insurance agent. State Farm and Miller filed a motion for summary judgment, which the Trial Court granted. The plaintiffs appeal the grant of summary judgment. We modify the judgment of the Trial Court and, as modified, affirm the grant of summary judgment to the defendants.

Opinion may be found at:
http://www.tba2.org/tba_files/TCA/2010/owensbyc_091510.pdf