2023 Tennessee Code › Title 29 - REMEDIES AND SPECIAL PROCEEDINGS (§§ 29-1-101 — 29-43-101) › Chapter 20 - GOVERNMENTAL TORT LIABILITY (§§ 29-20-101 — 29-20-408) › Part 4 - FUNDING AND INSURANCE (§§ 29-20-401 — 29-20-408) › Section 29-20-403 - Liability insurance authorized - Compensation for injury - Limits - Limits of liability for self-insuring entities

(a)
Any governmental entity may purchase insurance to cover its liability under this chapter.
(b)
Every policy or contract of insurance purchased by a governmental entity as authorized by this chapter shall provide:
(1)
(A)
Minimum limits of not less than forty thousand dollars ($40,000) for bodily injury or death of any one (1) person in any one (1) accident and not less than eighty thousand dollars ($80,000) for bodily injury or death of any two (2) or more persons in any one (1) accident; provided, that in cases arising out of the ownership, maintenance, and use of automobiles, the minimum limit shall be not less than one hundred thousand dollars ($100,000) because of bodily injury or death of one (1) person in any one (1) accident, and to a limit of not less than three hundred thousand dollars ($300,000) because of bodily injury or death of two (2) or more persons in any one (1) accident, and to a limit of not less than fifty thousand dollars ($50,000) for injury to or destruction of property of others in any one (1) accident. In the event the governmental entity is unable to purchase insurance to cover its obligations hereunder, except through an assigned risk pool, then for purposes of §
29-20-311
the limits of liability shall be twenty thousand dollars ($20,000) for injury to any one (1) person resulting from one (1) accident and forty thousand dollars ($40,000) for all injuries resulting from one (1) accident with a limit of ten thousand dollars ($10,000) for property damages resulting from any one (1) accident. If insurance is not purchased through an assigned risk pool then the greater limits above apply; and
(B)
Subdivision (b)(1)(A) applies only to actions arising before July 1, 1987; and
(2)
(A)
Minimum limits of not less than one hundred thirty thousand dollars ($130,000) for bodily injury or death of any one (1) person in any one (1) accident, occurrence or act and not less than three hundred fifty thousand dollars ($350,000) for bodily injury or death of all persons in any one (1) accident, occurrence or act, and in cases arising out of the ownership, maintenance and use of automobiles to a limit of not less than fifty thousand dollars ($50,000) for injury to or destruction of property of others in any one (1) accident, occurrence or act. This subdivision (b)(2)(A) applies to any action arising on or after July 1, 1987, but before July 1, 2002; and
(B)
Minimum limits of not less than fifty thousand dollars ($50,000), except as provided otherwise in this section, for injury to or destruction of property of others in any one (1) accident;
(3)
Minimum limits of not less than two hundred fifty thousand dollars ($250,000) for bodily injury or death of any one (1) person in any one (1) accident, occurrence or act, and not less than six hundred thousand dollars ($600,000) for bodily injury or death of all persons in any one (1) accident, occurrence or act, and eighty-five thousand dollars ($85,000) for injury or destruction of property of others in any one (1) accident, occurrence or act. This subdivision (b)(3) shall apply to any action arising on or after July 1, 2002, but before July 1, 2007;
(4)
Minimum limits of not less than three hundred thousand dollars ($300,000) for bodily injury or death of any one (1) person in any one (1) accident, occurrence or act, and not less than seven hundred thousand dollars ($700,000) for bodily injury or death of all persons in any one (1) accident, occurrence or act, and one hundred thousand dollars ($100,000) for injury or destruction of property of others in any one (1) accident, occurrence or act. This subdivision (b)(4) shall apply to any action arising on or after July 1, 2007;
(c)
Any governmental entity electing to self-insure its liability shall have the same limits of liability as if insurance had been purchased.
Acts 1973, ch. 345, § 24; T.C.A., § 23-3327; Acts 1982, ch. 950, §§ 1, 2; 1987, ch. 405, §§ 5, 6; 1992, ch. 821, § 1; 1999, ch. 377, § 1; 2001, ch. 424, §§ 1, 2.