In the event it is made to appear to the court or jury trying the cause that the action of the policyholder in bringing the suit was not in good faith, and recovery under the policy is not had, the policyholder shall be liable to the insurance company, corporation, firm, or person in a sum not exceeding twenty-five percent (25%) of the amount of the loss claimed under the policy; provided, that the liability, within the limits prescribed, shall, in the discretion of the court or jury trying the cause, be measured by the additional expense, loss, or injury inflicted upon the defendant by reason of the suit.
Structure 2021 Tennessee Code
Chapter 7 - Policies and Policyholders
§ 56-7-103. Misrepresentation or Warranty Will Not Void Policy — Exceptions
§ 56-7-104. Hostilities Shall Not Invalidate Policy
§ 56-7-106. Liability of Policyholders When Action Not Brought in Good Faith
§ 56-7-111. Property or Casualty Insurance — General Contractor as a Payee
§ 56-7-112. Deferred Individual Annuity Contracts — Minimum Guaranteed Surrender Value
§ 56-7-118. Notice of Premium Increase
§ 56-7-119. Excuse for Absence of Employee or Student
§ 56-7-120. Assignment of Benefits to Health Care Provider
§ 56-7-121. Exclusion of Coverage
§ 56-7-122. Disclosure of Agreements to Limit Services Permitted
§ 56-7-129. Subrogation of Claims for Damage Caused by Explosives