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Tennessee Insurance Guaranty Association

Frequently Asked Questions

Property & Casualty Insurance Companies


Q. What happens if my insurance company becomes insolvent?

A. Tennessee Insurance Guaranty Association (TIGA) has been set up by the legislature to protect you, similarly to how the FDIC insures bank deposits. Not all types of insurance are covered, but generally, homeowners, automobile, and other property and casualty lines are covered. TIGA does not cover life or health lines. Refer any questions about those lines to Tennessee Life and Health Insurance Guaranty Association.

Q. Who do I contact to see if my claim is covered?

A. Tennessee Insurance Guaranty Association, 3100 West End Avenue, Suite 670, Nashville, TN 37203-5805.  Phone: 615-242-6839 or Fax: 615-255-4471

Q. How do I know if I have coverage?

A. Your insurance company must be found to be both insolvent and liquidated by court order. Either the insured, claimant or property must be a resident of the state of Tennessee.

Q. I am a business owner. Will TIGA protect me?

A. Yes, unless you are very large--over $25,000,000.00 of net worth for third party claims or $10,000,000.00 for first party claims.

Q. I wrecked my car or my car has been damaged by another driver -- will TIGA pay for it?

A. For covered claims, TIGA pays up to $100,000.00 in property damage. You may also be fully protected under your uninsured motorist coverage and should contact your agent to obtain coverage.

Q. My house burned -- is it covered?

A. If it is a covered claim, up to $100,000.00 may be paid.

Q. I just paid my premium -- do I lose it ?

A. Unearned premiums are covered with a limit of $10,000.00 and a deductible of $250.00.

Q. What are the limits on coverage?

A. Generally, the limit is $100,000.00, except for workers compensation, which has no limit. There are other important provisions which limit coverage, just like the limits the FDIC places on deposit insurance.

Q. Should I cancel existing coverage?

A. First, consult your agent. Generally, it is in your best interest to replace coverage in an insolvent company as soon as possible, but your coverage will be cancelled in any event, effective 30 days after the date of Liquidation.

Q. When can I expect help from TIGA?

A. TIGA can act only after it is triggered by an Order of Insolvency and Liquidation and it receives the claim files. Neither TIGA nor the Tennessee Department of Insurance can help until the Commissioner in the insolvent Insurer's home state acts.

Q. Do I have to file a Proof of Claim with the Liquidator?

A. It is necessary to file a Proof of Claim to protect your rights to share in any distribution, particularly for claims that are not covered by TIGA or where there are "over the cap" claims.

Q. Can I get help from guaranty funds in other states?

A. In cases where there are "over the cap" claims in Tennessee, and where the insured or claimant may reside in another state, help may be available from guaranty funds in other states. Please contact the guaranty funds of such other states if you have any questions..




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Copyright is not claimed as to the Tennessee Code provisions reproduced herein.




Legal Disclaimer:  Information on this site is provided to assist claimants, but is not legal advice, a comprehensive statement of the law or a detailed statement of TIGA policy and procedures, and reference should always be made to enabling legislation and case law. Certain information may not be current, and advice of legal counsel and insurance professionals is recommended.  TIGA  makes no warranty or guarantee concerning the accuracy of reliability of the content of this website or other linked or related websites.  Although TIGA has made every effort to produce the most complete up-to-date and accurate information on this website, such information is meant to be used for reference purposes only.  Any reference to the guaranty fund laws of any jurisdiction is for informational purposes only and is not a substitute for the official version of a statute or for legal advice.  Should you wish to view an official version of any guaranty fund statute, please contact the appropriate insurance department or ask your attorney to do so.