Plaintiff Counsel: T.C.A. §56-12-117 provides for a stay of litigation, but TIGA may choose not to seek such a stay if it can confirm coverage and get access to claim files. Please contact TIGA to discuss or if you have a hardship case.
Defense Counsel of insolvent insurance companies: Fees and expenses incurred prior to insolvency are not obligations of TIGA, but counsel should make claim upon the liquidator for those amounts. No fees and expenses will be paid by TIGA unless expressly authorized by TIGA. TIGA will be in touch to evaluate moving of defense files. In an emergency or hardship case, please contact us immediately. Coverage is limited in most cases. In many cases where the insured has a large net worth or large deductible program, they may wish to handle their own claim files and you should contact the insured to determine their position. Case law: See Terminix INTLCO. v. TIGA, 845 S.W. 2d 772 for discussion of scope of coverage. Hogins v. Ross, 988 S.W. 2d 685 for discussion as to uninsured motorist coverage becoming primary.
Articles:
Insolvencies: What Happens If an Insurer Fails? – By David Broemel on Wed., 10/31/2018
Links:
Statute Page
State of Tennessee