20-5-120 - Automobile liability insurance carrier negligent in failing to settle claim against insured Survival of action Assignment of right of action for benefit of creditors. - Tennessee Statutes

20-5-120. Automobile liability insurance carrier negligent in failing to settle claim against insured Survival of action Assignment of right of action for benefit of creditors.

(a)  Any cause of action belonging to an insured person against the insured's automobile liability insurance carrier, based upon the negligence or bad faith of the insurance carrier in failing or refusing to settle any claim against the insured person within the limits of the insured's automobile liability insurance policy, shall survive the death of the insured person and shall pass to the insured's personal representative.

(b)  Any cause of action within the purview of subsection (a) shall by operation of law be assigned to and be an asset belonging to any trustee in bankruptcy, receiver or other person acting in a representative capacity for the creditors of the insured person, and the cause of action may be filed and maintained by the trustee, receiver or other person acting in a representative capacity for the creditors of the insured person in the trustee's, receiver's or representative's own name as the representative in any court having jurisdiction and venue of the cause of action against the automobile liability insurance carrier of the insured person.

(c)  No action within the purview of subsection (a) now pending or hereafter filed in any court of this state shall be abated or dismissed by any court upon the grounds that the action is or was not assignable by the insured person to one (1) of the persons or class of persons as set out in subsections (a) and (b).

[Acts 1967, ch. 381, §§ 1-3; T.C.A., §§ 20-624 20-626; modified.]