ÿWPCf …š‡µFÅ”ºû½¿ £ÌÉ Å:1¯¢/þ16óc·êùY*qãuêþBžBç³QZ§»$5Ý¿Z@Î>Œ›dµ‹NŸju3V7Œ¾ÝªóÐX¸b N˨/ûS(r°~7FõaÊ£a›‡ïêÏ&ò·þZí£B=Q&b„ ¹ePßý¬rÑ6ü+ï¤ íÕÀAÿ"9ÂÏ#è¿¿©ÁJA͉ªµa3_Çâjzœ¦pØ…Þ9#™½=ªE7p¹“¥Ÿ]ÏêQŒ¬qLIyÕ»ãYÌy"þZroU†G¸õ™×`Î㸠»ÓJí¾K>Ã5áü—7‘ƒ‹‚wÝZ…â¥4TˆÔzɰ'ë1‰Ñ0÷0ß¡ü<kã-&©Ywèž;ÊzBTŒQ›mc›,…$•œ7žl ¯0j¦v%Oy¡$ô×€S4_ã–ç`wï¥Ùþ‹ðåÖ\ƈ„ÆþXWŽùFrÎ$b%iD°¾­fG"ãU@JnÐ(ì@¼)¹(ÉE ß úÉ+¤ósIQ“´Ð}[lb$V×ýò]‚è¾â/,œ”A4ñ޼[ÙL“nJ0èäXb#Á\ % ^ # 0ˆ/ UN· w 4 z Ò— i x mz ‘ Æ™ Æ_ Æ% Æë 0D±NõUN÷÷EEGGGGGGGGGGGGGGGGGGGGGGGb[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ 0ëcccc BNN 0¤k D3 D-B 0Koo ASºÆ  0¤Ó 0Dw A«»˜HP LaserJet 4 Plus,ð,,,,,ð0»…z0-s (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regularä]ö,¢Ø+00 ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xÿU‹ÿÀÀÀ Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(#Ã$òòÚ  Ú0Ú  Úóó(ÖÃ9 Z ‹6Times New Roman Regular Ý ƒRu,$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôÓ´ò»»ÔÝ  ÝÔ_Ô49€U.S.C.S.€ðð€14706€provides:Ð ° ÐÌò ò(a)€General€liability.€€ó ó(1)€Motor€carriers€and€freight€forwarders.€A€carrier€providing€transportation€or€service€subjectÐ @ Ðto€jurisdiction€under€subchapter€I€or€III€of€chapter€135€[49€Ô_ÔU.S.C.S.Ô_Ô€ðððð€13501€et€seq.€or€ðð€13531]€shall€issue€a€receiptÐ X Ðor€bill€of€lading€for€property€it€receives€for€transportation€under€this€part€[49€Ô_ÔU.S.C.S.Ô_Ô€ðððð€13101€et€seq.].€That€carrierÐ Ð   Ðand€any€other€carrier€that€delivers€the€property€and€is€providing€transportation€or€service€subject€to€jurisdiction€underÐ ° Ðsubchapter€I€or€III€of€chapter€135€or€chapter€105€[49€Ô_ÔU.S.C.S.Ô_Ô€ðððð€13501€et€seq.€or€ðð€13531€or€ðððð€10501€et€seq.]€are€liableÐ xÈ Ðto€the€person€entitled€to€recover€under€the€receipt€or€bill€of€lading.€The€liability€imposed€under€this€paragraph€is€for€theÐ @ Ðactual€loss€or€injury€to€the€property€caused€by€(A)€the€receiving€carrier,€(B)€the€delivering€carrier,€or€(C)€another€carrierÐ X Ðover€whose€line€or€route€the€property€is€transported€in€the€United€States€or€from€a€place€in€the€United€States€to€a€placeÐ Ð  Ðin€an€adjacent€foreign€country€when€transported€under€a€through€bill€of€lading€and,€except€in€the€case€of€a€freightÐ ˜è Ðforwarder,€applies€to€property€reconsigned€or€diverted€under€a€tariff€under€section€13702.€Failure€to€issue€a€receipt€orÐ ` ° Ðbill€of€lading€does€not€affect€the€liability€of€a€carrier.€A€delivering€carrier€is€deemed€to€be€the€carrier€performing€theÐ ( x Ðline-haul€transportation€nearest€the€destination€but€does€not€include€a€carrier€providing€only€a€switching€service€at€theÐ ð @ Ðdestination.€Ð ¸   Ѐ€€- ù-(|G2u,$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€´œ»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôÓ´ò»»Ô d(|3Á $££Ý ƒ£ª!ÝÑ€.ÑÑ8€´œ»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3Á $¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€´œ»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€´œ»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼´œ»»»ÔÑ8€£+XXdð»»d8ÑÑ  Ñà@ü ü ìàÔ‡îéO´œÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@õõ%ìàAT€JACKSONÔ#†¼´œ»îîéO #ԈРÜ, ÐÓ  ÓJune€6,€2002€SessionÐ X ÐÔ‡X£+X»¼´œÔÌò òÔ#†¼´œ»XX£+ï#ÔCERTAIN€UNDERWRITERððS€AT€LLOYDððS€OF€LONDON€Subscribing€toÐ  ` ÐPolicy€of€Insurance€No.€LTC982015òòóó€v.€TRANSCARRIERS€INC.,€òòet€alóó.Ô‡X£+X»¼´œÔó óÐ ( x ÐÌò òAppeal€from€the€Circuit€Court€for€Shelby€CountyÐ 0 € Ðà@@øøìàNo.€305691„7€T.D.€€€€€€Robert€A.€Lanier,€JudgeÐ  p ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<ï` AßÐ ð@  ÐÌà@@TTìàNo.€W2001„02556„Ô_ÔCOAÔ_Ô„R9„CV€„€Filed€September€16,€Ô_Ô2002Ô_ÔÐ ï?  ÐÌßA€V) °°` dE<Î` AßÐ Ï Ðó óÌò òÔ#†¼´œ»XX£+Ô#ÔÔ‡X£+X»¼´œÔÓ  Óó óÔ‡XñÝXXX£+ÔThis€is€an€interlocutory€appeal€to€determine€when€a€cause€of€action€accrued€so€as€to€trigger€aÐ Î Ðcontractual€limitations€period€contained€in€a€legal€liability€insurance€policy€issued€to€a€motorÐ º  Ðcarrier,€where€the€contract€contained€a€settlement€of€loss€provision€and€the€insurer€never€deniedÐ ¦ö Ðliability.€€We€hold€the€contractual€statute€of€limitations€began€to€run€upon€the€expiration€of€theÐ ’â Ðsettlement€of€loss€provision,€when€the€insurer€was€no€longer€immune€from€suit.ò òÐ ~Î ÐÌÔ#†X£+XXXñÝ]#ÔÔ#†¼´œ»XX£+/#ÔÔ‡X£+X»¼´œÔÓ  ÓTenn.€R.€App.€P.€9€Interlocutory€Appeal€by€Permission;€Judgment€of€the€Circuit€CourtÐ V¦ ÐReversed;€and€Remandedó óÐ F– ÐÌòòÓ  ÓÔ#†¼´œ»àX£+þ#ÔÔ‡X£+X.¼´œÔDavid€R.€Farmer,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòAlan€E.€Highersóó€and€òòHolly€K.Ð &v ÐLillard,€J.J.óó,€joined.Ð f ÐÌAlisa€W.€Terry,€Decatur,€Georgia,€for€the€appellant,€Certain€Underwriterððs€at€Lloydððs€of€London.Ð öF ÐÌJoseph€W.€Barnwell,€Jr.,€Memphis,€Tennessee,€for€the€appellee,€Transcarriers,€Inc.Ð Ö & ÐÌTim€W.€Hellen,€Memphis,€Tennessee,€for€the€appellee,€Mitsui€Marine€&€Fire€Insurance€CompanyÐ ¶"! Ðof€America.Ð ¦#ö" ÐÓÄÓÌò òOPINIONó óÔ#†¼´œ»XX£+ó#ÔÔ‡X£+X»¼´œÔÐ †%Ö $ ÐÌÔ#†¼´œ»XX£+u #ÔÓ  ÓÔ€X£+X»¼´œÔà  àCertain€Underwriters€at€Lloydððs€of€London€(ð ðCertain€Underwritersðð)€issued€a€policy€ofÐ f'¶"& Ðinsurance€to€Transcarriers,€Inc.,€effective€February€15,€1998,€through€February€15,€1999.€€The€policyÐ V(¦#' Ðcontaining€the€following€provisions:Ð F)–$( ÐÌÌÌÐ -V(,ý Ðà@YY ìàINSURING€AGREEMENT:€ˆÐ ° ÐÌà8  à1.€€This€Policy€covers€the€legal€liability€of€the€Insured€as€a€motor€carrier,€as€suchÐ à Ðliability€is€defined,€limited€and€set€forth€in€the€Uniform€Bill€of€Lading,€for€directÐ €Ð Ðphysical€loss€or€damage€to€shipments€of€lawful€goods€or€wares,€and€only€while€in€theÐ pÀ Ð48€Contiguous€States€of€the€United€States,€the€District€of€Columbia,€Puerto€Rico€andÐ ` ° ÐCanada.ÐP  Ð Ð  ÐÌà8  à.€.€.€.Ð0 €Ð Ð  ЀÌÌà@UU$ìàCONDITIONS:€ˆÐ P  ÐÌà8  à.€.€.€.Ðà0 Ð Ð  ÐÌà8  àÐ Ð Ð  Ðà8  à3.€€NOTICE€OF€LOSS.€€The€Insured€shall€as€soon€as€practicable€report€in€writing€toÐ ° Ðthe€Company€or€its€agent€every€loss,€damage€or€occurrence€which€may€give€rise€toÐ  ð Ða€claim€under€this€Certificate€and€shall€also€file€with€the€Company€or€its€agent€withinÐ à Ðninety€(90)€days€from€date€of€discovery€of€such€loss,€damage€or€occurrence,€aÐ €Ð Ðdetailed€sworn€proof€of€loss.ÐpÀÐ Ð  ÐÌà8  à.€.€.€.ÐP Ð Ð  ÐÌÌà8  à7.€€SUIT.€€No€suit,€action€or€proceeding€for€the€recovery€of€any€claim€under€thisÐ  p ÐCertificate€shall€be€sustainable€in€any€court€of€law€or€equity€unless€the€same€beÐ ` Ðcommenced€within€twelve€(12)€months€next€after€discovery€by€the€insured€of€theÐ P Ðoccurrence€which€gives€rise€to€the€claim€provided,€however,€that€if€by€the€laws€of€theÐ ð@ ÐState€within€which€this€Certificate€is€issued€such€limitation€is€invalid,€then€any€suchÐ à0 Ðclaims€shall€be€void€unless€action,€suit€or€proceeding€be€commenced€within€theÐ Ð  Ðshortest€limit€of€time€permitted€by€the€laws€of€such€State.ÐÀ!Ð Ð  ÐÌà8  à.€.€.€.Р#ð!Ð Ð  ÐÌà8  à17.€€SETTLEMENT€OF€LOSS.€€All€adjusted€claims€shall€be€paid€or€made€good€toÐ €%Ð # Ðthe€Insured€within€sixty€(60)€days€after€presentation€and€acceptance€of€satisfactoryÐ p&À!$ Ðproof€of€interest€and€loss€at€the€office€of€the€Company.€€No€loss€shall€be€paid€or€madeÐ `'°"% Ðgood€if€the€Insured€has€collected€the€same€from€others.€€ÐP( #&Ð Ð  ÐÌÌâ âÐ  +p&) Ðà  àOn€March€3,€1998,€and€June€1,€1998,€Transcarriers€reported€two€losses€of€cargo,€whichÐ ° Ðâ âallegedly€were€stolen€in€transit,€to€Certain€Underwriters.€€These€claims€were€neither€paid€nor€deniedÐ  ð Ðby€Certain€Underwriters.€€Certain€Underwriters€contends€in€its€brief€to€this€Court€that€it€forwardedÐ à Ða€reservation€of€rights€letter€to€Transcarriers€on€or€about€June€26,€1998,€indicating€that€it€might€limitÐ €Ð Ðor€deny€coverage,€but€cites€nothing€in€the€record€to€support€this€contention.€€Transcarriers€denies€thatÐ pÀ Ðsuch€a€letter€was€forwarded€and€states€that€there€is€no€such€letter€in€the€record.€€Transcarriers€furtherÐ ` ° Ðasserts€that€Certain€Underwriters€never€indicated€that€Transcarriersðð€claims€were€questionable€or€thatÐ P   Ðthey€would€not€be€paid,€and€that€Certain€Underwriters€indicated€that€it€was€still€investigating€theÐ @  Ðmatter€as€of€October€14,€1999.€€In€November€of€1999,€Certain€Underwriters€brought€a€declaratoryÐ 0 € Ðjudgment€action€seeking€to€determine€whether€it€was€required€to€provide€insurance€coverage€for€theÐ  p  Ðclaims.€€In€June€of€2000,€Transcarriers€filed€a€counter„complaint€alleging,€ò òòòinter€aliaóóó ó,€breach€ofÐ `  Ðcontract€and€breach€of€implied€covenant€of€good€faith€and€fair€dealing.€€In€its€counter„complaint,Ð P  ÐTranscarriers€alleged€damages€resulting€from€suit€brought€against€it€by€the€shipper.€€TranscarriersÐ ð@  Ðfurther€alleged€that€had€Certain€Underwriters€denied€the€claim€in€a€timely€manner,€it€would€haveÐ à0  Ðmade€a€claim€for€losses€due€to€employee€dishonesty€pursuant€to€its€policy€with€United€States€FidelityÐ Ð  Ð&€Guaranty€Company.€€The€counter„complaint€was€dismissed€insofar€as€Transcarriers€soughtÐ À Ðconsequential€damages€resulting€from€a€suit€brought€against€it€by€the€shipper.€€Ð ° ÐÌà  àOn€December€28,€Certain€Underwriters€filed€a€motion€for€summary€judgment€asserting€that,Ð à Ðpursuant€to€condition€number€7€of€the€insurance€contract,€ò òòòsupraóóó ó,€Transcarriersðð€suit€was€time„barredÐ €Ð Ðby€the€contractual€12„month€limitations€period.€€In€March€of€2001,€the€trial€court€granted€CertainÐ pÀ ÐUnderwritersðð€motion€for€summary€judgment€based€on€the€12„month€limitation€period.€€TranscarriersÐ `° Ðfiled€a€motion€to€amend€the€judgment€and€the€trial€court€reversed€itself€and€denied€CertainÐ P  ÐUnderwritersðð€motion€on€May€25,€2001.€€The€trial€court€based€its€decision€on€a€conclusion€that,€asÐ @ Ða€matter€of€law,€the€limitations€period€contained€in€the€policy€began€to€run€upon€denial€of€the€claimÐ 0€ Ðby€Certain€Underwriters.€€Since€the€claim€had€not€been€denied,€the€court€found€that€the€12„monthÐ  p Ðlimitations€period€had€not€been€triggered.€€Ð ` ÐÌò òó óà  àCertain€Underwriters€moved€for€permission€to€appeal€the€trial€courtððs€order€by€interlocutoryÐ ð@ Ðappeal.€€The€trial€court€granted€this€motion€on€October€10,€2001.€€Permission€to€appeal€was€grantedÐ à0 Ðby€this€Court€on€December€13,€2001.ò ò€€Ð Ð  ÐÌÓ  ÓòòIssuesó óÐ °"  ÐÓ8$ÓÌà  àóóThe€issue€now€before€this€Court€is€whether€the€12„month€limitations€period€provisionÐ $à" Ðcontained€in€the€insurance€policy€bars€Transcarriersðð€counter„claim€against€Certain€Underwriters.€Ð €%Ð # ÐCertain€Underwriters€contends€that€the€limitations€period€began€to€run€upon€expiration€of€the€60€dayÐ p&À!$ Ðð ðSettlement€of€Lossðð€provision,€and€that€Transcarriersðð€action€accordingly€is€barred.€€TranscarriersÐ `'°"% Ðsubmits€that€the€limitations€period€could€only€have€been€triggered€by€denial€of€its€claim,€and€that€itsÐ P( #& Ðcause€of€action€has€therefore€not€expired.€€Ð @)$' Ðò òÓ  ÓÌÌÐ ,`'* ÐòòStandard€of€ReviewÐ ° ÐÓ#'Óó óÌà  àóóThe€issue€before€this€Court€is€an€issue€of€law.€€Our€standard€of€review€on€issues€of€law€is€òòò òdeÐ à Ðnovoóóó ó,€with€no€presumption€of€correctness€afforded€to€the€conclusions€of€the€court€below.€€òòò òBowdenÐ €Ð Ðv.€Wardó óóó,€27€S.W.3d€913,€916€(Tenn.€€2000);€Tenn.€€R.€€App.€€P.€€13(d).€€Ð pÀ ÐÓ  ÓÌò òÓð(ÓÓ  ÓòòDiscussionó óÐ P   ÐÓ)ÓÌà  à€€óóWe€begin€by€noting€that€a€policy€for€insurance€is€generally€reviewed€under€contractÐ 0 € Ðprinciples.€€As€long€as€its€terms€are€unambiguous,€it€will€be€enforced€as€written.€€Ambiguous€termsÐ  p  Ðgenerally€will€be€construed€against€the€drafter.€€ò òòòSee€Allstate€Ins.€Co.€v.€Wattsóóó ó,€811€S.W.2d€883,€886Ð `  Ð(Tenn.€1991).€€However,€the€courts€will€not€rewrite€an€unambiguous€term€simply€to€avoid€harshÐ P  Ðresults.òòò ò€€Shamrock€Homebuilders,€Inc.€€v.€€Cherokee€Ins.€Co.ó óóó,€466€S.W.2d€204,€206€(Tenn.€€1971).€Ð ð@  ÐIt€is€undisputed€that€a€contractually€agreed€limitations€period€in€an€insurance€policy€is€valid€andÐ à0  Ðenforceable€in€Tennessee.€€òòò òSee,€e.g.,€Guthrie€v.€Connecticut€Indem.€Assððnó óóó,€49€S.W.€829,€830€(Tenn.Ð Ð  Ð1898);€€òòò òHill€v.€€Home€Ins.€€Co.ó óóó,€125€S.W.2d€189,€192€(Tenn.€€Ct.€€App.€€1938).Ð À ÐÌà  àThe€courts€of€this€state€generally€have€held€that€a€contractual€limitations€period€begins€to€runÐ  ð Ðupon€accrual€of€the€cause€of€action.€€òòò òPhoenix€Ins.€Co.€v.€Fidelity€&€Deposit€Co.ó óóó,€37€S.W.2d€119Ð à Ð(Tenn.€€1931);€òòò òFederal€Sav.€&€Loan€Ins.€Corp.€v.€Aetna€Cas.€&€Sur.€Co.ó óóó,€701€F.Supp.€1357,€1362Ð €Ð Ð(E.D.€Tenn.€1988).€€€We€have€interpreted€insurance€policies€containing€language€requiring€a€claimÐ pÀ Ðto€be€brought€within€so€many€days€after€a€property€loss,€but€which€protect€the€insurer€from€suit€untilÐ `° Ðafter€a€settlement€period,€as€meaning€that€suit€must€be€brought€within€so€many€days€after€the€causeÐ P  Ðof€action€accrues.€€òòò òBoston€Marine€Ins.€Co.€v.€Scalesó óóó,€49€S.W.€743,€747€(Tenn.€1898).ò ò€€ó óSince€theÐ @ Ðsettlement€period€provides€a€period€of€immunity€during€which€the€insured€may€not€bring€suit,€theÐ 0€ Ðcause€of€action€has€been€construed€as€accruing€once€the€immunity€period€has€expired,€rather€than€onÐ  p Ðthe€date€of€the€actual€loss.€€òòò òId.ó óóó€€€Denial€of€the€claim€by€the€insurer€before€expiration€of€the€settlementÐ ` Ðof€loss€period,€however,€effectively€is€a€waiver€of€the€immunity€period.€€òòò òHome€Ins.€Co.€€v.€Ð P ÐHancockó óóó,€62€S.W.€145,€(Tenn.€€1900).€€An€insurer€thus€cannot€raise€the€immunity€period€as€aÐ ð@ Ðdefense€to€a€suit€brought€within€that€period€once€it€has€denied€the€claim.€òòò ò€Hilló óóó,€125€S.W.2d€at€192.€Ð à0 ÐThus€an€insuredððs€cause€of€action€accrues€upon€denial€of€liability€by€the€insurance€company€whenÐ Ð  Ðthat€denial€comes€within€the€immunity€period.€€òòò òId.ó óóó€€€It€follows€that€if€the€insuredððs€claim€is€notÐ À! Ðdenied€within€the€settlement€of€loss€period,€during€which€the€insurer€is€immune€from€suit,€his€causeÐ °"  Ðof€action€accrues€upon€expiration€of€the€settlement€of€loss€period,€when€the€insurer€is€no€longerÐ  #ð! Ðimmune€from€suit.€Ð $à" ÐÌà  àIn€holding€that€a€cause€of€action€accrues€upon€denialò ò,€ó óthe€courts€did€not€alter€the€contractualÐ p&À!$ Ðlimitations€period€or€rewrite€the€contract€so€that€denial€is€required€before€an€insured€may€bring€anÐ `'°"% Ðaction€against€the€insurer.€€To€require€denial€of€a€claim€before€a€cause€action€could€accrue€wouldÐ P( #& Ðpermit€the€insurer€to€merely€sit€on€a€claim€and€do€nothing.€€Rather,€such€cases€have€recognized€thatÐ @)$' Ðit€is€inequitable€for€the€insurer€to€effectively€shorten€the€period€in€which€a€cause€of€action€could€beÐ 0*€%( Ðmaintained€by€granting€itself€a€period€in€which€it€is€immune€from€suit€while€the€limitations€periodÐ  +p&) Ðis€slipping€away.€€òòò òBoston€Marineó óóó,€49€S.W.€at€747.€€The€immunity€period€therefore€postpones€theÐ ,`'* Ðaccrual€of€the€insuredððs€action.€€òòò òHilló óóó,€125€S.W.2d€at€192.€€Once€the€action€has€accrued,€theÐ ° Ðlimitations€period€begins€to€run.€òòò òó óóó€òòò òó óóóIf€an€insurer€neither€pays€nor€denies€a€claim€brought€by€its€insured,Ð  ð Ða€suit€against€the€insurer€may€be€sustained€upon€expiration€of€the€settlement€of€loss/immunity€period.ò òó ó€Ð à Ðòòò òId.ó óóó€€Accordingly,€the€contractual€statute€of€limitations€begins€to€run€upon€denial€of€liability€or€uponÐ €Ð Ðexpiration€of€the€immunity€period,€whichever€comes€first.Ð pÀ ÐÌà  àTranscarriers€alleges€that€in€addition€to€not€denying€its€claim,€Certain€Underwriters€statedÐ P   Ðthat€it€was€continuing€its€investigation€of€the€claim€and€that€it€never€indicated€that€the€claim€mightÐ @  Ðbe€denied.€€€Even€if€we€consider€these€allegations€to€be€true,€they€do€not€alter€when€TranscarriersððÐ 0 € Ðaction€accrued.€€However,€like€other€contract€provisions,€the€term€limiting€the€time€within€which€anÐ  p  Ðaction€may€be€brought€can€be€waived€by€the€insurer.€€òòò òDas€v.€€State€Farm€Fire€&€Cas.€Co.ó óóó,€713Ð `  ÐS.W.2d€318,€323€(Tenn.€€Ct.€€App.€€1986).€The€insurer€may€also€be€estopped€from€asserting€theÐ P  Ðlimitations€period€as€a€defense€where€it€has€mislead€the€insured€into€believing€its€claim€will€be€paid,Ð ð@  Ðthereby€lulling€the€insured€into€inaction,€or€where€the€insurer€intentionally€delayed€adjustment€of€theÐ à0  Ðclaim€until€after€the€limitations€period€had€expired.€€òòò òId.ó óóó€ò ò€ó óWhether€Certain€Underwriters€should€beÐ Ð  Ðestopped€from€asserting€the€limitations€period€in€this€case€requires€findings€of€fact€by€the€trial€courtÐ À Ðand€is€not€an€issue€now€before€this€Court.ò òÐ ° ÐÌà  àó óTranscarriers€further€contends€that€since€the€insurance€contract€at€issue€here€is€a€legal€liabilityÐ à Ðpolicy,€its€cause€of€action€against€Certain€Underwriters€could€not€accrue€until€an€adverse€judgmentÐ €Ð Ðhad€been€rendered€against€it.€€In€general,Ð pÀ ÐÌà0  àa€cargo€policy€covering€the€legal€liability€of€the€insured€as€a€carrier€for€the€direct€loss€orÐ P  Ðdamage€on€a€shipment€of€goods€and€providing€that€no€suit€or€action€on€the€policy€shall€beÐ @ Ðsustainable€unless€commenced€within€12€months€next€after€the€happening€of€the€loss€is€anÐ 0€ Ðagreement€to€indemnify€in€case€of€legal€liability€against€the€insured,€and€a€suit€broughtÐ  p Ðwithin€12€months€after€the€rendering€of€a€judgment€against€the€insured€is€not€barred€by€theÐ ` Ðprovision.€€To€hold€that€the€happening€of€the€loss€relates€to€the€physical€damage€to€the€cargoÐ P Ðwould€inject€into€the€policy€a€new€meaning€and€change€from€one€of€indemnity€for€liabilityÐ ð@ Ðto€insurance€for€any€physical€damage€to€the€cargo.€€Ðà0(#(# ÐÌ17€Lee€R.€Russ€&€Thomas€F.€€Segalla,€òòCouch€on€Insurance€óóðð€236:17€(3d€ed.€2000).€€TranscarriersÐ À! Ðargues€that€it€had€not€been€damaged,€and€therefore€could€not€maintain€an€action€against€CertainÐ °"  ÐUnderwriters,€until€the€shipper€had€obtained€a€judgment€against€it€for€losses€to€the€shipper€of€itsÐ  #ð! Ðproperty.€€Certain€Underwriters€maintains€that€since€liability€of€the€carrier€is€presumed€when€goodsÐ $à" Ðare€lost€by€a€carrier,€a€judgment€is€not€a€necessary€prerequisite€to€the€determination€of€legal€liability.׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ׀Р€%Ð # ÐAdditionally,€we€note€that€the€policy€itself€refers€to€òòò òadjusted€óóó órather€than€ò òòòadjudicatedóó€ó ólosses.€Ð ° ÐTherefore,€an€adverse€judgment€against€Transcarriers€was€not€required€before€payment€could€beÐ  ð Ðmade€on€the€policy.€€Unlike€most€legal€liability€issues,€the€amount€of€Transcarriersðð€liability€for€lostÐ à Ðcargo€is€easily€determined€notwithstanding€the€absence€of€a€judgment€against€it.Ð €Ð ÐÌà  àIn€òòò òWaugh€v.€American€Casualty€Co.ó óóó,€378€P.2d€170€(Kan.€1963),€the€Supreme€Court€ofÐ ` ° ÐKansas€addressed€whether€a€cause€of€action€accrued€upon€the€denial€of€a€claim€brought€pursuant€toÐ P   Ða€similar€policy,€where€no€judgment€had€yet€been€rendered€against€the€carrier.€€The€court€held€thatÐ @  Ðalthough€no€judgment€had€been€rendered€against€the€carrier,€it€could€maintain€a€cause€of€actionÐ 0 € Ðagainst€the€insurer€where€the€insurer€had€denied€its€claim.€€The€òòò òWaughóó€ó ócourt€analyzed€theÐ  p  Ðparticularities€of€a€similar€policy€insuring€a€motor€carrier€against€liability€for€the€loss€of€goods,€andÐ `  Ðdistinguished€a€policy€which€covers€adjusted€claims€as€opposed€to€adjudicated€claims.€€While€notÐ P  Ðbinding€on€this€Court,€we€believe€the€reasoning€in€òòò òWaugh€óóó óto€be€applicable€here.€€Ð ð@  ÐÌà  àThe€issue€addressed€by€the€court€inòò€ò òWaugh€óóó ówas€not€whether€denial€of€liability€by€the€insurerÐ Ð  Ðwas€necessary€to€trigger€the€limitations€period.€€Rather,€the€òòò òWaugh€óóó ócourt€addressed€whether€theÐ À Ðinsured€motor€carrier€could€bring€an€action€against€the€insurer€which€had€denied€its€claim€on€aÐ ° Ðliability€insurance€policy,€where€the€motor€carrierððs€liability€had€not€been€adjudicated.€€The€courtÐ  ð Ðnoted€that,€as€here,€the€policy€provided€for€payment€of€adjusted€rather€than€adjudicated€claims.€Ð à Ðòòò òWaughó óóó,€378€P.2d€at€175.€€Such€a€policy,€the€court€reasoned,€ð ðanticipates€that€claims€for€loss€orÐ €Ð Ðdamage€would€be€adjusted€without€the€legal€liability€being€reduced€to€judgment.ðð€€òòò òId.ó óóó€€The€courtÐ pÀ Ðnoted€that€the€term€ð ðððlegal€liabilityðð€must€be€construed€to€encompass€the€contractual€liability€whichÐ `° Ð[the€carrier]€assumed€on€receipt€of€the€cargo€from€the€owner.ðð€€òòò òId.ó óóó€(citingò ò€òòBrooklyn€Clothing€Corp.€Ð P  Ðv.€€Fidelity„Phenix€F.€€Ins.€Co.ó óóó,€205€N.Y.€App.€€Div.€€743,€200€N.Y.S.€208).€€When€a€policy€is€oneÐ @ Ðagainst€liability,€coverage€under€it€attaches€when€liability€attaches.€€òòò òId.ó óóó€€As€noted€above,€the€motorÐ 0€ Ðcarrierððs€liability€for€losses€of€a€shipperððs€goods€in€the€possession€of€the€carrier€attaches€at€the€timeÐ  p Ðof€loss.€€òòóóTo€hold€that€the€insuredððs€cause€of€action€on€a€liability€policy€covering€a€motor€carrier€couldÐ ` Ðaccrue€only€upon€the€entry€of€an€adverse€judgment€against€it€would€result€in€unnecessary,€costly,€andÐ P Ðtime€consuming€litigation.€€To€require€such€litigation€where€the€amount€of€the€carrierððs€liability€isÐ ð@ Ðdeterminable€without€resort€to€the€courts€for€intensive€fact€finding,€and€where€the€carrierððs€liabilityÐ à0 Ðis€not€disputed,€would€result€in€a€waste€of€judicial€and€economic€resources.€€Further,€it€defeats€theÐ Ð  Ðintent€of€the€parties€to€this€insurance€contract,€which€was€to€settle€òòò òadjustedóó€ó óclaims€quickly€withoutÐ ° Ðresort€to€the€courts€to€adjudicate€the€amount€of€liability.€€This€is€the€coverage€for€which€the€insuredÐ  ð Ðpaid,€and€which€the€insurer€promised€to€provide.Ð à ÐÌà  àIn€short,€had€Certain€Underwriters€denied€Transcarriersðð€claim,€Transcarriers€would€have€hadÐ pÀ Ða€cause€of€action€against€it€notwithstanding€the€absence€of€a€law€suit€brought€against€it€by€theÐ ` ° Ðshipper.€€€The€insurance€policy€clearly€contemplates€coverage€for€adjusted€claims;€it€does€not€requireÐ P   Ðthat€claims€be€adjudicated.€€Coverage€under€Transcarriersðð€liability€policy€attached€whenÐ @  ÐTranscarriersðð€liability€attached.€€Transcarriersðð€liability€attached€when€the€shipperððs€property€wasÐ 0 € Ðlost.€€The€insurance€policy,€however,€anticipates€a€period€during€which€proof€of€loss€must€be€madeÐ  p  Ðand€provides€the€insurer€with€a€60„day€settlement€of€loss€period.€€Thus€the€accrual€of€TranscarriersððÐ `  Ðaction€against€Certain€Underwriters€was€postponed€until€the€expiration€of€the€settlement€of€lossÐ P  Ðperiod,€when€its€claim€became€payable.€€The€12„month€limitations€period€for€an€action€byÐ ð@  ÐTranscarriers€against€Certain€Underwriters€began€to€run€upon€accrual,€òòò òi.e.óóó ó,€at€the€end€of€settlementÐ à0  Ðof€loss€period.Ð Ð  ÐÓ  Óò òÌòòConclusionó óÐ ° ÐÓ>\ÓÌà  àóóAlthough€the€insurance€policy€in€this€case€was€one€for€legal€liability,€it€clearly€anticipatedÐ à Ðcoverage€of€adjusted€rather€than€adjudicated€claims.€€The€intent€of€the€parties€reflected€by€this€policyÐ €Ð Ðis€that€claims€would€be€paid€without€resort€to€an€adverse€judgment€against€Transcarriers€in€a€suitÐ pÀ Ðbrought€by€the€shipper.€€This€intent€may€be€inferred€from€the€language€of€the€policy€itself.€Ð `° ÐMoreover,€the€policy€is€one€for€coverage€of€Transcarriersðð€liability€for€loss.€€Coverage€under€theÐ P  Ðpolicy€therefore€attached€when€Transcarriersðð€liability€attached.€€Transcarriersðð€liability€attached€atÐ @ Ðthe€time€of€the€loss.€€The€amount€of€loss€for€which€Transcarriers€is€insured€is€to€be€adjusted€by€theÐ 0€ Ðparties€without€a€prerequisite€adjudication€in€an€action€by€the€shipper€against€Transcarriers.€€ThisÐ  p Ðreflects€the€practical€and€economic€realities€of€the€motor€carrier€industry,€which€presumes€liabilityÐ ` Ðof€the€carrier,€and€where€the€amount€of€loss€is€easily€determinable€without€intensive€fact€finding€byÐ P Ðthe€courts.€€Ð ð@ ÐÌà  àThe€contractual€limitations€period€in€a€contract€of€insurance€begins€to€run€when€the€insuredððsÐ Ð  Ðcause€of€action€accrues.€€Notwithstanding€language€in€the€policy€that€the€cause€of€action€must€beÐ À! Ðbrought€within€so€many€months€of€occurrence€of€the€loss,€a€settlement€of€loss€period€which€givesÐ °"  Ðthe€insurance€carrier€so€many€days€in€which€to€settle€the€claim,€thereby€rendering€the€insurer€immuneÐ  #ð! Ðfrom€suit,€postpones€accrual€of€the€insuredððs€action€until€the€expiration€of€the€settlement€of€lossÐ $à" Ðperiod.€€Denial€of€the€claim€by€the€insurer€results€in€a€waiver€of€the€settlement€of€loss€period,€andÐ €%Ð # Ðthus€the€insuredððs€cause€of€action€accrues€upon€denial.€€When€the€insurer€neither€pays€nor€denies€aÐ p&À!$ Ðclaim€within€the€settlement€of€loss€period,€it€is€no€longer€immune€from€suit€and€the€insuredððs€causeÐ `'°"% Ðof€action€accrues.€€Thus€the€limitations€period€is€triggered€either€by€denial€of€the€claim€by€the€insurerÐ P( #& Ðor€by€expiration€of€the€settlement€of€loss€period,€whichever€comes€first.€€Ð @)$' ÐÌà  àJudgment€of€the€trial€court€holding€that€denial€of€Transcarriersðð€claim€by€CertainÐ  +p&) ÐUnderwriters€was€necessary€to€trigger€the€limitations€period€is€reversed.€€This€case€is€remanded€forÐ ,`'* Ðfurther€proceedings€consistent€with€this€opinion.€€Costs€of€this€appeal€are€taxed€to€the€Appellee,Ð ° ÐTranscarriers,€Inc.Ð  ð ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  à__________________________________Ð ` ° Ðà  àà ` àà ¸ àà  àà h àà À àà  àDAVID€R.€FARMER,€JUDGE