Insurance Requirement

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Every licensed pawnbroker is required to maintain sufficient insurance coverage on the property held on the pledge for the benefit of the pledgor, to pay the stated value as recited on the pawn stub of the pawned article, in case of fire or other catastrophe.  The policy must be payable in case of loss to the county clerk or city clerk for the benefit of the pledgor, and the policy must be deposited with the county or city clerk.  T.C.A. § 45-6-215.  If the county clerk knows of a violation of this provision or believes the insurance policy filed with the county clerk’s office is insufficient to cover the aggregate stated values of pawned articles, the county clerk should notify the district attorney general serving the county clerk's district.  Failure to meet the insurance requirement is a Class A misdemeanor.  T.C.A. § 45-6-218.