TPCI - Tennessee Property and Casualty Insurance Exam

Question 1: A commercial package policy bundles multiple coverage forms for a single business, but to actually qualify as a package rather than a monoline contract it must combine coverage parts of two general kinds. Which requirement must the policy satisfy to be considered a package?

At least two property coverage parts

Only common declarations and conditions

One property and one casualty part

Two or more interline endorsements

Question 2: Within a commercial package policy, some endorsements are drafted so that a single form can modify coverage under more than one line of insurance at the same time, such as both property and casualty parts. Which term names this kind of endorsement?

Interline endorsements

Monoline endorsements

Common policy conditions

Coverage part supplements

Question 3: A commercial package policy may be issued to several named insureds, so the contract designates the person or entity whose name appears first in the declarations to receive notices, request changes, and pay premiums on behalf of all. Which party carries these duties?

The legal representative

The mortgage holder

The insurer's underwriter

The first-named insured

Question 4: Under the common policy conditions of a commercial package policy, the insurer keeps the right to inspect the insured's financial records to verify that premium was calculated correctly, and this right extends beyond the policy period for a stated span. How long after expiration does it last?

One year

Three years

Five years

Ten years

Question 5: A commercial package policy condition states that the insured cannot hand over the rights and duties under the contract to anyone else without the insurer's written consent, though an exception applies when a named insured dies. By what name is this condition commonly known?

The liberalization clause

The subrogation clause

The assignment clause

The abandonment clause

Question 6: The commercial package policy can bundle a wide range of property and casualty coverage forms a business might select, yet certain lines are specifically excluded from the package and must be written separately. Which of the following coverages cannot be included in a CPP?

Commercial general liability

Commercial inland marine

Commercial crime

Workers compensation

Question 7: Every commercial package policy opens with a section that identifies who is insured, the time and date coverage begins and ends, a description of the covered business, and the forms purchased with their premiums. Which section of the policy contains this information?

The common policy declarations

The common policy conditions

The causes of loss form

The coverage parts

Question 8: A commercial property conditions form provides that if the insurer adopts a revision broadening coverage without charging additional premium, that broader coverage automatically extends to the insured's policy when the change is adopted within a set number of days of the effective date. Which condition does this describe?

Control of property

Liberalization

No benefit to bailee

Other insurance

Question 9: The commercial property conditions form limits how long an insured may wait before suing the insurer over a property claim, requiring that any such action be brought within a fixed period after the direct physical loss and only if all policy conditions were met. What is that period?

Ninety days

One year

Two years

Six years

Question 10: Under the building and personal property coverage form, business personal property is protected while it sits inside the described building, out in the open, or loaded in a vehicle, as long as it stays within a certain distance of the premises. What is that distance?

Twenty-five feet

Fifty feet

Seventy-five feet

One hundred feet

Question 11: A retail store in Murfreesboro suffers a covered fire that destroys inventory, furniture, and the cash and negotiable securities kept in a desk drawer. Under the building and personal property coverage form, which of the following is excluded from covered business personal property?

Money and securities

Store inventory and stock

Office furniture and fixtures

Machinery used in the business

Question 12: The building and personal property coverage form includes several additional coverages that apply automatically. One of them reimburses the insured for a charge assessed when the fire department responds to protect covered property, paid in addition to the limit with no deductible. Which additional coverage is this?

Debris removal

Fire department service charge

Pollutant cleanup and removal

Preservation of property

Question 13: After a covered loss, the building and personal property coverage form pays for the cost of removing debris of covered property. The basic amount available for this expense is stated as a percentage of the direct loss payment plus the deductible. What is that percentage?

Ten percent

Twenty percent

Twenty-five percent

Fifty percent

Question 14: A warehouse near Jackson has stood empty for more than sixty consecutive days when vandals break in and cause damage. Under the vacancy condition of the building and personal property coverage form, how does the insurer treat this and other covered losses at a long-vacant building?

All losses are paid in full

The policy is automatically canceled

Only fire losses are excluded

Vandalism excluded, other payouts cut fifteen percent

Question 15: A Knoxville business insures its building for far less than the eighty percent value the policy requires, then suffers a partial loss. The building and personal property coverage form contains a condition that reduces the claim payment in proportion to the underinsurance. Which condition produces this reduction?

The coinsurance condition

The valuation condition

The loss payment condition

The mortgage holder condition

Question 16: A contractor insures an office building under construction near Chattanooga with the builders risk coverage form. The owner occupies part of the finished structure and begins using it before the project fully wraps up. Under the form, how many days after occupancy does builders risk coverage end?

Thirty days

Sixty days

Ninety days

One hundred twenty days

Question 17: On a very large, long-running construction project, an insured attaches the builders risk reporting form so limits rise gradually with the building's value. The contractor must file the actual cash value of covered property with the insurer at a regular interval. How often must these values be reported?

Every week

Every two weeks

Every thirty days

Every ninety days

Question 18: A condominium association near Franklin insures its property under the condominium association coverage form. A unit owner's personal furnishings and belongings inside a private unit are damaged by a covered peril. Which of the following is not covered by the association's form?

Association buildings

Association business personal property

Others' property the association controls

A unit owner's personal property

Question 19: A manufacturer in Clarksville is shut down for weeks after a covered fire, losing the net income it would have earned and still paying ongoing payroll. Because this coverage responds to income lost over a span of time following physical damage, what is it commonly called?

Time element coverage

Extra expense coverage

Legal liability coverage

Replacement cost coverage

Question 20: A bakery in Memphis buys all its specialty flour from a single mill. When a covered loss halts the mill's operations, the bakery's income falls because its sole supplier cannot ship. Under the dependent properties broad form, what type of location is that mill to the bakery?

Recipient location

Contributing location

Manufacturing location

Leader location

TPCI Tennessee Property and Casualty Insurance Exam - Set 3 - Part 1