TPCI - Tennessee Property and Casualty Insurance Exam

Question 1: Tennessee groups three fire insurance concepts in adjacent statutes, one of which sets the measure the state uses when settling a loss caused by fire instead of leaving every claim to ordinary actual cash value bargaining. Which term names that Tennessee statutory fire loss measure?

Guaranteed replacement cost

Stated amount valuation

Fair value

Agreed value endorsement

Question 2: Beside the fair value measure, Tennessee's fire insurance statutes name a second insurer function connected with establishing that value on the covered property before or in relation to coverage. Which insurer activity do those Tennessee fire provisions expressly address alongside fair value and loss by fire?

Property inspection

Salvage disposal

Subrogation recovery

Reinsurance cession

Question 3: Tennessee separates its property cancellation rules into two regimes. The personal risk insurance regime sits in its own short part containing only two sections, both aimed at ending coverage at the end of a term rather than mid-term. Which action does that personal risk part chiefly govern?

Midterm cancellation for cause

Nonrenewal of coverage

Retroactive premium adjustment

Mandatory policy replacement

Question 4: The second Tennessee property regime carries an official short-title naming it an act about ending a specific class of coverage, and it holds more sections than the personal side, including definitions and cancellation prerequisites. Which class of insurance does that separate Tennessee cancellation act govern?

Personal automobile insurance

Surplus lines insurance

Title insurance

Commercial risk insurance

Question 5: Within Tennessee's commercial risk cancellation act, one section is officially headed in a way that tells insurers a cancellation notice will simply not take legal effect unless stated statutory conditions are satisfied first. What does that heading establish about a commercial cancellation notice?

It sets a fixed refund

It bars all cancellations

It lists prerequisites for effective notice

It requires arbitration first

Question 6: A Tennessee insurer plans to raise the rate on a commercial risk policy by more than twenty-five percent at renewal. Tennessee law requires a specific advance notice that must also state the size of the increase. How much advance notice must the insurer give?

Thirty days

Forty-five days

Ten days

Sixty days

Question 7: Suppose that same Tennessee insurer fails to give the required advance notice before applying a commercial risk rate increase above twenty-five percent. Tennessee law attaches a specific consequence that protects the insured for a set period. What consequence follows the insurer's failure to give notice?

The policy is extended sixty days

The increase is permanently void

The insured owes a penalty

Coverage cancels immediately

Question 8: A Tennessee producer learns that an insurer has applied a commercial risk rate increase above twenty-five percent without giving the advance notice the law requires. Tennessee places an affirmative duty on that producer. What must the producer do once aware of the un-noticed increase?

Cancel the policy at once

Inform both the insurer and insured

Refund the premium personally

Report only to the Commissioner

Question 9: A Tennessee customer pays auto premiums automatically through a monthly bank draft. The insurer intends to raise that premium. Tennessee requires advance notice of the increase, and the trigger is the payment method rather than the size of the change. How many days' notice is required?

Ten days

Sixty days

Thirty days

Fifteen days

Question 10: A Tennessee policyholder believes an insurer has refused to pay a valid claim in bad faith and wants to pursue the statutory bad-faith penalty. Before filing suit, Tennessee requires a formal step and then a waiting period. What must the insured do before suing?

Wait ten days after demand

File with the Commissioner first

Obtain an appraisal award

Make a demand and wait sixty days

Question 11: Tennessee's insurance rate chapter includes a provision, printed on both the property and the casualty examination outlines, addressing a request for loss runs. In insurance practice, loss runs are best understood as a particular kind of record about an account. What do loss runs contain?

A history of prior claims

The current policy declarations

A schedule of premium discounts

The insurer's reinsurance treaties

Question 12: Tennessee licenses public adjusters as a distinct class and requires each one to post a surety bond as a condition of licensure, protecting the public the adjuster serves. Which bond amount does Tennessee set for a licensed public adjuster?

Ten thousand dollars

Twenty-five thousand dollars

One hundred thousand dollars

Fifty thousand dollars

Question 13: A Tennessee property insurer offers a premium credit available only to members of a particular statewide alumni association. Tennessee's unfair trade practices law addresses preferences in property, marine, casualty, and surety insurance based on group membership. How does the law treat this credit?

Permitted as a marketing discount

Prohibited as an unlawful preference

Allowed only with filing

Required for all associations

Question 14: On the Tennessee property outline, the definitions of the terms commercial risk insurance and nonpayment of premium are cited to the insurance code's rate chapter rather than to the chapter that holds the policy and cancellation provisions themselves. Where does Tennessee define those terms?

In the policy provisions chapter

In the licensing chapter

In the rate chapter

In the guaranty association act

Question 15: In Tennessee, the rates for personal risk insurance and the rates for commercial risk insurance are not governed by a single combined provision. The outline assigns each class of business to its own separate rate statute. What does this structure tell a candidate?

Personal and commercial rates use different statutes

Only commercial rates are regulated

Rates are set by one statute

Personal rates need no filing

Question 16: Across Tennessee's property and casualty law, cancellation and nonrenewal rules are not consolidated. Automobile policies, commercial risk policies, and personal risk policies each fall under a separate statutory part with its own rule set. How many distinct cancellation regimes does this structure create?

One unified regime

Two regimes

Three separate regimes

Five regimes

Question 17: A Tennessee driver buys an auto liability policy issued in the current year to satisfy the state's financial responsibility law. The policy must carry at least the minimum split limits for bodily injury per person, bodily injury per accident, and property damage. What are those minimum limits?

Twenty-five, fifty, fifteen thousand dollars

Fifteen, thirty, ten thousand dollars

Fifty, one hundred, fifty thousand dollars

Twenty-five, fifty, twenty-five thousand dollars

Question 18: Instead of buying an auto liability policy, a Tennessee motorist wants to prove financial responsibility another way. Tennessee permits posting a bond or making a cash deposit of a set amount with a specified state agency. What amount and agency does Tennessee require?

Sixty thousand dollars with Safety

Sixty-five thousand dollars with Revenue

Twenty-five thousand dollars with Insurance

Seventy-five thousand dollars with Revenue

Question 19: When a Tennessee auto liability policy is issued, uninsured motorist coverage is treated in a particular default way unless the insured takes a specific action. The coverage attaches by operation of law at a level tied to another part of the policy. How does Tennessee handle uninsured motorist coverage?

Included at the bodily injury limits

Excluded unless separately purchased

Fixed at the state minimum

Offered only to named insureds

Question 20: A Nashville applicant buys auto liability coverage with bodily injury limits of one hundred thousand dollars per person and three hundred thousand dollars per accident, and says nothing at all about uninsured motorist coverage. No written rejection is signed. What uninsured motorist limits apply?

The state minimum limits

No uninsured motorist coverage

One hundred, three hundred thousand

Only property damage limits

TPCI Tennessee Property and Casualty Insurance Exam - Set 5 - Part 1