TPCI - Tennessee Property and Casualty Insurance Exam

Question 21: A Tennessee licensee under investigation surrenders the license and later argues the Commissioner can no longer impose penalties. State law addresses exactly this maneuver, preserving the Commissioner's enforcement reach in defined circumstances. Which statement reflects Tennessee's rule on the Commissioner's retained authority?

Surrender ends all enforcement authority

Authority ends only after license lapse

The Commissioner retains authority despite surrender

Only a court may act after surrender

Question 22: After the Commissioner issues a final order disciplining a Tennessee producer, the producer wishes to seek judicial review. Tennessee's administrative procedure directs that review to a particular court rather than to an appellate court in the first instance. To which court does the producer petition?

The Chancery Court

The Court of Appeals

The federal district court

The Tennessee Supreme Court

Question 23: Among the grounds on which a Tennessee producer's license may be suspended, one comes from the domestic relations title rather than the insurance code and surprises candidates who assume the outline printed it in error. Which situation can cost a producer the license under that provision?

Filing taxes after the deadline

Letting an appointment expire

Moving without updating the address

Failure to comply with a child-support order

Question 24: Tennessee consolidated its prohibitions on deceptive insurance conduct and its claims-handling standards into one act whose short title carries a specific year, separate from the producer licensing act dated two thousand two. In which year was Tennessee's unfair trade practices and claims settlement act adopted?

Two thousand two

Nineteen forty-seven

Two thousand nine

Nineteen seventy-one

Question 25: A Tennessee property and casualty insurer offers a premium credit available only to members of a particular statewide alumni association, with no actuarial basis tied to risk. Tennessee's unfair trade practice law addresses preferences based on group membership. How does Tennessee treat this credit?

Allowed as ordinary marketing

Prohibited as an unlawful preference

Allowed if disclosed in writing

Allowed only for auto policies

Question 26: A Tennessee producer gives every client, without exception, access to the same practical service as a genuine business necessity rather than as a purchase incentive. In deciding whether a benefit is an unlawful rebate, Tennessee focuses on a particular characteristic of the offer. What controls the analysis?

Whether it was offered selectively as inducement

Whether it cost more than nominal value

Whether the client requested it first

Whether it exceeded a fixed dollar cap

Question 27: Under Tennessee's unfair claims settlement rule, an insurer that receives a communication reflecting a claim must acknowledge its receipt within a set period unless it simply pays the claim within that same time. What is the acknowledgment period Tennessee sets for a claim communication?

Within fifteen days

Within ten days

Within sixty days

Within thirty days

Question 28: Tennessee's claims rule sets a deadline for an insurer to accept or deny a claim, and the clock does not start until a particular document has been received in complete form. A candidate must know both the period and its trigger. When must the insurer accept or deny?

Within thirty days of the claim notice

Within fifteen days of the loss

Within sixty days of receiving proofs

Within ninety days of the demand

Question 29: In many states the regulator can act on unfair claims conduct only after showing it happened often enough to form a general business practice. Tennessee's approach to the frequency requirement differs. How many violations must the Commissioner show before acting in Tennessee?

A single violation is enough

A pattern of related violations

At least three separate violations

Enough to show a business practice

Question 30: Tennessee's claims rule attaches specific day counts to acknowledging a claim, answering the Department, deciding the claim, and paying it. One listed duty, furnishing claim forms after notice of a claim, is treated differently. How does Tennessee frame the claim-forms duty?

Within fifteen days of notice

Furnished promptly, with no day count

Within thirty days of notice

Within sixty days of proofs

Question 31: When a property and casualty insurer becomes insolvent in Tennessee, a statutory association pays certain covered claims that the failed insurer can no longer honor, separate from the association that handles life and health obligations. Which association responds for property and casualty claims?

The Department of Commerce and Insurance

The federal deposit insurance fund

The Tennessee Life and Health Guaranty Association

The Tennessee Insurance Guaranty Association

Question 32: The Tennessee property and casualty guaranty association pays covered claims subject to caps for most lines, yet one category of covered claim is paid without a dollar ceiling, reflecting the nature of that coverage. Which category does the association cover without a maximum limit?

Homeowners property damage

Return of unearned premium

Workers' compensation claims

Automobile physical damage

Question 33: A Tennessee producer reassures a hesitant applicant by pointing out that a state guaranty association would pay if the insurer ever failed, using that safety net as a reason to buy. Tennessee law addresses this sales tactic directly. How is using the association this way treated?

It is a prohibited practice

Allowed if the applicant asks

Allowed in writing only

Allowed for annuities only

Question 34: The Tennessee property and casualty guaranty association does not begin paying an insurer's covered claims the moment the company struggles financially. A specific legal event must occur first, after which claim files pass to the association. What event must precede the association's payment of covered claims?

A rate increase filing

A market conduct exam

A consumer complaint

After an order of insolvency and liquidation

Question 35: Tennessee regulates how insurers may use consumer credit information in underwriting, but the content outline's footnote restricts this topic to certain lines of business and excludes the life and health side entirely from its scope. To which lines does Tennessee's credit information regulation apply?

Life and health lines

Property, casualty, and personal lines

All lines equally

Surplus lines only

Question 36: A Tennessee customer pays insurance premiums by automatic bank draft, and the insurer intends to raise the premium. State law requires advance notice of any premium increase to a customer paying this way, triggered by the payment method rather than the size of the increase. How much notice is required?

Ten days before the increase

Sixty days before the increase

Thirty days before the increase

No notice is required

Question 37: Before an insured may sue a Tennessee insurer for the statutory bad-faith penalty, the insured must take a preliminary step and then allow a fixed waiting period to pass before filing suit. Which action and interval does Tennessee require before a bad-faith action?

Formal demand, then wait sixty days

File complaint, then wait ten days

Request arbitration, then wait ninety days

Give notice, then wait fifteen days

Question 38: On commercial risk insurance, when a Tennessee insurer intends to raise rates by more than twenty-five percent, state law requires advance notice that discloses a particular detail, and failing to give the notice carries a defined consequence for the policy term. Which requirement applies to that increase?

Ten days' notice with no detail

Thirty days' notice stating the amount

Immediate notice at renewal only

Sixty days' notice stating the percentage

Question 39: When the Tennessee Commissioner finds that a licensee has violated a statute, rule, or order, the law equips the Commissioner with several remedies that may be combined rather than a single option. Which set of actions may the Commissioner take against the violator?

Criminal imprisonment only

A public apology only

Cease and desist, penalties, and revocation

Referral to federal regulators only

Question 40: Tennessee's Department maintains an investigation unit that reviews insurance complaints and screens them against a defined standard before pursuing enforcement. The unit asks whether the facts meet that threshold regarding a possible breach of the insurance laws. Which standard does the unit apply?

Proof beyond a reasonable doubt

Reasonable suspicion of a violation

A signed consumer affidavit

Clear and convincing evidence

TPCI Tennessee Property and Casualty Insurance Exam - Set 1 - Part 2