TPCI - Tennessee Property and Casualty Insurance Exam

Question 21: The causes of loss basic form is a named perils form listing eleven covered perils, such as fire, windstorm or hail, explosion, riot, vandalism, sprinkler leakage, and sinkhole collapse. Which of the following is not one of the perils insured under the basic form?

Windstorm or hail

Smoke

Mechanical breakdown

Volcanic action

Question 22: The causes of loss broad form covers everything in the basic form and adds perils remembered by the phrase BIG AFFECT. A Johnson City roof gives way under the weight of accumulated snow and ice during a winter storm. Which form first adds coverage for that peril?

The basic form

The special form only

No commercial form

The broad form

Question 23: A business selects the causes of loss special form, which covers any direct physical loss unless it is specifically excluded or limited. Because coverage is so broad, the list of exclusions is longer. Which of the following losses would the special form exclude from coverage?

Ordinary wear and tear

Sudden accidental fire

Windstorm damage to roof

Vandalism by an outsider

Question 24: A hospital and a daily newspaper both must keep operating at any cost after a fire, spending heavily to continue rather than shut down. They need a form that reimburses those continuing-operation costs but pays nothing for lost income. Which coverage form best fits this need?

Business income coverage form

Extra expense coverage form

Legal liability coverage form

Builders risk coverage form

Question 25: None of the commercial causes of loss forms cover earthquake, so a business in West Tennessee near the New Madrid seismic zone adds the earthquake and volcanic eruption endorsement. Under it, all shocks occurring within a set number of hours count as a single event. What is that period?

Twenty-four hours

Seventy-two hours

One hundred sixty-eight hours

Three hundred thirty-six hours

Question 26: The nationwide marine definition lists six categories of eligible marine risks, but only three of them represent risks written under commercial inland marine insurance. Which of the following is not one of the three commercial inland marine categories?

Domestic shipments

Instrumentalities of transportation or communication

Commercial property floater risks

Exports

Question 27: A distributor ships and receives merchandise all year and wants inland marine protection covering every incoming and outgoing shipment against loss while in transit throughout the policy term. Which inland marine transportation form is designed to cover all of the insured's shipments during the year?

The annual transit policy

The trip transit policy

The motor truck cargo policy

The accounts receivable form

Question 28: A supplier's accounting records are destroyed by fire, leaving it unable to prove which customers owed money and how much. It also faces extra collection expenses and interest on loans taken to survive. Which inland marine coverage form responds to this loss?

The valuable papers and records form

The accounts receivable form

The commercial articles form

The equipment dealers form

Question 29: An architecture firm needs coverage for the cost of replacing damaged manuscripts, drawings, deeds, and maps in its care. Under the valuable papers and records coverage form, the insured must keep these items in a specified place when the business is closed. What must the insured use?

A bank safe deposit box

An off-premises storage warehouse

The receptacles described in the declarations

A fireproof vault only

Question 30: The jewelers block coverage form insures a jeweler's stock of jewelry, precious stones, and metals, including items sold but not yet delivered. Certain situations fall outside the form. Which of the following would not be covered under the jewelers block form?

Stones in the showroom safe

Precious metals held as stock

Jewelry sold but not delivered

A ring worn by an employee

Question 31: A dealer selling mobile agricultural and construction equipment wants inland marine coverage on its stock in trade and on property of others in its care. The equipment dealers coverage form covers this stock but excludes certain items. Which of the following is covered by the form?

Construction equipment held as stock

Automobiles and trucks

Property in course of manufacture

Office furniture and fixtures

Question 32: A dry cleaner in Nashville damages several customers' garments in a fire that was not the cleaner's fault. To keep customer goodwill, the business carries a bailee's customer policy. Under that policy, whom does the insurer pay, and does fault matter for the payment?

The insured, only if liable

The customer, regardless of liability

The insured, regardless of liability

Nobody, since fire was blameless

Question 33: A general contractor needs open-peril coverage for the tools, heavy machinery, and equipment it owns, rents, or borrows and moves among various job sites around Knoxville. The commercial building and personal property form does not reach this exposure well. Which inland marine floater fits best?

The installation floater

The equipment dealers form

The contractor's equipment floater

The electronic data processing floater

Question 34: A company that sells and installs large elevators keeps machinery and materials on site awaiting and undergoing installation, a process that can take months. It needs inland marine coverage for property in transit to, and during the course of, installation and testing. Which coverage fits?

The annual transit policy

The accounts receivable form

The jewelers block form

The installation floater

Question 35: A farmer wants to specifically insure chosen items such as grain, poultry, livestock, farm machinery, vehicles, tools, and supplies incidental to the farm operation, listing each on the policy. Which farm property coverage allows this scheduled, item-by-item selection of farm personal property?

Coverage E scheduled farm personal property

Coverage F unscheduled farm personal property

Coverage G other farm structures

Coverage D loss of use

Question 36: Under the farm liability coverage forms, one coverage pays reasonable medical expenses incurred within three years of an accident, without regard to fault. A visitor injured on the farm receives such payments. Which lettered coverage provides this no-fault medical payments protection?

Coverage H bodily injury liability

Coverage J medical payments

Coverage I advertising injury

Coverage G other structures

Question 37: The farm property causes of loss broad section adds perils beyond the basic section, including several unique to farm risks. A covered steer is electrocuted, and another drowns during a flood. Under which farm causes of loss section do these livestock perils first become covered?

The basic section

The special section only

The broad section

No farm section

Question 38: The farm property causes of loss special section provides open-peril coverage, paying for direct physical loss unless a loss is excluded. Among its exclusions are dishonest acts and voluntary parting with property. Which of the following losses would the special section exclude?

Fire damage to a barn

Wind damage to equipment

Hail damage to a silo

Contamination by pollutants

Question 39: The farm dwellings, appurtenant structures, and household personal property coverage form resembles Section One of a homeowners policy. It applies a special dollar limit per occurrence to loss of outdoor radio antennas, television antennas, and satellite dishes. What is that special limit?

One thousand dollars

Two hundred fifty dollars

Twenty-five hundred dollars

Five thousand dollars

Question 40: Under the equipment breakdown coverage form, breakdown means certain direct physical losses to covered equipment, such as failure of pressure equipment, mechanical failure, and electrical failure including arcing. Several conditions are specifically excluded from the term. Which of the following is not considered a breakdown?

Failure of pressure equipment

Mechanical failure from centrifugal force

Leakage at a valve or fitting

Electrical failure including arcing

TPCI Tennessee Property and Casualty Insurance Exam - Set 3 - Part 2

Question 21: The causes of loss basic form is a named perils form listing eleven covered perils, such as fire, windstorm or hail, explosion, riot, vandalism, sprinkler leakage, and sinkhole collapse. Which of the following is not one of the perils insured under the basic form?

Question 22: The causes of loss broad form covers everything in the basic form and adds perils remembered by the phrase BIG AFFECT. A Johnson City roof gives way under the weight of accumulated snow and ice during a winter storm. Which form first adds coverage for that peril?

Question 23: A business selects the causes of loss special form, which covers any direct physical loss unless it is specifically excluded or limited. Because coverage is so broad, the list of exclusions is longer. Which of the following losses would the special form exclude from coverage?

Question 24: A hospital and a daily newspaper both must keep operating at any cost after a fire, spending heavily to continue rather than shut down. They need a form that reimburses those continuing-operation costs but pays nothing for lost income. Which coverage form best fits this need?

Question 25: None of the commercial causes of loss forms cover earthquake, so a business in West Tennessee near the New Madrid seismic zone adds the earthquake and volcanic eruption endorsement. Under it, all shocks occurring within a set number of hours count as a single event. What is that period?

Question 26: The nationwide marine definition lists six categories of eligible marine risks, but only three of them represent risks written under commercial inland marine insurance. Which of the following is not one of the three commercial inland marine categories?

Question 28: A supplier's accounting records are destroyed by fire, leaving it unable to prove which customers owed money and how much. It also faces extra collection expenses and interest on loans taken to survive. Which inland marine coverage form responds to this loss?

Question 29: An architecture firm needs coverage for the cost of replacing damaged manuscripts, drawings, deeds, and maps in its care. Under the valuable papers and records coverage form, the insured must keep these items in a specified place when the business is closed. What must the insured use?

Question 30: The jewelers block coverage form insures a jeweler's stock of jewelry, precious stones, and metals, including items sold but not yet delivered. Certain situations fall outside the form. Which of the following would not be covered under the jewelers block form?

Question 31: A dealer selling mobile agricultural and construction equipment wants inland marine coverage on its stock in trade and on property of others in its care. The equipment dealers coverage form covers this stock but excludes certain items. Which of the following is covered by the form?

Question 32: A dry cleaner in Nashville damages several customers' garments in a fire that was not the cleaner's fault. To keep customer goodwill, the business carries a bailee's customer policy. Under that policy, whom does the insurer pay, and does fault matter for the payment?

Question 36: Under the farm liability coverage forms, one coverage pays reasonable medical expenses incurred within three years of an accident, without regard to fault. A visitor injured on the farm receives such payments. Which lettered coverage provides this no-fault medical payments protection?

Question 37: The farm property causes of loss broad section adds perils beyond the basic section, including several unique to farm risks. A covered steer is electrocuted, and another drowns during a flood. Under which farm causes of loss section do these livestock perils first become covered?

Question 38: The farm property causes of loss special section provides open-peril coverage, paying for direct physical loss unless a loss is excluded. Among its exclusions are dishonest acts and voluntary parting with property. Which of the following losses would the special section exclude?

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