TPCI - Tennessee Property and Casualty Insurance Exam

Question 21: An auto liability policy shows limits expressed as a series such as one hundred, three hundred, and fifty, providing separate maximums per person, per accident, and for property damage. Which of the following describes this way of stating limits?

Split limits

Combined single limit

Aggregate limit

Sublimit

Question 22: A Memphis agent must quote the current minimum property damage liability limit required for a Tennessee auto policy renewing today. One older figure once used in the state is now superseded. Which of the following is the correct current property damage minimum?

Fifteen thousand dollars

Ten thousand dollars

Five thousand dollars

Twenty-five thousand dollars

Question 23: Armed individuals confront a convenience store clerk, threaten him with harm, tie him up, and take cash and merchandise before fleeing. The property was taken directly from a person by force. Which of the following crimes does this describe?

Burglary

Safe burglary

Robbery

Mysterious disappearance

Question 24: An insured causes an accident while driving a friend's borrowed car. Both the friend's auto policy and the insured's own personal auto policy could apply to the liability loss. Under the other insurance provision, how does the insured's own policy respond?

It always pays first as primary

It is excess over the owner's

It refuses the claim entirely

It splits evenly with the owner

Question 25: A store customer is injured while an occurrence-form commercial general liability policy is in force, but does not file her claim until after that policy expires and a new insurer has taken over. Which policy responds to her claim?

The policy in force at injury

The new insurer's current policy

Neither policy covers late claims

Both policies share the loss

Question 26: On the business auto coverage form, a Tennessee company wants the broadest possible liability protection, covering owned, hired, and nonowned autos alike. Which of the following numerical covered-auto symbols provides this any-auto breadth when entered on the declarations page?

Symbol seven

Symbol eight

Symbol nine

Symbol one

Question 27: A Tennessee driver is temporarily operating her covered auto in another state whose minimum liability requirements are higher than the limits shown on her personal auto policy. Under the out-of-state provision, how are her liability limits determined for that trip?

Always her home policy limits

The lower of the two amounts

The higher of the two amounts

Coverage is suspended out of state

Question 28: An applicant buys a Tennessee auto policy and says nothing about uninsured motorists coverage, neither accepting nor declining it. State law dictates what happens next. Which of the following correctly states the uninsured motorists result under Tennessee law?

Included at the bodily injury limits

Automatically waived by silence

Set at the state minimum only

Excluded until separately purchased

Question 29: Coverage C of the commercial general liability form pays medical expenses for someone accidentally injured on the insured's premises, without regard to fault. Within what time frame must those expenses be incurred and reported to the insurer for coverage?

Within thirty days of injury

Within one year of the accident

Within three years of injury

Anytime during the policy period

Question 30: A commercial crime policy defines the person who has care and custody of money and property while it is outside the insured's premises, such as while transporting a deposit to the bank. Which of the following terms names that person?

Custodian

Watchperson

Messenger

Janitor

Question 31: In addition to the policy's stated limit of liability, a liability policy also pays certain extra amounts at no reduction to that limit, such as defense attorney costs, bail bond premiums, and post-judgment interest. What are these additional amounts called?

Aggregate limits

Compensatory damages

Restoration of limits

Supplementary payments

Question 32: An insured who already owns two cars insured under a personal auto policy buys a third vehicle. For the automatic same-coverage to continue on the additional auto, within how many days must the insured notify the insurer of it?

Fourteen days

Four days

Thirty days

Sixty days

Question 33: Under a claims-made commercial general liability form, coverage responds only when a claim is first made during the policy period and the injury occurred on or after a certain date listed in the declarations. What is that date called?

Expiration date

Effective date

Extended reporting date

Retroactive date

Question 34: Instead of buying an auto liability policy, a Tennessee motorist may prove financial responsibility by posting a bond or making a cash deposit in a specific amount with the state. Which of the following is that required bond or deposit amount?

Twenty-five thousand dollars

Sixty-five thousand dollars

One hundred thousand dollars

Fifteen thousand dollars

Question 35: A for-hire trucker using insurance to prove financial responsibility under the Motor Carrier Act of nineteen eighty must attach a specific endorsement that provides public liability coverage for bodily injury, property damage, and environmental restoration. Which endorsement is required?

The additional insured endorsement

The drive other car endorsement

The trailer interchange endorsement

The MCS-ninety endorsement

Question 36: During a severe Middle Tennessee thunderstorm, floodwaters sweep a parked covered auto downstream, and in a separate incident a hailstorm dents its roof. Under Part D of the personal auto policy, which coverage pays for these two types of loss?

Collision coverage

Liability coverage

Other than collision coverage

Medical payments coverage

Question 37: On the commercial general liability declarations, one limit caps the total the insurer will pay for the sum of Coverages A, B, and C during the policy period, except for products-completed operations. Which of the following limits is this?

General aggregate limit

Per occurrence limit

Medical expense limit

Products-completed operations aggregate

Question 38: A commercial crime form covers losses that are actually sustained during the policy period and discovered either during that period or within one year after the policy expires. Which of the following crime coverage triggers does this describe?

Discovery form

Occurrence form

Claims-made form

Loss sustained form

Question 39: After a covered theft of the insured's auto, Part D reimburses temporary transportation costs such as rental car and taxi fares up to a daily amount and an overall cap. Which of the following coverages provides this reimbursement?

Towing and labor coverage

Transportation expenses coverage

Loss of earnings coverage