TPCI - Tennessee Property and Casualty Insurance Exam

Question 21: A Tennessee insured telephones the agent and says he does not want uninsured motorist coverage, but never signs anything to that effect. The policy issues with bodily injury limits above the state minimum. Under Tennessee law, what is the effect of the insured's spoken statement?

It reduces coverage to minimum

It cancels the coverage

It delays coverage until signed

It is ineffective as a rejection

Question 22: A Tennessee casualty candidate is told that automobile financial responsibility, uninsured motorist coverage, and workers' compensation each live in a different title of the Tennessee Code. Financial responsibility sits in the motor vehicle title. In which title does uninsured motorist coverage appear?

The motor vehicle title

The labor title

The insurance title

The revenue title

Question 23: Under Tennessee's financial responsibility law, a law enforcement officer may require a driver to show proof of financial responsibility only in limited situations, not at random. One trigger is being charged with a moving violation. What is the other circumstance in which proof may be demanded?

At a vehicle registration renewal

At the time of an accident

During a license plate scan

At any routine traffic stop

Question 24: When a Tennessee automobile insurer cancels or does not renew a policy, the law ties a particular notice to that event, telling the insured about eligibility for a residual market mechanism for hard-to-place drivers. What does this requirement confirm exists in Tennessee?

An assigned risk auto plan

A property FAIR plan

A monopolistic state fund

A federal reinsurance pool

Question 25: Tennessee's financial responsibility law references a certificate that an insurer files with the state for certain drivers who must demonstrate they carry required coverage after specific offenses. Setting aside how long it must be kept, which description best captures what this certificate is?

A discount for safe drivers

A policy sold to uninsured drivers

A state-issued driver license endorsement

An insurer filing proving coverage exists

Question 26: Tennessee's uninsured motorist enforcement statute is popularly named for James Lee Atwood Junior. Under the program it created, uninsured drivers face fines and the risk of losing vehicle registration when they cannot show proof of financial responsibility. In what year did these consequences begin?

Two thousand seven

Two thousand twelve

Two thousand seventeen

Two thousand twenty-two

Question 27: Tennessee regulates the insurance requirements for transportation network companies, the ride-sharing platforms that match drivers with passengers through an app. Rather than placing all of these rules in one location, the state addresses them in two different titles of the code. What does this placement indicate?

Both financial responsibility and insurance titles apply

Only federal law governs ride-sharing

Ride-sharing coverage is prohibited

Drivers need no coverage

Question 28: Tennessee assigns responsibility for administering the financial responsibility law and the state's insurance verification program, along with holding the alternative bond or cash deposit, to a particular department. Which Tennessee department carries out these motor vehicle insurance verification duties?

The Department of Commerce and Insurance

The Department of Revenue

The Department of Safety

The Department of Labor

Question 29: In Tennessee, the workers' compensation law is administered by a bureau that sits inside a state department focused on employment, not inside the insurance regulator. A candidate must not confuse the two. Which agency administers the Tennessee Workers' Compensation Law?

The Bureau of Workers' Compensation

The Department of Commerce and Insurance

The Department of Revenue

The Tennessee Insurance Guaranty Association

Question 30: A Tennessee retail business that does no construction work is deciding whether it must secure workers' compensation coverage. The state sets a head-count threshold for ordinary, non-construction employers. At how many employees must such an employer generally obtain coverage?

Three or more employees

Four or more employees

Five or more employees

Ten or more employees

Question 31: A Tennessee framing contractor employs a single part-time worker on an as-needed basis and assumes such a small crew is exempt from workers' compensation. Tennessee treats the construction industry differently from ordinary businesses. At how many employees must a construction employer obtain coverage?

Five or more employees

Three or more employees

Two or more employees

One or more employees

Question 32: Beyond ordinary businesses and the construction industry, Tennessee singles out one more industry for a strict workers' compensation coverage rule that does not depend on counting to any threshold number. For employers in this industry, coverage is required for every worker. Which industry is it?

Coal mining

Agriculture

Retail trade

Domestic service

Question 33: When determining whether a Tennessee non-construction business has reached the five-employee coverage threshold, some individuals connected with the business are not tallied in the count. Sole proprietors, partners, and limited liability company members fall into this group. How are these owners treated for the count?

Counted as two employees each

Not counted toward the threshold

Counted only if full-time

Counted only in construction

Question 34: A Tennessee corporation is close to the five-employee workers' compensation threshold, and its full-time corporate officers wonder whether they figure into the count differently from the owners of a partnership. Under Tennessee's counting rules, how are corporate officers generally treated?

Never counted under any circumstances

Counted only in coal mining

Counted toward the threshold

Treated the same as partners

Question 35: On a Tennessee jobsite, a subcontractor's employee is injured, and the subcontractor lacks workers' compensation coverage. Tennessee law reaches upward to hold others in the contracting chain responsible for compensation. Which principle describes this liability of a principal or intermediate contractor?

Exclusive remedy immunity

Contribution among insurers

Subrogation against the worker

Up-the-ladder contractor liability

Question 36: Tennessee maintains a Workers' Compensation Exemption Registry for construction-industry business owners who wish to be listed as exempt. A registered owner must understand exactly how far that exemption reaches. What does a construction exemption on the registry actually cover?

The entire business entity

All of the owner's employees

Only the individual listed

Every worker on the jobsite

Question 37: A Tennessee employer pays several workers as independent contractors and issues them tax forms accordingly, assuming this keeps them off the workers' compensation count. The Bureau applies a multi-factor test looking at control, payment method, tools, and more. What determines a worker's status?

The tax form alone controls status

Only a written contract matters

The worker's own preference

A multi-factor test, not the tax form

Question 38: Tennessee's workers' compensation law lists several categories of employment that are exempt from mandatory coverage, reflecting their unusual or intermittent nature. A candidate should recognize which kinds of workers appear on that exemption list. Which of the following is an exempt category in Tennessee?

Full-time factory machine operators

Domestic servants in a home

Corporate officers of a retailer

Clerks at a five-person shop

Question 39: Under workers' compensation systems generally, an employee who is injured on the job receives the benefits the law provides and, in exchange, gives up the right to sue the employer in court for additional damages. Which doctrine describes this trade-off?

The exclusive remedy doctrine

The collateral source rule

The doctrine of subrogation

Comparative negligence

Question 40: Before workers' compensation laws existed, an injured worker had to sue and prove employer fault, and employers often escaped liability using three recognized defenses. One argued the injury came from a coworker's act. Which set of defenses did employers historically rely on?

Waiver, estoppel, and laches

Res judicata and collateral estoppel

Comparative fault and mitigation

Assumption of risk, contributory negligence, fellow servant

TPCI Tennessee Property and Casualty Insurance Exam - Set 5 - Part 2