TPCI Tennessee Property and Casualty Insurance Exam - Set 4 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: The commercial general liability form distinguishes an auto from mobile equipment. A bulldozer, a forklift, and a self-propelled vehicle designed principally for use off public roads fall into which of the following categories under the form's own definitions?

Mobile equipment

Covered autos

Private passenger autos

Watercraft

Question 42: A Nashville auto repair shop wants coverage for damage to customers' vehicles left in its care for servicing and storage, an exposure excluded by the garage form's liability section. Which of the following coverages addresses this specific need?

Business auto liability

Trailer interchange coverage

Garage physical damage

Garagekeepers coverage

Question 43: A driver with a poor record cannot find an insurer willing to write coverage in the voluntary market, so the state places him with a participating company that must accept its share of such high-risk drivers. Which of the following describes this mechanism?

A residual property pool

A reinsurance treaty

An assigned risk plan

A surplus lines placement

Question 44: When a claims-made commercial general liability policy is terminated, the insured may need protection for claims that arrive after expiration on incidents that occurred during the policy term. Which of the following provisions supplies this after-expiration reporting protection?

The retroactive date

An extended reporting period

The general aggregate limit

The occurrence trigger

Question 45: A Chattanooga applicant purchases auto liability limits of one hundred, three hundred, and fifty and never signs any written rejection or reduction of uninsured motorists coverage. At what uninsured motorists limits will his policy provide bodily injury protection?

One hundred and three hundred

Twenty-five and fifty

Fifty only

No uninsured motorists coverage

Question 46: In a three-party surety bond, one party guarantees the obligation of another and pays the penalty if that party defaults, often an insurance company standing behind a contractor. Which of the following names this guaranteeing party to the bond?

The principal

The obligee

The beneficiary

The surety

Question 47: Under business auto liability coverage, the named insured and permissive users are protected, but one party is specifically not an insured while operating a covered auto in that role. Which of the following is not an insured under this coverage?

The named insured business

An employee driving with permission

The owner of a borrowed auto

A permissive user of the vehicle

Question 48: Under Part A of the personal auto policy, the insurer promises to settle or defend liability claims and pays the attorney costs of defending the insured. How are these defense costs treated in relation to the liability limit?

Paid in addition to the limit

Deducted from the limit

Subject to a separate deductible

Limited to ten percent

Question 49: A crime coverage responds when someone signs the name of another person or organization on a check with intent to deceive, or alters such an instrument. Which of the following commercial crime coverages applies to this specific loss?

Computer fraud coverage

Extortion coverage

Robbery coverage

Forgery or alteration coverage

Question 50: A Tennessee trucking company borrows a trailer from another carrier under a written interchange agreement and needs coverage for damage to that nonowned trailer while it is in the trucker's possession. Which of the following coverages responds to this need?

Garagekeepers coverage

Drive other car coverage

Trailer interchange coverage

Medical payments coverage

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