Tennessee Property & Casualty Practice Exam

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• In what way does a loss run report assist underwriters?
• What is the purpose of the minimum combined limit in auto policies?
• For what purpose is the Personal Effects Form primarily designed?
• What does a Fidelity Bond guarantee?
• A license is renewed every how many months?
• What does the term "boosting" refer to in property insurance?
• What is the duration of premium reduction for completion of an approved accident prevention course?
• If a violation is committed knowingly, what is the fine cap per violation?
• Which of the following represents the maximum fine for a violation committed unknowingly?
• What would NOT be considered part of a settlement in insurance?
• Which of the following is NOT included in the nine optional classes of property covered by the Personal Articles Form?
• What are materials like concrete, stone, brick, or metal that do not easily catch fire called?
• What is the minimum coverage for bodily injury to any one person under insurance policy?
• What does the term "deductible" in an insurance policy refer to?
• What can a loss run report indicate to an insurer?
• What type of bond guarantees that certain acts will not be committed?
• The association's maximum liability per covered claim for workers compensation claims is what amount?
• Who is referred to as the "insured" in an insurance policy?
• According to workers' compensation law, which of the following indicates the minimum number of employees an employer must have to be subject to the law?
• In terms of insurance risks, why are combustible materials considered significant?
• How does "named peril" coverage differ from "open peril" coverage?
• Which aspect is specifically evaluated during a risk assessment?
• What is the primary purpose of Proof of Financial Responsibility in relation to motor vehicles?
• What is the role of the Obligee in a surety bond?
• What is one consequence if a producer fails to inspect the property within the required time frame after policy issuance?
• How does an Aleatory contract primarily function in an insurance context?
• Which bond guarantees that contractors will fund projects free of liens or encumbrances?
• A nonresident producer from a reciprocal state applying for a resident license must do so within how many days if moving to Tennessee to be exempt from the licensing examination?
• Which type of bond ensures compliance with state regulations when issuing a license?
• Which type of insurance is designed to cover flood-related losses?
• What is the penalty for a revoked license?
• For how many years is the premium reduction in effect after completing an approved accident prevention course?
• Which class of construction includes materials that are either fire resistive or masonry rated?
• What is one potential risk that policyholders assume in risk retention?
• In personal insurance, how many days advance notice is required for non-renewal?
• Which term refers to materials that easily catch fire, such as wood?
• Under insurance policies, what is the property damage coverage per accident?
• Who is the party that agrees to be responsible for a loss in a surety agreement?
• In insurance policies, what does the term "endorsement" refer to?
• What might affect the outcome of an insurance claim settlement?
• What term describes the rights and duties of the mortgagee under an insurance policy?
• What is the key factor that differentiates Class 5 construction from Class 4?
• What is a common exclusion in property insurance policies?
• In bond policies, which option states that the limit applies separately to each employee involved in a loss?
• Which type of contract is characterized by one party having greater power over the other?
• In insurance claims processing, what does "settlement" represent?
• What term is used to describe the amount deducted from an insurance claim?
• Investigations must be completed within how many years?
• What is the primary purpose of liability limits in an insurance policy?
• What is the purpose of Part 1 in the Workers Compensation section of an insurance policy?
• What is the significance of coinsurance in property insurance?
• Why is an auto declaration page important for policyholders?
• How many days advance notice must be provided for non-renewal of a commercial insurance policy?
• What is the primary function of an umbrella policy in insurance?
• How are auto liability limits typically expressed?
• How is total loss determined in property insurance?
• What is the required notice period if an insurer intends to increase a premium by 25%?
• What bond guarantees that public officials will handle public money correctly?
• What is the cease and desist penalty amount?
• What form provides coverage for nine optional classes of personal property?
• What does the term "act of God" refer to in insurance?
• If an insurer does not notify the insured regarding a rate increase of 25% or more within the required notice period, what must the insurer do?
• What is the maximum fine per violation for violations committed knowingly?
• When must the parties be notified about the outcome of an investigation?
• Which type of bonds provides coverage for employees specifically listed on the policy schedule?
• Which bonds specify positions that are covered under the policy?
• What is outlined in Part 4 of a workers' compensation policy?
• Within how many days must an insurer notify the commissioner after appointing a producer as its agent?
• Which basic perils are commonly covered by a homeowners policy?
• What action must a producer take in relation to inspections after issuing a fire insurance policy?
• If adverse action is taken, credit reports must be issued within how many days of issuance or renewal?
• What symbol represents coverage for auto dealers?
• What term is used for a contract that involves an unequal transfer of value based on a certain event?
• The maximum liability for all other covered claims is capped at what amount per claimant?
• What is the purpose of the "insuring agreement" in an insurance policy?
• Who is responsible for ensuring compliance with the financial responsibility laws for motor vehicle operation?
• What is the "waiting period" in a flood insurance policy?
• What does a "liability waiver" in insurance signify?
• Which factor is most significant in affecting property insurance premiums?
• An insurer that terminates an appointment must notify the commissioner within how many days?
• When will a renewal notice for a license be sent?
• What does uninsured motorist coverage provide?
• The maximum liability for the return of unearned premium is capped at which amount?
• In which class of construction is everything made of and supported by noncombustible materials?
• What does comprehensive coverage in auto insurance cover?
• What symbol represents trailers owned or hired by the insured in insurance terminology?
• What type of bond guarantees that a supplier will furnish supplies, products, or equipment?
• What is the main function of a Surety in a bond?
• What is the focus of Part 2 in a workers' compensation policy?
• For cancellation of a commercial insurance policy after the first 60 days, how many days notice is required?
• What is the purpose of a Bid Bond?
• Why is "risk assessment" critical in the underwriting process?
• A Surety Bond emphasizes what aspect of a contract?
• Which type of bond is used to settle legal arguments not involving monetary damages?
• Which part of a workers' compensation policy defines how the premium is determined?
• What does medical payments coverage include?
• What is the primary benefit of coinsurance in property insurance?
• What factor does NOT typically influence the content of a loss run report?
• Which class of construction is defined by masonry exterior walls and noncombustible roof and floor materials?
• What distinguishes Class 2 construction from other classes?
• Which form covers losses that are sustained at any time and discovered during the policy period or within 60 days after expiration?
• Which type of bond is specifically for contractors borrowing money for projects?
• What does Part 6 of a workers' compensation policy specify?
• What actions are encouraged of the insured after a loss incident?
• What does liability insurance typically cover?
• How does terraforming impact coverage in insurance?
• What does a Performance Bond guarantee?
• Which of the following is NOT typically covered by a workers' compensation policy?
• What is the maximum aggregate fine for violations committed knowingly?
• The insurer must file a notice of appointment within how many days of the agency contract date or first insurance application?
• Under Position Schedule Bonds, which category is covered?
• What is the term for creating a loss situation to collect from an insurance company?
• What does risk retention refer to in insurance?
• What happens if a policyholder fails to pay their premium during the grace period?
• How does a company typically respond if a risk assessment indicates high risk?
• What does the term "terraforming" refer to in the context of insurance policies?
• If a driver's license is suspended or revoked, how many years must proof of financial responsibility be maintained?
• What is the primary purpose of property insurance?
• What is the primary purpose of a loss run report during underwriting?
• What is the purpose of a declarations page in an insurance policy?
• What act requires insurance companies to disclose their privacy policy regarding the sharing of customers' information?
• What must an insured do following an incident that causes a loss?
• What class of construction is defined as having exterior walls made of wood or other combustible materials?
• What term describes the promise made by a surety in a bond?
• What is an example of coverage to help a business continue operations after a loss?
• Which bond type guarantees that labor and material bills will be paid?
• How often are insurers required to undergo examinations?
• A license may be reinstated within how many months from the renewal date with no exam?
• How is negotiation defined in the context of insurance claims?
• How many days of notice must the commissioner provide before taking testimony?
• Which rule limits the impact of waiver and estoppel on contract terms by disallowing oral evidence before contracts were made?
• Which form is specifically designed to insure personal property while traveling?
• What is the age limit for premium reduction for insureds who have completed an approved accident prevention course?
• What does "Coverage A" typically refer to in homeowners insurance?
• What does Part 3 of a workers' compensation policy describe?
• What does a standard insuring agreement generally cover?
• What is the primary concern of a Morale Hazard in insurance?
• What kind of bond would include dishonest actions taken by employees as part of its coverage?
• What is the minimum notice period required for cancellation of a policy for reasons other than nonpayment?
• What must be ensured when writing a fire insurance policy?
• What does "dwelling coverage" refer to in a homeowners insurance policy?
• How many days in advance is required for cancellation due to any other reason under the auto policy?
• What law states that a claim is payable at the limits of liability?
• What is the purpose of License and Permit Bonds?
• What type of construction has non-combustible exterior walls but combustible roofing and flooring materials?
• What does "subrogation" allow an insurer to do?
• How many days does a producer have to inspect a property after writing a fire insurance policy on it?
• Which type of coverage allows the insured to continue business without interruption after a property loss?
• What type of bonds covers each employee listed on the policy schedule?
• What is defined as the "premium" in the context of insurance?
• An insurance score must be updated every how many months?
• What is the minimum combined limit for an auto policy?
• What does "underwriting" refer to in casualty insurance?
• In Tennessee, an insurance producer must notify the commissioner about adverse action taken within how many days?
• Which of the following factors contributes to a Physical Hazard?
• In auto liability limits, what does the number 50 typically represent?
• What is the purpose of liability coverage in property insurance?
• How is "bodily injury" liability different from "property damage" liability?
• Which component is crucial for the validity of insurance contracts especially in relation to procedural compliance?
• What is "replacement cost" coverage in property insurance?
• Which term describes a situation where a person drives recklessly because they have insurance?
• What is meant by the term "policy term" in insurance?
• What type of damage typically requires application of the actual cash value method?
• What does "actual cash value" mean in the context of insurance?
• What information does a loss run report provide?
• If an insurer raises premiums without adequate notice, what can the insured expect to happen?
• Who does the principal make a promise to in a surety bond arrangement?
• What is the purpose of the "grace period" in an insurance policy?
• Insurers are required to be examined at least once every how many years?
• What is the maximum fine per violation for violations committed unknowingly?
• What is the purpose of providing notice of investigation within 30 days of a complaint?
• What is the reinstatement period for a license without examination?
• What is the maximum number of days within which a notice of investigation must be sent after receiving a complaint?
• A change of legal residence must be filed within how many days?
• The association's maximum liability per covered claim for the return of unearned premium is what amount?
• What is the required coverage for bodily injury to two or more people?
• Which of the following is NOT typically a consideration in determining property insurance premiums?
• Which of the following best describes the relationship between terraforming and settlement?
• What is the required notice period for cancellation of commercial insurance in the first 60 days of the policy?
• Which symbol indicates customer vehicles left for service?
• Which form provides open perils coverage on personal property usually found in a home?
• What type of bond guarantees that "exec level" persons will manage the property of others?
• Which part of a workers' compensation policy includes employer's coverage responsibilities?
• Which class specifies that everything is constructed of masonry or fire resistive material rated 2 hours or more?
• The association's maximum liability per covered claim per claimant for all other covered claims is what amount?
• How does a hazard in insurance typically affect a loss?
• A Completion Bond ensures what aspect of a construction project?
• What type of coverage is typically included in a renters insurance policy?
• In insurance terms, how is a "hazard" defined?
• What is the combined single limit for automobile insurance coverage?
• The renewal period for insurance licenses in Tennessee is how many months?
• Which bonds guarantee that public officials will act in accordance with their role?
• What is the maximum civil penalty for violations?
• What part of a workers' compensation policy addresses obligations of the insured?
• What class includes construction consisting of masonry or fire material with a fire resistance rating of 2 hours or less?
• What does a Payment Bond ensure?
• What is the maximum referral fee allowable for an unlicensed person?
• How many employees must an employer have to be affected by the workers' compensation law?
• How many days in advance must an insured notify for cancellation due to nonpayment of premium or if cancellation occurs within the first 60 days of the auto policy?
• What does a Public Official Bond guarantee?
• What is a potential result of poor risk assessment in underwriting?
• Within how many days are parties notified upon the completion or closing of an investigation?
• What type of bond covers dishonest employees acting separately or together by position, with limits applying to each loss?
• How many days must a property be inspected after writing a fire insurance contract?
• What is the advance notice period for non-renewal of an auto policy?
• What type of hazard arises from the property itself?
• What type of coverage would cover musical instruments under the Personal Articles Form?
• What is the maximum aggregate fine for violations committed unknowingly?