Free practice exam · no signup needed

Tennessee Casualty Practice Exam

20 exam-style questions drawn from the same bank as our full Tennessee Casualty course (Tennessee Insurance Producer - Casualty - Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. An adverse action notice based partly on credit information says only that the insured has a poor insurance score. Under Tenn. Code Ann. 56-5-203, is that sufficient?
Yes, if the insured may request more detail within fifteen daysNo, and the notice must describe up to four primary factorsYes, because the federal FCRA notice is separately providedNo, and the notice must list every factor the model weighed
2. On the Business Auto Coverage Form, covered 'autos' are identified by NUMERIC SYMBOLS in the declarations. Symbol 1 means:
Only autos owned by the insured.Only autos specifically described in the policy.Any auto — owned, leased, hired, or borrowed.Only autos leased to the insured.
3. Tennessee insurers must maintain a complete record of all complaints received. Under Tenn. Code Ann. §56-8-104, what must that record show?
Only complaints that TDCI has formally forwarded to the insurerOnly complaints that ended in a payment to the complaining partyTotal number and the name of the adjuster assigned to each fileTotal number, classification by line, disposition, and time taken
4. Commercial crime policies typically offer coverage on one of two triggers — 'discovery' or 'loss sustained.' The DISCOVERY trigger means:
The policy responds only to losses discovered by law enforcement.The policy requires a DA's indictment for coverage to apply.The policy responds to losses sustained during the policy period, regardless of when they are discovered.The policy responds to losses DISCOVERED during the policy period (or ERP), regardless of when the underlying acts occurred.
5. A SURETY BOND involves three parties. They are:
The insured, the insurance carrier, and a designated third-party beneficiary, which is actually the structure of a fidelity bond (two parties) or a standard insurance policy — not a surety bondThe buyer, the seller, and the broker on a commercial transaction, which is a sales-agency structure with no application to the commercial surety bond context at allPrincipal (the party required to perform), obligee (the party protected), and surety (the guarantor).The bonder, the bondholder, and the bailiff — terms drawn from criminal-procedure bail bonds rather than the commercial surety bond framework used in construction and licensing
6. Which statement about 'stated amount' (agreed value) valuation is MOST accurate for commercial auto physical damage?
It is only available for private-passenger autos — applicable to surplus-lines placements, which the scenario explicitly excludesThe insurer and insured agree on a value at inception; if the scheduled vehicle is totaled, the insurer pays the agreed amount (subject to deductible) without depreciation dispute.It is identical to ACV but with a different name — under the older rule that was superseded by the post-2018 model amendmentsIt automatically applies to every vehicle on the BAP — but only after the carrier exhausts the internal grievance process the question already presumes was completed
7. What age must Tennessee's regular operators exceed to earn the accident prevention course premium reduction?
Sixty-fiveFiftyFifty-fiveForty-five
8. A 2024 claims-made policy with a 1/1/2020 retro date includes a 'pending or prior litigation' exclusion as of 1/1/2024. A lawsuit filed against the insured on 12/15/2023 alleges errors from 2021. The 2024 policy:
Will cover, because the wrongful act post-dates the retro date and the retro-date trigger alone controls coverage analysis under modern claims-made E&O forms in the marketplace todayWill deny — the pending or prior litigation date excludes any matter known or in suit before that date, even if the wrongful act post-dates the retroWill share with the prior policy under the multi-policy allocation rule applied whenever a new claims-made policy is bound while a pending suit is already in active litigation against the named insuredWill provide defense only under the duty-to-defend-survives-exclusion doctrine that requires the carrier to fund a defense regardless of indemnity coverage denial on excluded matters
9. An applicant for a Tennessee resident producer license does not disclose a misdemeanor on the criminal history attestation. What is the effect of that omission?
None, because only felony convictions must be disclosed to TDCIThe application is held for six months and then approved by defaultThe non-disclosure is itself a ground for denial of the licenseThe applicant may cure it by paying a doubled application fee
10. Under the ISO Commercial General Liability Coverage Part, which Coverage responds to claims of libel, slander, false arrest, and invasion of privacy?
Coverage B — Personal and Advertising Injury LiabilityCoverage A — Bodily Injury and Property Damage LiabilitySupplementary PaymentsCoverage C — Medical Payments
11. Which set of facts fits the Tennessee UTPA definition of twisting?
Misrepresentation used to make a policyholder replace life coverageMisrepresentation about a competing insurer's financial conditionA valuable inducement not specified in the policy given at the saleAn agreement between carriers not to write each other's declines
12. Which vehicle is expressly NOT an uninsured motor vehicle under Tenn. Code Ann. 56-7-1202?
A vehicle whose owner cannot be identified after the accidentA vehicle insured by a carrier that later becomes insolventA vehicle owned by a city and operated by a city employeeA vehicle owned or regularly used by the insured's household
13. Which of the following is typically INELIGIBLE for a BOP?
Small office condominium spaces of low square footage and standard occupancy, a class that falls well within BOP eligibility limits at virtually every carrierAuto repair shops, bars/taverns, large hotels, banks, and certain habitational risks above the size thresholdSmall retail stores within the BOP square-footage and receipts caps, a class designed for BOP coverage rather than excluded by ineligibility rulesSmall wholesalers operating within BOP eligibility thresholds for receipts and square footage, a class that the BOP form is designed to accommodate
14. A court awards a plaintiff $80,000 compensatory damages and $320,000 punitive damages. The defendant's standard CGL:
Pays both in full without question — required under the federal preemption framework that yields here to the state-law rule — applicable to surplus-lines placements, which the scenario explicitly excludesPays neither because liability policies exclude all tort damages — only when the contract was issued before the regulatory amendment described abovePays only the punitive because punitive is always covered — required if and only if the policy includes a co-insurance penalty endorsementPays the $80,000 compensatory (subject to limits and exclusions); coverage for the $320,000 punitive is limited or excluded in many jurisdictions and often excluded by the policy as a matter of public policy.
15. Which of the following is an example of a SPECULATIVE risk that is NOT insurable?
Risk of fire damage to a buildingRisk of loss on a stock investmentRisk of injury from an auto accidentRisk of theft of inventory
16. The Tennessee Commissioner is appointed by which official, and serves under what structure?
Appointed by the Governor and serves at the Governor's pleasure as part of the Department of Commerce and InsuranceAppointed by the Tennessee Supreme Court for a six-year term, consistent with the NAIC model treatment of separate-account products (not the general-account product here)Selected by a vote of admitted insurers operating in Tennessee — but only after the carrier exhausts the internal grievance process the question already presumes was completedElected statewide for a four-year term, under the alternative procedure that applies only when both parties stipulate to it in writing
17. A producer in Memphis receives a letter from the Tennessee Department of Commerce and Insurance announcing a market conduct examination of her agency. Under Tenn. Code Ann. Title 56, who bears the reasonable cost of the examination?
Costs are split evenly between the state and the examined entityThe TDCI absorbs the cost from general state revenueThe insurer or producer being examined pays the reasonable expensesThe National Association of Insurance Commissioners (NAIC) reimburses the state
18. A contractor installs a gas water heater incorrectly. Three weeks after the job is complete, the water heater explodes, injuring the homeowner. The contractor's CGL responds under which coverage category?
Employer's liability.Personal injury (Coverage B).Premises/operations.Products-completed operations.
19. A Tennessee producer offers a $50 gift card to any homeowner who buys an HO-3 policy. The gift card is not described in the policy and is not available to all applicants in the same class. This is most accurately characterized as:
Rebating, which is prohibited under Tenn. Code Ann. §56-8-104Coercion, regulated separately under Title 56 Chapter 5An unlawful inducement only if the gift card exceeds $100A permitted promotional incentive under the de minimis rule
20. Under Tenn. Code Ann. 56-5-202, what may a Tennessee insurer NOT do with a personal insurance applicant's credit information?
Use it if the insurer has filed the scoring model it relies onUse it as one of several factors in setting the initial premiumUse it alongside loss history and vehicle use in underwritingUse it as the sole basis for denying, cancelling or nonrenewing

Want a different set? Refresh the page for 20 new questions — the full course has 500+, each with a complete explanation, plus full-length timed exam simulations and an AI tutor.