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Tennessee Property Practice Exam

20 exam-style questions drawn from the same bank as our full Tennessee Property course (Tennessee Insurance Producer - Property - 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 NFIP Standard Flood Insurance Policy (SFIP) Dwelling Form offers what maximum limits?
$1M building / $1M contents$500,000 building / $500,000 contents$250,000 building / $100,000 contentsUnlimited, subject to insurer approval
2. An annual policy with an $1,800 premium is cancelled by the INSURED at the six-month mark. The short-rate cancellation table (used when the insured initiates) returns 50% of the unearned premium minus a penalty. Approximately how much premium refund does the insured receive, compared to a pro-rata refund?
Short-rate refund is zero; insureds forfeit all unearned premium.Short-rate refund is HIGHER than pro-rata because the insurer absorbs setup costs.Short-rate refund is LOWER than pro-rata because of the insurer's penalty/retention.Short-rate refund is EQUAL to pro-rata; the term is just another name.
3. How quickly must a Tennessee commercial lines insurer furnish a loss run history after a written request?
Within thirty calendar days of receipt of the requestWithin fifteen calendar days of receipt of the requestWithin five business days of receipt of the requestWithin ten business days of receipt of the request
4. A dwelling policy differs from a homeowners policy in which key respect?
Dwelling forms are only available for non-owner-occupied dwellingsDwelling forms cover business personal property at full Coverage C limitsDwelling forms automatically include flood coverageDwelling forms do not include Section II liability unless added by endorsement
5. Under the Terrorism Risk Insurance Act (TRIA) as currently reauthorized, what is a commercial P&C insurer's obligation to its commercial insureds regarding terrorism coverage?
The insurer must make terrorism coverage available on substantially the same terms as the underlying policy; the insured may accept or reject, and the premium for terrorism coverage must be separately and conspicuously disclosed.The insurer must offer terrorism coverage only to commercial insureds located in designated high-risk cities, with the terrorism premium set by a federal rate schedule rather than the insurer.The insurer must include terrorism coverage automatically in every commercial policy at no additional premium, and the commercial insured has no right to reject or decline that coverage.The insurer is prohibited from offering terrorism coverage on commercial policies, because the federal government pays certified terrorism losses directly to the affected policyholders.
6. A 17 year old Tennessee high school senior wants a resident property and casualty producer license. Under Tenn. Code Ann. §§56-6-103 and 56-6-104, what is the minimum age?
17 years old18 years old21 years old16 years old
7. A landlord who rents out a single-family home needs a policy for the structure and loss of rents. Which form best fits?
HO-3DP-3HO-4HO-6
8. Which set of facts fits the Tennessee UTPA definition of twisting?
An agreement between carriers not to write each other's declinesMisrepresentation about a competing insurer's financial conditionA valuable inducement not specified in the policy given at the saleMisrepresentation used to make a policyholder replace life coverage
9. Waiver and estoppel are related doctrines. Which pairing best describes them?
Waiver applies only to the insurer's own conduct, while estoppel applies only to statements the insured made on the application before the policy issued.Waiver and estoppel mean exactly the same thing, and both describe the insurer's right to deny a claim for any misrepresentation found on an application.Waiver is the voluntary giving up of a known right; estoppel prevents a party from asserting a right when the other party has reasonably relied on its conduct.Waiver is a rule created only by statute, while estoppel is a contract term that the insurer and insured must expressly agree to in the written policy.
10. The Gramm-Leach-Bliley Act (GLBA) primarily requires financial institutions (including insurers) to:
Report every claim payment over $50,000 to federal authorities and keep detailed records of each customer transaction for at least ten years after it is completed.Maintain minimum capital and surplus levels and file quarterly solvency reports with federal regulators so that policyholder funds remain protected from insolvency.Provide customers with a written privacy notice disclosing what non-public personal information is collected and shared, and give them an opportunity to opt out of certain sharing.Obtain each customer's written consent before collecting any personal information at all, and permanently delete all customer records once the policy terminates.
11. A Tennessee producer's license expired last week and his renewal has not been processed. He writes a new personal auto policy today. How is that treated?
It is permitted so long as the insurer's appointment is still activeTransacting on an expired license is itself a violation in TennesseeIt is permitted, because renewal relates back to the expiration dateIt is permitted under an automatic 90 day grace window for producers
12. Personal liability coverage under a dwelling form is:
Automatically provided in an amount equal to Coverage ABuilt into all three dwelling forms at a basic limitAvailable only by endorsement (Personal Liability Supplement)Built into the DP-3 only, as part of its open-perils coverage
13. A homeowner and her insurer agree that a hailstorm (a covered peril) damaged the roof but disagree sharply on the repair cost. The insurer demands appraisal. The insured's appraiser says $32,000; the insurer's appraiser says $14,000; the umpire says $25,000. What is the binding amount of loss?
$14,000, because when the two appraisers and the umpire cannot all reach agreement, the lowest figure submitted controls and binds both the insured and the insurer.$32,000, because any ambiguity in the appraisal process is construed against the insurer that drafted the policy, so the insured's appraiser's figure binds both sides.$23,000, because the appraisal clause directs the parties to average the three figures produced by the two appraisers and the umpire, and that average is binding.$25,000, agreement of any two of the three (insured's appraiser + umpire, insurer's appraiser + umpire, or both appraisers) binds the parties; here the umpire's figure is the one any two can agree to.
14. A Tennessee resident producer was first licensed on March 12, 2024 (her birth month is March). Under Tenn. Code Ann. §56-6-110 and TDCI rules, when must she next renew her license?
March 31, 2025, annual renewal on the license dateDecember 31, 2025, calendar-year renewal statewideLast day of her birth month in 2026, biennial renewalMarch 12, 2027, three-year renewal from issuance
15. Which dwelling form provides the narrowest range of covered perils and is often used for older, low-value, or hard-to-insure properties?
DP-2 Broad FormDP-3 Special FormDP-1 Basic FormDP-5
16. Which section of the policy identifies the named insured, policy period, premium, and limits?
ConditionsInsuring agreementDeclarationsExclusions
17. An 'appraisal' clause in a homeowners or property policy is invoked when:
The mortgagee and the named insured are in a dispute over who holds title to the insured propertyThe named insured wants to sell the property and needs an independent valuation of the structureThe insurer denies coverage on the ground that no covered peril caused the loss to the propertyThe insured and insurer agree coverage applies but disagree on the amount of loss
18. The Law of Large Numbers states that as the number of similar exposure units increases:
The probability of any one loss decreasesReserves can be eliminatedGroup loss experience becomes more predictablePremium per insured falls automatically
19. How is the Tennessee Unfair Trade Practices Act enforced?
Through NAIC arbitration, with TDCI acting only as an observerThrough criminal indictment only, with no administrative remediesThrough TDCI hearings, cease and desist orders, and civil penaltiesThrough private lawsuits only, since TDCI lacks UTPA jurisdiction
20. A producer charges a client a service fee under a written agreement complying with Tenn. Code Ann. 56-6-125. How long must a copy of the agreement be retained?
Until the next departmental market conduct examinationNot less than five years after completion of servicesNot less than three years after completion of servicesNot less than one year after completion of services

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