Tennessee Property and Casualty EXAM
STUDY GUIDE 2026/2027 COMPLETE QUESTIONS
WITH VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Pearson VUE Exam - ANSWER ✔ Pearson VUE administers the Tennessee
insurance licensing exams.
2. Licensing Requirements - ANSWER ✔ The Tennessee Department of
Commerce & Insurance requires candidates to complete a five-step process,
including pre-license education, an exam, fingerprinting, and application
submission.
3. Prelicensing Education - ANSWER ✔ While Tennessee does not mandate
prelicensing education, it's highly recommended to take a course to prepare
for the exam.
4. Types of Policies - ANSWER ✔ Covers various insurance policies,
including homeowners, auto, commercial property, and liability insurance.
5. Bonds - ANSWER ✔ Includes surety bonds, fidelity bonds, and other
financial guarantees used in insurance.
,6. Underwriting - ANSWER ✔ The process of evaluating risk and determining
the appropriate premium for insurance coverage.
7. Risk Assessment - ANSWER ✔ The process of identifying and analyzing
potential issues that could negatively impact key business initiatives or
projects.
8. Indemnity - ANSWER ✔ A principle in insurance that ensures a
policyholder is compensated for a loss, putting them back in the financial
position they were in before the loss occurred.
9. Exclusions - ANSWER ✔ Specific conditions or circumstances for which
the insurance policy does not provide coverage.
10.The standard coinsurance clause provides that property must be insured for a
specific percentage- usually 80% of its:
A. actual cash value
B. replacement cost
C. depreciation value
D. outstanding loan amount - ANSWER ✔ replacement cost
11.Which of the following terms specifies the rights and duties of the
mortgagee under the policy?
A. the loss payable clause
B. the standard mortgage clause
C. the no benefit to bailee clause
, D. the vacancy or unoccupancy clause - ANSWER ✔ standard mortgage
clause
12.A financial loss resulting directly from a loss to property, such as a house
fire or a diamond ring being stolen is called:
A. direct loss
B. indirect loss
C. consequential loss
D, expense loss - ANSWER ✔ direct loss
13.An insured owns a $200,000 home and insures it for $100,000. If the
insured's home was completely destroyed by a fire, how much money would
the insurance company pay if the insured has a policy that requires a
minimum of 80% coverage?
A. $100,000
B $125,00
C 160,000
D. $200,000 - ANSWER ✔ $100,000
14.Which peril policy insures a property against all perils specifically listed in
the policy?
A. named peril policy
B. specific peril policy
C. open peril policy
D. listed peril policy - ANSWER ✔ named peril policy
, 15.IF an insured covered under a mobile Homeowners Policy moves the mobile
home to protect it from a covered peril, the policy will pay up to - ANSWER
✔ $500
16.The insured purchased a $200K extra expense policy. If the applied
percentages are 40, 80, 100, what would be the maximum payable for 47
days. - ANSWER ✔ $160K: extra expenses is written with a minimum of 3
applicable percentage that apply to the limit of insurance to the declaration.
When the period of restoration is 30 days or less, the first percentage apply
17.Which of the following would not be considered a flood? - ANSWER ✔
Sewer backup
18.Who would participate in a Write Your Own (WYO) flood insurance
program? - ANSWER ✔ Private insurances that wish to write and service
the National Flood insurance Policies
19.Which of the following is true regarding single dwellings that are insured to
at least 80% of the replacement value? - ANSWER ✔ They are
automatically provided with replacement cost coverage.
20.Insurance Producer - ANSWER ✔ Must file an applicant with the
Commissioner and declare under penalty of refusal, suspension or
revocation of the license that the statements made in the application are true.
21.Agency Contracts - ANSWER ✔ An insurance producer must not act as an
agent of an insurer unless the insurance producer becomes appointed agent
of that insurer.
STUDY GUIDE 2026/2027 COMPLETE QUESTIONS
WITH VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Pearson VUE Exam - ANSWER ✔ Pearson VUE administers the Tennessee
insurance licensing exams.
2. Licensing Requirements - ANSWER ✔ The Tennessee Department of
Commerce & Insurance requires candidates to complete a five-step process,
including pre-license education, an exam, fingerprinting, and application
submission.
3. Prelicensing Education - ANSWER ✔ While Tennessee does not mandate
prelicensing education, it's highly recommended to take a course to prepare
for the exam.
4. Types of Policies - ANSWER ✔ Covers various insurance policies,
including homeowners, auto, commercial property, and liability insurance.
5. Bonds - ANSWER ✔ Includes surety bonds, fidelity bonds, and other
financial guarantees used in insurance.
,6. Underwriting - ANSWER ✔ The process of evaluating risk and determining
the appropriate premium for insurance coverage.
7. Risk Assessment - ANSWER ✔ The process of identifying and analyzing
potential issues that could negatively impact key business initiatives or
projects.
8. Indemnity - ANSWER ✔ A principle in insurance that ensures a
policyholder is compensated for a loss, putting them back in the financial
position they were in before the loss occurred.
9. Exclusions - ANSWER ✔ Specific conditions or circumstances for which
the insurance policy does not provide coverage.
10.The standard coinsurance clause provides that property must be insured for a
specific percentage- usually 80% of its:
A. actual cash value
B. replacement cost
C. depreciation value
D. outstanding loan amount - ANSWER ✔ replacement cost
11.Which of the following terms specifies the rights and duties of the
mortgagee under the policy?
A. the loss payable clause
B. the standard mortgage clause
C. the no benefit to bailee clause
, D. the vacancy or unoccupancy clause - ANSWER ✔ standard mortgage
clause
12.A financial loss resulting directly from a loss to property, such as a house
fire or a diamond ring being stolen is called:
A. direct loss
B. indirect loss
C. consequential loss
D, expense loss - ANSWER ✔ direct loss
13.An insured owns a $200,000 home and insures it for $100,000. If the
insured's home was completely destroyed by a fire, how much money would
the insurance company pay if the insured has a policy that requires a
minimum of 80% coverage?
A. $100,000
B $125,00
C 160,000
D. $200,000 - ANSWER ✔ $100,000
14.Which peril policy insures a property against all perils specifically listed in
the policy?
A. named peril policy
B. specific peril policy
C. open peril policy
D. listed peril policy - ANSWER ✔ named peril policy
, 15.IF an insured covered under a mobile Homeowners Policy moves the mobile
home to protect it from a covered peril, the policy will pay up to - ANSWER
✔ $500
16.The insured purchased a $200K extra expense policy. If the applied
percentages are 40, 80, 100, what would be the maximum payable for 47
days. - ANSWER ✔ $160K: extra expenses is written with a minimum of 3
applicable percentage that apply to the limit of insurance to the declaration.
When the period of restoration is 30 days or less, the first percentage apply
17.Which of the following would not be considered a flood? - ANSWER ✔
Sewer backup
18.Who would participate in a Write Your Own (WYO) flood insurance
program? - ANSWER ✔ Private insurances that wish to write and service
the National Flood insurance Policies
19.Which of the following is true regarding single dwellings that are insured to
at least 80% of the replacement value? - ANSWER ✔ They are
automatically provided with replacement cost coverage.
20.Insurance Producer - ANSWER ✔ Must file an applicant with the
Commissioner and declare under penalty of refusal, suspension or
revocation of the license that the statements made in the application are true.
21.Agency Contracts - ANSWER ✔ An insurance producer must not act as an
agent of an insurer unless the insurance producer becomes appointed agent
of that insurer.
