TN Property and Casualty Exam
Questions and Answers (Solved Papers)
Insurance - Correct Answers ✅Social device used for
transferring risk from individuals or business to an insurance
company
Law of Large Numbers - Correct Answers ✅The larger the
group the less uncertainty
Insurable Interest - Correct Answers ✅must have a
legitimate interest in the property/subject that is to be
insured
risk - Correct Answers ✅Uncertainty or chance of possible
loss
Property risk are called - Correct Answers ✅perils
Casualty risk are called - Correct Answers ✅Liability and
Accident Losses
What kind of risk are insurable - Correct Answers ✅Pure
risk
What are speculative risk? - Correct Answers ✅provide the
chance of a gain and are NOT insurable. Example: gambing
,TN Property and Casualty Exam
Questions and Answers (Solved Papers)
Hazard - Correct Answers ✅Anything that would increase
the likelihood that a loss might occur or increase the
seriousness of the loss
What are the three types of Hazards - Correct Answers ✅1)
Physical
2)Moral
3)Morale
Physical Hazard - Correct Answers ✅Structural, material or
proximity to
Moral Hazard - Correct Answers ✅Has to do with the
insureds habits (dishonest)
Morale Hazards - Correct Answers ✅The insureds
carelessness
Peril - Correct Answers ✅Cause of a possible loss
What are examples of a peril - Correct Answers ✅Flood
Fire
Accident
Explosion
,TN Property and Casualty Exam
Questions and Answers (Solved Papers)
Loss - Correct Answers ✅Decrease in value, Property,
quality of life or liability owed
What are the two types of losses - Correct Answers
✅Direct
indirect
Direct Loss - Correct Answers ✅Actual Physical damage to
the property
Indirect loss- - Correct Answers ✅Loss resulting from a
peril but not directly
Actual Cash Value (ACV) - Correct Answers ✅Replacement
cost (cost new)-less depreciation
Replacement Cost - Correct Answers ✅Cost new ( no
deduction for deprication)
Market Value - Correct Answers ✅What it can be sold for at
the time of loss
Stated Value - Correct Answers ✅Value that meets
coinsurance value
, TN Property and Casualty Exam
Questions and Answers (Solved Papers)
Salvage value - Correct Answers ✅Insurer takes damaged
property after payment for a total loss and sells it to reduce
their loss
Proximate Clause - Correct Answers ✅Resulting cause of
loss or damage. The unbroken chain of cause and edict
between the occurrence of an insured peril or a negligent act
resulting in injury or damage
Decuctible - Correct Answers ✅The dollar amount that
must be paid by the insured before any benefits are payable
by the insurer.
Standard Deductible for Homeowners - Correct Answers
✅$250
Standard Deductible for commercial Property - Correct
Answers ✅$250
What are the 4 reasons for a deductible - Correct Answers
✅1) To keep premiums affordable and reduce small claims
2) To increase profits of company
3) To make premiums excessive
4) increase the number insured
Questions and Answers (Solved Papers)
Insurance - Correct Answers ✅Social device used for
transferring risk from individuals or business to an insurance
company
Law of Large Numbers - Correct Answers ✅The larger the
group the less uncertainty
Insurable Interest - Correct Answers ✅must have a
legitimate interest in the property/subject that is to be
insured
risk - Correct Answers ✅Uncertainty or chance of possible
loss
Property risk are called - Correct Answers ✅perils
Casualty risk are called - Correct Answers ✅Liability and
Accident Losses
What kind of risk are insurable - Correct Answers ✅Pure
risk
What are speculative risk? - Correct Answers ✅provide the
chance of a gain and are NOT insurable. Example: gambing
,TN Property and Casualty Exam
Questions and Answers (Solved Papers)
Hazard - Correct Answers ✅Anything that would increase
the likelihood that a loss might occur or increase the
seriousness of the loss
What are the three types of Hazards - Correct Answers ✅1)
Physical
2)Moral
3)Morale
Physical Hazard - Correct Answers ✅Structural, material or
proximity to
Moral Hazard - Correct Answers ✅Has to do with the
insureds habits (dishonest)
Morale Hazards - Correct Answers ✅The insureds
carelessness
Peril - Correct Answers ✅Cause of a possible loss
What are examples of a peril - Correct Answers ✅Flood
Fire
Accident
Explosion
,TN Property and Casualty Exam
Questions and Answers (Solved Papers)
Loss - Correct Answers ✅Decrease in value, Property,
quality of life or liability owed
What are the two types of losses - Correct Answers
✅Direct
indirect
Direct Loss - Correct Answers ✅Actual Physical damage to
the property
Indirect loss- - Correct Answers ✅Loss resulting from a
peril but not directly
Actual Cash Value (ACV) - Correct Answers ✅Replacement
cost (cost new)-less depreciation
Replacement Cost - Correct Answers ✅Cost new ( no
deduction for deprication)
Market Value - Correct Answers ✅What it can be sold for at
the time of loss
Stated Value - Correct Answers ✅Value that meets
coinsurance value
, TN Property and Casualty Exam
Questions and Answers (Solved Papers)
Salvage value - Correct Answers ✅Insurer takes damaged
property after payment for a total loss and sells it to reduce
their loss
Proximate Clause - Correct Answers ✅Resulting cause of
loss or damage. The unbroken chain of cause and edict
between the occurrence of an insured peril or a negligent act
resulting in injury or damage
Decuctible - Correct Answers ✅The dollar amount that
must be paid by the insured before any benefits are payable
by the insurer.
Standard Deductible for Homeowners - Correct Answers
✅$250
Standard Deductible for commercial Property - Correct
Answers ✅$250
What are the 4 reasons for a deductible - Correct Answers
✅1) To keep premiums affordable and reduce small claims
2) To increase profits of company
3) To make premiums excessive
4) increase the number insured
