TENNESSEE PROPERTY AND CASUALTY
TEST EXAM 2026/2027 COMPLETE STUDY
QUESTIONS WITH VERIFIED SOLUTIONS
100% TOP RATED ASSURED A+
,TENNESSEE PROPERTY AND CASUALTY TEST EXAM
2026/2027 COMPLETE STUDY QUESTIONS WITH VERIFIED
SOLUTIONS 100% TOP RATED ASSURED A+
Timothy has an antique boat, and it was recently damaged while on a fishing trip. The insurance
company agreed to repair the boat with less expensive, working materials. This is an example of
which type of claim settlement?
A. market value
B. repair cost
C. replacement cost
D. functional replacement cost - Answer>>> functional replacement cost
There are 6 classes of construction that are recognized by underwriters. The class of the building
is determined by the types of materials used in the building and:
A. the roof of the insured structure
B. the location of the insured structure
C. the flooring of the insured structure
D. the frame of the insured structure - Answer>>> the roof of the insured structure
Sometimes an individual or business has an exceptionally large or specialized risk that no
authorized insurer can or will cover. In this case, the individual or business may call
A. a surplus lines insurance company
B. an admitted insurance company
C. an independent agent
, D. a fraternal insurance company - Answer>>> a surplus lines insurance company
All of the following statements regarding the right and responsibilities of an insurer or insured
when an insurance contract is cancelled or non-renewed are true except:
A. both the insurance company and insured can cancel a contract at any time
B. when a policy is cancelled on the effective date, by either the insurer or insured, it's called a
flat cancellation
C. it is common that a policy is extended at the end of its term or policy period
D. if the insured had paid premiums in advance for future months, any unused premium
(unearned premium) must be returned to the inured upon cancellation of a policy - Answer>>>
both the insurance company and insured can cancel a contract at any time
All of the following statements about a stock company are true except:
A. stock company pays dividends to stockholders
B. stock company is a participating company
C. stock company is a nonparticipating company
D. stock company has shareholders - Answer>>> stock company is a participating company
Suzanne regularly leaves her side door unlocked when she leaves for work. One afternoon, a
thief entered her apartment and stole all of her jewelry. What was the hazard in this example?
A. the thief
B. the theft itself
C. the door being unlocked
D. the neighborhood - Answer>>> the door being unlocked
TEST EXAM 2026/2027 COMPLETE STUDY
QUESTIONS WITH VERIFIED SOLUTIONS
100% TOP RATED ASSURED A+
,TENNESSEE PROPERTY AND CASUALTY TEST EXAM
2026/2027 COMPLETE STUDY QUESTIONS WITH VERIFIED
SOLUTIONS 100% TOP RATED ASSURED A+
Timothy has an antique boat, and it was recently damaged while on a fishing trip. The insurance
company agreed to repair the boat with less expensive, working materials. This is an example of
which type of claim settlement?
A. market value
B. repair cost
C. replacement cost
D. functional replacement cost - Answer>>> functional replacement cost
There are 6 classes of construction that are recognized by underwriters. The class of the building
is determined by the types of materials used in the building and:
A. the roof of the insured structure
B. the location of the insured structure
C. the flooring of the insured structure
D. the frame of the insured structure - Answer>>> the roof of the insured structure
Sometimes an individual or business has an exceptionally large or specialized risk that no
authorized insurer can or will cover. In this case, the individual or business may call
A. a surplus lines insurance company
B. an admitted insurance company
C. an independent agent
, D. a fraternal insurance company - Answer>>> a surplus lines insurance company
All of the following statements regarding the right and responsibilities of an insurer or insured
when an insurance contract is cancelled or non-renewed are true except:
A. both the insurance company and insured can cancel a contract at any time
B. when a policy is cancelled on the effective date, by either the insurer or insured, it's called a
flat cancellation
C. it is common that a policy is extended at the end of its term or policy period
D. if the insured had paid premiums in advance for future months, any unused premium
(unearned premium) must be returned to the inured upon cancellation of a policy - Answer>>>
both the insurance company and insured can cancel a contract at any time
All of the following statements about a stock company are true except:
A. stock company pays dividends to stockholders
B. stock company is a participating company
C. stock company is a nonparticipating company
D. stock company has shareholders - Answer>>> stock company is a participating company
Suzanne regularly leaves her side door unlocked when she leaves for work. One afternoon, a
thief entered her apartment and stole all of her jewelry. What was the hazard in this example?
A. the thief
B. the theft itself
C. the door being unlocked
D. the neighborhood - Answer>>> the door being unlocked
