Tennessee Property and Casualty Insurance State
Revision Questions 2025/2026 Update!!! (100%
Success Rate)
the one basic characteristic of any type of insurance is that the insured is returned to the same status
that existed prior to the loss, but without a chance for gain or profit - true
which of the following coverages does an open peril policy provide? - perils other than those
specifically named as being excluded
determine the actual cash value in the following situation: original price of office equipment when
purchased 8 years ago- 9,000. depreciated amount at time of fire-5,000 current replacement cost
12,000 - 7,000
liquor liability - need for a dram shot, liquor, or package store
inherent vice or defect - iron rusting, milk going sour, rubber breaking down are all inherent vices
how is hitting an animal on the road covered? - other than collision otc
medicare supplement insurance - aka medical gap insurance. must include core benefits
ordinance or law - an endorsement for building code upgrades
loss sustained/discovery forms under crime coverage - loss is for later than the policy period.
discovery is for before the policy (loss is later, discovery before)
designated brush fire or civil unrest areas - qualifying areas under the fair plan
stop loss provision - used in health insurance to limit the maximum amount of money the insured
would have to pay out of pocket on a health claim in any particular claim
shortages of inventory - under crime insurance the employee dishonesty endorsement never covers
, can the mortgagee still collect if the insured burns their house down - yes, the mortgage clause is a
standard provision
otc covers - earthquake, flood, hail, theft, hitting an animal, gunshots (no collision or upset)
law of large numbers - the greater the number of insured the more accurately the prediction
where does a driver have coverage? - U.S. Canada and US possessions eg puerto rico, guam
what is excluded under commercial general liability? - pollution-with the exception of fuel spilled
during normal operations. Pollution is normally covered under cpp or builders risk
what is the midi-tail on claims made? - provides 5 years coverage for something reported during
minitail
speculative risk - chance for loss or gain
commercial package - modular policy
Binder - a temp insuring contract (written or oral)
Hazard - anything that increases a chance for loss
OTC - anything causing loss or damage to the car, except collision
you have liability only and borrow a car and collide with another. which pays? - the borrowed cars
insurance is primary
basic broad special: which has the broadest coverage? - special
gap insurance - pays the difference between the amount an insurer pays on a totaled car and the
amount owed on the loan or lease
Revision Questions 2025/2026 Update!!! (100%
Success Rate)
the one basic characteristic of any type of insurance is that the insured is returned to the same status
that existed prior to the loss, but without a chance for gain or profit - true
which of the following coverages does an open peril policy provide? - perils other than those
specifically named as being excluded
determine the actual cash value in the following situation: original price of office equipment when
purchased 8 years ago- 9,000. depreciated amount at time of fire-5,000 current replacement cost
12,000 - 7,000
liquor liability - need for a dram shot, liquor, or package store
inherent vice or defect - iron rusting, milk going sour, rubber breaking down are all inherent vices
how is hitting an animal on the road covered? - other than collision otc
medicare supplement insurance - aka medical gap insurance. must include core benefits
ordinance or law - an endorsement for building code upgrades
loss sustained/discovery forms under crime coverage - loss is for later than the policy period.
discovery is for before the policy (loss is later, discovery before)
designated brush fire or civil unrest areas - qualifying areas under the fair plan
stop loss provision - used in health insurance to limit the maximum amount of money the insured
would have to pay out of pocket on a health claim in any particular claim
shortages of inventory - under crime insurance the employee dishonesty endorsement never covers
, can the mortgagee still collect if the insured burns their house down - yes, the mortgage clause is a
standard provision
otc covers - earthquake, flood, hail, theft, hitting an animal, gunshots (no collision or upset)
law of large numbers - the greater the number of insured the more accurately the prediction
where does a driver have coverage? - U.S. Canada and US possessions eg puerto rico, guam
what is excluded under commercial general liability? - pollution-with the exception of fuel spilled
during normal operations. Pollution is normally covered under cpp or builders risk
what is the midi-tail on claims made? - provides 5 years coverage for something reported during
minitail
speculative risk - chance for loss or gain
commercial package - modular policy
Binder - a temp insuring contract (written or oral)
Hazard - anything that increases a chance for loss
OTC - anything causing loss or damage to the car, except collision
you have liability only and borrow a car and collide with another. which pays? - the borrowed cars
insurance is primary
basic broad special: which has the broadest coverage? - special
gap insurance - pays the difference between the amount an insurer pays on a totaled car and the
amount owed on the loan or lease
