TN Property and Casualty Exam
COMPLETE EXAM Questions and
Answers 100% Verified Answers
Latest Updated 2025/2026
Insurance - ansSocial device used for transferring risk from individuals or business to an
insurance company
Law of Large Numbers - ansThe larger the group the less uncertainty
Insurable Interest - ansmust have a legitimate interest in the property/subject that is to be
insured
risk - ansUncertainty or chance of possible loss
Property risk are called - ansperils
Casualty risk are called - ansLiability and Accident Losses
What kind of risk are insurable - ansPure risk
What are speculative risk? - ansprovide the chance of a gain and are NOT insurable.
Example: gambing
Hazard - ansAnything that would increase the likelihood that a loss might occur or increase
the seriousness of the loss
What are the three types of Hazards - ans1) Physical
2)Moral
3)Morale
Physical Hazard - ansStructural, material or proximity to
Moral Hazard - ansHas to do with the insureds habits (dishonest)
Morale Hazards - ansThe insureds carelessness
Peril - ansCause of a possible loss
What are examples of a peril - ansFlood
Fire
Accident
Explosion
Loss - ansDecrease in value, Property, quality of life or liability owed
What are the two types of losses - ansDirect
indirect
Direct Loss - ansActual Physical damage to the property
Indirect loss- - ansLoss resulting from a peril but not directly
Actual Cash Value (ACV) - ansReplacement cost (cost new)-less depreciation
Replacement Cost - ansCost new ( no deduction for deprication)
Market Value - ansWhat it can be sold for at the time of loss
Stated Value - ansValue that meets coinsurance value
Salvage value - ansInsurer takes damaged property after payment for a total loss and sells it
to reduce their loss
Proximate Clause - ansResulting 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 - ansThe dollar amount that must be paid by the insured before any benefits are
payable by the insurer.
Standard Deductible for Homeowners - ans$250
,TN Property and Casualty Exam
COMPLETE EXAM Questions and
Answers 100% Verified Answers
Latest Updated 2025/2026
Standard Deductible for commercial Property - ans$250
What are the 4 reasons for a deductible - ans1) To keep premiums affordable and reduce
small claims
2) To increase profits of company
3) To make premiums excessive
4) increase the number insured
indemnity - ansRestores the insured to the position enjoyed prior to a loss
Limits of Liability - ansThe maximum the insurer will pay on a claim
Coinsurance - ansOffers the insured a reduced rate if they keep a certain amount of insurance
What is the minimum amount an insured must carry? - ans80%
How is a insured paid? - ansInsurance carried/insurance required x Amount of loss= The
amount the insurer will pay - Deductible
Pair and Set Clause - ansWhen insured the items are worth more as a set, if an item of the set
is damaged or destroyed the insurance company has the option of finding a replacement,
repairing the item or paying the difference difference in the value of the set before and after
the loss
Extensions of coverage: - ansNo charge to the insured (11 total)
Removal Coverage dp - ansproperty moved fringe premises to protect it from a covered peril.
5 days-basic
30 days Broad/special
*direct loss to the moved property from any clause is covered
Other Structures dp - ansMay use up to 10% of coverage A
Basic Form- payment will reduce coverage remaining on the dwelling by the amount paid
Does not affect the broad or special
Debris Removal: dp - ansCovers all reasonable expenses for removal of debris from coverage
property
*amounts paid would be considered additional to the policy limits
Improvements, Alterations and Additions dp - ans(when insured is a tenant) May apply to
10% of coverage C limit on the basic DP form, payment would reduce the limit left
on broad/special- it would not reduce the limit
Personal Property covered anywhere in the world dp - ansWould pay up to 10% of coverage
C limit.
Payment would reduce the limits of coverage c for all forms
BASIC DP is: - ansRental Valie
What includes rental value and additional living expenses - ansBroad and Special DPS
Cost of repairs to protect property from further damage dp - ansPayment of all reasonable
cost would limit the coverage paid
How much is paid if the Fire Department is called to protect the covered property dp -
ans$500- but not paid if the property is located in the city, municipality or district furnishing
the service
no deductible applies
, TN Property and Casualty Exam
COMPLETE EXAM Questions and
Answers 100% Verified Answers
Latest Updated 2025/2026
What is covered on broad/special dp only? - ans- Trees,lawns,shrubs and plants
-Collapse of building
- Glass breakage
Trees, lawns and shrubs- - answill pay the maximum of $500 per tree shrub or plant
Will only pay up to 5% of coverage A
Collapsed Building dp - ansAll direct losses by covered perils including:
collapse from hidden insect damage, the weight of contents, rain on the roof, collapse during
construction
Glass breakage dp - ansOnly covered on broad and special DP
Additional Coverages found on homeowners policy form - ansremoval coverage
debris removal
cost of repairs to protect from further damage
Call for Fire Department
Trees, Lawns, Shrubs or plants
Collapse of Building
credit card or fund transfer
Loss of Assessment coverage
Landlords furnishing
Building Additions and Alterations ( HO-4 ONLY)
How much is paid for landlords furnishing - ans2500.00
How much is paid for loss of assessment coverage - ans$1,000.00
How much additional coverage for credit card or fund transfer - ans$500.00
Accident - ansSomething sudden and unexpected that took place that results in BI or PD
Occurrence - ansan accident. Including the continued exposure to conditions which result in
BI or PD. Unexpected and Unintended by the insured
Cancellations - ansThe termination of a policy by either the insured or the insurer.
The insurer must send their notice to the 1st named insured.
Non-Renewal - ansThe insurer has the option to refuse to renew the policy
Vacancy - ansEmpty NO contents or People
Unoccupancy - ansContents only- no people living there
Right of Salvage - ansAllows the insurer to take damage property after paying for the total
loss
Abondement - answhen the property is damaged, the insurer can not turn the property over to
the insurance and claim a total loss. The insured must take steps to keep the property from
further damage. This is when the insurer will only cover damages that occurred not from
what the insured failed to protect the property
Liability - ansany amount due from insured bc of their negligence or being held liable by
court for BI or PD to others up to their limits of the policy.
CAN NOT BE PAID TO THE INSURED
COMPLETE EXAM Questions and
Answers 100% Verified Answers
Latest Updated 2025/2026
Insurance - ansSocial device used for transferring risk from individuals or business to an
insurance company
Law of Large Numbers - ansThe larger the group the less uncertainty
Insurable Interest - ansmust have a legitimate interest in the property/subject that is to be
insured
risk - ansUncertainty or chance of possible loss
Property risk are called - ansperils
Casualty risk are called - ansLiability and Accident Losses
What kind of risk are insurable - ansPure risk
What are speculative risk? - ansprovide the chance of a gain and are NOT insurable.
Example: gambing
Hazard - ansAnything that would increase the likelihood that a loss might occur or increase
the seriousness of the loss
What are the three types of Hazards - ans1) Physical
2)Moral
3)Morale
Physical Hazard - ansStructural, material or proximity to
Moral Hazard - ansHas to do with the insureds habits (dishonest)
Morale Hazards - ansThe insureds carelessness
Peril - ansCause of a possible loss
What are examples of a peril - ansFlood
Fire
Accident
Explosion
Loss - ansDecrease in value, Property, quality of life or liability owed
What are the two types of losses - ansDirect
indirect
Direct Loss - ansActual Physical damage to the property
Indirect loss- - ansLoss resulting from a peril but not directly
Actual Cash Value (ACV) - ansReplacement cost (cost new)-less depreciation
Replacement Cost - ansCost new ( no deduction for deprication)
Market Value - ansWhat it can be sold for at the time of loss
Stated Value - ansValue that meets coinsurance value
Salvage value - ansInsurer takes damaged property after payment for a total loss and sells it
to reduce their loss
Proximate Clause - ansResulting 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 - ansThe dollar amount that must be paid by the insured before any benefits are
payable by the insurer.
Standard Deductible for Homeowners - ans$250
,TN Property and Casualty Exam
COMPLETE EXAM Questions and
Answers 100% Verified Answers
Latest Updated 2025/2026
Standard Deductible for commercial Property - ans$250
What are the 4 reasons for a deductible - ans1) To keep premiums affordable and reduce
small claims
2) To increase profits of company
3) To make premiums excessive
4) increase the number insured
indemnity - ansRestores the insured to the position enjoyed prior to a loss
Limits of Liability - ansThe maximum the insurer will pay on a claim
Coinsurance - ansOffers the insured a reduced rate if they keep a certain amount of insurance
What is the minimum amount an insured must carry? - ans80%
How is a insured paid? - ansInsurance carried/insurance required x Amount of loss= The
amount the insurer will pay - Deductible
Pair and Set Clause - ansWhen insured the items are worth more as a set, if an item of the set
is damaged or destroyed the insurance company has the option of finding a replacement,
repairing the item or paying the difference difference in the value of the set before and after
the loss
Extensions of coverage: - ansNo charge to the insured (11 total)
Removal Coverage dp - ansproperty moved fringe premises to protect it from a covered peril.
5 days-basic
30 days Broad/special
*direct loss to the moved property from any clause is covered
Other Structures dp - ansMay use up to 10% of coverage A
Basic Form- payment will reduce coverage remaining on the dwelling by the amount paid
Does not affect the broad or special
Debris Removal: dp - ansCovers all reasonable expenses for removal of debris from coverage
property
*amounts paid would be considered additional to the policy limits
Improvements, Alterations and Additions dp - ans(when insured is a tenant) May apply to
10% of coverage C limit on the basic DP form, payment would reduce the limit left
on broad/special- it would not reduce the limit
Personal Property covered anywhere in the world dp - ansWould pay up to 10% of coverage
C limit.
Payment would reduce the limits of coverage c for all forms
BASIC DP is: - ansRental Valie
What includes rental value and additional living expenses - ansBroad and Special DPS
Cost of repairs to protect property from further damage dp - ansPayment of all reasonable
cost would limit the coverage paid
How much is paid if the Fire Department is called to protect the covered property dp -
ans$500- but not paid if the property is located in the city, municipality or district furnishing
the service
no deductible applies
, TN Property and Casualty Exam
COMPLETE EXAM Questions and
Answers 100% Verified Answers
Latest Updated 2025/2026
What is covered on broad/special dp only? - ans- Trees,lawns,shrubs and plants
-Collapse of building
- Glass breakage
Trees, lawns and shrubs- - answill pay the maximum of $500 per tree shrub or plant
Will only pay up to 5% of coverage A
Collapsed Building dp - ansAll direct losses by covered perils including:
collapse from hidden insect damage, the weight of contents, rain on the roof, collapse during
construction
Glass breakage dp - ansOnly covered on broad and special DP
Additional Coverages found on homeowners policy form - ansremoval coverage
debris removal
cost of repairs to protect from further damage
Call for Fire Department
Trees, Lawns, Shrubs or plants
Collapse of Building
credit card or fund transfer
Loss of Assessment coverage
Landlords furnishing
Building Additions and Alterations ( HO-4 ONLY)
How much is paid for landlords furnishing - ans2500.00
How much is paid for loss of assessment coverage - ans$1,000.00
How much additional coverage for credit card or fund transfer - ans$500.00
Accident - ansSomething sudden and unexpected that took place that results in BI or PD
Occurrence - ansan accident. Including the continued exposure to conditions which result in
BI or PD. Unexpected and Unintended by the insured
Cancellations - ansThe termination of a policy by either the insured or the insurer.
The insurer must send their notice to the 1st named insured.
Non-Renewal - ansThe insurer has the option to refuse to renew the policy
Vacancy - ansEmpty NO contents or People
Unoccupancy - ansContents only- no people living there
Right of Salvage - ansAllows the insurer to take damage property after paying for the total
loss
Abondement - answhen the property is damaged, the insurer can not turn the property over to
the insurance and claim a total loss. The insured must take steps to keep the property from
further damage. This is when the insurer will only cover damages that occurred not from
what the insured failed to protect the property
Liability - ansany amount due from insured bc of their negligence or being held liable by
court for BI or PD to others up to their limits of the policy.
CAN NOT BE PAID TO THE INSURED
