Evergreen Insurance Prep

Tennessee Property & Casualty Insurance License, Practice Exams

Tennessee Property and Casualty producer licensing (Pearson VUE). National P&C insurance knowledge plus Tennessee law (compulsory 25/50/25 auto financial responsibility under Title 55, uninsured-motorist coverage, the guaranty association, cancellation/nonrenewal and workers compensation under Title 50), authored from public-domain statutes.
Content last updated 15 July 2026

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Each module is scored separately here so you know exactly where you stand. To pass the real Tennessee exam you need 70% on each section.

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Unlock the full question bank

The free sample gives you about 20 questions per module. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.

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Frequently asked questions

How is the Tennessee producer licensing exam structured?

Tennessee licenses Property producers and Casualty producers through Pearson VUE, each with a national section (50 questions) and a Tennessee-specific section (18 questions), requiring 70% on each section. This bank covers the national property & casualty material plus Tennessee law - the 25/50/25 compulsory auto financial-responsibility limits and uninsured-motorist coverage, fire and property provisions, cancellation and nonrenewal rules, the guaranty association, and workers compensation under Title 50.

What score do I need to pass?

You need 70% on each section. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

Are these real exam questions?

No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the Tennessee Code Annotated (Titles 56, 55 and 50) for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full Tennessee bank contains 956 questions (general insurance plus Tennessee law), with written, source-cited explanations. The free sample gives you about 20 questions per module.

What does access cost?

$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.

Can I use it on more than one device?

Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.

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No. The practice tests run in your browser with no signup. Your score history is saved on your own device.

Sample Tennessee Property & Casualty Insurance License practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

In a life insurance contract (by contrast with property), insurable interest must exist:

  1. At the inception of the policy only ✓
  2. Never
  3. Continuously throughout the policy
  4. At the time of loss only

Why: Life insurance requires insurable interest only at policy inception, whereas property/casualty requires it at the time of loss.

When two policies cover the same loss and an 'other insurance' clause requires each to pay a share proportional to its limit, this is:

  1. Nonconcurrency
  2. Primary and excess
  3. Pro rata (proportional) sharing ✓
  4. Contribution by equal shares

Why: Pro rata sharing divides the loss among insurers in proportion to each policy's limit relative to total coverage.

A producer doing financial planning will earn a commission on an insurance product sold to the client. Under T.C.A. § 56-6-125, the producer must disclose this:

  1. Before executing the agreement or soliciting the product ✓
  2. Only after the insurance product has actually been issued
  3. Solely when the client specifically asks about commissions
  4. Within thirty days following the sale of the product line

Why: T.C.A. § 56-6-125(a)(2) requires disclosure before executing the agreement or soliciting the product — therefore disclosure must come first.

Show more sample questions with answers & explanations

Under T.C.A. § 56-6-102, an insurance producer's "home state" is the state where the producer does what?

  1. Was first issued any resident or nonresident producer license
  2. Files federal income taxes and registers a vehicle each year
  3. Maintains a principal residence or business and is licensed ✓
  4. Writes the largest share of its property and casualty premium

Why: T.C.A. § 56-6-102 defines 'home state' as the state where a producer maintains a principal place of residence or business and is licensed as a producer.

Custom furnishings or equipment installed in a pickup or van (e.g., custom murals, special carpeting) under the unendorsed PAP are:

  1. Covered automatically up to actual cash value in that particular circumstance
  2. Fully covered with no limit
  3. Generally excluded from Part D unless coverage is added by endorsement ✓
  4. Covered only under liability

Why: The PAP excludes custom furnishings or equipment in pickups and vans unless coverage is specifically added, often by endorsement.

Under the BPP, how far from the described premises is the standard coverage for business personal property in the open or in a vehicle?

  1. Anywhere in the United States
  2. Within 100 feet of the described premises ✓
  3. Within 1,000 feet
  4. Within 100 feet of the building

Why: The BPP extends coverage to covered business personal property in the open (or in a vehicle) within 100 feet of the described premises.

Under T.C.A. § 56-6-113, deferred or renewal commissions may still be paid to a person who was what at the time of the sale?

  1. A resident of Tennessee at the time of sale
  2. Appointed by the insurer at the time of sale
  3. At least eighteen years of age at the time of sale
  4. Required to be licensed and was so licensed then ✓

Why: T.C.A. § 56-6-113(c) allows renewal or deferred commissions if the person was required to be licensed at the time of the sale and was licensed at that time.

A reciprocal insurer is best described as:

  1. An insurer owned by the federal government unless an exception clearly applies for the coverage that is in force
  2. A corporation owned by stockholders
  3. An unincorporated group of subscribers who insure one another, managed by an attorney-in-fact ✓
  4. A foreign insurer writing surplus lines

Why: A reciprocal or interinsurance exchange is an unincorporated association of subscribers who exchange insurance among themselves, administered by an attorney-in-fact.

Which Causes of Loss form provides the narrowest coverage, listing named perils such as fire, lightning, windstorm, and vandalism?

  1. Broad form
  2. Open perils form
  3. Basic form ✓
  4. Special form

Why: The Basic Causes of Loss form covers a limited list of named perils and provides the narrowest protection of the three forms.

The policy period condition specifies:

  1. The deductible amount
  2. The geographic coverage area in that particular circumstance
  3. The number of insureds
  4. The dates and times during which coverage is effective ✓

Why: The policy period sets the effective and expiration dates/times defining when coverage applies.

Under T.C.A. § 56-6-110, an attorney may hold a limited lines title insurance license only when acting as a title agent in what capacity?

  1. As an appointed agent of a title insurance underwriter only
  2. As the primary business activity of the law firm
  3. As an ancillary part of the attorney's practice of law ✓
  4. As a court-appointed fiduciary for real estate closings

Why: T.C.A. § 56-6-110(6) allows title insurance as a limited line for a licensed attorney who acts as a title agent as an ancillary part of the attorney's practice of law.

Under T.C.A. § 56-7-1206, the uninsured motorist provision may NOT do which of the following?

  1. Require arbitration of any claim arising under it ✓
  2. Allow the insurer to file pleadings
  3. Permit the insured to hire counsel
  4. Let the insured file suit directly

Why: T.C.A. § 56-7-1206(c) provides the UM provision shall not require arbitration of any claim — therefore it may not require arbitration.

Under T.C.A. § 56-8-105, after proof of loss statements are completed, an insurer commits an unfair claims practice if it fails to:

  1. Offer the insured a compromise on the disputed claim value
  2. Provide a brand-new set of claim forms to the policyholder
  3. Collect the original policy from the insured before paying
  4. Affirm or deny coverage of the claim within a reasonable time ✓

Why: T.C.A. § 56-8-105(7) requires affirming or denying coverage within a reasonable time after proof of loss is completed — therefore that failure is the violation.

Which federal law would a producer most likely consult to determine whether a previously convicted individual may lawfully work in the insurance business?

  1. The CAN-SPAM Act
  2. The Fair Credit Reporting Act
  3. 18 U.S.C. §§ 1033 and 1034 ✓
  4. The Terrorism Risk Insurance Act

Why: 18 U.S.C. 1033 and 1034 govern whether persons convicted of crimes involving dishonesty may engage in the business of insurance and the penalties for violations.

Insurers require minimum 'underlying limits' for an umbrella because:

  1. Umbrellas cover first-dollar losses unless an exception clearly applies for the coverage that is in force according to the insurer's rules in that particular circumstance
  2. Drop-down is prohibited
  3. They want to increase premium
  4. The umbrella is meant to sit above primary coverage; the insured must maintain stated underlying limits or pay as though they were in force ✓

Why: Umbrellas require specified underlying limits; if the insured fails to maintain them, the umbrella pays only as if the required underlying limits existed.

Under T.C.A. § 56-12-107, to the extent of its obligation on covered claims, the association is:

  1. Deemed the insurer, with the rights and duties it would have had ✓
  2. Barred from pursuing any salvage or subrogation recoveries
  3. Liable beyond the limits stated in the insolvent insurer's policy
  4. Free of any duty owed under the insolvent insurer's contract

Why: T.C.A. § 56-12-107(a)(2) deems the association the insurer to the extent of its obligation, with the insurer's rights and duties — therefore that is correct.

Under the PAP, fire damage to the covered auto while parked in a garage is covered under:

  1. Other Than Collision (comprehensive) ✓
  2. Collision
  3. Liability
  4. It is not covered under the policy's terms

Why: Fire is a peril insured under Other Than Collision (comprehensive) coverage in Part D.

An experience modification factor (mod) below 1.00 (e.g., 0.85) indicates that an employer:

  1. Has worse-than-average loss experience and pays a debit (surcharge)
  2. Has better-than-average loss experience and receives a credit (discount) ✓
  3. Is exempt from audit
  4. Must purchase coverage from the assigned-risk pool

Why: A mod below 1.00 is a credit mod, reflecting better-than-expected losses and reducing premium; a mod above 1.00 is a debit mod that increases premium.

Which Homeowners form is the Broad Form, covering the dwelling on a named-perils (broad) basis?

  1. HO-2 ✓
  2. HO-6
  3. HO-3
  4. HO-4

Why: HO-2 is the Broad Form, insuring the dwelling and personal property on a named-perils (broad form) basis.

Under the NFIP Dwelling Form, building coverage and contents coverage:

  1. Are both automatically included at the same limit
  2. Share a single combined limit
  3. Have separate limits and must be purchased separately ✓
  4. Cannot both be purchased on one property

Why: NFIP building and contents coverages carry separate limits, and contents coverage must be purchased separately from building coverage.

Which construction type is considered the MOST resistant to fire?

  1. Ordinary
  2. Joisted masonry
  3. Fire-resistive ✓
  4. Frame

Why: Fire-resistive construction uses materials like reinforced concrete and protected steel and carries the lowest fire risk classification.

An insurer ends a producer's contract for reasons unrelated to § 56-6-112. Under T.C.A. § 56-6-117, notice to the commissioner is due within what time?

  1. Only at the next quarterly appointment filing
  2. No notice is required for a termination without cause
  3. Within ten (10) days of the effective date
  4. Within thirty (30) days of the effective date ✓

Why: T.C.A. § 56-6-117(b) requires notice within thirty (30) days even for termination without cause — the timing is the same as for-cause terminations.

A technology consultant gives faulty advice causing a client a large financial loss (no bodily injury or property damage). The proper coverage is:

  1. Liquor liability
  2. Technology/Professional E&O ✓
  3. CGL Coverage A
  4. A bid bond

Why: Pure financial loss from negligent professional advice is covered by professional E&O, not the CGL which requires BI/PD (or a covered offense).

The Homeowners Policy program differs from the Dwelling Policy primarily because it:

  1. Cannot insure personal property under the policy's terms
  2. Is a package combining property AND liability coverage ✓
  3. Covers only the structure
  4. Never includes theft

Why: Homeowners policies are package policies bundling Section I property coverages with Section II liability coverages, whereas the basic Dwelling Policy is monoline property.

The right of an insurer, after paying a claim, to recover from the party who caused the loss is:

  1. Abandonment
  2. Subrogation ✓
  3. Salvage
  4. Liberalization

Why: Subrogation transfers the insured's right of recovery against a responsible third party to the insurer after it pays the claim.

A products liability claim alleges a manufactured part injured a user three years after sale. This is covered under the CGL as:

  1. Premises and operations
  2. Damage to premises rented unless an exception clearly applies for the coverage that is in force
  3. Coverage B
  4. Products and completed operations, subject to that separate aggregate ✓

Why: Injury from a sold product is a products liability claim subject to the Products-Completed Operations Aggregate.

The RETROACTIVE DATE on a claims-made policy:

  1. Establishes the earliest date of loss for which a claim will be covered ✓
  2. Is the same as the policy expiration date
  3. Doubles the aggregate limit
  4. Extends the time to report claims after expiration under the policy's terms

Why: The retroactive date sets the earliest injury/damage date that can be covered; losses occurring before it are excluded.

An SR-22 is best described as:

  1. A vehicle title document
  2. A certificate filed with the state by the insurer verifying that an at-risk driver carries required liability coverage ✓
  3. A no-fault accident report
  4. A type of auto liability policy unless an exception clearly applies for the coverage that is in force according to the insurer's rules

Why: An SR-22 is a financial responsibility certificate the insurer files to confirm a high-risk driver maintains the state's required liability insurance.

A liable driver's insurer fails eight months after the crash. Under T.C.A. § 56-7-1203, the injured insured's UM insolvency protection?

  1. Applies, since it was within one year ✓
  2. Does not apply to any insolvency
  3. Applies only after two years pass
  4. Applies only for property damage

Why: T.C.A. § 56-7-1203 provides protection where the tortfeasor's insurer becomes insolvent within one year of the accident, and eight months qualifies — therefore it applies.

Which statement about Part Two (Employers Liability) limits and Part One is correct?

  1. Part One has no policy limit; Part Two has stated dollar limits ✓
  2. Part Two has no policy limit; Part One has stated dollar limits
  3. Neither Part has any limits
  4. Both Part One and Part Two have stated dollar limits

Why: Part One has no policy limit (the statute controls benefits), while Part Two carries stated dollar limits for the three employers liability exposures.