Free Property Insurance Basics Practice Questions
Tennessee Property exam — 127 practice questions.
Subtopics: Fire insurance inspection, Fair value, Total loss by fire, Overinsurance refund, Value presumed reasonable, Personal risk definition, Commercial risk definition, Personal risk nonrenewal, Nonrenewal reason request, Nonrenewal immunity, Personal risk rate filing, Deemed approval, Filing extension, Insurable interest, Actual cash value, Replacement cost, Agreed value, Functional replacement cost, Direct vs indirect loss, Coinsurance purpose, Coinsurance calculation, Deductible, Declarations, Insuring agreement, Exclusions, Conditions, First named insured, Duties after loss, Subrogation condition, Liberalization, Other insurance pro rata, Blanket insurance, Loss payable clause, Construction class, Rate components, Underwriting purpose, Valued policy, Market value, Cancellation short rate, Policy territory, Assignment property, No benefit to bailee, Claim settlement options, Pair and set clause, Vacancy, Specific insurance, Terrorism program, Indirect loss time element, Hazard reduction underwriting, Named perils form, Open perils form, Burden of proof, Proximate cause, Concurrent causation, Anti-concurrent causation clause, Pro rata cancellation, Flat cancellation, Nonrenewal notice, Policy period, Salvage rights, No abandonment clause, Appraisal provision, Proof of loss, Notice of loss, Depreciation, Recoverable depreciation, Percentage deductible, Period of restoration, Business income waiting period, Contribution by equal shares, Excess other insurance, Margin clause, Waiver of subrogation, Mysterious disappearance, Inherent vice exclusion, Wear and tear exclusion, Earth movement exclusion, Flood exclusion, Ensuing loss, Ordinance or law exclusion, Sue and labor, Ingress and egress, Reinstatement of limit, Coverage extension, Stated amount, Actual cash value calculation, Deductible application, Coinsurance - adequate insurance, Coinsurance with deductible, Coinsurance - limit cap, Coinsurance - value at time of loss, Coinsurance - who bears shortfall, ACV calculation - contents, Pro rata other insurance calc, Pro rata return premium calc, Pair and set calc, Proximate cause example, Direct loss example, Endorsements, Definitions section, Limits - sublimits, Mortgagee - proof of loss, Mortgagee - premium, Mortgagee - cancellation notice, Subrogation example, Appraisal procedure, Appraisal costs, Proof of loss timing, Suit against insurer, Burglary definition, Robbery definition, Theft definition, Water damage vs flood, Valued policy law, Liberalization timing, Occurrence, Named insured, Salvage value, Unearned premium, Settlement of claims - deductible, Additional coverages vs extensions, Policy conditions - concealment, Valuation
Read the Property Insurance Basics study guide
Sample questions & answers
1. After writing fire insurance on a building in Tennessee, the insurer must have the building inspected within:
90 days
Within ninety days after a fire insurance contract is written on a building or structure in Tennessee, the insurer, its designee or agent must cause it to be inspected.
2. Tennessee prohibits an insurer or producer from knowingly writing or renewing fire insurance on property when the total insurance would:
Exceed the fair value of the property
No insurer or producer may knowingly issue, negotiate, continue or renew fire insurance that, with existing insurance, exceeds the fair value of the property.
3. When an insured building in Tennessee is totally destroyed by fire, the insurer's liability is limited to:
The actual value of the property at the time of loss
For buildings totally destroyed by fire, the insurer is liable only for the actual value at the time of loss, and excess premiums are refunded.
4. If a Tennessee insured paid fire premiums on an amount above the building's actual value and the building is totally destroyed, the insured is entitled to:
A refund of the excess premium with 6 percent annual interest
The insured recovers the proportionate excess premium, with interest at six percent per year from the date of issue, from the insurers that carried the coverage.
Practice: Property Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
