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 17 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 986 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.

The implied warranty of seaworthiness in ocean marine requires that:

  1. The cargo be insured separately
  2. The voyage be the shortest possible unless an exception clearly applies for the coverage that is in force
  3. The vessel be reasonably fit for the intended voyage and properly crewed and equipped ✓
  4. The vessel be the newest model

Why: Seaworthiness is an implied warranty that the vessel is reasonably fit, properly equipped, and adequately crewed to undertake the intended voyage.

An insured runs a small in-home daycare for several children. The appropriate way to address the liability and incidental property exposure is the:

  1. Mortgage clause
  2. Home Day Care / business pursuits-type endorsement ✓
  3. Inflation guard endorsement under the policy's terms
  4. Personal Injury endorsement

Why: A home day care endorsement (a form of permitted incidental occupancy/business endorsement) addresses the liability and limited property exposure of running a daycare from the home.

After a total fire loss, it is found the insured paid premium on value above the property's actual value. Under T.C.A. § 56-7-802, the insured is entitled to:

  1. Keep the extra coverage as a credit toward the next renewal
  2. Nothing at all, since premium once earned is never returned to anyone
  3. A refund only of the current policy term's excess premium
  4. Reimbursement of the proportionate excess premium, with interest ✓

Why: T.C.A. § 56-7-802 reimburses the proportionate excess premium with interest when premium was paid above actual value — therefore that reimbursement is correct.

Show more sample questions with answers & explanations

Under PAP Part A, which of the following is an "insured" while using a non-owned auto?

  1. The named insured and family members for any auto, and others only for the covered auto ✓
  2. Any person operating the named insured's vehicle for a fee in that particular circumstance
  3. Only the registered owner of the non-owned auto
  4. Anyone in the world driving any vehicle

Why: For Part A, the named insured and family members are insureds for the ownership/use of any auto, while other persons are insureds only for use of the named insured's covered auto.

Under T.C.A. § 56-12-107, on a non-workers'-compensation covered claim, the association's obligation is limited to the amount that is:

  1. Above $500 and less than fifty thousand dollars ($50,000)
  2. Above $250 and less than three hundred thousand ($300,000)
  3. Above $100 and less than one hundred thousand ($100,000) ✓
  4. Above $100 and less than five hundred thousand ($500,000)

Why: T.C.A. § 56-12-107(a)(1)(A) limits the obligation to the amount in excess of $100 and less than $100,000 — therefore that band is correct.

Under T.C.A. § 50-6-118, which agency establishes and collects workers' compensation penalties by rule?

  1. The state department of commerce and insurance
  2. The bureau of workers' compensation ✓
  3. The intermediate state court of appeals
  4. The county trustee's collection office

Why: T.C.A. § 50-6-118(a) directs the bureau of workers' compensation to establish and collect the penalties by rule — therefore the bureau of workers' compensation.

An insurer knowingly accepts a late premium payment without objection on several occasions, then later tries to deny a claim because a payment was late. The insurer is most likely prevented from doing so by:

  1. Waiver and estoppel ✓
  2. Insurable interest
  3. Indemnity
  4. Subrogation

Why: By repeatedly accepting late payments (waiver), the insurer may be estopped from later denying coverage based on the very right it gave up.

Under the FCRA, an investigative consumer report differs from an ordinary consumer report because it includes:

  1. Only the consumer's credit score unless an exception clearly applies for the coverage that is in force according to the insurer's rules
  2. Information about a consumer's character, reputation, and lifestyle obtained through interviews with associates or neighbors ✓
  3. Only public criminal records
  4. Only flood zone determinations

Why: An investigative consumer report gathers information on a consumer's character, general reputation, and mode of living through personal interviews, triggering additional notice requirements.

Under T.C.A. § 55-12-104, within how many days after an accident must the required written report be filed with the commissioner?

  1. Twenty (20) days ✓
  2. Fifteen (15) days
  3. Ten (10) days
  4. Thirty (30) days

Why: T.C.A. § 55-12-104(a)(1) requires the operator (or owner) to report the matter in writing to the commissioner within twenty (20) days after the occurrence of the accident — therefore 20 days is correct.

Which of the following best states the purpose of the deductible in Section I of a Homeowners policy?

  1. To pay the mortgagee unless an exception clearly applies for the coverage that is in force according to the insurer's rules
  2. To increase coverage
  3. To cover liability
  4. To eliminate small claims and reduce premium by having the insured retain part of each loss ✓

Why: The Section I property deductible has the insured retain a portion of each loss, discouraging small claims and lowering premium; it does not apply to Section II liability.

Under T.C.A. § 56-6-107, the "personal lines" authority covers property and casualty insurance sold to whom?

  1. Small businesses for their commercial operating exposures
  2. Public entities for governmental liability exposures
  3. Individuals and families for primarily noncommercial purposes ✓
  4. Associations providing group coverage to their members

Why: T.C.A. § 56-6-107(a)(6) defines personal lines as property and casualty coverage sold to individuals and families for primarily noncommercial purposes.

The characteristic of an insurance contract under which the dollar amounts exchanged by the parties may be unequal is called:

  1. Conditional
  2. Aleatory ✓
  3. Personal
  4. Unilateral

Why: An aleatory contract involves an exchange of unequal amounts; the insured pays a small premium and may collect a large benefit, or nothing at all.

An insured is in a collision that is never adjudicated to be his fault. Under T.C.A. § 56-7-1302, the insurer may?

  1. Cancel immediately for any accident
  2. Cancel only after three such crashes
  3. Not cancel solely for that collision ✓
  4. Cancel but must refund all premium

Why: T.C.A. § 56-7-1302(c) bars cancellation solely because the driver was in a collision not adjudicated to be his fault — therefore it may not cancel solely for that collision.

Under T.C.A. § 56-6-112(g), penalties the commissioner orders against a producer may not exceed what aggregate amount?

  1. Twenty-five thousand dollars ($25,000)
  2. Two hundred fifty thousand dollars ($250,000)
  3. Fifty thousand dollars ($50,000)
  4. One hundred thousand dollars ($100,000) ✓

Why: T.C.A. § 56-6-112(g)(2) caps penalties at an aggregate of one hundred thousand dollars ($100,000), with each day of continued violation a separate violation.

Under T.C.A. § 56-7-1201, uninsured or underinsured motorist coverage need NOT be provided by?

  1. An excess or umbrella policy ✓
  2. A standard private passenger auto policy
  3. A renewal of an existing auto policy
  4. A commercial fleet automobile policy

Why: T.C.A. § 56-7-1201(a)(3) provides that no UM/UIM coverage need be provided by an excess or umbrella policy — therefore an excess or umbrella policy.

Under T.C.A. § 56-7-801, the required post-issuance inspection of a fire risk chiefly serves to:

  1. Confirm the coverage does not exceed the property's fair value ✓
  2. Set the premium rate the company may charge the insured
  3. Determine which perils the fire policy will exclude later
  4. Verify the producer's license is active for the fire line

Why: T.C.A. § 56-7-801 ties the inspection to the ban on insuring above fair value — therefore confirming coverage stays within fair value is the purpose.

Under T.C.A. § 56-7-802, limiting a total-loss recovery to 'actual value at the time of the loss' means the insurer:

  1. Must always pay the full face amount named in the policy
  2. Pays replacement cost with no deduction for depreciation
  3. May deny the claim if any over-insurance is discovered
  4. Owes no more than the property's actual value when it burned ✓

Why: T.C.A. § 56-7-802 limits recovery on a total loss to the actual value at the time of the loss — therefore the insurer owes no more than that value.

The difference between cancellation and nonrenewal is that nonrenewal:

  1. Returns all premium
  2. Requires a court order unless an exception clearly applies for the coverage that is in force
  3. Ends coverage mid-term
  4. Lets the current policy run to expiration but does not continue it for a new term ✓

Why: Cancellation terminates a policy during its term, while nonrenewal allows the current term to expire and declines to issue a new term.

Under T.C.A. § 56-6-112, a business entity's license may be suspended or revoked when an individual licensee's violation was what?

  1. Known or should have been known and not reported or cured ✓
  2. Committed before the entity obtained its producer license
  3. Discovered by the commissioner during a routine audit
  4. Reported promptly to the commissioner by a managing partner

Why: T.C.A. § 56-6-112(d) allows suspension or revocation of a business entity license where a partner, officer or manager knew or should have known of the violation and it was neither reported nor cured.

Many WC laws include a 'retroactive' provision tied to the waiting period. This means that if a disability lasts beyond a specified time, the worker:

  1. Receives only medical benefits
  2. Loses all benefits for the waiting period for the coverage that is in force
  3. Must reapply for benefits
  4. Is paid benefits back to the date of injury, including the waiting period ✓

Why: Under a retroactive provision, if the disability continues beyond a set number of days, the worker is paid wage benefits retroactively, including for the initial waiting period.

How does a standard commercial property deductible typically apply?

  1. It does not apply to building losses unless an exception clearly applies
  2. Per item with no aggregate
  3. Per occurrence, subtracted from the loss after coinsurance is applied ✓
  4. Per peril, doubling for theft

Why: The deductible applies per occurrence and is subtracted from the loss amount after any coinsurance adjustment is made.

In a monopolistic state fund jurisdiction, employers must generally obtain workers' compensation coverage from:

  1. A federal program
  2. Any private insurer licensed in the state
  3. An out-of-state surplus lines insurer
  4. The state-operated fund only ✓

Why: In monopolistic fund states, the state fund is the sole source of WC coverage and private insurers may not write it; employers must buy from the state fund.

Under T.C.A. § 56-6-117, after notifying the commissioner, within what time must the insurer mail a copy of the notification to the producer?

  1. Within fifteen (15) days of making the notification ✓
  2. Within thirty (30) days of making the notification
  3. Within five (5) days of making the notification
  4. Within sixty (60) days of making the notification

Why: T.C.A. § 56-6-117(e)(1) requires the insurer to mail a copy of the notification to the producer within fifteen (15) days after making it.

Under T.C.A. § 56-7-802, the interest on excess premium refunded after a total fire loss runs from:

  1. The date the total loss to the building occurred
  2. The date the insured first reported the fire loss
  3. The date of issue of the fire insurance policy ✓
  4. The date the company completed its inspection

Why: T.C.A. § 56-7-802 runs interest on the refunded excess premium from the date of issue — therefore the date of issue is correct.

Under TRIA, the federal government's share of insured terrorism losses applies only after the insurer pays:

  1. The full loss with no federal help unless an exception clearly applies for the coverage that is in force
  2. Nothing
  3. A flat $1,000
  4. An insurer deductible based on a percentage of its prior-year premiums ✓

Why: Under TRIA, each insurer retains a deductible (a percentage of its prior-year direct earned premium) before the federal government shares in the remaining certified losses.

Under T.C.A. § 56-6-125, it is an unfair trade practice for a producer who is engaged only in selling insurance to:

  1. Hold out to the public as a financial planner or adviser ✓
  2. Recommend a policy that suits the client's insurance needs
  3. Disclose the commission earned before the client signs on
  4. Retain a signed fee agreement three years after servicing

Why: T.C.A. § 56-6-125(a)(1) forbids holding out as a financial planner or adviser when only selling insurance — therefore holding out is the violation.

A bookkeeper embezzles $50,000 from her employer over two years. Which form responds?

  1. Liquor liability
  2. A fidelity bond / employee dishonesty coverage ✓
  3. A performance bond in that particular circumstance
  4. CGL Coverage A

Why: Employee theft of employer funds is covered by a fidelity bond/employee dishonesty coverage, not the CGL.

Under T.C.A. § 56-12-107, a member insurer may not be assessed in any year on any account more than what share of its net direct written premiums for the preceding year?

  1. One percent (1%) of the net direct written premiums
  2. Two percent (2%) of the net direct written premiums ✓
  3. Five percent (5%) of the net direct written premiums
  4. Ten percent (10%) of the net direct written premiums

Why: T.C.A. § 56-12-107(a)(3) caps the annual assessment at two percent of the member insurer's net direct written premiums — therefore two percent is correct.

Under T.C.A. § 56-6-107, which line of authority covers direct or consequential loss or damage to property of every kind?

  1. Property ✓
  2. Casualty
  3. Personal lines
  4. Credit

Why: T.C.A. § 56-6-107(a)(3) defines the property line as coverage for the direct or consequential loss or damage to property of every kind.

Under the exclusive remedy doctrine, what does an employee generally give up in exchange for statutory workers' compensation benefits?

  1. The right to return to the same job after recovery
  2. The right to receive medical care for the injury
  3. The right to receive any wage-replacement benefits
  4. The right to sue the employer in tort for the work-related injury ✓

Why: The exclusive remedy doctrine means workers' compensation is the employee's sole remedy against the employer; the employee gives up the right to sue the employer in tort in exchange for guaranteed no-fault benefits.