Tennessee Casualty Insurance Laws Quiz

What is the primary coverage amount required for TNC drivers in Phase 3?

• $1 million

• $2 million

• $750,000

• $500,000

Answer explanation

The primary coverage amount required for TNC drivers in Phase 3 is $1 million. This amount ensures adequate protection for drivers and passengers during rides.

What is a valid reason for canceling an automobile insurance policy after 60 days?

• The insured changes address

• The insured buys a new car

• The insured requests a policy change

• Nonpayment of premium

Answer explanation

Nonpayment of premium is a valid reason for canceling an automobile insurance policy after 60 days, as it directly affects the insurer's ability to provide coverage.

What is the minimum primary coverage required for TNC drivers in Phase 1?

• 1 million

• 100/300/50

• 50/100/25

• 25/50/25

Answer explanation

The minimum primary coverage required for TNC drivers in Phase 1 is 50/100/25, which means $50,000 for injury per person, $100,000 for total injury per accident, and $25,000 for property damage.

Under what condition can a guaranteed renewable policy be canceled?

• If the insured files a claim

• If the insured does not pay premiums on time

• If the insured moves to another state

• If the insured changes vehicles

Answer explanation

A guaranteed renewable policy can only be canceled if the insured does not pay premiums on time. Filing a claim, moving, or changing vehicles does not affect the policy's renewal guarantee.

What is the consequence of failing to comply with a request for loss runs?

• A warning letter

• Regulatory enforcement as an unfair trade practice

• A fine of $500

• No consequence

Answer explanation

Failing to comply with a request for loss runs can lead to regulatory enforcement as an unfair trade practice, highlighting the importance of adhering to such requests to avoid legal repercussions.

What is required of all construction employers in Tennessee regarding workers' compensation?

• They must carry workers' compensation insurance only if they have more than 5 employees

• They must carry workers' compensation insurance regardless of employee count

• They are exempt from carrying workers' compensation insurance

• They must carry workers' compensation insurance only if they have more than 10 employees

Answer explanation

In Tennessee, all construction employers are required to carry workers' compensation insurance regardless of the number of employees they have. This ensures coverage for workplace injuries for all workers.

What is the minimum liability limit for an SR-22 in Tennessee?

• 100/300/100

• 15/30/10

• 25/50/25

• 50/100/50

Answer explanation

In Tennessee, the minimum liability limit for an SR-22 is 25/50/25. This means $25,000 for injury per person, $50,000 for total injury per accident, and $25,000 for property damage.

What happens if a one-person roofing company fails to purchase workers' compensation insurance?

• The company receives a warning but no penalties

• The company can continue operations without insurance

• The company is exempt from penalties

• The company is fined and ordered to secure coverage

Answer explanation

If a one-person roofing company fails to purchase workers' compensation insurance, it will be fined and ordered to secure coverage. This ensures that workers are protected and the company complies with legal requirements.

What must a commercial lines insurer provide upon request?

• A copy of the policyholder's loss run history for up to the prior three years

• A copy of the policyholder's driving record

• A summary of all claims filed in the past year

• A list of all policyholders

Answer explanation

A commercial lines insurer must provide a copy of the policyholder's loss run history for up to the prior three years upon request, as it is essential for assessing risk and claims history.

What is an SR-22?

• An insurance policy

• A certificate of future financial responsibility

• A type of vehicle registration

• A driver's license endorsement

Answer explanation

An SR-22 is not an insurance policy but a certificate of future financial responsibility required by some states for high-risk drivers to prove they have the necessary insurance coverage.