Tennessee Property and Casualty Exam: What's on It and How to Pass Both Lines

The Tennessee Property and Casualty licensing exams are two separate Pearson VUE exams — Property and Casualty are distinct lines of authority in Tennessee, each requiring its own exam, its own $50 application fee, and its own passing score of 70%. There is no combined P&C exam in Tennessee. A candidate who passes Property but fails Casualty holds only Property authority and must retake only the Casualty exam before applying for Casualty. Most producers pursuing commercial lines or a full personal lines practice need both — and the strategic question is whether to sit for both exams on the same day or stage them sequentially.

Both exams follow the same 77-question, 105-minute Pearson VUE format with 68 scored questions and 9 unscored pretest questions. Both test two knowledge domains: general insurance concepts for the respective line and Tennessee state laws and regulations. The state law section is identical across Property and Casualty — the same TDCI provisions, the same Tennessee auto insurance requirements, the same workers' compensation framework — meaning a candidate who masters the state law section for one exam enters the second exam with that section already prepared.

This post provides the complete content breakdown for both the Tennessee Property exam and the Tennessee Casualty exam: every topic area, what each tests at exam-level specificity, the strategic approach for sitting for both lines efficiently, and the most frequently tested provisions that generate the most preventable exam failures.

Why Tennessee Tests Property and Casualty Separately

Tennessee's separate exam structure reflects the genuine breadth difference between the two lines. Property insurance covers physical assets — homeowners, commercial property, inland marine, farm property. Casualty covers liability — auto liability, workers' compensation, commercial general liability, umbrella, professional liability. The two disciplines have limited content overlap, and a producer who is expert in property coverage may have significant gaps in casualty concepts and vice versa.

The practical implication: studying for Property and Casualty simultaneously requires twice the content coverage of a single line. Candidates who treat the two as one combined exam and do not differentiate their preparation by line-specific content consistently underperform on one or both exams. The most effective approach is to study the two lines in sequence — fully complete Property preparation, sit for the Property exam, then shift focus to Casualty content — while treating the state law section as shared preparation.

The Tennessee Property Exam: Complete Content Breakdown

Property Insurance Fundamentals

Insurable interest: For property insurance, insurable interest must exist at the time of loss — not just at the time of application. This is the opposite of life insurance's rule, where insurable interest must exist at application but not necessarily at death. If insurable interest ceases between policy issuance and the loss, the claim may be denied. A seller who has transferred ownership of a building but whose name remains on the policy has no insurable interest in that building at the time of a fire — the policy does not pay.

Actual cash value (ACV): The replacement cost of the damaged property minus accumulated depreciation. ACV reflects the market value of the property in its pre-loss condition. A 10-year-old roof with a 20-year expected lifespan has 50% of its useful life remaining — its ACV is approximately 50% of the replacement cost for a new roof.

Replacement cost value (RCV): The cost to repair or replace the damaged property with new materials of like kind and quality without any depreciation deduction. Replacement cost policies cost more than ACV policies because the insurer pays for full replacement regardless of the property's age or depreciation state.

Agreed value: A specific dollar amount agreed upon by the insurer and insured at policy issuance, paid in full at total loss without depreciation or coinsurance application. Used for high-value property where appraisal is appropriate — fine art, classic vehicles, specialty equipment.

The coinsurance requirement: Most commercial property policies include a coinsurance clause — typically 80% — requiring that the insured carry insurance equal to at least 80% of the property's replacement cost. If the insured underinsures and a partial loss occurs, the insurer pays only the proportional share that the carried insurance bears to the required insurance amount.

The coinsurance penalty formula:

Amount of insurance carried ÷ Amount of insurance required × Loss amount = Maximum payment

A building with a $1,000,000 replacement cost requires $800,000 in insurance (80% coinsurance). The insured carries only $600,000. A $100,000 loss occurs. The insurer pays: $600,000 ÷ $800,000 × $100,000 = $75,000. The insured absorbs the remaining $25,000 as a coinsurance penalty.

The coinsurance formula is specifically testable. Expect at least one calculation-based coinsurance question on the Tennessee Property exam. Practice the formula with different insurance carried amounts, required amounts, and loss amounts until the calculation is mechanical.

Subrogation: After paying a property claim, the insurer steps into the insured's legal shoes to recover from the responsible third party. If a neighbor's negligence causes a fire that destroys the insured's garage, the property insurer pays the claim and then pursues the neighbor for reimbursement. The insured cannot receive both the insurance payment and a full recovery from the responsible party — the insurer's subrogation right prevents double recovery.

Homeowners Policy Forms

Tennessee's Property exam tests the homeowners policy forms in depth — not just that they exist, but what each covers, how they differ, and which scenarios call for which form.

HO-2 (Broad Form):

Dwelling and other structures: named perils — the 16 specifically listed perils (fire, lightning, windstorm, hail, explosion, riot, aircraft, vehicles, smoke, vandalism, theft, falling objects, weight of ice/snow/sleet, accidental discharge of water, sudden tearing of heating/AC/plumbing systems, freezing, sudden and accidental damage from electrical current)

Personal property: same 16 named perils

Rarely sold today — HO-3 provides broader protection for similar premium

HO-3 (Special Form) — the standard residential policy:

Dwelling (Coverage A) and other structures (Coverage B): open perils — all causes of loss are covered except those specifically excluded

Personal property (Coverage C): named perils only — the 16 perils

This asymmetric coverage — open perils on the dwelling, named perils on contents — is one of the most frequently tested homeowners concepts

Coverage sections of the HO-3:

Coverage B limitation: Business structures on the premises are limited to $2,500. Structures used for business or rented to others (except as a private garage) are excluded from Coverage B entirely — they require commercial property coverage.

Coverage C special limits: Certain categories of personal property have sublimits within the Coverage C limit:

Money, bank notes, coins: typically $200

Securities, credit cards, deeds: typically $1,500

Jewelry, watches, furs: typically $1,500 for theft

Silverware: typically $2,500 for theft

Firearms: typically $2,500 for theft

Business property at home: typically $2,500

Special limits are exam-tested content. Know that high-value items in these categories require a scheduled personal property endorsement (floater) to be fully covered.

HO-4 (Renters/Tenant):

No Coverage A or Coverage B — renters have no insurable interest in the building structure (the landlord carries building coverage)

Coverage C (Personal Property): named perils

Coverage D (Loss of Use): additional living expense

Coverage E (Personal Liability)

Coverage F (Medical Payments)

HO-5 (Comprehensive Form):

Dwelling, other structures, AND personal property: all covered on open perils basis

The broadest coverage form — open perils on everything

Higher premium than HO-3

HO-6 (Condominium Unit Owners):

Coverage A: limited dwelling coverage — walls-in, improvements and betterments (the unit owner's interior finishes and fixtures); the condo association's master policy covers the building structure

Coverage C: personal property (named perils)

Coverage D, E, F: same functions as HO-3

Loss assessment coverage: pays the unit owner's share of a special assessment levied by the condo association for a covered loss exceeding the master policy limits

HO-8 (Modified Coverage Form):

Designed for older homes where replacement cost exceeds market value

Pays on a modified replacement cost or ACV basis rather than full replacement cost

Named perils only

Prevents moral hazard in areas where a homeowner might benefit from building a new home after a loss

Standard Homeowners Exclusions

The following exclusions apply across all homeowners forms — the exam tests these consistently:

Flood: Water damage from flooding — surface water, storm surge, overflow of bodies of water — is excluded. Separate NFIP coverage required.

Earthquake: Earth movement damage excluded. Separate earthquake endorsement or policy required.

Earth movement: Landslide, mudslide, subsidence, sinkholes — excluded.

Ordinance or law: Additional costs to rebuild to current building codes after a covered loss are excluded unless an ordinance or law endorsement is added. Frequently tested — if a fire destroys half a building and code requires the entire structure be demolished and rebuilt to current code, the ordinance or law exclusion applies to the incremental cost.

Business pursuits: Business activities conducted at the residence are excluded from Coverage E (personal liability). A home-based business that causes a visitor's injury may generate an uninsured liability claim unless a home-based business endorsement is added.

Intentional acts: Losses caused intentionally by the insured are excluded. Coverage exists for accidents — not deliberate destruction.

War: War, civil war, insurrection, and related causes are universally excluded.

Dwelling Fire Policy Forms

Dwelling fire policies provide coverage for residential structures that do not qualify for a homeowners policy — rental properties, vacant dwellings, seasonal homes, or properties the insured does not occupy as their primary residence.

DP-1 (Basic Form):

Named perils: fire, lightning, internal explosion only

ACV settlement on dwelling

Most restricted coverage — rarely purchased voluntarily

DP-2 (Broad Form):

Named perils — expanded list including windstorm, hail, explosion, riot, aircraft, vehicles, smoke, vandalism, glass breakage, weight of ice/snow, and collapse

Replacement cost available on dwelling

DP-3 (Special Form):

Open perils on dwelling and other structures

Named perils on personal property (if Coverage C is added)

The most comprehensive dwelling fire form — the DP equivalent of the HO-3

The key dwelling fire distinction from homeowners: Dwelling fire policies do not automatically include personal liability coverage (Coverage E) or medical payments (Coverage F). These are separate endorsements if desired. A landlord purchasing a DP-3 for a rental property who wants liability coverage must add it specifically.

Commercial Property Insurance

Building and Personal Property (BPP) Coverage Form: The foundational commercial property coverage form. Covers:

Building — the structure itself and permanently installed fixtures

Business Personal Property (BPP) — furniture, equipment, inventory, and other contents owned by the insured business

Personal Property of Others — property of others in the insured's care, custody, and control

Causes of Loss Forms:

Business Income (BI) Coverage: Business income coverage — also called business interruption insurance — pays the insured's lost net income and continuing expenses when a covered physical loss forces a business to suspend operations.

Key BI concepts:

Actual loss sustained: BI pays the actual income lost — not a pre-agreed fixed amount

Waiting period: A waiting period (typically 72 hours) must pass before BI benefits begin

Period of restoration: Benefits are paid for the period needed to restore the property to operational condition — not indefinitely

Extra expense coverage: Pays additional costs incurred to continue operations at an alternate location to minimize income loss (distinct from BI — extra expense pays costs to stay open; BI pays income if the business must close)

Coinsurance applies to BI — typically 50%, 60%, 70%, or 80% of annual gross income must be insured

Inland Marine Insurance: Covers property in transit and property that is inherently mobile. Key inland marine forms:

Commercial articles floater: scheduled items with agreed values

Contractors equipment floater: construction equipment away from a fixed location

Installation floater: materials and equipment being installed

Motor truck cargo: liability of a carrier for goods being transported

Farm Insurance

Farm policies combine residential (the farmhouse and household property) with agricultural coverages (farm buildings, equipment, livestock, crops). Key farm insurance concepts:

Farm dwelling section: similar to HO-3 for the farmhouse

Farm personal property: farm equipment, livestock, harvested crops in storage

Farm liability: premises and operations liability for the farm, including farm products sold

NFIP flood and federal crop insurance are separate programs not included in standard farm policies

The Tennessee Casualty Exam: Complete Content Breakdown

Personal Auto Policy (PAP)

The personal auto policy is the most heavily tested topic on the Tennessee Casualty exam. Know every coverage part — what it covers, what it excludes, and how it responds in specific scenarios.

Part A — Liability Coverage: Pays for bodily injury and property damage the insured causes to others. Protects the insured from third-party claims.

Who is an insured under Part A:

The named insured and family members (residents of the same household)

Any person using the covered auto with permission

Any person legally responsible for the named insured's use of the auto

Split limits: Expressed as three numbers — e.g., 25/50/25. $25,000 maximum per person for bodily injury; $50,000 maximum per accident for all bodily injury; $25,000 maximum for property damage.

Tennessee minimum limits — 25/50/25: The statutory minimum. Specifically testable — know all three numbers and what each represents.

What Part A does NOT cover:

Property owned by or in the care of the insured

Bodily injury to an employee in the course of employment (workers' compensation obligation)

Intentional acts

Business use of a vehicle not covered under the policy

Part B — Medical Payments (MedPay): No-fault first-party medical coverage. Pays reasonable medical expenses for the insured and passengers regardless of who caused the accident. MedPay pays quickly — without waiting for fault determination.

Key MedPay characteristics:

Covers the named insured and family members as pedestrians struck by a vehicle

Covers passengers in the covered auto

Does NOT require fault determination — pays regardless of who caused the accident

Limited coverage window — typically 3 years from the accident date

Per-person limit — not an aggregate

Part C — Uninsured Motorist (UM) and Underinsured Motorist (UIM): Protects the insured when the at-fault driver has no insurance (UM) or insufficient insurance (UIM).

UM coverage:

Pays the insured's bodily injury damages when the at-fault driver is uninsured

Hit-and-run qualifies as UM if there is physical contact with the unidentified vehicle (in most states — verify Tennessee's hit-and-run contact requirement)

Typically covers bodily injury only — property damage requires separate uninsured motorist property damage (UMPD) coverage in many states

UIM coverage:

Pays when the at-fault driver's liability limits are insufficient to cover the insured's damages

UIM pays the gap between what the at-fault driver's liability insurer paid and the insured's actual damages, up to the UIM limit

UIM limit stacking: in some states, UIM limits can be stacked across multiple vehicles. Tennessee's stacking rules are testable.

Tennessee UM/UIM: Tennessee requires uninsured motorist coverage unless the insured affirmatively rejects it in writing. Know the rejection requirement — it is a Tennessee-specific provision.

Part D — Physical Damage: Covers damage to the insured's own vehicle.

Collision coverage: Pays for damage to the covered auto from collision with another vehicle or object. The insured pays the deductible; the insurer pays the rest up to ACV.

Comprehensive coverage (other-than-collision/OTC): Pays for damage from causes other than collision — theft, fire, vandalism, weather events (hail, flood, tornado), striking an animal, falling objects. The insured pays a typically lower deductible.

The collision vs. comprehensive distinction is frequently tested through scenarios:

Vehicle stolen from driveway: comprehensive

Vehicle hits a deer: comprehensive (striking an animal)

Vehicle hits a guardrail: collision

Vehicle damaged by hail: comprehensive

Vehicle rolls over with no other vehicle involved: collision

Named non-owner policy: Covers a driver who regularly drives vehicles they do not own — does not provide coverage for any specific vehicle but follows the driver.

Tennessee Auto Insurance State Law

At-fault state: Tennessee is a tort state — injured parties pursue the at-fault driver's liability coverage. Tennessee is NOT a no-fault state. No mandatory personal injury protection (PIP).

Mandatory minimum limits: 25/50/25

$25,000 bodily injury per person

$50,000 bodily injury per accident

$25,000 property damage per accident

Modified comparative fault — the 50% bar rule: A claimant whose fault is 50% or more cannot recover any damages. A claimant who is less than 50% at fault recovers damages reduced by their percentage of fault. A claimant who is 49% at fault recovers 51% of total damages. A claimant who is 50% at fault recovers nothing.

The 50% bar is specifically testable: Tennessee's bar is at 50% — not 51% as in some other comparative fault states. Know the precise threshold.

SR-22: A certificate of financial responsibility filed by an insurer with Tennessee's Department of Safety and Homeland Security certifying that a high-risk driver carries at least the mandatory minimum liability coverage. Required for DUI convictions, driving without insurance, and specified other violations. If the SR-22 policy lapses, the insurer must notify the Department and the driver's license is suspended.

The implied consent law: Tennessee drivers implicitly consent to chemical testing (blood, breath, urine) when they drive on Tennessee roads. Refusal to submit to testing results in automatic license suspension.

Commercial General Liability (CGL)

The CGL policy is the foundational commercial liability product and one of the most heavily tested topics on the Tennessee Casualty exam.

Two coverage triggers: Occurrence form: Covers bodily injury or property damage that occurs during the policy period regardless of when the claim is made. A product manufactured and sold during a policy year that causes injury three years after the policy expires is covered under the occurrence form — because the injury-causing event (the sale and delivery of the defective product) occurred during the policy period.

Claims-made form: Covers claims that are made during the policy period — the claim must be filed while the policy is in force. Coverage does not depend on when the injury-causing event occurred. Claims-made forms are more common for professional liability and in high-risk industries.

Retroactive date: The earliest date for which a claims-made policy covers incidents. Claims for incidents that occurred before the retroactive date are not covered even if the claim is made during the policy period.

Extended reporting period (ERP/tail coverage): A provision allowing the insured to report claims after the claims-made policy expires for incidents that occurred during the policy period. Critical when a claims-made policy is cancelled or not renewed — without an ERP, claims that arise after expiration for incidents during the policy period are uninsured.

Coverage parts of the CGL: Coverage A — Bodily Injury and Property Damage Liability:

Pays third-party bodily injury and property damage claims arising from the insured's operations, products, or completed work

Excludes: expected or intended injury, contractual liability (except insured contracts), damage to the insured's own work (the products-completed operations hazard covers third-party claims, not the insured's cost to repair their own faulty work)

Coverage B — Personal and Advertising Injury Liability:

Covers offenses such as libel, slander, false arrest, invasion of privacy, and copyright infringement in advertising

Does NOT cover bodily injury — Coverage A handles bodily injury

Does NOT cover intentional offenses committed by the insured

Coverage C — Medical Payments:

No-fault medical payments to third parties for minor injuries on the insured's premises

Does not require negligence — pays regardless of fault

Does not apply to employees (workers' compensation handles employee injuries)

CGL limits structure:

Workers' Compensation Insurance

Workers' compensation is a mandatory commercial insurance line — covered extensively on the Tennessee Casualty exam because it intersects multiple testable concepts: the exclusive remedy doctrine, the three-part policy structure, the experience modification factor, and Tennessee's specific employer coverage threshold.

The exclusive remedy doctrine: Workers' compensation is the exclusive remedy for employees injured in the course and scope of employment. Injured employees cannot sue their employer in tort for negligence arising from the same work injury — they receive statutory workers' compensation benefits regardless of fault. The trade: the employee gives up tort litigation rights; the employer provides guaranteed benefits without establishing fault.

Tennessee workers' compensation thresholds:

General: 5 or more employees — mandatory coverage

Construction industry: 1 or more employees — mandatory coverage from the first hire

Both thresholds are specifically testable — and the construction-specific threshold generating mandatory coverage from the first employee is a frequently tested Tennessee-specific provision.

The three-part workers' compensation policy:

Part One — Workers' Compensation: Pays all statutory benefits — medical treatment (unlimited), wage replacement (typically two-thirds of average weekly wage up to the state maximum), death benefits, and vocational rehabilitation. Part One has no policy dollar limit — the insurer pays all statutory benefits regardless of amount.

Part Two — Employers' Liability: Covers third-party suits against the employer that arise from work injuries but fall outside the workers' compensation statutory framework — primarily third-party-over actions (where the injured employee sues a third party who then sues the employer), dual capacity suits, and consequential injuries to the employee's family members. Part Two has specific dollar limits — typically $100,000 per accident, $500,000 policy limit, $100,000 per disease.

Part Three — Other States Insurance: Extends Part One coverage to employees temporarily working in states not listed in the policy's declarations. Without Part Three, a Tennessee employee injured while working temporarily in Georgia may not have workers' compensation benefits covering that injury under the Tennessee policy.

Experience modification factor (EMR): Compares the employer's specific claims history to other employers in the same classification and adjusts premium up or down accordingly. EMR = 1.00 is average. Below 1.00 is a credit (better-than-average experience). Above 1.00 is a debit (worse-than-average experience). The EMR is calculated by the rating bureau — in Tennessee, the Tennessee Compensation Rating Bureau — using three years of prior loss and payroll data.

Workers' compensation classification codes: Every employee is assigned a classification code reflecting their job duties and the associated historical loss experience for that work type. Classification codes drive the base rate per $100 of payroll before EMR adjustment. Misclassification — placing employees in a lower-rate code than their actual duties warrant — is an audit finding that generates significant additional premium.

Umbrella and Excess Liability

Umbrella liability: Provides both additional limits above the underlying liability policies and broader coverage for some exposures the underlying policies exclude. The umbrella pays after the underlying policy limits are exhausted.

Drop-down coverage: When the underlying policy has an exclusion that the umbrella does not, the umbrella drops down to provide first-dollar coverage (above the self-insured retention) for that exposure. This is the key feature distinguishing umbrella from excess liability.

Excess liability: Provides additional limits above the underlying policy but does not broaden coverage — it follows the same terms and conditions as the underlying policy exactly. No drop-down coverage.

Self-insured retention (SIR): The amount the insured retains for losses covered by the umbrella but not by any underlying policy. Different from a deductible — the SIR applies specifically to claims that fall within the umbrella's coverage but not any underlying policy.

Maintenance of underlying limits: The umbrella typically requires the insured to maintain specified underlying limits. If the insured fails to maintain the required underlying coverage — allowing it to lapse or reducing limits — the umbrella responds as if the underlying policy is in force and reduces its payment accordingly.

Professional Liability (Errors and Omissions)

Professional liability insurance covers professionals against claims arising from negligent acts, errors, or omissions in the performance of professional services.

Claims-made trigger: Professional liability is written on a claims-made basis — the claim must be made and reported during the policy period. Because professional errors may not manifest as claims until years after the service was rendered, claims-made coverage is essential for professionals.

Retroactive date: The date from which prior acts are covered. A retroactive date of January 1, 2020 means claims made during the current policy period for incidents occurring on or after January 1, 2020 are covered. Incidents before the retroactive date are not covered — even if the claim is made during the current policy period.

Prior acts coverage (nose coverage): Coverage for incidents that occurred before the retroactive date of the current policy. Prior acts coverage is purchased to extend protection back to earlier dates.

Extended reporting period (tail coverage): Coverage for claims made after the policy expires for incidents that occurred during the policy period. Essential when a professional retires or changes carriers — without tail coverage, post-expiration claims for prior-period incidents are uninsured.

E&O vs. CGL: General liability excludes professional errors. A financial advisor whose bad investment recommendation costs a client money has a professional liability claim — not a CGL claim. Professionals need both CGL (for premises and operations liability) and E&O (for professional service errors).

Directors and Officers Liability (D&O)

D&O insurance protects directors and officers of corporations against claims arising from their management decisions and actions.

Side A coverage: Protects individual directors and officers when the corporation cannot or will not indemnify them — for example, in bankruptcy or when indemnification is legally prohibited. Pays directly to the individual.

Side B coverage: Reimburses the corporation when it indemnifies its directors and officers for covered claims. The corporation pays the individual first; Side B reimburses the corporation.

Side C coverage: Also called entity coverage — protects the corporation itself against securities claims. Primarily relevant for public companies.

Cyber Liability Insurance

Cyber liability is a growing and increasingly testable topic as the Tennessee insurance exam reflects the current commercial lines market.

First-party cyber coverage (the insured's own losses):

Data breach response costs — forensic investigation, notification, credit monitoring

Business interruption from a cyber event

Ransomware payment and recovery costs

Data restoration

Third-party cyber coverage (liability to others):

Privacy liability — liability to persons whose data was compromised

Network security liability — liability for failure to prevent transmission of malware

Regulatory defense and penalties — costs of regulatory investigations and fines

The Shared State Law Section: Property and Casualty

The state law section content is identical on both the Property and Casualty exams — making it the most efficient portion of the study plan for candidates sitting for both lines. Master it once; it applies to both exams.

Tennessee-Specific Provisions Tested on Both Exams

TDCI authority:

Civil penalties up to $1,000 per violation (TCA §56-2-305)

Higher for willful misconduct

License discipline grounds: TCA §56-6-112

Licensing mechanics:

No mandatory prelicensing (effective March 21, 2023)

Pearson VUE; $59 per attempt; 70% pass; immediate results

IdentoGO fingerprinting: $37.15; TBI + FBI

NIPR application: $50 per line; 48-hour mandatory post-exam wait

Biennial license; last day of birth month

CE and renewal:

24 hours biennial; 3 hours ethics; no classroom minimum

Renewal fee: $60; 30-day grace period; $120 late fee; up to 1 year late renewal

Appointment rules:

Carrier must file within 15 days of contract date (TCA §56-6-115)

Carrier must notify Commissioner of termination within 30 days (TCA §56-6-117)

Unfair Trade Practices Act (TCA Title 56, Chapter 8):

Adopted 2009

Prohibited acts: misrepresentation, defamation, rebating, boycott/coercion, unfair discrimination, unfair claims practices (TCA §56-8-105)

Bad faith penalty (TCA §56-7-105):

Up to 25% additional damages for wrongful refusal to pay a valid claim

The 25% figure is specifically tested — know the exact percentage

Tennessee auto insurance:

At-fault tort state — not no-fault

Minimum limits: 25/50/25

Modified comparative fault: 50% bar rule

No mandatory PIP

Tennessee workers' compensation:

TCA §50-6-103

General threshold: 5 or more employees

Construction threshold: 1 or more employees

Competitive market — not monopolistic state fund

Reciprocity:

Full reciprocity with only 5 states: California, Louisiana, Michigan, Mississippi, Texas

Surplus lines:

Non-admitted carriers through licensed surplus lines brokers only

Diligent search among admitted carriers required before placement

Not covered by Tennessee guaranty associations

Strategy: How to Pass Both Tennessee P&C Exams

Approach 1: Sequential — Recommended for Most Candidates

Study Property completely, sit for the Property exam, then shift entirely to Casualty content and sit for the Casualty exam.

Advantages:

Concentrated study on one line at a time produces deeper knowledge and higher pass probability per exam

The state law section, once mastered for Property, is identical for Casualty — the second exam benefits from established state law preparation

A Property failure does not delay Casualty preparation — the two are independent

Optimal sequence: Property first, Casualty second. Property content is somewhat more intuitive for most candidates — physical property coverage concepts connect to personal experience more naturally than casualty liability concepts. A strong Property exam result provides confidence momentum for the Casualty exam.

Approach 2: Simultaneous — For Experienced Candidates

Study both lines together and sit for both exams on the same day.

When this approach works:

The candidate has substantial prior insurance knowledge in both lines

The diagnostic practice exam shows readiness above 70% on both lines

The candidate is under time pressure to achieve dual licensure quickly

Same-day exam logistics: Schedule both exams at the same Pearson VUE test center or as consecutive OnVUE sessions with at least 30 minutes between appointments for the check-in process. Take the line you are more confident about first.

Topic Prioritization for Property

Highest priority:

HO-3 coverage sections A through F — what each covers and the standard limits

HO forms comparison — what distinguishes HO-2, HO-3, HO-4, HO-5, HO-6, HO-8

Standard homeowners exclusions — flood, earthquake, ordinance or law, business pursuits

Coinsurance — the formula and calculation

ACV vs. replacement cost — the distinction and which applies in which contexts

Tennessee state law — all provisions in the shared state law master list

Medium priority:

Dwelling fire forms — DP-1, DP-2, DP-3 distinctions

Commercial property — BPP form, causes of loss forms, BI coverage

Inland marine — floater types and their purposes

Coverage C special limits — categories and their dollar sublimits

Topic Prioritization for Casualty

Highest priority:

PAP Parts A, B, C, D — what each covers, what each excludes, scenario-based distinctions

Tennessee auto — 25/50/25 minimums, 50% comparative fault bar, at-fault system, UM rejection right

CGL — occurrence vs. claims-made trigger, Coverage A/B/C, aggregate limit structure

Workers' compensation — exclusive remedy, Parts One/Two/Three, EMR, Tennessee thresholds (5/1)

Tennessee state law — identical to Property state law section

Medium priority:

Umbrella vs. excess liability — drop-down coverage distinction

Professional liability — claims-made trigger, retroactive date, tail coverage

D&O — Side A/B/C distinction

Collision vs. comprehensive scenario questions

Frequently Asked Questions

I passed Property but failed Casualty. Do I need to retake Property before I can add Casualty after passing the retake?

No. Tennessee issues licenses by individual line of authority. Your Property license is active and remains active — it is not affected by your Casualty exam result. Study for the Casualty retake using your score report to identify the weakest content areas, schedule the retake when practice performance reaches 80%+, pass the Casualty exam, and submit a separate NIPR application for Casualty authority with its own $50 application fee plus $5.60 NIPR fee. There is no waiting period between the failed Casualty attempt and the retake. Your Property license is fully operative throughout.

The coinsurance formula confuses me in exam questions. How do I set it up correctly every time?

Use the fraction: (What you have ÷ What you need) × Loss = Payment. Always identify three things from the question: what insurance the insured actually carries, what insurance is required by the coinsurance clause (typically 80% of replacement cost), and the amount of the loss. Plug those three numbers into the formula. The result is the maximum the insurer pays. If the result exceeds the loss, the insurer pays the full loss — you can never receive more than the actual loss amount. Example: Replacement cost $500,000; required insurance $400,000 (80%); carried insurance $300,000; loss $50,000. Payment = ($300,000 ÷ $400,000) × $50,000 = 0.75 × $50,000 = $37,500. The insured absorbs $12,500 as a coinsurance penalty. Practice this formula with five to ten different number combinations until setup is automatic.

For the CGL occurrence vs. claims-made distinction, is there a reliable way to identify which trigger applies in an exam scenario?

Read the scenario for two pieces of timing information: when the incident occurred and when the claim was made. Then ask: does the policy in the scenario require the incident to occur during the policy period (occurrence form) or the claim to be made during the policy period (claims-made form)? Occurrence form: the policy period of the injury controls. Claims-made: the policy period of the claim controls. Scenario signals for claims-made: the question mentions a retroactive date, a tail coverage purchase, or a claim made years after the incident. Scenario signals for occurrence: the question focuses on when the injury happened and whether the policy was in force at that time, without mentioning retroactive dates or extended reporting periods. If the scenario describes an injury during a policy period with a claim made much later and the old policy still pays — that is occurrence. If the scenario describes a claim made now for an old incident and asks whether coverage applies based on whether the policy is currently in force — that is claims-made.

The Tennessee Property and Casualty exams reward candidates who study both the technical content of each line and the Tennessee-specific statutory provisions that appear consistently across both state law sections. Candidates who master the coinsurance formula, who can identify the correct homeowners form for every residential scenario, who know the CGL coverage triggers with precision, and who can recall Tennessee's 50% comparative fault bar and 25% bad faith penalty without hesitation are the candidates who earn both licenses efficiently — often in a single examination day — and move into their insurance careers with the full P&C authorization that commercial and personal lines practice requires.

Visit JustInsurance to enroll today and complete your Tennessee P&C exam prep with a state-approved course designed for Pearson VUE — the preparation that first-time passes on both lines are built on.