For the Tennessee Personal Lines exam, the Personal Auto Policy (PAP) is tested two ways: the national policy structure and the Tennessee auto laws layered on top of it. This standalone guide walks through the lettered parts every PAP uses, then focuses on the Tennessee rules an agent must apply every day—financial-responsibility minimums, the at-fault legal system, the uninsured/underinsured-motorist requirement, and how policies can be cancelled or nonrenewed. Spend your study time on the Tennessee overlay; that is where the state questions live.

The national fundamentals (quick version)

The Personal Auto Policy insures individuals and families for the vehicles they own and drive. It is divided into clearly labeled parts:

• Part A — Liability Coverage: pays for bodily injury (BI) and property damage (PD) the insured is legally responsible for, and includes a duty to defend.
• Part B — Medical Payments: pays medical and funeral expenses for the insured and passengers regardless of fault.
• Part C — Uninsured/Underinsured Motorists (UM/UIM): pays your injuries when the at-fault driver has no insurance or too little.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, paid at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions set the rules.

An insured generally includes the named insured, the resident spouse, resident family members, and anyone using the covered auto with permission. The coverage territory is generally the U.S., its territories and possessions, and Canada. Eligible vehicles are private passenger autos, pickups, and vans not used primarily for business. That skeleton is the same nationwide; Tennessee changes the dollar limits and the legal environment around it.

Tennessee is an at-fault (tort) state

Tennessee follows a tort (at-fault) system rather than a no-fault system. Whoever causes the crash is financially responsible, and the injured person recovers from that driver's liability insurance—or sues. Because of this, liability coverage and proof of financial responsibility are the backbone of Tennessee auto regulation.

When both drivers share blame, Tennessee uses modified comparative negligence (the rule from McIntyre v. Balentine). Picture a simple cutoff: an injured person who is 50% or more responsible recovers nothing at all (the "50% bar"). If their share is less than 50%, they can still collect, but the payout is trimmed by their own percentage of fault. This differs from a pure comparative system (where any at-fault claimant recovers something) and from a no-fault system (where each driver turns first to their own coverage).

Financial responsibility: the minimum limits

Tennessee drivers must demonstrate financial responsibility, almost always by buying liability insurance that meets the state's minimum split limits:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• property damage per accident — commonly cited as $15,000 (the familiar "25/50/15"), although Tennessee increased the property-damage minimum to $25,000 (commonly cited as effective 2023). Verify the current number; many exam items still use 25/50/15.

These are bare-minimum floors—most clients should buy more to protect their assets. Tennessee verifies coverage electronically (a "Drive Insured"-style verification program), and an uninsured driver faces fines and loss of vehicle registration. A bond or deposit can technically satisfy the law, but auto liability insurance is the everyday method.

Uninsured and underinsured motorist coverage

Here is a point Tennessee agents must get right: Uninsured/Underinsured Motorist (UM/UIM) coverage must be OFFERED on every Tennessee auto policy, written at limits at least equal to the policy's bodily-injury liability limits, and it is automatically included unless the named insured rejects it—or selects lower limits—in writing. UM protects you and your passengers when the at-fault driver carries no insurance or flees the scene (hit-and-run).

Underinsured Motorist (UIM) handles the situation where the at-fault driver has insurance, just not enough to cover your injuries:

• UIM pays the difference between the other driver's lower BI limit and your UIM limit—so a client with strong UIM is protected even against a bare-minimum at-fault driver.
• The other driver must be legally at fault for UM/UIM to respond.

The recurring theme: in Tennessee, UM/UIM is offered at the BI limits and included unless rejected in writing.

No PIP, plus the optional coverages

• Tennessee does not require PIP / no-fault coverage. Medical Payments (Med Pay) is available as an optional first-party coverage that pays medical and funeral costs regardless of fault.
• Collision and Comprehensive (Other Than Collision) are optional, though a lender will usually require them on a financed vehicle. Remember that damage from hitting an animal is Comprehensive, not Collision.
• Towing and rental reimbursement are optional endorsements. The PAP excludes intentional damage, organized racing, and livery use unless endorsed. A newly acquired auto gets automatic coverage for a limited time if the insurer is notified as required.

Cancellation and nonrenewal notice

Tennessee limits how and when an insurer can end a personal auto policy. The timelines are commonly cited as follows:

• Cancellation for nonpayment of premium uses a shorter notice (often around 10 days).
• Other mid-term cancellations require a longer advance written notice (commonly around 30 days), and after a policy has been in force a set time the insurer may cancel only for limited reasons—chiefly nonpayment, driver's-license suspension/revocation, or fraud/material misrepresentation.
• Nonrenewal (declining to continue at the end of the term) likewise requires advance written notice, commonly around 30 days.

Keep the short nonpayment window separate from the longer ordinary-cancellation / nonrenewal window (verify the exact days).

Required vs. optional coverages in Tennessee

Key Tennessee numbers to memorize

Common exam traps

• Tennessee is at-fault, not no-fault—there is no mandatory PIP here.
• Watch the property-damage figure—historically $15,000 (25/50/15) but raised toward $25,000; choose the number the answer choices support and verify.
• UM/UIM must be offered and is included unless rejected in writing—not a coverage the customer must affirmatively request, and not flatly mandatory.
• Modified comparative negligence: 50% or more at fault means no recovery (recovery only if less than 50%—watch the wording).
• UIM fills the gap (your UIM limit minus the other driver's BI payment); it isn't a second full benefit on top.
• Hitting an animal is Comprehensive, not Collision.

Quick recap

• The PAP keeps its national Parts A–F structure; Tennessee changes the limits and legal context.
• Tennessee is a tort/at-fault state using modified comparative negligence, where a claimant 50% or more at fault recovers nothing (McIntyre v. Balentine).
• Financial-responsibility minimums are 25/50/15, with property damage raised toward $25,000 (verify).
• UM/UIM must be offered at the BI limits and is included unless rejected in writing.
• Tennessee has no mandatory no-fault/PIP; Med Pay, Collision, and Comprehensive are optional.
• Cancellation for nonpayment uses a short (~10-day) notice; ordinary cancellation/nonrenewal uses a longer (~30-day) notice.