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Mississippi Insurance Test Questions
and Answers Fully Solved 100%
A person must be licensed to do all of the following except - ✔️ ✔️ Advertise without the intent to solicit on behalf of insurer
A condition that states that the insurer will only be responsible for a proportional share of an insured loss when the insured also has other insurance written according to the same plan, terms, and conditions is known as - ✔️ ✔️ Pro-Rata liability provision
A condition that states that the insurer will only responsible for a proportional share of an insured loss when the insured also has other insurance written according to the same plan, terms and conditions is known as - ✔️ ✔️ Pro-rata liability provision
A deductible usually applies to which of the following automobile policy coverages - ✔️ ✔️ Physical damage
A diamond ring that is shoplifted from a store display is considered the subject of - ✔️ ✔️ Theft
A foreign insurer - ✔️ ✔️ An insurer formed under the laws of any state other than Mississippi would be known as
A guarantee that something is true - ✔️ ✔️ Warranty
A liability insurance policy pays - ✔️ ✔️ The third party
A licensee may be deemed to have violated controlled business statues if commissions on controlled business exceed what percentage of aggregate commissions? - ✔️ ✔️ 35%
A loss that occurs when an individual breaks into a safe and leaves visible signs of forcible entry best describes - ✔️ ✔️ Burglary
A commercial crime coverage form covers losses sustained and discovered only during the policy period (or within one year after the end of the policy year) is called a(n) - ✔️ ✔️ Loss Sustained
A policy written to cover personal property only would be which homeowner's form - ✔️ ✔️ HO
A restricted capacity to contract would not necessarily characterize - ✔️ ✔️ A retired person
Actual cash value is the replacement cost of the property minus - ✔️ ✔️ The depreciation
After a producer's license has expired, the producer may have the license reinstated without taking an examination of application is made within - ✔️ ✔️ 12 months
After an automobile insurance policy has been in effect for at least 60 days, if it is canceled by the insurer for any reason other than nonpayment of premium, the insurer must give the insured written notice at least - ✔️ ✔️ 30 days in advance
Airborne volcanic blast or shockwaves, ash, dust, particulate matter, and lava flow is best described as - ✔️ ✔️ Volcanic action
All are duties of the Commissioner except - ✔️ ✔️ Proctoring licensing exams
All forms of insurance are alike in al the following ways except - ✔️ ✔️ The nature of the perils covered is the same
All of the following are covered under the conditions section of the CPP (commercial package policy) EXCEPT - ✔️ ✔️ Description of covered business
All of the following are covered under the farm property coverage forms except - ✔️ ✔️ Growing crops
All of the following are eligible for dwelling property forms except - ✔️ ✔️ Farm dwellings
All of the following are necessary for establishing legal liability except - ✔️ ✔️ Establishing legal liability in court
All of the following are true about inactive agents in Mississippi except - ✔️ ✔️ An inactive agent may solicit new business
All of the following are true about temporary licenses issued by the Commissioner except - ✔️ ✔️ Applicants for temporary license must take and pass a written exam
All of the following benefits are provided by a worker's compensation policy except - ✔️ ✔️ Unemployment benefits
All of the following could be covered under a dwelling policy EXCEPT - ✔️ ✔️ A six-unit apartment building
yard, and locking the cage at all times. When a neighbor's child manages to open the cage and is bitten, what type of liability would apply to the tiger owner - ✔️ ✔️ Absolute liability
An insured suffers a covered loss to some rental property that forces the tenant to move to another location. Under which section of the dwelling policy would the insured receive payment during the time the property is being repaired - ✔️ ✔️ Coverage D - fair rental value
An insured whose legally parked car is damaged by a mudslide may collect for damages under which of the following coverages - ✔️ ✔️ Other-than-collision
Anything that increases the chance that a loss will occur - ✔️ ✔️ Hazard
Armed individuals tie up convenience store workers and lock them in a back room. The individuals then load up on money, lottery tickets, cigarettes, and liquor, then leave the premises. This is an example of - ✔️ ✔️ Robbery
At least how many days' advance notice must the Commissioner giver a person of an unfair trade practice hearing - ✔️ ✔️ 10 days
Before the NFIP was created by Congress in 1968, flood damage was covered by - ✔️ ✔️ Flood coverage was generally unavailable
Ben has an automobile policy with limits of $50,000 per person and $100,000 per occurrence. An accident occurs, and 2 people are injured, one with $25,000 in injuries and the other with $75,000 in injuries. If Ben is found responsible, what is the maximum amount his policy will pay for the injuries - ✔️ ✔️ $75,
Business personal property is covered while it is in the actual building, outside the building, or in a vehicle within how many feet of the premises - ✔️ ✔️ 100 feet
By entering into an insurance contract, a policyholder transfers the right of legal action against a responsible third party their insurance company, this process is called - ✔️ ✔️ Subrogation
Cathy accidentally drives off the road on a rainy evening, and her auto collides with a deer. The auto has $400 in body damage and $125 damage to the radiator. Cathy's PAP has a $200 OTC deductible, and a $500collision deductible. How much will her policy pay for the damage? - ✔️ ✔️ $
Chance of a loss only - ✔️ ✔️ Pure risk
Charging insureds in the same class with the same hazards different premiums is an example of - ✔️ ✔️ Discrimination
Charging insureds in the same class with the same hazards different premiums is an example of - ✔️ ✔️ Discrimination
Collision insurance covers which of the following perils - ✔️ ✔️ Direct loss of the auto caused by collision with another object
Coverage is available under the Emergency Flood Program to the following - ✔️ ✔️ In communities who apply to the NFIP until rates are finalized
Coverage under flood policies take effect only after a 30 day waiting period except - ✔️ ✔️ When flood insurance initially purchased in connection with a loan AND when a community first enters the flood program
Dwelling policies insure only property and do not automatically contain liability insurance. For this reason, dwelling policies are called - ✔️ ✔️ Monoline policies
Each of the following is a primary coverage provided under the CGL policy except - ✔️ ✔️ Liquor liability
Each of the following is true about the Mississippi Residential Property Insurance Underwriting Association EXCEPT - ✔️ ✔️ Insurance company membership in the association is voluntary
Failure to use care that is required to protect another person or property from harm is - ✔️ ✔️ Negligence
Fire would be an example of - ✔️ ✔️ Peril
For a newspaper publishing company to be protected in the event of a serious loss to its printing facility, which of the following should be purchased - ✔️ ✔️ Extra expense coverage
Greg's policy states that a loss will not be covered unless it occurs within the United States or Canada. What is the name of this provision in his policy? - ✔️ ✔️ The policy territory provision
Homeowner's policies provide liability coverage for which of the following - ✔️ ✔️ Bodily injury and property damage
How many days notice does the Commissioner give a person of an unfair trade practice hearing - ✔️ ✔️ 10 days
In Mississippi, what is the penalty for unlicensed activities - ✔️ ✔️ A fine of $200 to $500, or imprisonment for 1 to 2 years, or both
In Mississippi, workers' compensation insurance is compulsory for private sector employers who employ - ✔️ ✔️ 5 or more workers
In Mississippi, workers' compensation insurance is compulsory for private sectors employers who employ - ✔️ ✔️ 5 or more workers
In property insurance, insurable interest must exist at the - ✔️ ✔️ Time of loss
Investment consultants should purchase which of the following policies to protect themselves from errors and omissions - ✔️ ✔️ Professional liability
It is unlawful for an insurance producer to give any valuable or pay a referral fee to - ✔️ ✔️ A licensed producer
It will cost Sally $5,000 to put a new roof on her home to replace a roof destroyed in a windstorm. Assume that the original roof, which Sally paid $3,500 for 10 years ago, depreciated $300 per year. What was the actual cash value of the roof that was destroyed - ✔️ ✔️ $2,
Jill is filling out an insurance application with information that she believes to be true. The information that she is providing is considered - ✔️ ✔️ A representation
Jill slams on breaks, slides into stop sign. There are $1,050 in damages to her car. Her policy has $500 collision and $50 other-than-collision deductible. How much will she get for repairs - ✔️ ✔️ $
Liability that is imposed as a matter of law without any regards to negligence is - ✔️ ✔️ Absolute liability
Making false, maliciously critical, or derogatory statements about and insurer, with the intent of causing injury, in an illegal practice is known as - ✔️ ✔️ Defamation
Medical expenses will pay reasonable expenses for first aid, medical services, and funeral services within - ✔️ ✔️ 3 years of the date of the accident
Medical payments coverage provides protection for all of the following except - ✔️ ✔️ Occupants of a vehicle that is struck by the insured's vehicle
Mike and Judy receive a letter from their insurance company advising them that their policy would be cancelled for nonpayment of premium in 5 days. Is this an effective notice of cancellation - ✔️ ✔️ No, the company must give a 10-day written notice
Most losses are reimbursed on an actual cash value (ACV) basis. This is calculated by figuring the item's replacement value cost and subtracting the - ✔️ ✔️ Depreciation
Of the total continuing education requirement, how many hours must be in ethics? - ✔️ ✔️ 3 hours
One purpose of a deductible is to - ✔️ ✔️ Eliminate small claims
Payments that are made in addition to the policy's regular limit of liability are known as - ✔️ ✔️ Supplementary payments
Personal business property out in the open is covered under a commercial property policy only while - ✔️ ✔️ Within 100 feet of the described premises
Possibility that a loss will occur - ✔️ ✔️ Risk
Producers must notify the Commissioner of an administrative action taken against the producer within how many days after final disposition of the matter? - ✔️ ✔️ 30 days
Property and casualty insurance rates are regulated to prohibit rates from being all of the following EXCEPT - ✔️ ✔️ Competitive
Ray's auto policy has a $50,000 bodily injury limit and a $25,000 property damage limit. This is an example of - ✔️ ✔️ A split limit policy
Replacement cost less depreciation defines - ✔️ ✔️ Actual cash value
Running a stop sign is an example of - ✔️ ✔️ Morale hazard
Signing another person's name with the intent to deceive is known as - ✔️ ✔️ Forgery
States require companies to have a license to sell insurance in the state. The license is called - ✔️ ✔️ A certificate of authority
The bailee policy pays - ✔️ ✔️ The customer
The biennial continuing education requirement for producers is how many hours? - ✔️ ✔️ 24 hours
The Guaranty Association pays covered claims up to what amount for covered claims for other than return of premium and workers' compensation? - ✔️ ✔️ $300,
The insured is in a hurry to get to work, fails to stop at a stop sign, speeds through an intersection, and strikes another vehicle. That vehicle hits another car that then jumps a curb and injures a pedestrian. What is the proximate cause of the accident - ✔️ ✔️ Failing to stop at a stop sign
The insured under a property insurance policy must carry insurance equal to a specified percentage of the property's value to qualify for replacement cost coverage. This is an example of the - ✔️ ✔️ Coinsurance condition
The insured's CGL coverage form covers bodily injury and property damage for which a claim is first made during the policy period. This is an example of what type CGL form - ✔️ ✔️ Claims-made
The Johnson family home is covered by DP-3. When a fire destroys the home, they are forced to live in a hotel for two months. What coverage would reimburse them for the hotel, dining, laundry, and transportation expenses during the two months? - ✔️ ✔️ Coverage E
The maximum amount provided as a burial allowance under workers' compensation insurance in Mississippi is - ✔️ ✔️ $5,
The minimum requirement for proof of financial responsibility for automobile insurance in Mississippi is - ✔️ ✔️ $25,000/$50,000 BI and $25,000 PD
The office building risk that may be eligible for a businessowners policy is - ✔️ ✔️ 6 stories or less and 100,000 square feet
The owner of a laundromat who dry-cleans clothing belonging to others would purchase which of the following - ✔️ ✔️ Bailee policy
The prelicensing education requirement for combination property and casualty agents in Mississippi is - ✔️ ✔️ 40 hours
The principle of indemnity states that - ✔️ ✔️ The insured is restored to the same condition as before the loss
The privilege license and filing fees required for property and casualty insurance producers expire on - ✔️ ✔️ The last day of the producer's birth month every 2 years
The purpose of a Guaranty Association is to - ✔️ ✔️ Cover claims of insolvent insurers
The term flood refers to all of the following EXCEPT - ✔️ ✔️ Sewer backup
The term occupying means all of the following EXCEPT - ✔️ ✔️ Owning a vehicle
The term that describes the absences of both people and property from the premises is
The Windstorm Underwriting Association was created primarily to provide wind and hail coverage for what areas of the state - ✔️ ✔️ Coastal areas
To be eligible for coverage under the Mississippi Automobile Assigned Risk Plan, an applicant must certify that she has sought unsuccessfully to obtain coverage within the preceding - ✔️ ✔️ 60 days
To nonrenew an automobile insurance policy, an insurer must give the insured written notice at least - ✔️ ✔️ 30 days in advance
Todd and Mary have insurance protection for their home with a policy deductible of $500. One night, a thunderstorm knock a tree onto their roof and causes $2,500 in damage. How much money will the insurance company pay to Todd and Mary to fix their roof - ✔️ ✔️ $2,
Unauthorized insurers are also known as - ✔️ ✔️ Nonadmitted insurers
Under Coverage M - medical payments to others, the insurer will pay all necessary medical expenses incurred within - ✔️ ✔️ 3 years after the accident
Under Mississippi's valued policy law, if a building is totally destroyed by fire, the insurer
- ✔️ ✔️ Must pay the full amount of insurance
Under the Fair Credit Reporting Act, a consumer has all of the following rights EXCEPT
- ✔️ ✔️ The right to conceal information from particular recipients
Under the PAP, the definition of bodily injury includes all of the following except - ✔️ ✔️ Loss of use
What are the two flood insurance programs that are available - ✔️ ✔️ Emergency program and the regular program
What do insurance companies use to help predict how many losses will occur in a group or class of individuals? - ✔️ ✔️ The law of large numbers
Which of the following coverage limits does not have special theft only limits - ✔️ ✔️ Money
Which of the following in NOT automatically covered under the basic form - ✔️ ✔️ Water
Which of the following is allowed to place insurance in eligible nonadmitted insurers? - ✔️ ✔️ Surplus lines producers
Which of the following is considered a collision loss - ✔️ ✔️ An automobile flips over and embankment onto its side
Which of the following is considered to be an insurer? - ✔️ ✔️ Insurance company
Which of the following is correct regarding uninsured motorist coverage? - ✔️ ✔️ The insured may reject the coverage
Which of the following is excluded from flood insurance - ✔️ ✔️ Landslide
Which of the following is excluded in the equipment breakdown coverage form? - ✔️ ✔️ Electrical failure
Which of the following is NOT a benefit that is paid under workers' compensation laws?
Which of the following is not a part of the structure of a property or casualty insurance policy? - ✔️ ✔️ Explanations (DICEE) Declarations - Insuring Agreement(s) - Conditions - Endorsements - Exclusions
Which of the following is NOT insurable with the Windstorm Underwriting Association? - ✔️ ✔️ Motor vehicles
Which of the following may the Windstorm Underwriting Association use to determine if a property is insurable - ✔️ ✔️ Occupancy
Which of the following referral fees may be paid to an unlicensed employee of a producer - ✔️ ✔️ A fixed dollar amount
Which of the following refers to a professional liability policy written for other professionals, such as insurance agents, accountants, architects, stockbrokers, engineers, consultants, and attorneys - ✔️ ✔️ Errors and omissions (E&O)
Which of the following risk terms describes a building in which no one is in, but the occupants intend to return - ✔️ ✔️ Unoccupied
Which of the following statements is true about an insured who wishes to cancel her insurance policy - ✔️ ✔️ She may cancel the policy at any time
Which of the following terms best describes the unlawful taking of property? - ✔️ ✔️ Theft
Widget Enterprises wants property insurance for a new warehouse it is building. Widget also wants the policy's limit of insurance to gradually increase as the value of the building under construction increases. Which Commercial Property coverage form would best fill Widget's needs - ✔️ ✔️ Builders risk
Workers' compensation benefits are subject to - ✔️ ✔️ No dollar amount
Workers' compensation insurance is available in Mississippi through - ✔️ ✔️ Private insurers
Workers' compensation total disability benefits are retroactive to the start of disability if
the disability continues for - ✔️ ✔️ 2 weeks
Which of the following terms describes a single limit of insurance that applies to all items of that property type - ✔️ ✔️ Blanket
Which of the following terms describes a single limit of insurance that applies to all of that property type? - ✔️ ✔️ Blanket
Which of the following terms describes the person listed first on the declarations page of a policy when there is more than one named insured? - ✔️ ✔️ First-named insured
Which of the following types of benefits is generally not provided by a state's worker's compensation law - ✔️ ✔️ Pain and suffering
Which of the following would not be covered under a mobile home package policy - ✔️ ✔️ A camper
Which one of the following auto policy coverages would pay for the damages to the insured's car that the insured motorist caused by hitting a farmer's cattle while driving through the country - ✔️ ✔️ Other-than-collision
Which peril policy insures a property against all perils specifically listed in the policy? - ✔️ ✔️ Named peril policy
