Mississippi Insurance Practice Test

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• Which type of insurance is designed to cover medical expenses due to workplace injuries?
• What defines replacement cost in terms of actual cash value calculation?
• In Mississippi, who is required to have workers' compensation insurance?
• Property damage liability under an auto policy typically covers which type of loss?
• What type of insurance coverage is designed to cover losses of tangible property?
• A licensee may be deemed to violate controlled business statutes if commissions on controlled business exceed what percentage of aggregate commissions?
• Under Mississippi law, what must be included in a written notice to the insured for policy cancellation?
• What term describes a provision that limits an insurer's liability to a proportional share of an insured loss when other insurance is present?
• Which coverage pays for additional living expenses incurred while a residence is uninhabitable?
• What is the standard deductible under the emergency program of the National Flood Insurance Program?
• What coverage type ensures proportional share liability among insurers when multiple coverages exist?
• The claims-made CGL form covers claims for bodily injury and property damage first made during which time period?
• If an insured has primary coverage from two companies and suffers a $60,000 loss, how much would Company ABC pay if their limit is $35,000?
• How often must producers complete their continuing education requirements?
• What type of insurance policy generally covers losses that occur anywhere in the US and Canada?
• Coverage is available under the Emergency Flood Program to which of the following?
• Which of the following is typically NOT included in homeowners' insurance coverage?
• In Mississippi, how many days does a licensed producer have to notify the Commissioner about a change of address?
• According to insurance terms, the DP-2 and DP-3 forms provide replacement cost coverage when the insurance amount equals what percentage of the Actual Cash Value (ACV)?
• What happens to a flood insurance policy if a homeowner cancels it?
• Which of the following is a typical requirement for a producer's license renewal?
• Who bears the burden of proof in determining that a producer represents an authorized insurer?
• What type of insurer is categorized as domestic?
• After a producer's license has expired, how long do they have to reinstate it without taking an examination?
• In DP-2 and DP-3, how long is property removed covered for?
• What is the main function of the insurance policy underwriting process?
• The garage coverage form excludes coverage for which of the following?
• The DP-3 provides which type of coverage?
• Before the NFIP was created by Congress in 1968, flood damage was generally covered by?
• If an insurer cancels an automobile policy for a reason other than nonpayment, what must they inform the named insured about?
• A policy written to cover personal property only would be which homeowner's form?
• What is the maximum floor space for a business to be eligible for a businessowners policy?
• Which loss would be covered by Coverage A of the Commercial General Liability coverage form?
• In a policy with multiple named insureds, who is identified as the first named insured?
• Which item would typically not be covered under a mobile home package policy?
• What term describes the area within which a loss is covered by an insured's policy?
• What is the term for transferring the right of legal action against a responsible third party to an insurance company?
• In an insurance contract, what is the term for the premium payment made by the insured?
• What is the maximum burial allowance provided under workers' compensation insurance in Mississippi?
• Which of the following statements about a stock insurance company is NOT true?
• Ray's auto policy has a $50,000 bodily injury limit and a $25,000 property damage limit. This structure is an example of?
• Under which section of the dwelling policy would the insured receive payment for rental value when the property is being repaired after a covered loss?
• Which of the following terms refers to additional coverage provided under specific conditions or endorsements?
• What is the term for a commercial crime coverage form that covers losses sustained during the policy period?
• Which component of an insurance policy outlines the specific terms and conditions of coverage?
• If an insurance company is incorporated in Wisconsin and conducts business in Minnesota, what type of company is it considered?
• An all risk or open peril policy protects against what type of events?
• Which term refers to the chance of a loss only?
• Todd and Mary have a $500 deductible and incur $2,500 in damage. How much will their insurer pay?
• What is one purpose of a deductible in an insurance policy?
• What are payments made in addition to the policy's regular limit of liability known as?
• Which type of risk is typically insurable?
• What is a possible consequence for an insurance producer who pays a commission to a producer that is not duly licensed?
• The Pro-Rata liability provision is designed to manage what aspect of insurance policies?
• Which coverage type excludes certain loss scenarios related to intentional actions?
• Which of the following is NOT a primary coverage provided under the Commercial General Liability policy?
• What mathematical principle do insurance companies utilize to predict potential losses in a group?
• Fire would be classified as which of the following?
• Which insurance role is responsible for ensuring that all regulatory requirements are met?
• What type of coverage typically does NOT require a claim to be made at the time of the event?
• What type of property insurance should Widget Enterprises purchase for their new warehouse under construction to ensure coverage increases as its value does?
• Allison’s auto insurance premium is accepted late for several years. What legal principle allows her policy to be reinstated despite the late payments?
• What is the term for the possibility that a loss will occur?
• If a person violates a cease and desist order while it is in effect, what is the maximum fine they may face?
• Collision insurance covers which of the following perils?
• A temporary license issued due to the death of a licensed producer can last for how many days initially?
• What key principle in insurance ensures that the insured is compensated only for the actual loss?
• Which of the following can be considered an example of a hazard?
• Which type of insurance covers losses discovered during the policy period or within one year of its termination?
• Medical payments coverage protects against all of the following except:
• Which of the following coverage limits does not have special theft only limits?
• When an industrial fire insurance policy is written in Mississippi, what is the maximum limit of coverage for any one dwelling?
• To qualify for coverage under the Mississippi Automobile Assigned Risk Plan, how recent must an applicant's unsuccessful search for coverage be?
• What is the definition of negligence in the context of insurance?
• What is the classification of an insurer formed under the laws of a state other than Mississippi?
• What is considered a major cause of loss under a homeowner's insurance policy?
• What does the principle of indemnity state?
• Which item is NOT included in the conditions section of the Commercial Package Policy (CPP)?
• What does the term "moral hazard" refer to in insurance?
• What does "actual cash value" mean in the context of insurance policies?
• 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?
• What term describes the act of not disclosing known facts in an insurance context?
• All of the following benefits are provided by a worker's compensation policy except?
• What is the actual cash value of the roof that was destroyed in a windstorm?
• What term best describes a loss that occurs when an individual breaks into a safe and leaves visible signs of forcible entry?
• What is the maximum fine the Commissioner can impose for a violation of the Insurance Code?
• What action must an insurer take before canceling an automobile insurance policy for reasons other than nonpayment of premium?
• Under the PAP, which of the following is not included in the definition of bodily injury?
• A person must be licensed to do all of the following except?
• Which type of coverage would the insured depend on in the event of damage during construction?
• Through which entities is workers' compensation insurance available in Mississippi?
• Running a stop sign is an example of which type of hazard?
• Signing another person's name with the intent to deceive is known as?
• Why are dwelling policies referred to as monoline policies?
• Replacement cost less depreciation defines which of the following?
• What are the two flood insurance programs available?
• What does the garage form NOT cover?
• In the context of property insurance, what does "replacement cost coverage" refer to?
• Business personal property is covered within how many feet from the premises?
• Which of the following covers losses incurred by a business due to an unforeseen interruption of operations?
• Regarding uninsured motorist coverage, what option is available to the insured?
• What age do minors attain the legal right to contract for property and casualty insurance in Mississippi?
• What type of damage does a collision deductible cover in an insurance policy?
• Under Coverage M, what is the time limit for the insurer to pay all necessary medical expenses incurred after an accident?
• In homeowner's insurance, what does "personal liability" coverage protect against?
• Which of the following is a common exclusion in most homeowners' policies?
• Which of the following is generally excluded from standard commercial property coverage?
• What is the maximum dollar amount for workers' compensation benefits?
• What term best describes a building that contains nothing?
• Actual cash value is determined by subtracting what from the replacement cost of the property?
• Which of the following is NOT covered by workers' compensation laws?
• What type of auto policy coverage would pay for damages from a hit-and-run accident?
• What term describes the absence of both people and property from the premises?
• What type of policy typically covers personal property loss for homeowners?
• Which of the following is NOT automatically covered under the basic form of insurance?
• If Mike and Judy receive a letter stating their insurance policy will be cancelled for nonpayment, how many days of notice must the insurance company provide?
• What is defined as anything that increases the chance that a loss will occur?
• If a driver loses control of their automobile and damages a neighbor's fence, which coverage will pay for the damages?
• What is the primary definition of an insurer?
• Under what condition would a homeowner not receive coverage for property damage?
• What term is used for the risk that is intentionally accepted by an individual or organization?
• Which of the following is NOT included in the definition of occupying?
• What is the term length for the Commissioner of Insurance in Mississippi?
• What is the notice period required for an insurer to nonrenew an automobile insurance policy?
• What is the primary purpose of a Guaranty Association?
• In an auto policy, which coverage typically handles medical expenses for the insured and their passengers?
• It is illegal for an insurance producer to provide a referral fee to which of the following?
• Which policy type focuses on a specific risk or property and does not automatically include liability insurance?
• Which type of insurance coverage is designed to protect businesses against claims of negligence?
• Homeowner's policies provide liability coverage for which of the following?
• What is the primary role of the Commissioner of Insurance?
• A temporary license allows a producer to operate for up to how many days after the initial issue due to the death of a producer?
• What is the purpose of the National Flood Insurance Program (NFIP)?
• The Johnson family home is covered by DP-3. What coverage reimburses them for hotel and dining expenses after a fire?
• A laundromat owner who dry-cleans clothing belonging to others would purchase which type of insurance policy?
• How much will Jill receive for repairs after slamming on her brakes and causing $1,050 in damages to her car with deductibles of $500 collision and $50 other-than-collision?
• Under a commercial property policy, personal business property is only covered while out in the open for how far from the described premises?
• Which policy typically provides coverage for structures including mobile homes?
• When Jill fills out an insurance application with information that she believes to be true, this information is considered?
• What does the term flood NOT include?
• Which of the following is NOT insurable with the Windstorm Underwriting Association?
• What factor influences the premium of a home insurance policy?
• When a homeowner's policy is issued with $150,000 coverage on a dwelling, what is the automatic amount of insurance on personal property?
• How many days does an insurance company have to appoint an agent after executing an agency contract?
• Who is allowed to place insurance in eligible nonadmitted insurers?
• If an insured owns a $200,000 home but only insures it for $100,000, how much will the insurer pay if the home is destroyed?
• Producers must notify the Commissioner of an administrative action within how many days after the final disposition of the matter?
• Under Mississippi's valued policy law, what is the insurer required to pay if a building is totally destroyed by fire?
• Who does an insurance adjuster adjust claims on behalf of?
• In which scenario would a producer face scrutiny for controlled business violations?
• Liability that is imposed as a matter of law without regard to negligence is referred to as?
• The process of evaluating the risk associated with insuring an applicant is known as?
• All forms of insurance are alike in all the following ways except?
• Charging insureds in the same class with the same hazards different premiums is an example of what?
• Which statement is false regarding inactive agents in Mississippi?
• Which policy should investment consultants purchase to shield themselves from potential errors and omissions?
• When calculating Actual Cash Value (ACV) for losses, what is subtracted from the replacement value?
• What typically triggers the waiting period for flood insurance coverage?
• What is the illegal act of mixing personal funds with the insured's or insurer's funds called?
• In the case of a covered loss, how would the payment be split according to contribution by equal shares?
• Which of the following best describes a situation covered under a named peril policy?
• An insurer owned by its policyholders is referred to as what type of insurer?
• A supplemental payment under a liability policy might include which of the following?
• When does a liability insurance policy apply to the insured?
• An insured whose legally parked car is damaged by a mudslide may collect for damages under which of the following coverages?
• Which penalty might a producer face for not notifying the Commissioner of an address change within the specified timeframe?
• What is the minimum coverage percentage often required for full insurance payout after a total loss?
• The Guaranty Association pays covered claims up to what amount for claims other than return of premium and workers' compensation?
• Which type of loss would NOT commonly fall under property insurance coverage?
• Which method is used when the insured and insurance company disagree on the payout amount for uninsured motorist coverage?
• Of the total continuing education requirement, how many hours must be in ethics?
• Generally, liability policies do NOT cover damage caused to which of the following?
• Which of the following items of personal property would be covered under a dwelling policy?
• What is a guarantee that something is true called?
• Which of the following commercial liability policy versions covers injuries sustained during the policy period even if the claim is not actually filed until years after the policy has been canceled?
• What amount does the Guaranty Association pay for a covered workers' compensation claim?
• In property insurance, insurable interest must exist at what point?
• When defining 'flood', which of the following events would typically NOT be included?
• Which term describes a single limit of insurance that applies to all of that property type?
• What is the definition of robbery illustrated by armed individuals stealing from a convenience store?
• What factor may the Windstorm Underwriting Association use to determine the insurability of a property?
• What is the maximum annual sales limit for businessowners eligibility?
• Which event is categorized distinctly within coverage for natural disasters?
• Coverage under flood policies takes effect only after how many days, with exceptions?
• Which of the following statements is NOT true about the Mississippi Residential Property Insurance Underwriting Association?
• What is the penalty for unlicensed activities in Mississippi?
• Which coverage protects an auto repairman for not replacing an oil drain plug, which leads to engine damage?
• Which individual would not necessarily be characterized by a restricted capacity to contract?
• What is the maximum percentage of commissions that a producer may earn for writing controlled business during a 24-month period?
• Which of the following is NOT a requirement for workers' compensation insurance in Mississippi?
• Which of the following types of benefits is generally not provided by a state's worker's compensation law?
• Which of the following risk terms describes a building in which no one is in, but the occupants intend to return?
• How long is the term for which the Commissioner of Insurance in Mississippi is appointed?
• Which of the following is excluded from flood insurance?
• To qualify for replacement cost coverage, the insured under a property insurance policy must carry insurance equal to a specified percentage of what?
• Which of the following roles is primarily responsible for managing claims?
• If an insured cancels their policy before expiration, on what basis is the unearned premium returned?
• What type of regulation is imposed on property and casualty insurance rates?
• Which one of the following auto policy coverages would pay for the damages to the insured's car that were caused by hitting a farmer's cattle while driving through the country?
• Which type of policy insures a property against all perils specifically listed in the policy?
• Which coverage or liability is NOT typically associated with garage coverage forms?
• What is the minimum requirement for proof of financial responsibility for automobile insurance in Mississippi?
• Under Howard's Personal Auto Policy (PAP), what is the classification of the car he bought for his youngest son?
• What is the primary source of underwriting information in insurance?
• How much will Cathy’s policy pay for the damages after the accident with the deer, given her deductibles?
• What is the primary goal of the Mississippi Automobile Assigned Risk Plan?
• When do the privilege license and filing fees for property and casualty insurance producers expire?
• In DP-1, for how long is property removed to protect it from a basic peril covered?
• If an automobile insurance policy has been in effect for over 60 days, how many days' notice is required if it is canceled for reasons other than nonpayment?
• For a policy being canceled due to nonpayment of premium, how many days advance notice must the insurer provide?
• What term best describes airborne volcanic activity including ash and lava flow?
• When must insurance notice be given to insured parties in case of nonrenewal of an automobile policy?
• All of the following are necessary for establishing legal liability except?
• Which dwelling form pays losses to dwellings and other structures on an actual cash value basis?
• What is the name of the license required for insurance companies to sell insurance in a state?
• What type of liability would apply to a homeowner with a pet tiger if a neighbor's child is injured after managing to open the cage?
• What type of damage is covered under comprehensive automobile insurance?
• Which coverage is typically not included in standard homeowner's insurance?
• Which component of a homeowner's insurance policy would cover the home and structures on the property?
• All of the following are eligible for dwelling property forms except?
• What is the general penalty for violating any provision of the Insurance Code if no specific penalty is provided?
• What is the maximum limit of coverage on the contents of any one dwelling under an industrial fire insurance policy in Mississippi?
• Which of the following is NOT a part of a property or casualty insurance policy structure?
• All of the following are covered under the farm property coverage forms except?
• Which scenario represents a collision loss?
• In a scenario where the insured fails to stop at a stop sign, what is the proximate cause of the accident?
• What principle can prevent an insurer from denying a claim due to previous actions or allowances?
• A diamond ring that is shoplifted from a store display is considered the subject of?
• During what time frame must losses under a commercial crime policy be discovered to qualify for coverage?
• What concept refers to less than full compensation for a loss, taking into account depreciation?
• All of the following could be covered under a dwelling policy EXCEPT?
• What type of relationship does a producer have with insurers and insureds concerning handling premium dollars?
• Which of the following statements is true about an insured who wishes to cancel her insurance policy?
• What feature of the claims-made CGL provides an unlimited extension for making claims for losses that occurred during the policy period?
• Which type of referral fees may be paid to an unlicensed employee of a producer?
• Which of the following must a producer do promptly after a change of address?
• What is the maximum amount Ben's policy will pay for injuries if he is found responsible for the accident?
• What entity is typically responsible for evaluating insurance rates in Mississippi?
• What area of Mississippi does the Windstorm Underwriting Association primarily provide wind and hail coverage for?
• What type of coverage form is used for buildings that are currently under construction?
• Which of the following terms describes a legal agreement between two competent parties that promises a certain performance in exchange for a certain consideration?
• In insurance terms, what is the act of minimizing the effects of potential risks known as?
• What is the biennial continuing education requirement for producers in hours?
• What is the official term for an insurance company's authorization to conduct business?
• What is the primary purpose of continuing education for insurance producers?
• For which type of coverage should a newspaper publishing company purchase to protect against loss of income after a serious loss to its printing facility?
• The Commissioner of Insurance may suspend or revoke a license for all of the following reasons except?
• Which term best describes the unlawful taking of property?
• How many days' notice must the Commissioner give before an unfair trade practice hearing?
• Which of the following is NOT covered by the garage coverage form?
• What is the maximum number of stories for an office building to be eligible for a businessowners policy?
• A deductible usually applies to which of the following automobile policy coverages?
• Which of the following is NOT a duty of the Commissioner?
• Which of the following losses would not be covered under section II of the homeowner's policy?
• What is not a responsibility of the Commissioner of Insurance?
• The bailee policy pays to whom?
• A liability insurance policy primarily pays which party?
• What term describes a single limit of insurance that applies to all items of a specific property type?
• Which of the following is excluded in the equipment breakdown coverage form?
• Which of the following statements about temporary licenses issued by the Commissioner is incorrect?