Mississippi Insurance Practice Test

These questions are part of the practice quiz. Start practicing

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