MISSISSIPPI INSURANCE EXAM SCRIPT 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔Business continuation plan - ✔✔Arrangements between the business owners that
provide that the shares owned
by any one of them who dies or becomes disabled shall be sold to and purchased by
the other co-owners or by the
business
✔✔Business overhead expense insurance - ✔✔A form of disability income coverage
designed to pay necessary
business overhead expenses, such as rent, should the insured business owner become
disabled
✔✔Buyer's guides - ✔✔Informational consumer guide books that explain insurance
policies and insurance concepts; in
many states, they are required to be given to applicants when certain types of
coverages are being considere
✔✔Buy-sell agreement - ✔✔Buy-sell agreement
✔✔Cafeteria plan - ✔✔Employee benefit arrangements in which employees can select
from a range of benefits.
✔✔Cancellable contract - ✔✔Health insurance contract that may be terminated by the
company or that is renewable
at its option.
✔✔Capital sum - ✔✔Amount provided for accidental dismemberment or loss of
eyesight. Indemnities for loss of one
member or sight of one eye are percentages of the capital sum.
✔✔Career agency system - ✔✔A method of marketing, selling, and distributing
insurance, it is represented by
agencies or branch offices committed to the ongoing recruitment and development of
career agents.
✔✔Case management - ✔✔The professional arrangement and coordination of health
services through assessment,
service plan development, and monitoring.
✔✔Cash or deferred arrangements - ✔✔A qualified employer retirement plan under
which employees can defer
amounts of their salaries into a retirement plan. These amounts are not included in the
employee's grossincome
,and so are tax deferred. Also called (k) plans.
✔✔Cash refund annuity - ✔✔Provides that, upon the death of an annuitant before
payments totaling the purchase
price have been made, the excess of the amount paid by the purchaser over the total
annuity payments received
will be paid in one sum to designated beneficiaries.
✔✔Cash surrender option - ✔✔A nonforfeiture option that allows whole life insurance
policy ownersto receive a
payout of their policy's cash values.
✔✔Cash surrender value - ✔✔Amount available to the owner when a life insurance
policy issurrendered to the
company. During the early policy years, the cash value is the reserve less a "surrender
charge"; in later policy
years, it usually equals or closely approximates the reserve value at time ofsurrender.
✔✔Cash value - ✔✔The equity amount or "savings" accumulation in a whole life policy
✔✔Churning - ✔✔The practice by which policy values in an existing life insurance policy
or annuity contract are used to
purchase another policy or contract with that same insurer for the purpose of earning
additional premiums or
commissions without an objectively reasonable basis for believing that the new policy
will result in an actual and
demonstrable benefit.
✔✔Class designation - ✔✔A beneficiary designation.Rather than specifying one or
more beneficiaries by name, the
policy owner designates a class or group of beneficiaries. For example, "my children."
✔✔Classification - ✔✔Occupational category of a risk.
✔✔Cleft lip - ✔✔A congenital furrow or groove in the upper lip that results from
incomplete embryonic development.
This condition may be associated with a cleft palate. Also called a hare lip.
✔✔Cleft palate - ✔✔A congenital furrow or groove in the roof of the mouth that results
from incomplete embryonic
development.This condition may be associated with a cleft lip.
✔✔Close corporation - ✔✔A corporation owned by a small group of stockholders, each
of whom usually has a voice
in operating the business.
, ✔✔COBRA (Consolidated Omnibus Budget Reconciliation Act) - ✔✔Extends group
health coverage to terminated
employees and their families
✔✔Coinsurance (percentage participation) - ✔✔Principle under which the company
insures only part of the
potential loss, the policyowners paying the other part. For instance, in a major medical
policy, the company may
agree to pay % of the insured expenses, with the insured to pay the other %.
✔✔Collateral assignment - ✔✔Assignment of a policy to a creditor as security for a
debt. The creditor is entitled to be
reimbursed out of policy proceeds for the amount owed. The beneficiary is entitled to
any excess of
policy proceeds over the amount due the creditor in the event of the insured's death.
✔✔Combination company - ✔✔Company whose agents sell both weekly premium life
and health insurance and
ordinary life insurance. Also called a multi-line company.
✔✔Commercial health insurers - ✔✔Insurance companies that function on the
reimbursement approach, which
allows policy owners to seek medical treatment then submit the charges to the insurer
for reimbursement.
✔✔Commissioner - ✔✔Head of a state insurance department; public officer charged
with supervising the insurance
business in a state and administrating insurance laws. Called "superintendent" in some
states, "director" in others.
✔✔Commissioner's Standard Ordinary (CSO) Table - ✔✔Table of mortality based on
intercompany experience
over a period of time, which is legally recognized as the mortality basis for computing
maximum reserves on
policies issued within past years
✔✔Common disaster provision - ✔✔Sometimes added to a policy and designed to
provide an alternative
beneficiary in the event that the insured as well as the original beneficiary dies as the
result of a common
accident
✔✔Competent parties - ✔✔To be enforceable, a contract must be entered into by
competent parties. A competent party
QUESTIONS AND SOLUTIONS RATED A+
✔✔Business continuation plan - ✔✔Arrangements between the business owners that
provide that the shares owned
by any one of them who dies or becomes disabled shall be sold to and purchased by
the other co-owners or by the
business
✔✔Business overhead expense insurance - ✔✔A form of disability income coverage
designed to pay necessary
business overhead expenses, such as rent, should the insured business owner become
disabled
✔✔Buyer's guides - ✔✔Informational consumer guide books that explain insurance
policies and insurance concepts; in
many states, they are required to be given to applicants when certain types of
coverages are being considere
✔✔Buy-sell agreement - ✔✔Buy-sell agreement
✔✔Cafeteria plan - ✔✔Employee benefit arrangements in which employees can select
from a range of benefits.
✔✔Cancellable contract - ✔✔Health insurance contract that may be terminated by the
company or that is renewable
at its option.
✔✔Capital sum - ✔✔Amount provided for accidental dismemberment or loss of
eyesight. Indemnities for loss of one
member or sight of one eye are percentages of the capital sum.
✔✔Career agency system - ✔✔A method of marketing, selling, and distributing
insurance, it is represented by
agencies or branch offices committed to the ongoing recruitment and development of
career agents.
✔✔Case management - ✔✔The professional arrangement and coordination of health
services through assessment,
service plan development, and monitoring.
✔✔Cash or deferred arrangements - ✔✔A qualified employer retirement plan under
which employees can defer
amounts of their salaries into a retirement plan. These amounts are not included in the
employee's grossincome
,and so are tax deferred. Also called (k) plans.
✔✔Cash refund annuity - ✔✔Provides that, upon the death of an annuitant before
payments totaling the purchase
price have been made, the excess of the amount paid by the purchaser over the total
annuity payments received
will be paid in one sum to designated beneficiaries.
✔✔Cash surrender option - ✔✔A nonforfeiture option that allows whole life insurance
policy ownersto receive a
payout of their policy's cash values.
✔✔Cash surrender value - ✔✔Amount available to the owner when a life insurance
policy issurrendered to the
company. During the early policy years, the cash value is the reserve less a "surrender
charge"; in later policy
years, it usually equals or closely approximates the reserve value at time ofsurrender.
✔✔Cash value - ✔✔The equity amount or "savings" accumulation in a whole life policy
✔✔Churning - ✔✔The practice by which policy values in an existing life insurance policy
or annuity contract are used to
purchase another policy or contract with that same insurer for the purpose of earning
additional premiums or
commissions without an objectively reasonable basis for believing that the new policy
will result in an actual and
demonstrable benefit.
✔✔Class designation - ✔✔A beneficiary designation.Rather than specifying one or
more beneficiaries by name, the
policy owner designates a class or group of beneficiaries. For example, "my children."
✔✔Classification - ✔✔Occupational category of a risk.
✔✔Cleft lip - ✔✔A congenital furrow or groove in the upper lip that results from
incomplete embryonic development.
This condition may be associated with a cleft palate. Also called a hare lip.
✔✔Cleft palate - ✔✔A congenital furrow or groove in the roof of the mouth that results
from incomplete embryonic
development.This condition may be associated with a cleft lip.
✔✔Close corporation - ✔✔A corporation owned by a small group of stockholders, each
of whom usually has a voice
in operating the business.
, ✔✔COBRA (Consolidated Omnibus Budget Reconciliation Act) - ✔✔Extends group
health coverage to terminated
employees and their families
✔✔Coinsurance (percentage participation) - ✔✔Principle under which the company
insures only part of the
potential loss, the policyowners paying the other part. For instance, in a major medical
policy, the company may
agree to pay % of the insured expenses, with the insured to pay the other %.
✔✔Collateral assignment - ✔✔Assignment of a policy to a creditor as security for a
debt. The creditor is entitled to be
reimbursed out of policy proceeds for the amount owed. The beneficiary is entitled to
any excess of
policy proceeds over the amount due the creditor in the event of the insured's death.
✔✔Combination company - ✔✔Company whose agents sell both weekly premium life
and health insurance and
ordinary life insurance. Also called a multi-line company.
✔✔Commercial health insurers - ✔✔Insurance companies that function on the
reimbursement approach, which
allows policy owners to seek medical treatment then submit the charges to the insurer
for reimbursement.
✔✔Commissioner - ✔✔Head of a state insurance department; public officer charged
with supervising the insurance
business in a state and administrating insurance laws. Called "superintendent" in some
states, "director" in others.
✔✔Commissioner's Standard Ordinary (CSO) Table - ✔✔Table of mortality based on
intercompany experience
over a period of time, which is legally recognized as the mortality basis for computing
maximum reserves on
policies issued within past years
✔✔Common disaster provision - ✔✔Sometimes added to a policy and designed to
provide an alternative
beneficiary in the event that the insured as well as the original beneficiary dies as the
result of a common
accident
✔✔Competent parties - ✔✔To be enforceable, a contract must be entered into by
competent parties. A competent party
