MISSISSIPPI INSURANCE TEST PAPER 1 2026/2027
EXAM QUESTIONS AND SOLUTIONS RATED A+
✔✔All of the following are necessary for establishing legal liability except -
✔✔Establishing legal liability in court
✔✔Which of the following risk terms describes a building in which no one is in, but the
occupants intend to return - ✔✔Unoccupied
✔✔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
✔✔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
✔✔Fire would be an example of - ✔✔Peril
✔✔An all risk or open peril policy protects - ✔✔Against any perils except those that are
specifically excluded
✔✔An insured owns a pet tiger that is caged on the homeowners property. The owner
takes great care to warn neighbors of the possible danger by posting signs, fencing the
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
✔✔All of the following benefits are provided by a worker's compensation policy except -
✔✔Unemployment benefits
✔✔Which of the following types of benefits is generally not provided by a state's
worker's compensation law - ✔✔Pain and suffering
✔✔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
✔✔All of the following are eligible for dwelling property forms except - ✔✔Farm
dwellings
, ✔✔Which of the following losses would not be covered under section II of the
homeowner's policy - ✔✔Named insured's son damages the family garage with his car
✔✔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 - ✔✔$2,000
✔✔When a homeowner's policy is issued with $150,000 coverage on a dwelling, what is
the automatic amount of insurance on personal property? - ✔✔$75,000
✔✔Homeowner's policies provide liability coverage for which of the following - ✔✔Bodily
injury and property damage
✔✔A policy written to cover personal property only would be which homeowner's form -
✔✔HO3
✔✔An insured whose legally parked car is damaged by a mudslide may collect for
damages under which of the following coverages - ✔✔Other-than-collision
✔✔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? - ✔✔$325
✔✔A deductible usually applies to which of the following automobile policy coverages -
✔✔Physical damage
✔✔Collision insurance covers which of the following perils - ✔✔Direct loss of the auto
caused by collision with another object
✔✔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 - ✔✔$75,000
✔✔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
✔✔Howard bought a car yesterday for his youngest son to drive to school and his job.
Under Howard's PAP, this car is considered a(n) - ✔✔Owned automobile
EXAM QUESTIONS AND SOLUTIONS RATED A+
✔✔All of the following are necessary for establishing legal liability except -
✔✔Establishing legal liability in court
✔✔Which of the following risk terms describes a building in which no one is in, but the
occupants intend to return - ✔✔Unoccupied
✔✔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
✔✔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
✔✔Fire would be an example of - ✔✔Peril
✔✔An all risk or open peril policy protects - ✔✔Against any perils except those that are
specifically excluded
✔✔An insured owns a pet tiger that is caged on the homeowners property. The owner
takes great care to warn neighbors of the possible danger by posting signs, fencing the
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
✔✔All of the following benefits are provided by a worker's compensation policy except -
✔✔Unemployment benefits
✔✔Which of the following types of benefits is generally not provided by a state's
worker's compensation law - ✔✔Pain and suffering
✔✔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
✔✔All of the following are eligible for dwelling property forms except - ✔✔Farm
dwellings
, ✔✔Which of the following losses would not be covered under section II of the
homeowner's policy - ✔✔Named insured's son damages the family garage with his car
✔✔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 - ✔✔$2,000
✔✔When a homeowner's policy is issued with $150,000 coverage on a dwelling, what is
the automatic amount of insurance on personal property? - ✔✔$75,000
✔✔Homeowner's policies provide liability coverage for which of the following - ✔✔Bodily
injury and property damage
✔✔A policy written to cover personal property only would be which homeowner's form -
✔✔HO3
✔✔An insured whose legally parked car is damaged by a mudslide may collect for
damages under which of the following coverages - ✔✔Other-than-collision
✔✔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? - ✔✔$325
✔✔A deductible usually applies to which of the following automobile policy coverages -
✔✔Physical damage
✔✔Collision insurance covers which of the following perils - ✔✔Direct loss of the auto
caused by collision with another object
✔✔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 - ✔✔$75,000
✔✔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
✔✔Howard bought a car yesterday for his youngest son to drive to school and his job.
Under Howard's PAP, this car is considered a(n) - ✔✔Owned automobile
