Mississippi Life and Health
Insurance Practice Exam
Questions and Answers 2025
1. What is the primary purpose of life insurance?
a) To pay off debts of the insured.
b) To provide financial protection for dependents upon the death of the insured.
c) To fund a retirement plan.
d) To pay for healthcare expenses.
Answer: b) To provide financial protection for dependents upon the death of
the insured.
2. What does a "term life" policy provide?
a) Coverage for a fixed term of years.
b) Permanent coverage with cash value.
c) Coverage that increases over time.
d) A fixed death benefit for life.
Answer: a) Coverage for a fixed term of years.
3. In Mississippi, what is the minimum age at which a person can be issued a life
insurance policy?
a) 14 years
,b) 16 years
c) 18 years
d) 21 years
Answer: c) 18 years
4. What is the "free look" period for life insurance policies in Mississippi?
a) 7 days
b) 10 days
c) 14 days
d) 30 days
Answer: b) 10 days
5. What is the primary difference between a "whole life" and a "universal life"
insurance policy?
a) Whole life policies offer variable premiums, while universal life policies have
fixed premiums.
b) Whole life policies have a cash value, while universal life policies do not.
c) Universal life policies allow for flexible premiums and death benefits, while
whole life policies do not.
d) Whole life policies are renewable, while universal life policies are not.
Answer: c) Universal life policies allow for flexible premiums and death benefits,
while whole life policies do not.
6. Which of the following would be considered a "Health Maintenance
Organization" (HMO)?
a) A plan that covers health expenses but allows the insured to choose any
doctor.
b) A plan that provides comprehensive healthcare services for a fixed monthly fee
and requires using network providers.
c) A type of insurance that only covers hospitalization.
d) A policy that provides reimbursement for out-of-pocket healthcare expenses.
, Answer: b) A plan that provides comprehensive healthcare services for a fixed
monthly fee and requires using network providers.
7. Under Mississippi law, how long is the grace period for a life insurance policy
with monthly premiums?
a) 7 days
b) 10 days
c) 30 days
d) 31 days
Answer: d) 31 days
8. Which of the following is an example of an exclusion under a health insurance
policy?
a) Injuries sustained during an auto accident.
b) Treatment of pre-existing conditions after the waiting period.
c) Routine physical exams.
d) Death from an accident.
Answer: c) Routine physical exams.
9. A policyholder has purchased a life insurance policy with a beneficiary
designated as "my estate." If the policyholder passes away, who receives the
death benefit?
a) The state government.
b) The policyholder’s family members.
c) The policyholder’s estate.
d) The insurance company.
Answer: c) The policyholder’s estate.
10. Which of the following is NOT a requirement for an individual to be eligible
for Medicaid in Mississippi?
Insurance Practice Exam
Questions and Answers 2025
1. What is the primary purpose of life insurance?
a) To pay off debts of the insured.
b) To provide financial protection for dependents upon the death of the insured.
c) To fund a retirement plan.
d) To pay for healthcare expenses.
Answer: b) To provide financial protection for dependents upon the death of
the insured.
2. What does a "term life" policy provide?
a) Coverage for a fixed term of years.
b) Permanent coverage with cash value.
c) Coverage that increases over time.
d) A fixed death benefit for life.
Answer: a) Coverage for a fixed term of years.
3. In Mississippi, what is the minimum age at which a person can be issued a life
insurance policy?
a) 14 years
,b) 16 years
c) 18 years
d) 21 years
Answer: c) 18 years
4. What is the "free look" period for life insurance policies in Mississippi?
a) 7 days
b) 10 days
c) 14 days
d) 30 days
Answer: b) 10 days
5. What is the primary difference between a "whole life" and a "universal life"
insurance policy?
a) Whole life policies offer variable premiums, while universal life policies have
fixed premiums.
b) Whole life policies have a cash value, while universal life policies do not.
c) Universal life policies allow for flexible premiums and death benefits, while
whole life policies do not.
d) Whole life policies are renewable, while universal life policies are not.
Answer: c) Universal life policies allow for flexible premiums and death benefits,
while whole life policies do not.
6. Which of the following would be considered a "Health Maintenance
Organization" (HMO)?
a) A plan that covers health expenses but allows the insured to choose any
doctor.
b) A plan that provides comprehensive healthcare services for a fixed monthly fee
and requires using network providers.
c) A type of insurance that only covers hospitalization.
d) A policy that provides reimbursement for out-of-pocket healthcare expenses.
, Answer: b) A plan that provides comprehensive healthcare services for a fixed
monthly fee and requires using network providers.
7. Under Mississippi law, how long is the grace period for a life insurance policy
with monthly premiums?
a) 7 days
b) 10 days
c) 30 days
d) 31 days
Answer: d) 31 days
8. Which of the following is an example of an exclusion under a health insurance
policy?
a) Injuries sustained during an auto accident.
b) Treatment of pre-existing conditions after the waiting period.
c) Routine physical exams.
d) Death from an accident.
Answer: c) Routine physical exams.
9. A policyholder has purchased a life insurance policy with a beneficiary
designated as "my estate." If the policyholder passes away, who receives the
death benefit?
a) The state government.
b) The policyholder’s family members.
c) The policyholder’s estate.
d) The insurance company.
Answer: c) The policyholder’s estate.
10. Which of the following is NOT a requirement for an individual to be eligible
for Medicaid in Mississippi?
