MISSISSIPPI INSURANCE CERTIFICATION
EXAM SCRIPT 2026 COMPLETE QUESTIONS
AND VERIFIED ANSWERS
⩥ another term that means almost the same thing as risk is
______________. Answer: exposure
⩥ people have developed several different methods for managing risks
for serious financial losses. One method is simply to
_________________. For example you can ___________ the risk of
being in an auto collision by never getting into a car.. Answer: avoid
risk, avoid
⩥ is isn't practical to avoid all risks. fortunately you can also
___________ risk to some extent. For example , training workers in the
safe use of welding tools can curtail the frequency of fires on the job..
Answer: control
⩥ risks control techniques that curtail the loss frequency come under the
heading of ____________ ____________ ex. installing a sprinkler
system in a factory won't prevent a fire from occurring but will limit the
severity of the fire from occurring. Risks control techniques that limit
the loss severity come under the heading of __________
______________. Answer: loss prevention, risk reduction
,⩥ in some cases people simply ________ _________. that is, if any loss
occurs they will pay for it themselves.. Answer: retain risk
⩥ a hold harmless agreement may shift liability from an owner or
contractor to a tenant or subcontractor. what kind of risks is this.
Answer: transfer risks
⩥ a contract or device for transferring risk from a person, business, or
organization to an insurance company that agrees, in exchange for
premium to pay for the losses through an accumulation of premiums..
Answer: insurance
⩥ predicts the likelihood of a loss. Answer: actuary
⩥ insurance can only be used to manage ___________ ____________
which involve the only possibility of loss not gain.. Answer: pure risks
⩥ you need insurable interests in Property and Casualty at
________________________.. Answer: the time of the claim
⩥ the risk of a loss must be ______________ as to time and place and
difficult to counterfeit or falsify. _________ is the best example for a
definite loss.. Answer: definite, death
,⩥ the risk must be __________________. The risk of a train wreck
could be insured whereas the risk that your suitcase will eventually wear
out is not really a risk at all therefore it is not insurable.. Answer:
unexpected
⩥ the risk must be large enough to create a _________________ for the
individual involved. A financially insignificant risk such as losing a pair
of inexpensive sunglasses is not insurable.. Answer: financial hardship
⩥ the loss must be _________________. Risks that involve loss that
can't be assigned a financial value are uninsurable.. Answer: calculable
⩥ the cost of insurance must be ___________________ to be insured. If
the risk is so severe that it requires the insurance company to charge
high premiums to accumulate enough money to pay for losses, it is not
an insurable risk.. Answer: affordable
⩥ There must be a large number of persons with similar ____________
loss available to that overall losses become predictable.. Answer:
potential
⩥ the loss must not happen to a large number of people who have
insurance at the same time. Although insurance companies do want to
insure a large number of persons, if a great number of insureds were to
suffer a loss at the same time it would be _____________________ for
the insurance company.. Answer: catastrophic
, ⩥ a ___________ is the cause of a loss. ________ and ________ are
examples of perils. Answer: peril, fire and collision
⩥ a _____________ is anything that increases the chance of a loss..
Answer: hazard
⩥ a ____________ _________ is a hazard that arises from the condition,
occupancy, or use of the property itself.. Answer: physical hazard
⩥ ______________ an individual is careless or irresponsible increasing
the possibility of a loss. Answer: morale hazard
⩥ a __________ _________ means that a person might create a loss
situation on purpose to collect from the insurance company.. Answer:
moral hazard
⩥ a __________ is a legal agreement between two competent parties
that promises a certain performance in exchange for a certain
consideration. When an insurance company agrees to pay for an insureds
losses in exchange for a certain premium the two parties have entered
into a __________.. Answer: contract
⩥ Insurance contracts, like all other contracts must exhibit certain
characteristics to be legally enforceable. These characteristics are
EXAM SCRIPT 2026 COMPLETE QUESTIONS
AND VERIFIED ANSWERS
⩥ another term that means almost the same thing as risk is
______________. Answer: exposure
⩥ people have developed several different methods for managing risks
for serious financial losses. One method is simply to
_________________. For example you can ___________ the risk of
being in an auto collision by never getting into a car.. Answer: avoid
risk, avoid
⩥ is isn't practical to avoid all risks. fortunately you can also
___________ risk to some extent. For example , training workers in the
safe use of welding tools can curtail the frequency of fires on the job..
Answer: control
⩥ risks control techniques that curtail the loss frequency come under the
heading of ____________ ____________ ex. installing a sprinkler
system in a factory won't prevent a fire from occurring but will limit the
severity of the fire from occurring. Risks control techniques that limit
the loss severity come under the heading of __________
______________. Answer: loss prevention, risk reduction
,⩥ in some cases people simply ________ _________. that is, if any loss
occurs they will pay for it themselves.. Answer: retain risk
⩥ a hold harmless agreement may shift liability from an owner or
contractor to a tenant or subcontractor. what kind of risks is this.
Answer: transfer risks
⩥ a contract or device for transferring risk from a person, business, or
organization to an insurance company that agrees, in exchange for
premium to pay for the losses through an accumulation of premiums..
Answer: insurance
⩥ predicts the likelihood of a loss. Answer: actuary
⩥ insurance can only be used to manage ___________ ____________
which involve the only possibility of loss not gain.. Answer: pure risks
⩥ you need insurable interests in Property and Casualty at
________________________.. Answer: the time of the claim
⩥ the risk of a loss must be ______________ as to time and place and
difficult to counterfeit or falsify. _________ is the best example for a
definite loss.. Answer: definite, death
,⩥ the risk must be __________________. The risk of a train wreck
could be insured whereas the risk that your suitcase will eventually wear
out is not really a risk at all therefore it is not insurable.. Answer:
unexpected
⩥ the risk must be large enough to create a _________________ for the
individual involved. A financially insignificant risk such as losing a pair
of inexpensive sunglasses is not insurable.. Answer: financial hardship
⩥ the loss must be _________________. Risks that involve loss that
can't be assigned a financial value are uninsurable.. Answer: calculable
⩥ the cost of insurance must be ___________________ to be insured. If
the risk is so severe that it requires the insurance company to charge
high premiums to accumulate enough money to pay for losses, it is not
an insurable risk.. Answer: affordable
⩥ There must be a large number of persons with similar ____________
loss available to that overall losses become predictable.. Answer:
potential
⩥ the loss must not happen to a large number of people who have
insurance at the same time. Although insurance companies do want to
insure a large number of persons, if a great number of insureds were to
suffer a loss at the same time it would be _____________________ for
the insurance company.. Answer: catastrophic
, ⩥ a ___________ is the cause of a loss. ________ and ________ are
examples of perils. Answer: peril, fire and collision
⩥ a _____________ is anything that increases the chance of a loss..
Answer: hazard
⩥ a ____________ _________ is a hazard that arises from the condition,
occupancy, or use of the property itself.. Answer: physical hazard
⩥ ______________ an individual is careless or irresponsible increasing
the possibility of a loss. Answer: morale hazard
⩥ a __________ _________ means that a person might create a loss
situation on purpose to collect from the insurance company.. Answer:
moral hazard
⩥ a __________ is a legal agreement between two competent parties
that promises a certain performance in exchange for a certain
consideration. When an insurance company agrees to pay for an insureds
losses in exchange for a certain premium the two parties have entered
into a __________.. Answer: contract
⩥ Insurance contracts, like all other contracts must exhibit certain
characteristics to be legally enforceable. These characteristics are
