MISSISSIPPI INSURANCE STUDY GUIDE ALL 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔Indirect Loss - ✔✔Loss that is a result or consequence of a direct loss
✔✔Direct Loss - ✔✔Financial loss resulting directly from a loss to property
✔✔Actual Cash Value - ✔✔replacement cost - depreciation
✔✔Replacement Cost - ✔✔The cost to repair or replace property using new materials of
like kind and quality with no deduction for depreciation.
✔✔Market Value - ✔✔the amount property could be sold at the time of loss.
✔✔Proximate Cause - ✔✔An action that in a natural and continuous sequence
produces a loss.
✔✔Deductible - ✔✔A dollar amount that the insured is responsible for paying on each
loss to which the ded applies. The insurance company will pay for any amount over the
deductible, up to the maximum amount of coverage.
✔✔Indemnity - ✔✔insured should be restored to approximate condition he occupied
before the loss occurred, no better or worse
✔✔Coinsurance - ✔✔Policy condition that requires an insured to pay part of a loss if the
amount of insurance carried on property is less than a specified percentage of the value
of the property at the time of loss.
✔✔Occurrence - ✔✔A loss that occurs at a specific time and place or over a period of
time.
✔✔cancellation - ✔✔Termination of a policy, by either the insurer or the insured, during
the policy term.
✔✔nonrenewal - ✔✔Decision made by an insured or insurance company to not
continue coverage for another policy period after the current policy period expires.
✔✔vacancy - ✔✔The absence of both people and property from a premises.
✔✔Un-occupancy - ✔✔the absence of people from a premises
✔✔Vicarious Liability - ✔✔Liability that a person or business incurs because of the
actions of others such as employer—employee
, ✔✔Absolute Liability - ✔✔Type of liability imposed by law on those participating in
certain activities that are considered especially hazardous; a person involved in such
operations may be held liable for the damages of another even though the individual
was not negligent
✔✔Binder - ✔✔Oral or written statement that provides immediate insurance protection
for a specified period; designed to provide temporary coverage until a policy is issued or
denied.
✔✔Negligence - ✔✔the lack of reasonable care that is required to protect others from
the unreasonable chance of harm
✔✔endorsement - ✔✔A document that amends an insurance policy/ changes the
policy.
✔✔Blanket Insurance - ✔✔Type of insurance policy that covers more than one item of
property at a single location or one or more items of property at multiple locations
✔✔Specific Insurance - ✔✔Property specifically listed and covered for a specific
amount. Also called Scheduled coverage.
✔✔Declarations - ✔✔section of an insurance contract that shows who is insured, what
property or risk is covered, when and where the coverage is effective, and how much
coverage
✔✔Insuring Agreement - ✔✔The section of an insurance policy containing the insurer's
promise to pay, the description of coverage provided and perils insured against.
✔✔Conditions - ✔✔The portion of an insurance contract that sets forth the rights and
duties of the Insured and the insurance company.
✔✔exclusions - ✔✔Section of an insurance policy that lists property, perils, persons, or
situations that are not covered under the policy.
✔✔Mortgagee Rights - ✔✔Rights granted to a mortgagee, under a property contract
issued to a mortgagor, by virtue of the mortgagee's financial interest in the property.
✔✔Subrogation - ✔✔The transfer to the insurance company of the insured's right to
collect for damages from another party
✔✔Warranty - ✔✔a specific agreement between the insured and the insurer that
becomes part of the insurance policy, a breach can void the policy
QUESTIONS AND SOLUTIONS RATED A+
✔✔Indirect Loss - ✔✔Loss that is a result or consequence of a direct loss
✔✔Direct Loss - ✔✔Financial loss resulting directly from a loss to property
✔✔Actual Cash Value - ✔✔replacement cost - depreciation
✔✔Replacement Cost - ✔✔The cost to repair or replace property using new materials of
like kind and quality with no deduction for depreciation.
✔✔Market Value - ✔✔the amount property could be sold at the time of loss.
✔✔Proximate Cause - ✔✔An action that in a natural and continuous sequence
produces a loss.
✔✔Deductible - ✔✔A dollar amount that the insured is responsible for paying on each
loss to which the ded applies. The insurance company will pay for any amount over the
deductible, up to the maximum amount of coverage.
✔✔Indemnity - ✔✔insured should be restored to approximate condition he occupied
before the loss occurred, no better or worse
✔✔Coinsurance - ✔✔Policy condition that requires an insured to pay part of a loss if the
amount of insurance carried on property is less than a specified percentage of the value
of the property at the time of loss.
✔✔Occurrence - ✔✔A loss that occurs at a specific time and place or over a period of
time.
✔✔cancellation - ✔✔Termination of a policy, by either the insurer or the insured, during
the policy term.
✔✔nonrenewal - ✔✔Decision made by an insured or insurance company to not
continue coverage for another policy period after the current policy period expires.
✔✔vacancy - ✔✔The absence of both people and property from a premises.
✔✔Un-occupancy - ✔✔the absence of people from a premises
✔✔Vicarious Liability - ✔✔Liability that a person or business incurs because of the
actions of others such as employer—employee
, ✔✔Absolute Liability - ✔✔Type of liability imposed by law on those participating in
certain activities that are considered especially hazardous; a person involved in such
operations may be held liable for the damages of another even though the individual
was not negligent
✔✔Binder - ✔✔Oral or written statement that provides immediate insurance protection
for a specified period; designed to provide temporary coverage until a policy is issued or
denied.
✔✔Negligence - ✔✔the lack of reasonable care that is required to protect others from
the unreasonable chance of harm
✔✔endorsement - ✔✔A document that amends an insurance policy/ changes the
policy.
✔✔Blanket Insurance - ✔✔Type of insurance policy that covers more than one item of
property at a single location or one or more items of property at multiple locations
✔✔Specific Insurance - ✔✔Property specifically listed and covered for a specific
amount. Also called Scheduled coverage.
✔✔Declarations - ✔✔section of an insurance contract that shows who is insured, what
property or risk is covered, when and where the coverage is effective, and how much
coverage
✔✔Insuring Agreement - ✔✔The section of an insurance policy containing the insurer's
promise to pay, the description of coverage provided and perils insured against.
✔✔Conditions - ✔✔The portion of an insurance contract that sets forth the rights and
duties of the Insured and the insurance company.
✔✔exclusions - ✔✔Section of an insurance policy that lists property, perils, persons, or
situations that are not covered under the policy.
✔✔Mortgagee Rights - ✔✔Rights granted to a mortgagee, under a property contract
issued to a mortgagor, by virtue of the mortgagee's financial interest in the property.
✔✔Subrogation - ✔✔The transfer to the insurance company of the insured's right to
collect for damages from another party
✔✔Warranty - ✔✔a specific agreement between the insured and the insurer that
becomes part of the insurance policy, a breach can void the policy
