MISSISSIPPI INSURANCE COMPREHENSIVE EXAM
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Disability buy-sell agreement - ✔✔An agreement between business co-owners that
provides that shares owned by
any one of them who becomes disabled shall be sold to and purchased by the other co-
owners or by the business
using funds from disability income insurance.
✔✔Disability income insurance - ✔✔A type of health insurance coverage, it provides for
the payment of regular,
periodic income should the insured become disabled from illness or injury.
✔✔Disability income rider - ✔✔Typically a rider to a life insurance policy, it provides
benefits in the form of
income in the event the insured becomes totally disabled.
✔✔Disability - ✔✔Physical or mental impairment making a person incapable of
performing one or more duties of that
person's occupation.
✔✔Discrimination - ✔✔In insurance, the act of treating certain groups of people unfairly
in the sale and/or pricing
of policies; treating any of a given class of risk differently from other like risks.
Discrimination is expressly
prohibited in most state insurance codes
✔✔Dividend - ✔✔Policy owner's share in the divisible surplus of a company issuing
insurance on the participating plan.
✔✔Dividend options - ✔✔The different ways in which the insured under a participating
life insurance policy may elect
to receive surplus earnings: in cash, as a reduction of premium, as additional paid-up
insurance, left on deposit at
interest, or as additional term insurance
✔✔Domestic insurer - ✔✔Company within the state in which it is chartered and in which
its home office islocated
✔✔Dread disease policy - ✔✔(See limited risk policy)
✔✔Elimination period - ✔✔Duration of time between the beginning of an insured's
disability and the
commencement of the period for which benefits are payable.
,✔✔Employee benefit plans - ✔✔Plans through which employers offer employees
benefits such as coverage
for medical expenses, disability, retirement, and death.
✔✔Endowment - ✔✔Contract providing for payment of the face amount at the end of a
fixed period, at a specified age
of the insured, or at the insured's death before the end of the stated period
✔✔Endowment period - ✔✔Period specified in an endowment policy during which, if the
insured dies, the
beneficiary receives a death benefit.If the insured isstill living at the end of the
endowment period, the insured
receives the endowment as a living benefit.
✔✔Enhanced whole life - ✔✔A whole life insurance policy issued by a mutual insurer, in
which policy dividends are
used to provide extra death benefits or to reduce future premiums
✔✔Enrollment period - ✔✔Period during which new employees can sign up for
coverage under a group insurance
plan.
✔✔Entire contract provision - ✔✔An insurance policy provision stating that the
application and policy contain
all provisions and constitute the entire contract.
✔✔Entity plan - ✔✔An agreement in which a business assumes the obligation of
purchasing a deceased owner's interest
in the business, thereby proportionately increasing the interests ofsurviving owners.
✔✔Equity indexed annuity - ✔✔A fixed deferred annuity that offersthe traditional
guaranteed minimum interest rate
and an excess interest feature that is based on the performance of an external equities
market index.
✔✔Errors and omissions insurance - ✔✔Professional liability insurance that protects an
insurance producer against
claims arising from service the producer rendered or failed to render.
✔✔Estate - ✔✔Most commonly, the quantity of wealth or property at an individual's
death.
✔✔Estate tax - ✔✔Federal tax imposed on the value of property transferred by an
individual at death.
, ✔✔Estoppel - ✔✔Legal impediment to denying the consequences of one's actions or
deeds if they lead to detrimental
actions by another.
✔✔Evidence of insurability - ✔✔Any statement or proof regarding a person's physical
condition, occupation, and so
forth, affecting acceptance of the applicant for insurance.
✔✔Examiner - ✔✔Physician authorized by the medical director of an insurance
company to make medical examinations.
Also, person assigned by a state insurance company to audit the affairs of an insurance
company
✔✔Excess interest - ✔✔Difference between the rates of interest the company
guarantees to pay on proceeds left under
settlement options and the interest actually paid on such funds by the company.
✔✔Exclusion ratio - ✔✔A fraction used to determine the amount of annual annuity
income exempt from federal income
tax. The exclusion ratio is the total contribution or investment in the annuity divided by
the expected ratio.
✔✔Exclusion rider - ✔✔Health insurance policy rider that waives insurer's liability for all
future claims on a preexisting
condition.
✔✔Exclusions - ✔✔Specified hazards listed in a policy for which benefits will not be
paid.
✔✔Exclusive provider organization (EPO) - ✔✔A variation of the PPO concept, an EPO
contracts with an extremely
limited number of physicians and typically only one hospital to provide services to
members; members who elect to
get health care from outside the EPO receive no benefits. (See also preferred provider
organization)
✔✔Expected mortality - ✔✔Number of deaths that theoretically should occur among a
group of insured persons during a
given period, according to the mortality table in use. Normally, a lower mortality rate is
anticipated and generally
experienced.
✔✔Experience rating - ✔✔Review of the previous year's claims experience for a group
insurance contract in order to
establish premiums for the next period.
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Disability buy-sell agreement - ✔✔An agreement between business co-owners that
provides that shares owned by
any one of them who becomes disabled shall be sold to and purchased by the other co-
owners or by the business
using funds from disability income insurance.
✔✔Disability income insurance - ✔✔A type of health insurance coverage, it provides for
the payment of regular,
periodic income should the insured become disabled from illness or injury.
✔✔Disability income rider - ✔✔Typically a rider to a life insurance policy, it provides
benefits in the form of
income in the event the insured becomes totally disabled.
✔✔Disability - ✔✔Physical or mental impairment making a person incapable of
performing one or more duties of that
person's occupation.
✔✔Discrimination - ✔✔In insurance, the act of treating certain groups of people unfairly
in the sale and/or pricing
of policies; treating any of a given class of risk differently from other like risks.
Discrimination is expressly
prohibited in most state insurance codes
✔✔Dividend - ✔✔Policy owner's share in the divisible surplus of a company issuing
insurance on the participating plan.
✔✔Dividend options - ✔✔The different ways in which the insured under a participating
life insurance policy may elect
to receive surplus earnings: in cash, as a reduction of premium, as additional paid-up
insurance, left on deposit at
interest, or as additional term insurance
✔✔Domestic insurer - ✔✔Company within the state in which it is chartered and in which
its home office islocated
✔✔Dread disease policy - ✔✔(See limited risk policy)
✔✔Elimination period - ✔✔Duration of time between the beginning of an insured's
disability and the
commencement of the period for which benefits are payable.
,✔✔Employee benefit plans - ✔✔Plans through which employers offer employees
benefits such as coverage
for medical expenses, disability, retirement, and death.
✔✔Endowment - ✔✔Contract providing for payment of the face amount at the end of a
fixed period, at a specified age
of the insured, or at the insured's death before the end of the stated period
✔✔Endowment period - ✔✔Period specified in an endowment policy during which, if the
insured dies, the
beneficiary receives a death benefit.If the insured isstill living at the end of the
endowment period, the insured
receives the endowment as a living benefit.
✔✔Enhanced whole life - ✔✔A whole life insurance policy issued by a mutual insurer, in
which policy dividends are
used to provide extra death benefits or to reduce future premiums
✔✔Enrollment period - ✔✔Period during which new employees can sign up for
coverage under a group insurance
plan.
✔✔Entire contract provision - ✔✔An insurance policy provision stating that the
application and policy contain
all provisions and constitute the entire contract.
✔✔Entity plan - ✔✔An agreement in which a business assumes the obligation of
purchasing a deceased owner's interest
in the business, thereby proportionately increasing the interests ofsurviving owners.
✔✔Equity indexed annuity - ✔✔A fixed deferred annuity that offersthe traditional
guaranteed minimum interest rate
and an excess interest feature that is based on the performance of an external equities
market index.
✔✔Errors and omissions insurance - ✔✔Professional liability insurance that protects an
insurance producer against
claims arising from service the producer rendered or failed to render.
✔✔Estate - ✔✔Most commonly, the quantity of wealth or property at an individual's
death.
✔✔Estate tax - ✔✔Federal tax imposed on the value of property transferred by an
individual at death.
, ✔✔Estoppel - ✔✔Legal impediment to denying the consequences of one's actions or
deeds if they lead to detrimental
actions by another.
✔✔Evidence of insurability - ✔✔Any statement or proof regarding a person's physical
condition, occupation, and so
forth, affecting acceptance of the applicant for insurance.
✔✔Examiner - ✔✔Physician authorized by the medical director of an insurance
company to make medical examinations.
Also, person assigned by a state insurance company to audit the affairs of an insurance
company
✔✔Excess interest - ✔✔Difference between the rates of interest the company
guarantees to pay on proceeds left under
settlement options and the interest actually paid on such funds by the company.
✔✔Exclusion ratio - ✔✔A fraction used to determine the amount of annual annuity
income exempt from federal income
tax. The exclusion ratio is the total contribution or investment in the annuity divided by
the expected ratio.
✔✔Exclusion rider - ✔✔Health insurance policy rider that waives insurer's liability for all
future claims on a preexisting
condition.
✔✔Exclusions - ✔✔Specified hazards listed in a policy for which benefits will not be
paid.
✔✔Exclusive provider organization (EPO) - ✔✔A variation of the PPO concept, an EPO
contracts with an extremely
limited number of physicians and typically only one hospital to provide services to
members; members who elect to
get health care from outside the EPO receive no benefits. (See also preferred provider
organization)
✔✔Expected mortality - ✔✔Number of deaths that theoretically should occur among a
group of insured persons during a
given period, according to the mortality table in use. Normally, a lower mortality rate is
anticipated and generally
experienced.
✔✔Experience rating - ✔✔Review of the previous year's claims experience for a group
insurance contract in order to
establish premiums for the next period.
