Mississippi Insurance Test Questions & Answers A+ 2024/2025

Mississippi Insurance Test Questions & Answers A+ 2024/2025 The Commissioner of Insurance in Mississippi is elected to office for a term of - ANSWER-4 years The burden of proof for determining that a producer is representing an authorized insurer falls on - ANSWER-The producer The fine the Commissioner may levy for violating any provision of the Insurance Code is - ANSWER-$1000 A foreign insurer - ANSWER-An insurer formed under the laws of any state other than Mississippi would be known as Each of the following is true about the Mississippi Residential Property Insurance Underwriting Association EXCEPT - ANSWER-Insurance company membership in the association is voluntary At least how many days' advance notice must the Commissioner giver a person of an unfair trade practice hearing - ANSWER-10 days Property and casualty insurance rates are regulated to prohibit rates from being all of the following EXCEPT - ANSWER-Competitive An insurance company's license to business is called - ANSWER-A certificate of authority The purpose of a Guaranty Association is to - ANSWER-Cover claims of insolvent insurers The Guaranty Association pays a workers' compensation claim up to - ANSWER-The full amount of covered claim An insurance adjuster adjusts claims on behalf of - ANSWER-The insurer Which of the following is allowed to place insurance in eligible non admitted insurers? - ANSWER-Surplus lines producers If a person has engaged in an unfair or deceptive practice, the commissioner may impose an administrative fine up to - ANSWER-$5,000 per violation Producers must notify the Commissioner of an administrative action taken against the producer within how many days after final disposition of the matter? - ANSWER-30 days The biennial continuing education requirement for producers is how many hours? - ANSWER-24 hours Of the total continuing education requirement, how many hours must be in ethics? - ANSWER-3 hours A licensee may be deemed to have violated controlled business statues if commissions on controlled business exceed what percentage of aggregate commissions? - ANSWER-35% Which of the following referral fees may be paid to an unlicensed employee of a producer - ANSWER-A fixed dollar amount What type of relationship does a producer have with insurers and insureds in handling their premium dollars? - ANSWER-Fiduciary Charging insureds in the same class with the same hazards different premiums is an example of - ANSWER-Discrimination The Guaranty Association pays covered claims up to what amount for covered claims for other than return of premium and workers' compensation? - ANSWER-$300,000 If a policy is being canceled for nonpayment of premium, the insurer must give a fire insurance insured written notice at least - ANSWER-10 days in advance The minimum requirement for proof of financial responsibility for automobile insurance in Mississippi is - ANSWER-$25,000/$50,000 BI and $25,000 PD After an automobile insurance policy has been in effect for at least 60 days, if it is canceled by the insurer for any reason other than nonpayment of premium, the insurer must give the insured written notice at least - ANSWER-30 days in advance Workers' compensation insurance is available in Mississippi through - ANSWER-Private insurers The maximum amount provided as a burial allowance under workers' compensation insurance in Mississippi is - ANSWER-$5,000 In Mississippi, workers' compensation insurance is compulsory for private sector employers who employ - ANSWER-5 or more workers To be eligible for coverage under the Mississippi Automobile Assigned Risk Plan, an applicant must certify that she has sought unsuccessfully to obtain coverage within the preceding - ANSWER-60 days To non-renew an automobile insurance policy, an insurer must give the insured written notice at least - ANSWER-30 days in advance If an insurer cancels an automobile policy for a reason other than nonpayment of premium, the insurer must notify the named insured of possible eligibility for - ANSWER-The assigned risk plan Workers' compensation total disability benefits are retroactive to the start of disability if the disability continues for - ANSWER-2 weeks Workers' compensation benefits are subject to - ANSWER-No dollar amount Which of the following is correct regarding uninsured motorist coverage? - ANSWER-The insured may reject the coverage When an industrial fire insurance policy is written in Mississippi, the maximum limit of coverage that may be written for any one dwelling - ANSWER-$40,000 When an industrial fire insurance policy is written in Mississippi, the maximum limit of coverage that may be written on the contents of any one dwelling is - ANSWER-$20,000 Under Mississippi's valued policy law, if a building is totally destroyed by fire, the insurer - ANSWER-Must pay the full amount of insurance Which of the following may the Windstorm Underwriting Association use to determine if a property is insurable - ANSWER-Occupancy The Windstorm Underwriting Association was created primarily to provide wind and hail coverage for what areas of the state - ANSWER-Coastal areas Which of the following is NOT insurable with the Windstorm Underwriting Association? - ANSWER-Motor vehicles An insurance company incorporated in Wisconsin and conducting business in Wisconsin is known as a domestic company. What kind of company are they considered of they do business in Minnesota? - ANSWER-Foreign All of the following statements about a stock insurance company are true EXCEPT - ANSWER-A stock company is a participating company What do insurance companies use to help predict how many losses will occur in a group or class of individuals? - ANSWER-The law of large numbers States require companies to have a license to sell insurance in the state. The license is called - ANSWER-A certificate of authority Which of the following is not a part of the structure of a property or casualty insurance policy? - ANSWER-Explanations (DICEE) Declarations - Insuring Agreement(s) - Conditions - Endorsements - Exclusions Allison's auto insurance policy is due on the 10th of each month. Ever since she has had the policy, she has sent the premium in on the 16th of the month. The insurer has been accepting the premium this way for the past 5 years. A new CEO takes over and decides to cancel Allison's policy for a nonpayment of premium. Allison contests this decision and legally gets the policy reinstated. The decision to reinstate the policy is an example of - ANSWER-Estoppel Which of the following terms describes the person listed first on the declarations page of a policy when there is more than one named insured? - ANSWER-First-named insured When an insured decides to cancel an insurance policy before the expiration date, the unearned premium is returned on - ANSWER-A short rate basis Greg's policy states that a loss will not be covered unless it occurs within the United States or Canada. What is the name of this provision in his policy? - ANSWER-The policy territory provision Todd and Mary have insurance protection for their home with a policy deductible of $500. One night, a thunderstorm knock a tree onto their roof and causes $2,500 in damage. How much money will the insurance company pay to Todd and Mary to fix their roof - ANSWER-$2,000 An insured owns a $200,000 home and insures it for $100,000. If the insured's home was completely destroyed by a fire, how much money would the insurance company pay if the insured has a policy that requires a minimum of 80% coverage - ANSWER-$100,000 Which peril policy insures a property against all perils specifically listed in the policy? - ANSWER-Named peril policy The term that describes the absences of both people and property from the premises is - ANSWER-Vacant Actual cash value is the replacement cost of the property minus - ANSWER-The depreciation Which of the following terms describes a single limit of insurance that applies to all of that property type? - ANSWER-Blanket In general, liability policies do NOT cover damage caused to - ANSWER-The insured A liability insurance policy pays - ANSWER-The third party Payments that are made in addition to the policy's regular limit of liability are known as - ANSWER-Supplementary payments Continues...