Mississippi life producer exam with
correct answers
Which of the following is an insurance company that is organized under the laws of a different state
within the United States? - ** VERIFIED ANSWERS **✔✔Foreign
protects the consumer's right to the privacy of credit and financial information, ensuring that all
collected data is confidential, accurate, relevant and properly used - ** VERIFIED ANSWERS
**✔✔Fair Credit Reporting Act
To indemnify means - ** VERIFIED ANSWERS **✔✔to compensate for a loss or to make whole
Principle of Indemnity - ** VERIFIED ANSWERS **✔✔insurance is designed to restore an insured
to the same physical or financial condition which existed prior to the loss, without a profit or gain
In the case of life and health insurance, contract law requires that - ** VERIFIED ANSWERS
**✔✔insurable interest must exist at the time of the application, not the time of the loss
Consideration - ** VERIFIED ANSWERS **✔✔the exchange of value that makes a contract binding.
The insured's consideration is the payment of premium, along with an agreement to abide by the
conditions of the contract.
What is the insurers consideration? - ** VERIFIED ANSWERS **✔✔The insurer's promise to
indemnify in the event of a loss is its consideration, as is specified in the insuring clause of the policy
Each of the following is an element of a legal contract, except: - ** VERIFIED ANSWERS
**✔✔indemnity
A contract of adhesion - ** VERIFIED ANSWERS **✔✔the insured must accept the entire contract
with all of its terms and conditions(take it or leave it basis)
, Aleatory contract - ** VERIFIED ANSWERS **✔✔a contract where the values exchanged may not
be equal but depend on an uncertain event
unilateral contract - ** VERIFIED ANSWERS **✔✔Only one party is legally bound to the
contractual obligations after the premium is paid to the insurer. Only the insurer makes a promise of
future performance, and only the insurer can be charged with breach of contract.
Conditional contract - ** VERIFIED ANSWERS **✔✔Both parties must perform certain duties and
follow rules of conduct to make the contract enforceable. The insurer must pay claims if the insured
has complied with all the policy's terms and conditions.
An insurer authorized to do business in State A, which was incorporated in State B, is considered
what type of insurer in State A? - ** VERIFIED ANSWERS **✔✔Foreign
_______________ is the process of selection, classification and rating, and determining if someone is
insurable - ** VERIFIED ANSWERS **✔✔Home office underwriting
If an insured pays a premium that is lower than others that are in the same class, this insured is
considered to be rated as? - ** VERIFIED ANSWERS **✔✔preferred
J buys a life insurance policy specifically intending for the death benefit to be used to cover estate
taxes. What is the correct term for using life insurance in this way? - ** VERIFIED ANSWERS
**✔✔Estate conservation
All of the following are true regarding an Attending Physician's Statement (APS), except: - **
VERIFIED ANSWERS **✔✔Normally, when the insurer determines that the insured is an
acceptable risk, the insurer will send the policy to the ____________.
Producer
Which of the following statements about Annual Renewable Term premiums is TRUE? - **
VERIFIED ANSWERS **✔✔The premium increases over time as the insured's age increases
correct answers
Which of the following is an insurance company that is organized under the laws of a different state
within the United States? - ** VERIFIED ANSWERS **✔✔Foreign
protects the consumer's right to the privacy of credit and financial information, ensuring that all
collected data is confidential, accurate, relevant and properly used - ** VERIFIED ANSWERS
**✔✔Fair Credit Reporting Act
To indemnify means - ** VERIFIED ANSWERS **✔✔to compensate for a loss or to make whole
Principle of Indemnity - ** VERIFIED ANSWERS **✔✔insurance is designed to restore an insured
to the same physical or financial condition which existed prior to the loss, without a profit or gain
In the case of life and health insurance, contract law requires that - ** VERIFIED ANSWERS
**✔✔insurable interest must exist at the time of the application, not the time of the loss
Consideration - ** VERIFIED ANSWERS **✔✔the exchange of value that makes a contract binding.
The insured's consideration is the payment of premium, along with an agreement to abide by the
conditions of the contract.
What is the insurers consideration? - ** VERIFIED ANSWERS **✔✔The insurer's promise to
indemnify in the event of a loss is its consideration, as is specified in the insuring clause of the policy
Each of the following is an element of a legal contract, except: - ** VERIFIED ANSWERS
**✔✔indemnity
A contract of adhesion - ** VERIFIED ANSWERS **✔✔the insured must accept the entire contract
with all of its terms and conditions(take it or leave it basis)
, Aleatory contract - ** VERIFIED ANSWERS **✔✔a contract where the values exchanged may not
be equal but depend on an uncertain event
unilateral contract - ** VERIFIED ANSWERS **✔✔Only one party is legally bound to the
contractual obligations after the premium is paid to the insurer. Only the insurer makes a promise of
future performance, and only the insurer can be charged with breach of contract.
Conditional contract - ** VERIFIED ANSWERS **✔✔Both parties must perform certain duties and
follow rules of conduct to make the contract enforceable. The insurer must pay claims if the insured
has complied with all the policy's terms and conditions.
An insurer authorized to do business in State A, which was incorporated in State B, is considered
what type of insurer in State A? - ** VERIFIED ANSWERS **✔✔Foreign
_______________ is the process of selection, classification and rating, and determining if someone is
insurable - ** VERIFIED ANSWERS **✔✔Home office underwriting
If an insured pays a premium that is lower than others that are in the same class, this insured is
considered to be rated as? - ** VERIFIED ANSWERS **✔✔preferred
J buys a life insurance policy specifically intending for the death benefit to be used to cover estate
taxes. What is the correct term for using life insurance in this way? - ** VERIFIED ANSWERS
**✔✔Estate conservation
All of the following are true regarding an Attending Physician's Statement (APS), except: - **
VERIFIED ANSWERS **✔✔Normally, when the insurer determines that the insured is an
acceptable risk, the insurer will send the policy to the ____________.
Producer
Which of the following statements about Annual Renewable Term premiums is TRUE? - **
VERIFIED ANSWERS **✔✔The premium increases over time as the insured's age increases
