MS adjuster license exam questions and
answers 2024\2025 A+ Grade
Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and hit him on the head.
Jerome's injuries resulted in an extended hospital stay, so he sued ABC Imports and was awarded
$400,000. Assuming ABC Imports carries a CGL with a General Aggregate of $750,000 and a per
occurrence limit of $250,000, what is the maximum that ABC's insurer will pay for Jerome's injuries?
- correct answer $250,000
Strict Liability:
- correct answer holds a person liable for his actions regardless of how much care he demonstrates.
Wendy hires Jim to build an addition to her house. Jim takes the job and finishes it in good time.
Unfortunately, as Wendy is walking across the threshold of the new addition, a floorboard gives way and
Wendy falls into the crawl-space below, injuring her leg and back. Which commercial general liability
coverage could help cover the cost of Wendy's injuries?
- correct answer Completed Operations Liability
In which case would the insured be indemnified by her auto liability coverage?
- correct answer NOT: None; liability coverage never indemnifies the insured. OR she causes property
damage to her neighbor
Lucille owns her own woodworking business, building custom items such as dressers, wooden trunks,
and mantelpieces. A fire destroys her entire operation and Lucille files a claim with her insurer. Which of
the following would be covered under Coverage A of the Building and Personal Property Coverage Form
in her commercial property policy?
- correct answer A bandsaw permanently affixed to the floor
In which of these situations could a Mississippi insurer cancel a policy after 60 days with sufficient
notice?
- correct answer The policyholder's son has his license suspended during the policy period.
,Bonnie's PAP includes Comprehensive coverage. Which of the following losses could this coverage pay
for?
- correct answer Bonnie's car catches fire
Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her uninsured car into Sam's.
Sam's own insurance company, ABC Insurance, immediately pays him $5,000 for his injuries. Sam then
ponders whether to file a $6,000 lawsuit against Nicole. Why can't Sam sue Nicole for the full amount of
his injuries?
- correct answer By accepting payment from ABC Insurance, Sam subrogated a portion of his rights
against Nicole to ABC Insurance.
In order to be a licensed adjuster, a person must be at least ____ years old.
- correct answer 18
Grant works at ABC Convenience. One day, a man pulls up in an expensive car and pays cash for his gas
with a hundred dollar bill. Grant accepts the bill without checking its validity. When Grant's manager
checks the bill later, he discovers it is a fake. Which commercial crime coverage could protect ABC
Convenience from financial loss associated with accepting the fake hundred dollar bill?
- correct answer Money orders and counterfeit paper currency
States that allow private insurers to offer workers' comp coverage as an alternative to the state workers'
comp fund are called:
- correct answer competitive
The Employee Retirement Income Security Act (ERISA):
- correct answer requires that every fiduciary of an employee benefit plan and every person who
handles funds or other property of those plans must be bonded
Bill lives in Mississippi and has the minimum auto liability coverage required for the state. He causes an
accident that results in $35,000 in property damage and $50,000 in bodily injury to another person. How
much will Bill have to pay out of pocket for this accident?
- correct answer $10,000 in property damage and $25,000 in medical expense
Which of the following statements regarding scheduled fidelity bonds is FALSE?
- correct answer All employees are bonded for the same aggregate amount.
,D'Anton spills coffee in his lap while driving, causing him to veer off the road and smash into a telephone
pole. Which part of his Auto Insurance Policy will help him pay for the repairs to his car?
- correct answer Collision coverage
If an insurer decides to cancel a personal auto policy (for a reason other than non-payment of
premiums) after the policy has been in effect for 60 days, the insurer must provide written notice to the
insured __________ in advance.
- correct answer 30 days
Acme Construction, Inc. has one contractor and one receptionist. The contractor makes $25/hr, and the
receptionist makes $10/hr. The contractor worked exactly 8 hours in 2010, so he made $200. The
receptionist worked 10 hours, so she made $100. Therefore, Acme's entire payroll for 2010 was $300.
Assume that, for every $100 of payroll, the WC rate for contractors is $50 and the rate for receptionists
is $5. How much did Acme owe in WC premiums?
- correct answer $105
During a routine tooth extraction, Dr. Dentem administers too much laughing gas and causes brain
damage to his client. The family sues Dr. Dentem for failing to follow procedure. Which kind of insurance
would cover the cost of the lawsuit?
- correct answer Malpractice insurance
Sally has an HO-3 policy on her $150,000 home in the country. One day, a bear breaks down Sally's back
door to get into her kitchen for a snack. When Sally comes home to find the damage, she files a claim
with her insurance company. Will the damage to Sally's home be covered, and why or why not?
- correct answer Yes. The HO-3 is an open peril policy, without exclusion for wildlife.
Which of the following is similar to a Business Auto Policy, but adds several policy provisions and
protections specific to the trucking industry?
- correct answer NOT: Trip Transit policy
Which of the following is NOT one of the requirements that adjusters must meet in order to handle NFIP
claims?
- correct answer NOT: have at least four consecutive years of adjusting experience OR Inform claimants
that only the NFIP Servicing Agent or WYO company can make a final decision on their claim
Which of the following insurers is NOT committing an unfair trade practice.
- correct answer ACME Insurance is giving stock options to agents who exceed their sales quotas
, ABC Insurance has a deal with Sunset Realty in which ABC compensates Sunset for requiring all home
buyers purchase their homeowners insurance from ABC
- correct answer an "object"
Which of the following is an example of a moral hazard?
- correct answer Ken lights a candle, sets it right next to the window draperies and leaves the house to
go to work
In which section of an insurance policy might you find the following statement? "'We, us, and our' refers
to ABC Insurance company."
- correct answer Definitions
If the Commissioner has reason to believe that a person or company is engaging in an unfair trade
practice, he must give the person at least ____ notice before holding a hearing to review the case.
- correct answer 10 days
Bobby just purchased an insurance policy for his home from XYZ Insurance. Which of the following
would be a reason this policy may not be legally binding?
- correct answer NOT: Bobby has an outstanding warrant for selling marijuana
Farmer Scott owns a farm and raises goats, producing a lot of manure. Occasionally, after a strong rain,
some of the waste washes into a nearby river. Which insurance coverage can protect Scott from any
liability caused by the goat waste runoff?
- correct answer Farm pollution liability
John moved out of his house and put it up for sale three months ago. While he was waiting for the
house to sell, John's plumbing pipes froze and burst in the icy temperatures, which eventually led to
water damaging the cabinetry and hardwood floors. Which of the following statements would most
likely be TRUE?
- correct answer NOT: Bc John's house was still covered under an HO-3, the damage would be covered.
Which of the following is found in the declarations page of an insurance policy?
- correct answer The name of the insured party.
answers 2024\2025 A+ Grade
Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and hit him on the head.
Jerome's injuries resulted in an extended hospital stay, so he sued ABC Imports and was awarded
$400,000. Assuming ABC Imports carries a CGL with a General Aggregate of $750,000 and a per
occurrence limit of $250,000, what is the maximum that ABC's insurer will pay for Jerome's injuries?
- correct answer $250,000
Strict Liability:
- correct answer holds a person liable for his actions regardless of how much care he demonstrates.
Wendy hires Jim to build an addition to her house. Jim takes the job and finishes it in good time.
Unfortunately, as Wendy is walking across the threshold of the new addition, a floorboard gives way and
Wendy falls into the crawl-space below, injuring her leg and back. Which commercial general liability
coverage could help cover the cost of Wendy's injuries?
- correct answer Completed Operations Liability
In which case would the insured be indemnified by her auto liability coverage?
- correct answer NOT: None; liability coverage never indemnifies the insured. OR she causes property
damage to her neighbor
Lucille owns her own woodworking business, building custom items such as dressers, wooden trunks,
and mantelpieces. A fire destroys her entire operation and Lucille files a claim with her insurer. Which of
the following would be covered under Coverage A of the Building and Personal Property Coverage Form
in her commercial property policy?
- correct answer A bandsaw permanently affixed to the floor
In which of these situations could a Mississippi insurer cancel a policy after 60 days with sufficient
notice?
- correct answer The policyholder's son has his license suspended during the policy period.
,Bonnie's PAP includes Comprehensive coverage. Which of the following losses could this coverage pay
for?
- correct answer Bonnie's car catches fire
Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her uninsured car into Sam's.
Sam's own insurance company, ABC Insurance, immediately pays him $5,000 for his injuries. Sam then
ponders whether to file a $6,000 lawsuit against Nicole. Why can't Sam sue Nicole for the full amount of
his injuries?
- correct answer By accepting payment from ABC Insurance, Sam subrogated a portion of his rights
against Nicole to ABC Insurance.
In order to be a licensed adjuster, a person must be at least ____ years old.
- correct answer 18
Grant works at ABC Convenience. One day, a man pulls up in an expensive car and pays cash for his gas
with a hundred dollar bill. Grant accepts the bill without checking its validity. When Grant's manager
checks the bill later, he discovers it is a fake. Which commercial crime coverage could protect ABC
Convenience from financial loss associated with accepting the fake hundred dollar bill?
- correct answer Money orders and counterfeit paper currency
States that allow private insurers to offer workers' comp coverage as an alternative to the state workers'
comp fund are called:
- correct answer competitive
The Employee Retirement Income Security Act (ERISA):
- correct answer requires that every fiduciary of an employee benefit plan and every person who
handles funds or other property of those plans must be bonded
Bill lives in Mississippi and has the minimum auto liability coverage required for the state. He causes an
accident that results in $35,000 in property damage and $50,000 in bodily injury to another person. How
much will Bill have to pay out of pocket for this accident?
- correct answer $10,000 in property damage and $25,000 in medical expense
Which of the following statements regarding scheduled fidelity bonds is FALSE?
- correct answer All employees are bonded for the same aggregate amount.
,D'Anton spills coffee in his lap while driving, causing him to veer off the road and smash into a telephone
pole. Which part of his Auto Insurance Policy will help him pay for the repairs to his car?
- correct answer Collision coverage
If an insurer decides to cancel a personal auto policy (for a reason other than non-payment of
premiums) after the policy has been in effect for 60 days, the insurer must provide written notice to the
insured __________ in advance.
- correct answer 30 days
Acme Construction, Inc. has one contractor and one receptionist. The contractor makes $25/hr, and the
receptionist makes $10/hr. The contractor worked exactly 8 hours in 2010, so he made $200. The
receptionist worked 10 hours, so she made $100. Therefore, Acme's entire payroll for 2010 was $300.
Assume that, for every $100 of payroll, the WC rate for contractors is $50 and the rate for receptionists
is $5. How much did Acme owe in WC premiums?
- correct answer $105
During a routine tooth extraction, Dr. Dentem administers too much laughing gas and causes brain
damage to his client. The family sues Dr. Dentem for failing to follow procedure. Which kind of insurance
would cover the cost of the lawsuit?
- correct answer Malpractice insurance
Sally has an HO-3 policy on her $150,000 home in the country. One day, a bear breaks down Sally's back
door to get into her kitchen for a snack. When Sally comes home to find the damage, she files a claim
with her insurance company. Will the damage to Sally's home be covered, and why or why not?
- correct answer Yes. The HO-3 is an open peril policy, without exclusion for wildlife.
Which of the following is similar to a Business Auto Policy, but adds several policy provisions and
protections specific to the trucking industry?
- correct answer NOT: Trip Transit policy
Which of the following is NOT one of the requirements that adjusters must meet in order to handle NFIP
claims?
- correct answer NOT: have at least four consecutive years of adjusting experience OR Inform claimants
that only the NFIP Servicing Agent or WYO company can make a final decision on their claim
Which of the following insurers is NOT committing an unfair trade practice.
- correct answer ACME Insurance is giving stock options to agents who exceed their sales quotas
, ABC Insurance has a deal with Sunset Realty in which ABC compensates Sunset for requiring all home
buyers purchase their homeowners insurance from ABC
- correct answer an "object"
Which of the following is an example of a moral hazard?
- correct answer Ken lights a candle, sets it right next to the window draperies and leaves the house to
go to work
In which section of an insurance policy might you find the following statement? "'We, us, and our' refers
to ABC Insurance company."
- correct answer Definitions
If the Commissioner has reason to believe that a person or company is engaging in an unfair trade
practice, he must give the person at least ____ notice before holding a hearing to review the case.
- correct answer 10 days
Bobby just purchased an insurance policy for his home from XYZ Insurance. Which of the following
would be a reason this policy may not be legally binding?
- correct answer NOT: Bobby has an outstanding warrant for selling marijuana
Farmer Scott owns a farm and raises goats, producing a lot of manure. Occasionally, after a strong rain,
some of the waste washes into a nearby river. Which insurance coverage can protect Scott from any
liability caused by the goat waste runoff?
- correct answer Farm pollution liability
John moved out of his house and put it up for sale three months ago. While he was waiting for the
house to sell, John's plumbing pipes froze and burst in the icy temperatures, which eventually led to
water damaging the cabinetry and hardwood floors. Which of the following statements would most
likely be TRUE?
- correct answer NOT: Bc John's house was still covered under an HO-3, the damage would be covered.
Which of the following is found in the declarations page of an insurance policy?
- correct answer The name of the insured party.
