MISSISSIPPI P&C PRACTICE EXAM
NEWEST 2025-2026 VERSION
QUESTIONS WITH GOLDEN TIPS
SOLUTIONS AND REVEWEIRS
________ best describes the concept of insurance. - CORRECT ANSWERS The transfer of risk
from one party to another.
Which of the following supports the theory of indemnity? - CORRECT ANSWERS Depreciation
On a business auto coverage form, insureds select coverage for various types of autos. Each coverage
type has a numerical symbol. What is the description for symbol 22? - CORRECT ANSWERS
Owned autos only
Which answer fits the automobile definition of a motor vehicle? - CORRECT ANSWERS Pickup
truck
What is a responsibility of the Commissioner of Insurance? - CORRECT ANSWERS
Administering insurance laws
Which of the following insurance principles makes an insured whole again? - CORRECT ANSWERS
Indemnity
Which of the following is not one of the standard elements of a casualty insurance contract? - CORRECT
ANSWERS limits of liability
Each of the following is a named peril on a basic cause of loss form except... - CORRECT ANSWERS
Terrorist Activity
,An individual who is authorized to possess the care and possession of an insured property within a
covered premises best describes: - CORRECT ANSWERS Custodian
An Automobile policy can be canceled for are the following reasons except? - CORRECT ANSWERS
the prepayment of premium
Which of the following usually verifies that an independent contractor possesses necessary insurance
protection in order to perform contracted work? - CORRECT ANSWERS A certificate of
insurance
Any homeowners' insurance policy filed that offers percentage deductible for the peril of windstorm
must offer? - CORRECT ANSWERS Buy back provision
Rates determined for workers compensation are based up the work category of the business and which
of the following? - CORRECT ANSWERS payroll
A fidelity bond protects which of the following? - CORRECT ANSWERS an employer
Farm property insurance essentially combines which two types of policies? - CORRECT ANSWERS
Homeowners and commercial liability
Sky leasing company rented an apartment to Louise. The company evicted Louise from the apartment in
August, and in October, Louise sues the company for wrongful eviction. Would Sky's CGL policy cover
this lawsuit? - CORRECT ANSWERS YES, wrongful eviction is covered under CGL policies.
Lee Company is being sued by a customer for an accident the customer believes Lee to be liable for. Lee
believes the suit to be baseless, and is confident the court will throw out the suit. Will Lee's CGL policy
pay to defend Lee Company against this suit? - CORRECT ANSWERS Yes, the insurer has a duty
to defend the insured without any act on the part of the insured.
,The statements made by an applicant in an insurance application are considered to be... - CORRECT
ANSWERS Reprensations
The name of the mortgagee, amount of the annual premium and the coverage inception date all appear
in what section of a property and casualty insurance policy? - CORRECT ANSWERS Declarations
Which of the following statements is true of personal effects coverage? - CORRECT ANSWERS
It can be purchased short term to cover a specific trip.
Which of the following permits an insurer to reduce the cost of insurance? - CORRECT ANSWERS
exclusions
The minimum automobile financial responsibility requirements are? - CORRECT ANSWERS
25/50/25
Which type of property coverage on the HO form would cover expenses related to the loss of use of the
insured property - CORRECT ANSWERS Coverage D
NYC is attacked by terrorists resulting in $110 billion in damage. How much will the TRIPRA pay? -
CORRECT ANSWERS 100 Billion
Workers' compensation benefits are? - CORRECT ANSWERS Paid Fully
When rating a municipality or fire district, the Rating Bureau will not consider? - CORRECT ANSWERS
The age of the truck
Notice of cancellation, or the intention not to renew, or of reasons for cancellation must be mailed to
the named insured? - CORRECT ANSWERS At the address that is shown on the policy
, Which statement is false regarding the granting waiver from the mandatory buy-back provision? -
CORRECT ANSWERS The insurer has 20 days to appeal
Holly is involed in a workplace accident in which she suffers a broken arm. What level of disability would
this be? - CORRECT ANSWERS Temporary Partial
Which of the following is true regarding a liability insurance policy? - CORRECT ANSWERS It is a
two party contract paying damages to a third party.
Which of the following would be a covered cause of a breakdown under an equipment breakdown
insurnace policy? - CORRECT ANSWERS Electrical malfunction
For grading fire departments, the alternative water supply standard must be? - CORRECT ANSWERS
250 Gallons per minute for a sustained period of one hour
The initial premium paid by an insured at the beginning for certain policies may be referred to as? -
CORRECT ANSWERS The Deposit Premium
Which of the following may be added to a casualty insurance contract to amend coverage mid term? -
CORRECT ANSWERS Endorsement
A legal agreement between an insurer and a policyholder can be best described as... - CORRECT
ANSWERS A contract
Which of the following is true regarding the Fair Credit Reporting Act? - CORRECT ANSWERS It
allows an applicant to receive a copy of the information contained in a consumer report
What are the four elements that are necessary for an insurance contract to be considered valid? -
CORRECT ANSWERS Competent parties, offer & acceptance, consideration, and legal purpose.
NEWEST 2025-2026 VERSION
QUESTIONS WITH GOLDEN TIPS
SOLUTIONS AND REVEWEIRS
________ best describes the concept of insurance. - CORRECT ANSWERS The transfer of risk
from one party to another.
Which of the following supports the theory of indemnity? - CORRECT ANSWERS Depreciation
On a business auto coverage form, insureds select coverage for various types of autos. Each coverage
type has a numerical symbol. What is the description for symbol 22? - CORRECT ANSWERS
Owned autos only
Which answer fits the automobile definition of a motor vehicle? - CORRECT ANSWERS Pickup
truck
What is a responsibility of the Commissioner of Insurance? - CORRECT ANSWERS
Administering insurance laws
Which of the following insurance principles makes an insured whole again? - CORRECT ANSWERS
Indemnity
Which of the following is not one of the standard elements of a casualty insurance contract? - CORRECT
ANSWERS limits of liability
Each of the following is a named peril on a basic cause of loss form except... - CORRECT ANSWERS
Terrorist Activity
,An individual who is authorized to possess the care and possession of an insured property within a
covered premises best describes: - CORRECT ANSWERS Custodian
An Automobile policy can be canceled for are the following reasons except? - CORRECT ANSWERS
the prepayment of premium
Which of the following usually verifies that an independent contractor possesses necessary insurance
protection in order to perform contracted work? - CORRECT ANSWERS A certificate of
insurance
Any homeowners' insurance policy filed that offers percentage deductible for the peril of windstorm
must offer? - CORRECT ANSWERS Buy back provision
Rates determined for workers compensation are based up the work category of the business and which
of the following? - CORRECT ANSWERS payroll
A fidelity bond protects which of the following? - CORRECT ANSWERS an employer
Farm property insurance essentially combines which two types of policies? - CORRECT ANSWERS
Homeowners and commercial liability
Sky leasing company rented an apartment to Louise. The company evicted Louise from the apartment in
August, and in October, Louise sues the company for wrongful eviction. Would Sky's CGL policy cover
this lawsuit? - CORRECT ANSWERS YES, wrongful eviction is covered under CGL policies.
Lee Company is being sued by a customer for an accident the customer believes Lee to be liable for. Lee
believes the suit to be baseless, and is confident the court will throw out the suit. Will Lee's CGL policy
pay to defend Lee Company against this suit? - CORRECT ANSWERS Yes, the insurer has a duty
to defend the insured without any act on the part of the insured.
,The statements made by an applicant in an insurance application are considered to be... - CORRECT
ANSWERS Reprensations
The name of the mortgagee, amount of the annual premium and the coverage inception date all appear
in what section of a property and casualty insurance policy? - CORRECT ANSWERS Declarations
Which of the following statements is true of personal effects coverage? - CORRECT ANSWERS
It can be purchased short term to cover a specific trip.
Which of the following permits an insurer to reduce the cost of insurance? - CORRECT ANSWERS
exclusions
The minimum automobile financial responsibility requirements are? - CORRECT ANSWERS
25/50/25
Which type of property coverage on the HO form would cover expenses related to the loss of use of the
insured property - CORRECT ANSWERS Coverage D
NYC is attacked by terrorists resulting in $110 billion in damage. How much will the TRIPRA pay? -
CORRECT ANSWERS 100 Billion
Workers' compensation benefits are? - CORRECT ANSWERS Paid Fully
When rating a municipality or fire district, the Rating Bureau will not consider? - CORRECT ANSWERS
The age of the truck
Notice of cancellation, or the intention not to renew, or of reasons for cancellation must be mailed to
the named insured? - CORRECT ANSWERS At the address that is shown on the policy
, Which statement is false regarding the granting waiver from the mandatory buy-back provision? -
CORRECT ANSWERS The insurer has 20 days to appeal
Holly is involed in a workplace accident in which she suffers a broken arm. What level of disability would
this be? - CORRECT ANSWERS Temporary Partial
Which of the following is true regarding a liability insurance policy? - CORRECT ANSWERS It is a
two party contract paying damages to a third party.
Which of the following would be a covered cause of a breakdown under an equipment breakdown
insurnace policy? - CORRECT ANSWERS Electrical malfunction
For grading fire departments, the alternative water supply standard must be? - CORRECT ANSWERS
250 Gallons per minute for a sustained period of one hour
The initial premium paid by an insured at the beginning for certain policies may be referred to as? -
CORRECT ANSWERS The Deposit Premium
Which of the following may be added to a casualty insurance contract to amend coverage mid term? -
CORRECT ANSWERS Endorsement
A legal agreement between an insurer and a policyholder can be best described as... - CORRECT
ANSWERS A contract
Which of the following is true regarding the Fair Credit Reporting Act? - CORRECT ANSWERS It
allows an applicant to receive a copy of the information contained in a consumer report
What are the four elements that are necessary for an insurance contract to be considered valid? -
CORRECT ANSWERS Competent parties, offer & acceptance, consideration, and legal purpose.
