Mississippi Insurance Test Questions and Verified
Answers
The Commissioner of Insurance in Mississippi is elected to office for a term of Correct Answer: 4 years
The burden of proof for determining that a producer is representing an authorized insurer falls on
Correct Answer: The producer
The fine the Commissioner may levy for violating any provision of the Insurance Code is Correct
Answer: $1000
A foreign insurer Correct 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 Correct 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 Correct Answer: 10 days
Property and casualty insurance rates are regulated to prohibit rates from being all of the following
EXCEPT Correct Answer: Competitive
An insurance company's license to business is called Correct Answer: A certificate of authority
The purpose of a Guaranty Association is to Correct Answer: Cover claims of insolvent insurers
The Guaranty Association pays a workers' compensation claim up to Correct Answer: The full amount of
covered claim
An insurance adjuster adjusts claims on behalf of Correct Answer: The insurer
Which of the following is allowed to place insurance in eligible nonadmitted insurers? Correct Answer:
Surplus lines producers
If a person has engaged in an unfair or deceptive practice, the commissioner may impose an
administrative fine up to Correct 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? Correct Answer: 30 days
The biennial continuing education requirement for producers is how many hours? Correct Answer: 24
hours
Of the total continuing education requirement, how many hours must be in ethics? Correct 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? Correct Answer: 35%
Which of the following referral fees may be paid to an unlicensed employee of a producer Correct
Answer: A fixed dollar amount
What type of relationship does a producer have with insurers and insureds in handling their premium
dollars? Correct Answer: Fiduciary
Charging insureds in the same class with the same hazards different premiums is an example of Correct
Answer: Discrimination
The Guaranty Association pays covered claims up to what amount for covered claims for other than
return of premium and workers' compensation? Correct 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 Correct Answer: 10 days in advance
The minimum requirement for proof of financial responsibility for automobile insurance in Mississippi is
Correct 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 Correct Answer: 30 days in advance
Workers' compensation insurance is available in Mississippi through Correct Answer: Private insurers
The maximum amount provided as a burial allowance under workers' compensation insurance in
Mississippi is Correct Answer: $5,000
In Mississippi, workers' compensation insurance is compulsory for private sector employers who employ
Correct Answer: 5 or more workers
Answers
The Commissioner of Insurance in Mississippi is elected to office for a term of Correct Answer: 4 years
The burden of proof for determining that a producer is representing an authorized insurer falls on
Correct Answer: The producer
The fine the Commissioner may levy for violating any provision of the Insurance Code is Correct
Answer: $1000
A foreign insurer Correct 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 Correct 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 Correct Answer: 10 days
Property and casualty insurance rates are regulated to prohibit rates from being all of the following
EXCEPT Correct Answer: Competitive
An insurance company's license to business is called Correct Answer: A certificate of authority
The purpose of a Guaranty Association is to Correct Answer: Cover claims of insolvent insurers
The Guaranty Association pays a workers' compensation claim up to Correct Answer: The full amount of
covered claim
An insurance adjuster adjusts claims on behalf of Correct Answer: The insurer
Which of the following is allowed to place insurance in eligible nonadmitted insurers? Correct Answer:
Surplus lines producers
If a person has engaged in an unfair or deceptive practice, the commissioner may impose an
administrative fine up to Correct 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? Correct Answer: 30 days
The biennial continuing education requirement for producers is how many hours? Correct Answer: 24
hours
Of the total continuing education requirement, how many hours must be in ethics? Correct 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? Correct Answer: 35%
Which of the following referral fees may be paid to an unlicensed employee of a producer Correct
Answer: A fixed dollar amount
What type of relationship does a producer have with insurers and insureds in handling their premium
dollars? Correct Answer: Fiduciary
Charging insureds in the same class with the same hazards different premiums is an example of Correct
Answer: Discrimination
The Guaranty Association pays covered claims up to what amount for covered claims for other than
return of premium and workers' compensation? Correct 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 Correct Answer: 10 days in advance
The minimum requirement for proof of financial responsibility for automobile insurance in Mississippi is
Correct 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 Correct Answer: 30 days in advance
Workers' compensation insurance is available in Mississippi through Correct Answer: Private insurers
The maximum amount provided as a burial allowance under workers' compensation insurance in
Mississippi is Correct Answer: $5,000
In Mississippi, workers' compensation insurance is compulsory for private sector employers who employ
Correct Answer: 5 or more workers
