MS law multiple choice test

Which of the following is conferred to be an insurer?

A. Insurance agent B. Insurance company C. Insurance policy owners D. Person who pays premium Answer is B

A producer who fails to comply with NS requirements for payment of premium checks may be subject to:

A. Fines B. Imprisonment C. License suspension or revocation D. censure Answer is C license suspension or revocation

The guaranty association pay a WC claim up to

A. $10,000 B. The full amount of covered claim C. $100,000 D. $300,000 Answer is B the full amount of covered claim

If a person has engaged in an unfair or deceptive practice the commissioner may impose an administrative fine up to

A. $5,000 per violation B. 10,000 per violation C. 25,000 per violation D. 50,000 per violation Answer is A

The guaranty association pays covered claims up to what amount for covered claims for other than return of premium and WC?

A. $500,000 B. $300,000 C. $250,000 D. $100,000 Answer is B $300,000

Producers may notify the commissioner or change in address within how many days?

A. 10 days B. 14 days C. 21 days D. 30 days Answer is D 30 days

A producer who is applying for a life and property casualty producer license must complete how many hours of approved education courses before they may take the producer licensing exam?

A. 12 B. 24 C. 40 D. 45 Answer is C 40 hours

Producers must complete how many hours of CE every two years?

A. 18 hours B. 24 hours C. 30 hours D. 36 hours Answer is B 24 hours

The commissioner of insurance in MS is elected to a term of

A. 2 years B. 4 years C. 6 years D. 8 years

Temporary life insurance agent license are issued for how long?

A. 30 days B. 60 days C. 90 days D. 180 days Answer js D

All agents must be licensed by the commissioner. What must they hold from at least one insurer that authorizes the agent to transact business for that insurer?

A. Certificate of exemption B. Certificate of authority C. Certificate of completion D. License verification Answer is B

Who regulates all insurance companies and agents doing business ins MS?

A. Commissioner of insurance B. Insurance brokers C. Federal insurance association D. MS legislature Answer is A

Who selects the commissioner of insurance?

A. Department of insurance B. MS voters C. Governor D. State legislature Answer is B MS voters

What type of relationship does a producer have with insurers and insurers in handling their premium dollars?

A. Fiduciary B. Agent C. Broker D. Guarantor Answer is A fiduciary

Which of the following is NOT a duty of the commissioner of insurance?

A. Investigating the affairs of everyone engaged in the insurance business in MS B. Issuing certificates of authority to transact insurance business in MS C. Writing MS insurance laws D. Executing MS insurance laws Answe is C

Each of the following is TRUE about the MS residential property insurance underwriting association EXCEPT:

A. It makes insurance available for residential property in unprotected areas B. Association policies provide coverage against losses by fire and extended coverage perils C. Any person having an insurance interest in insurable property is entitled to apply for coverage D. Insurance company membership in the association is voluntary Answer is D

Which if the following referral fees may be paid to an unlicensed employee of a producer

A. None B. A fixed percentage of premium paid C. A fixed dollar amount D. A fixed percentage of the producer's commission Answer is C a fixed dollar amount

The purpose of the guaranty association is to

A. Offer automobile insurance to bad drivers B. Cover claims of insolvent insurers C. Offer homeowners insurance in high risk areas D. guarantee availability of commerical insurance answer is B cover claims of insolvent insurers

Which of the following is NOT an example of an unfair and deceptive trade practice

A. Rebating premiums B. Discriminating against a blind applicant for health insurance C. Issuing advisory board contracts with the promise of returns as an inducement to purchase insurance D. Accepting a commission for selling an insurance policy when licensed as an insurance producer Answer is D

All of the following are true about temporary producer licenses issued by the commissioner EXCEPT:

A. Temporary licenses are issued for a limited term B. A temporary license may be issued to another person upon the death of a licensed agent C. A temporary license may be issued to another person if a licensed agent is disabled D. Applicants for temporary licenses must take and pass a written examination Answer is D applicants for temporary licenses must take and pass a written examination

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

A. The guaranty association B. The assigned risk plan C. Preferred rates D. Surplus lines coverage Answer js B assigned risk plan

In MS premium checks must be made payable to who?

A. The insurance company B. The agency C. The producer D. Depaetmwnt of insurance Answer is A the insurance company

In an insurance transaction the insurance agent represents what?

A. The policy owner B. The insurer C. The state of MS D. The broker Answer is B

All of the following are prohibited solicitation practices EXCEPT:

A. Using any sales presentation that has not been submitted and approved by the commissioner B. Stating that the insurance company's profits are derived from lapses or excess interest earnings C. Stating that the dividends are not guaranteed D. Implying that the policy was issued by the insurance company's investment department Answer is C