MISSISSIPPI LIFE AND HEALTH
INSURANCE EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
Absolute assignment - ANS Policy assignment under which the assignee (person to whom the
policy is assigned)
receives full control over the policy and also full rights to its benefits. Generally, when a policy is
assigned to secure
a debt, the owner retains all rights in the policy in excess of the debt, even though the
assignment is absolute in
form. (See assignment)
Accelerated benefits rider - ANS A life insurance rider that allows for the early payment of
some portion of the
policies face amount should the insured suffers from a terminal i l l n e s s or injury.
Acceptance - ANS (See offer and acceptance)
Accidental bodily injury provision - ANS Disability income or accident policy provision that
requires that the injury
be accidental in order for benefits to be payable.
Accidental death and dismemberment (AD&D) - ANS Insurance providing payment if the
insured's death results
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 45
,from an accident, if the insured accidentally severs a limb above the wrist or ankle joints, or
totally and irreversibly
Accidental death benefit rider - ANS A life insurance policy rider providing for payment of an
additional benefit
when death occurs by accidental means.
Accidental dismemberment - ANS Often defined as "the severance of limbs at or above the
wrists or ankle
joints, or the entire irrevocable loss of sight." Loss of use in itself may or not be considered
dismemberment.
Accidental means provision - ANS Unforeseen, unexpected, unintended cause of an accident.
Requirement of an
accident-based policy that the cause of the mishap must be accidental for any claim to be
payable.
Accident and health insurance - ANS Under which benefits are payable in case of disease,
accidental injury, or
accidental death. Also called health insurance, personal health insurance, and sickness and
accident insurance.
Accumulation unit - ANS Premiums an annuitant pays into annuities are credited as
accumulation units. At the end of
the accumulation period, accumulation units are converted to annuity units.
Acquired immune deficiency syndrome (AIDS) - ANS A life-threatening condition brought on
by the human
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 45
,immunodeficiency virus; insurers must adhere to strict underwriting and claims guidelines in
regard to AIDS risks
and AIDS-related conditions.
Acute illness - ANS A serious condition, such as pneumonia, from which the body can fully
recover with proper
medical attention.
Adhesion - ANS A life insurance policy is a contract of adhesion because buyers must adhere
to the terms of the
contract already in existence. They have no opportunity to negotiate terms, rates, values, and so
on.
Adjustable life insurance - ANS Combines features of both term and whole life coverage with
the length of coverage
and amount of accumulated cash value as the adjustable factors. Premiums may be increased or
decreased to fit the
specific needs. Such adjustments are not retroactive and apply only to the future.
Administrative-services-only (ASO) Plan - ANS Arrangement under which an insurance
company or an
independent organization, for a fee, handles the administration of claims, benefits, and other
administrative
functionsfor a self-insured group.
Admitted insurer - ANS An insurance company that has met the legal and financial
requirements for operation within
a given state.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 45
, Adult day care - ANS Type of care (usually custodial) designed for individuals who require
assistance with various
activities of daily living, while their primary caregivers are absent. Offered in care centers.
Adverse selection - ANS Selection "against the company." Tendency of less favorable
insurance risks to seek or
continue insurance to a greater extent than others. Also, tendency of policy owners to take
advantage of favorable
options in insurance contracts.
Advertising Code - ANS Rules established by the National Association of Insurance
Commissioners (NAIC) to
regulate insurance advertising.
Agency - ANS Situation wherein one party (an agent) has the power to act for another (the
principal) i n dealing
with third parties.
Agent - ANS Anyone not a duly licensed broker who solicits insurance or aids in placing risks,
delivering policies, or
collecting premiums on behalf of an insurance company.
Agent's report - ANS The section of an insurance application where the agent reports
personal observations about the
applicant.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 45
INSURANCE EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
Absolute assignment - ANS Policy assignment under which the assignee (person to whom the
policy is assigned)
receives full control over the policy and also full rights to its benefits. Generally, when a policy is
assigned to secure
a debt, the owner retains all rights in the policy in excess of the debt, even though the
assignment is absolute in
form. (See assignment)
Accelerated benefits rider - ANS A life insurance rider that allows for the early payment of
some portion of the
policies face amount should the insured suffers from a terminal i l l n e s s or injury.
Acceptance - ANS (See offer and acceptance)
Accidental bodily injury provision - ANS Disability income or accident policy provision that
requires that the injury
be accidental in order for benefits to be payable.
Accidental death and dismemberment (AD&D) - ANS Insurance providing payment if the
insured's death results
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 45
,from an accident, if the insured accidentally severs a limb above the wrist or ankle joints, or
totally and irreversibly
Accidental death benefit rider - ANS A life insurance policy rider providing for payment of an
additional benefit
when death occurs by accidental means.
Accidental dismemberment - ANS Often defined as "the severance of limbs at or above the
wrists or ankle
joints, or the entire irrevocable loss of sight." Loss of use in itself may or not be considered
dismemberment.
Accidental means provision - ANS Unforeseen, unexpected, unintended cause of an accident.
Requirement of an
accident-based policy that the cause of the mishap must be accidental for any claim to be
payable.
Accident and health insurance - ANS Under which benefits are payable in case of disease,
accidental injury, or
accidental death. Also called health insurance, personal health insurance, and sickness and
accident insurance.
Accumulation unit - ANS Premiums an annuitant pays into annuities are credited as
accumulation units. At the end of
the accumulation period, accumulation units are converted to annuity units.
Acquired immune deficiency syndrome (AIDS) - ANS A life-threatening condition brought on
by the human
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 45
,immunodeficiency virus; insurers must adhere to strict underwriting and claims guidelines in
regard to AIDS risks
and AIDS-related conditions.
Acute illness - ANS A serious condition, such as pneumonia, from which the body can fully
recover with proper
medical attention.
Adhesion - ANS A life insurance policy is a contract of adhesion because buyers must adhere
to the terms of the
contract already in existence. They have no opportunity to negotiate terms, rates, values, and so
on.
Adjustable life insurance - ANS Combines features of both term and whole life coverage with
the length of coverage
and amount of accumulated cash value as the adjustable factors. Premiums may be increased or
decreased to fit the
specific needs. Such adjustments are not retroactive and apply only to the future.
Administrative-services-only (ASO) Plan - ANS Arrangement under which an insurance
company or an
independent organization, for a fee, handles the administration of claims, benefits, and other
administrative
functionsfor a self-insured group.
Admitted insurer - ANS An insurance company that has met the legal and financial
requirements for operation within
a given state.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 45
, Adult day care - ANS Type of care (usually custodial) designed for individuals who require
assistance with various
activities of daily living, while their primary caregivers are absent. Offered in care centers.
Adverse selection - ANS Selection "against the company." Tendency of less favorable
insurance risks to seek or
continue insurance to a greater extent than others. Also, tendency of policy owners to take
advantage of favorable
options in insurance contracts.
Advertising Code - ANS Rules established by the National Association of Insurance
Commissioners (NAIC) to
regulate insurance advertising.
Agency - ANS Situation wherein one party (an agent) has the power to act for another (the
principal) i n dealing
with third parties.
Agent - ANS Anyone not a duly licensed broker who solicits insurance or aids in placing risks,
delivering policies, or
collecting premiums on behalf of an insurance company.
Agent's report - ANS The section of an insurance application where the agent reports
personal observations about the
applicant.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 45
