MISSISSIPPI INSURANCE TEST 196 2026
UNDERWRITING AND RISK MANAGEMENT
DRILL PACK ANSWER SHEET
◉ If you violate a cease and desist order you can be fined up to ____
Answer: $1000 per violation
◉ If you do unlicensed activities you can be fined ____ and ____ years
of imprisonment or ____
Answer: 200-500 and 1-2 years of imprisonment or both
◉ Whats the minimum fine of unlicensed activities?
Answer: $200
◉ Whats the maximum fine of unlicensed activities?
Answer: 500 and 1-2 years of imprisonment
◉ Agent is another name for a _____ or ____
Answer: Producer;Field Underwriter
◉ A _____ is comments on an application between the field
underwriter and the underwriter. EX. If you see a woman smoking,
,but she puts on her application that she does not. You, as the field
underwriter, puts a comment towards the underwriter that she was
lying.
Answer: producer's report
◉ If the owner(parent) and insured(child) is different people, both
have to be ____
Answer: present
◉ What is a mutual company? Are they participating or non-
participating?
Answer: They give money back to the people that buy insurance
from them. So stockholders get dividends(Money) from companies
usually while the insured do not, with a mutual company the insured
get money back and there is no stockholders. They are participating
since the policyholders are actively participating.
◉ When you die the beneficiary is not taxed later, because ____
Answer: you have been taxed on the premium all along
◉ A dividend is not taxed because it was taxed on a premium
already. You were taxed on the ____
Answer: front end
,◉ USAA is a _____. They dont insure the public, they only insure the
members involved.
Answer: reciprocal insurer
◉ _____ is used for a reciprocal insurer
Answer: Attorney-in-fact
◉ _____ is formed or incorporated in Mississippi
Answer: Domestic insurer
◉ _____ would not be formed or incorporated in Mississippi
Answer: Foreign insurer
◉ What does the commissioner give to a company that gives them
the ability to solicit?
Answer: Certificate of Authority
◉ A Certificate of Authority must be renewed ____ before _____ by the
insurer(company)
Answer: annually; June 1st
◉ How is the Mississippi Insurance Guaranteed Association
financed?
, Answer: Mmeber's Fees
◉ Agents have to renew their license every_____ by the end of their
birth month. If not, they become an ____.
Answer: 2 years; inactive agent
◉ Inactive Agents can still ______
Answer: receive renewal commissions
◉ Controlled business= ____% of the business you get can be related
to you
Answer: 35
◉ A insurer(company) has ____ days to submit an application to the
commissioner office after an agent contract has been executed
Answer: 15
◉ 15 ____/ 30 ____
Answer: 15 hired/ 30 fired
◉ What can a commissioner not do?
Answer: He does not make the law he enforces it.
UNDERWRITING AND RISK MANAGEMENT
DRILL PACK ANSWER SHEET
◉ If you violate a cease and desist order you can be fined up to ____
Answer: $1000 per violation
◉ If you do unlicensed activities you can be fined ____ and ____ years
of imprisonment or ____
Answer: 200-500 and 1-2 years of imprisonment or both
◉ Whats the minimum fine of unlicensed activities?
Answer: $200
◉ Whats the maximum fine of unlicensed activities?
Answer: 500 and 1-2 years of imprisonment
◉ Agent is another name for a _____ or ____
Answer: Producer;Field Underwriter
◉ A _____ is comments on an application between the field
underwriter and the underwriter. EX. If you see a woman smoking,
,but she puts on her application that she does not. You, as the field
underwriter, puts a comment towards the underwriter that she was
lying.
Answer: producer's report
◉ If the owner(parent) and insured(child) is different people, both
have to be ____
Answer: present
◉ What is a mutual company? Are they participating or non-
participating?
Answer: They give money back to the people that buy insurance
from them. So stockholders get dividends(Money) from companies
usually while the insured do not, with a mutual company the insured
get money back and there is no stockholders. They are participating
since the policyholders are actively participating.
◉ When you die the beneficiary is not taxed later, because ____
Answer: you have been taxed on the premium all along
◉ A dividend is not taxed because it was taxed on a premium
already. You were taxed on the ____
Answer: front end
,◉ USAA is a _____. They dont insure the public, they only insure the
members involved.
Answer: reciprocal insurer
◉ _____ is used for a reciprocal insurer
Answer: Attorney-in-fact
◉ _____ is formed or incorporated in Mississippi
Answer: Domestic insurer
◉ _____ would not be formed or incorporated in Mississippi
Answer: Foreign insurer
◉ What does the commissioner give to a company that gives them
the ability to solicit?
Answer: Certificate of Authority
◉ A Certificate of Authority must be renewed ____ before _____ by the
insurer(company)
Answer: annually; June 1st
◉ How is the Mississippi Insurance Guaranteed Association
financed?
, Answer: Mmeber's Fees
◉ Agents have to renew their license every_____ by the end of their
birth month. If not, they become an ____.
Answer: 2 years; inactive agent
◉ Inactive Agents can still ______
Answer: receive renewal commissions
◉ Controlled business= ____% of the business you get can be related
to you
Answer: 35
◉ A insurer(company) has ____ days to submit an application to the
commissioner office after an agent contract has been executed
Answer: 15
◉ 15 ____/ 30 ____
Answer: 15 hired/ 30 fired
◉ What can a commissioner not do?
Answer: He does not make the law he enforces it.
