MS adjuster license exam 2026 Questions
and Answers
Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and
hit him on the head. Jerome's injuries resulted in an extended hospital stay, so he
sued ABC Imports and was awarded $400,000. Assuming ABC Imports carries a
CGL with a General Aggregate of $750,000 and a per occurrence limit of
$250,000, what is the maximum that ABC's insurer will pay for Jerome's injuries? -
Correct answer-$250,000
Strict Liability: - Correct answer-holds a person liable for his actions regardless of
how much care he demonstrates.
Wendy hires Jim to build an addition to her house. Jim takes the job and finishes it
in good time. Unfortunately, as Wendy is walking across the threshold of the new
addition, a floorboard gives way and Wendy falls into the crawl-space below,
injuring her leg and back. Which commercial general liability coverage could help
cover the cost of Wendy's injuries? - Correct answer-Completed Operations
Liability
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,In which case would the insured be indemnified by her auto liability coverage? -
Correct answer-NOT: None; liability coverage never indemnifies the insured. OR
she causes property damage to her neighbor
Lucille owns her own woodworking business, building custom items such as
dressers, wooden trunks, and mantelpieces. A fire destroys her entire operation and
Lucille files a claim with her insurer. Which of the following would be covered
under Coverage A of the Building and Personal Property Coverage Form in her
commercial property policy? - Correct answer-A bandsaw permanently affixed to
the floor
In which of these situations could a Mississippi insurer cancel a policy after 60
days with sufficient notice? - Correct answer-The policyholder's son has his license
suspended during the policy period.
Bonnie's PAP includes Comprehensive coverage. Which of the following losses
could this coverage pay for? - Correct answer-Bonnie's car catches fire
Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her
uninsured car into Sam's. Sam's own insurance company, ABC Insurance,
immediately pays him $5,000 for his injuries. Sam then ponders whether to file a
$6,000 lawsuit against Nicole. Why can't Sam sue Nicole for the full amount of his
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,injuries? - Correct answer-By accepting payment from ABC Insurance, Sam
subrogated a portion of his rights against Nicole to ABC Insurance.
In order to be a licensed adjuster, a person must be at least ____ years old. -
Correct answer-18
Grant works at ABC Convenience. One day, a man pulls up in an expensive car
and pays cash for his gas with a hundred dollar bill. Grant accepts the bill without
checking its validity. When Grant's manager checks the bill later, he discovers it is
a fake. Which commercial crime coverage could protect ABC Convenience from
financial loss associated with accepting the fake hundred dollar bill? - Correct
answer-Money orders and counterfeit paper currency
States that allow private insurers to offer workers' comp coverage as an alternative
to the state workers' comp fund are called: - Correct answer-competitive
The Employee Retirement Income Security Act (ERISA): - Correct answer-
requires that every fiduciary of an employee benefit plan and every person who
handles funds or other property of those plans must be bonded
Bill lives in Mississippi and has the minimum auto liability coverage required for
the state. He causes an accident that results in $35,000 in property damage and
$50,000 in bodily injury to another person. How much will Bill have to pay out of
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, pocket for this accident? - Correct answer-$10,000 in property damage and
$25,000 in medical expense
Which of the following statements regarding scheduled fidelity bonds is FALSE? -
Correct answer-All employees are bonded for the same aggregate amount.
D'Anton spills coffee in his lap while driving, causing him to veer off the road and
smash into a telephone pole. Which part of his Auto Insurance Policy will help him
pay for the repairs to his car? - Correct answer-Collision coverage
If an insurer decides to cancel a personal auto policy (for a reason other than non-
payment of premiums) after the policy has been in effect for 60 days, the insurer
must provide written notice to the insured __________ in advance. - Correct
answer-30 days
Acme Construction, Inc. has one contractor and one receptionist. The contractor
makes $25/hr, and the receptionist makes $10/hr. The contractor worked exactly 8
hours in 2010, so he made $200. The receptionist worked 10 hours, so she made
$100. Therefore, Acme's entire payroll for 2010 was $300. Assume that, for every
$100 of payroll, the WC rate for contractors is $50 and the rate for receptionists is
$5. How much did Acme owe in WC premiums? - Correct answer-$105
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
and Answers
Jerome was shopping at ABC Imports when a light fixture fell from the ceiling and
hit him on the head. Jerome's injuries resulted in an extended hospital stay, so he
sued ABC Imports and was awarded $400,000. Assuming ABC Imports carries a
CGL with a General Aggregate of $750,000 and a per occurrence limit of
$250,000, what is the maximum that ABC's insurer will pay for Jerome's injuries? -
Correct answer-$250,000
Strict Liability: - Correct answer-holds a person liable for his actions regardless of
how much care he demonstrates.
Wendy hires Jim to build an addition to her house. Jim takes the job and finishes it
in good time. Unfortunately, as Wendy is walking across the threshold of the new
addition, a floorboard gives way and Wendy falls into the crawl-space below,
injuring her leg and back. Which commercial general liability coverage could help
cover the cost of Wendy's injuries? - Correct answer-Completed Operations
Liability
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,In which case would the insured be indemnified by her auto liability coverage? -
Correct answer-NOT: None; liability coverage never indemnifies the insured. OR
she causes property damage to her neighbor
Lucille owns her own woodworking business, building custom items such as
dressers, wooden trunks, and mantelpieces. A fire destroys her entire operation and
Lucille files a claim with her insurer. Which of the following would be covered
under Coverage A of the Building and Personal Property Coverage Form in her
commercial property policy? - Correct answer-A bandsaw permanently affixed to
the floor
In which of these situations could a Mississippi insurer cancel a policy after 60
days with sufficient notice? - Correct answer-The policyholder's son has his license
suspended during the policy period.
Bonnie's PAP includes Comprehensive coverage. Which of the following losses
could this coverage pay for? - Correct answer-Bonnie's car catches fire
Sam suffers $6,000 in injuries when Nicole runs a red light and crashes her
uninsured car into Sam's. Sam's own insurance company, ABC Insurance,
immediately pays him $5,000 for his injuries. Sam then ponders whether to file a
$6,000 lawsuit against Nicole. Why can't Sam sue Nicole for the full amount of his
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,injuries? - Correct answer-By accepting payment from ABC Insurance, Sam
subrogated a portion of his rights against Nicole to ABC Insurance.
In order to be a licensed adjuster, a person must be at least ____ years old. -
Correct answer-18
Grant works at ABC Convenience. One day, a man pulls up in an expensive car
and pays cash for his gas with a hundred dollar bill. Grant accepts the bill without
checking its validity. When Grant's manager checks the bill later, he discovers it is
a fake. Which commercial crime coverage could protect ABC Convenience from
financial loss associated with accepting the fake hundred dollar bill? - Correct
answer-Money orders and counterfeit paper currency
States that allow private insurers to offer workers' comp coverage as an alternative
to the state workers' comp fund are called: - Correct answer-competitive
The Employee Retirement Income Security Act (ERISA): - Correct answer-
requires that every fiduciary of an employee benefit plan and every person who
handles funds or other property of those plans must be bonded
Bill lives in Mississippi and has the minimum auto liability coverage required for
the state. He causes an accident that results in $35,000 in property damage and
$50,000 in bodily injury to another person. How much will Bill have to pay out of
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, pocket for this accident? - Correct answer-$10,000 in property damage and
$25,000 in medical expense
Which of the following statements regarding scheduled fidelity bonds is FALSE? -
Correct answer-All employees are bonded for the same aggregate amount.
D'Anton spills coffee in his lap while driving, causing him to veer off the road and
smash into a telephone pole. Which part of his Auto Insurance Policy will help him
pay for the repairs to his car? - Correct answer-Collision coverage
If an insurer decides to cancel a personal auto policy (for a reason other than non-
payment of premiums) after the policy has been in effect for 60 days, the insurer
must provide written notice to the insured __________ in advance. - Correct
answer-30 days
Acme Construction, Inc. has one contractor and one receptionist. The contractor
makes $25/hr, and the receptionist makes $10/hr. The contractor worked exactly 8
hours in 2010, so he made $200. The receptionist worked 10 hours, so she made
$100. Therefore, Acme's entire payroll for 2010 was $300. Assume that, for every
$100 of payroll, the WC rate for contractors is $50 and the rate for receptionists is
$5. How much did Acme owe in WC premiums? - Correct answer-$105
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
