Mississippi Property and Casualty Insurance Practice Exam Free 2026

• A. Evidence that coverage was purchased
• B. A loss ratio calculation
• C. A formal sworn statement from the insured documenting the loss
• D. Proof that the loss was accidental

Correct answer: C. A formal sworn statement from the insured documenting the loss

Explanation: A proof of loss is a formal, sworn statement submitted by the insured to the insurance company documenting the facts of the loss, the amount claimed, and other relevant information.

• A. To adjust premium rates
• B. To sell additional coverage
• C. To investigate claims and determine the amount the insurer should pay
• D. To deny all claims

Correct answer: C. To investigate claims and determine the amount the insurer should pay

Explanation: A claims adjuster investigates insurance claims to determine coverage, evaluate the extent of damage or loss, and recommend appropriate claim payment amounts based on policy terms.

• A. Recovering stolen property
• B. Salvaging a denied claim
• C. Damaged property retained by the insurer after paying a total loss claim
• D. Saving the policy from cancellation

Correct answer: C. Damaged property retained by the insurer after paying a total loss claim

Explanation: Salvage refers to damaged property that the insurer takes possession of after paying a total loss claim. The insurer may sell the salvage to recover some of the claim payment.

• A. Transferring the policy to another person
• B. Reducing the claim amount
• C. Substituting one policy for another
• D. The insurer's right to pursue recovery from the party responsible for the loss

Correct answer: D. The insurer's right to pursue recovery from the party responsible for the loss

Explanation: Subrogation is the insurer's right, after paying a claim, to pursue recovery of the payment from the third party who caused the loss. This prevents the insured from collecting twice.

• A. Disagreeing with a claim decision
• B. Filing a legitimate claim
• C. Changing insurers frequently
• D. Intentional deception to obtain insurance benefits illegally

Correct answer: D. Intentional deception to obtain insurance benefits illegally

Explanation: Insurance fraud is intentional deception committed by an applicant, policyholder, or claimant for the purpose of obtaining insurance benefits to which they are not entitled.

• A. Electrical fire damage
• B. The intentional and malicious burning of property
• C. Smoke damage without fire
• D. Accidental fire damage

Correct answer: B. The intentional and malicious burning of property

Explanation: Arson is the intentional and malicious burning of property. Insurance claims for fire losses caused by arson committed by the insured are denied and can result in criminal prosecution.

• A. Defending against premium increases
• B. The insurer's obligation to provide legal defense for covered claims
• C. A requirement to hire a defense attorney
• D. The insured's duty to defend the insurer

Correct answer: B. The insurer's obligation to provide legal defense for covered claims

Explanation: The duty to defend is the insurer's obligation to provide legal defense for the insured against covered claims, even if the claims are groundless. This is separate from the duty to pay damages.

• A. Switching insurance companies
• B. Disagreeing with policy terms
• C. An insurer's unreasonable denial or delay of legitimate claims
• D. Purchasing insurance you don't need

Correct answer: C. An insurer's unreasonable denial or delay of legitimate claims

Explanation: Bad faith occurs when an insurer unreasonably denies or delays payment of legitimate claims, fails to investigate properly, or otherwise acts unfairly toward the insured. It can result in significant penalties.

• A. Insurance for construction workers
• B. Coverage for construction defects
• C. Insurance for real estate developers
• D. Coverage for buildings under construction against damage or loss

Correct answer: D. Coverage for buildings under construction against damage or loss

Explanation: Builders risk insurance (course of construction insurance) covers buildings under construction against physical damage or loss from covered perils like fire, vandalism, or weather.

• A. Insurance for inland watercraft
• B. Insurance for lakes and rivers
• C. Marine life coverage
• D. Coverage for goods in transit and movable property on land

Correct answer: D. Coverage for goods in transit and movable property on land

Explanation: Inland marine insurance covers goods in transit over land, movable property, and items that may be at various locations. Despite its name, it has little to do with water transportation.

• A. Insurance for ocean-view properties
• B. Coverage for marine animals
• C. Coverage for ships, cargo, and related maritime exposures
• D. Flood insurance for coastal areas

Correct answer: C. Coverage for ships, cargo, and related maritime exposures

Explanation: Ocean marine insurance covers ships (hull coverage), cargo being transported by water, freight charges, and liability for damage to others' property or vessels.

• A. Insurance for movie directors
• B. Coverage for corporate headquarters
• C. Coverage protecting corporate directors and officers from personal liability for decisions
• D. Insurance for military officers

Correct answer: C. Coverage protecting corporate directors and officers from personal liability for decisions

Explanation: D&O liability insurance protects directors and officers of a company from personal liability when sued for alleged wrongful acts in managing the company, such as breach of fiduciary duty.

No. This is an independent study resource. Use it with the official Mississippi regulator and exam-vendor resources before scheduling or testing.

Mississippi Insurance Department is the regulator/source authority referenced for this page. Always verify current licensing rules directly with official sources.

The current vendor/source note used on this page is: Mississippi Insurance Department says Pearson VUE administers state insurance exams for producers, adjusters, and bail agents, and Pearson VUE hosts Mississippi insurance exam resources.

Review property insurance, casualty insurance, liability, auto, homeowners, commercial lines, policy provisions, claims basics, producer duties, state law, and unfair trade practices plus the Mississippi-specific law and regulation sections in the official candidate handbook or content outline.

No. It can help you review concepts and identify weak areas, but it cannot guarantee exam results, licensing eligibility, or approval.