Mississippi Independent Adjuster Practice Test: Mississippi law, Part 2

Correct answer: D. He may not represent her on a claim he adjusted for the insurer

Section 83-17-523(2)(b) forbids a public adjuster from representing any person or entity whose claim the public adjuster previously adjusted while acting as an independent adjuster for an insurer, whether directly or through an independent adjusting firm. Disclosure, consent or the passage of time does not cure the conflict. MID's public adjuster instructions repeat this rule as a conflict of interest requirement.

Reference: Miss. Code Ann. 83-17-523(2)(b), as amended by Laws 2025, H.B. 1174

Correct answer: C. A $750 nonrefundable retainer due when the insured signs

Section 83-17-523(1)(b) bars a public adjuster from requiring, demanding or accepting any fee, retainer, compensation or deposit before a partial or full settlement, so an up-front retainer is illegal. A 10% fee is the maximum allowed, costs must be listed by kind and estimated amount, and since 2025 every contract must carry the title "Public Adjuster Contract" and the adjuster's license number, among other required terms.

Reference: Miss. Code Ann. 83-17-523(1)(a) to (c) and (h), as amended by Laws 2025, H.B. 1174

Correct answer: B. One year from the filing of the Form B-31

Mississippi has two limitation periods. If no indemnity is paid, Miss. Code Ann. 71-3-35 gives two years from the date of injury. Once compensation has been paid, the claimant has one year from the proper filing of Form B-31 with the Workers' Compensation Commission, based on 71-3-37(7), 71-3-53 and Commission Rule 2.17. Under the 2018 rule change, the year runs once notice of the filing is given to the claimant or the claimant's attorney.

Reference: Mississippi Workers' Compensation Claims Guide (MWCEA, 2019), section 6.3; Miss. Code Ann. 71-3-35 and 71-3-53

Correct answer: D. Prohibited as an inducement to sign the contract

The Insurance Benefits Roofing Repair Consumer Protection Act, as amended in 2024, bars a residential roofing contractor from advertising, promising, offering to pay, paying or rebating any part of an insured's deductible as an inducement to sign. The contractor also may not represent the owner on the claim before it is filed, and the insured may cancel within 3 business days after the insurer says the loss is not covered. Violations are unfair and deceptive practices.

Reference: Miss. Code Ann. 75-24-307(4)(b) and 75-24-311, as amended by Laws 2024, H.B. 1408

Correct answer: A. Misrepresenting policy terms to induce a lapse

Section 83-5-35(a) defines as unfair and deceptive any statement misrepresenting the terms of a policy and any misrepresentation to a policyholder made to induce the policyholder to lapse, forfeit or surrender the insurance. Section 83-5-33 prohibits engaging in practices the article defines as unfair. Defamation under 83-5-35(c) involves false, malicious statements about an insurer's financial condition, which the agent did not make here.

Reference: Miss. Code Ann. 83-5-35(a) and (c), text as amended by Laws 2010, S.B. 2344

Correct answer: C. Reasonably disapprove an insurer and judge the adequacy of coverage

Section 83-5-35(h) makes it an unfair practice to require, as a condition of a sale or loan secured by property, that the insurance be procured through a particular person, agent or insurer. The same paragraph preserves the lender's right to reasonably approve or disapprove the insurer the borrower selects and to determine whether the coverage is adequate. The other three options all steer the borrower to a particular agent or insurer.

Reference: Miss. Code Ann. 83-5-35(h), text as amended by Laws 2010, S.B. 2344

Correct answer: B. $75,000

Since January 1, 2006, Mississippi's minimum limits are $25,000 per person and $50,000 per accident for bodily injury and $25,000 for property damage (25/50/25). The first person's claim is capped at $25,000, so the injury claims total $60,000, which the $50,000 per accident limit reduces to $50,000. Property damage is capped at $25,000. The policy pays at most $75,000; $85,000 ignores the per accident cap.

Reference: Miss. Code Ann. 63-15-3(j); 25/50/25 limits set by Laws 2005, H.B. 722 (effective January 1, 2006)

Correct answer: D. It binds all persons insured under the policy, including her

Under 83-11-101(4), a rejection form signed by or for the named insured binds everyone insured by the policy and creates a presumption of an informed, knowing waiver of uninsured motorist coverage. Under 83-11-101(1), the insurer need not offer the coverage again on renewal or replacement policies unless the named insured asks for it in writing, so no new rejection is needed each term. The daughter has no UM claim under this policy.

Reference: Miss. Code Ann. 83-11-101(1) and (4), as amended by Laws 2020, S.B. 2230

Correct answer: A. At least 45 days before the cancellation takes effect

For liability, fire and multiperil coverage issued or renewed on or after July 1, 2026, H.B. 1611 requires notice of cancellation, reduction in coverage or nonrenewal to be mailed or delivered at least 45 days before the effective date. Policies issued or renewed earlier kept the old 30-day rule. Nonpayment cancellations fall outside this section unless a creditor loss payee is named, in which case 10 days' notice is required.

Reference: Miss. Code Ann. 83-5-28(1), as amended by Laws 2025, H.B. 1611 (version effective July 1, 2026)

Correct answer: C. Continuing the policy for the rest of the notice period plus 45 more days

For auto policies issued or renewed on or after July 1, 2026, 83-11-5 requires 45 days' notice of cancellation (10 days for nonpayment). If the insurer misses the notice requirement, the named insured may continue the policy for the remainder of the notice period plus an additional 45 days at the existing premium rate, and this option repeats in 45-day increments until proper notice is given. It is not an automatic full-term extension or premium refund.

Reference: Miss. Code Ann. 83-11-5, as amended by Laws 2025, H.B. 1611 (version effective July 1, 2026)

Correct answer: D. $360,550

As amended effective July 1, 2025, 83-23-115(1)(a) has MIGA pay a property damage covered claim in excess of $50, up to $400,000 per claimant, and unearned premium in excess of $50 per policy; most other covered claims stay capped at $300,000. Erin's $360,000 fire claim is under the new cap, so MIGA pays $359,950, plus $650 minus $50, or $600, of premium: $360,550 in all. The pre-2025 $300,000 cap would have produced $300,600.

Reference: Miss. Code Ann. 83-23-115(1)(a), as amended by Laws 2025, S.B. 2894

Correct answer: B. Hinds

Section 83-34-1(f) defines the coast area as Hancock, Harrison, Jackson, Pearl River, Stone and George Counties. Hinds County, home to Jackson, the capital, is inland and outside the association's territory. The association writes essential property insurance, meaning coverage against direct loss from windstorm and hail, on insurable real property and contents at fixed locations in those six counties.

Reference: Miss. Code Ann. 83-34-1(a) and (f), as amended by Laws 2019, H.B. 444

Correct answer: A. $180,000, the amount of insurance on the building

Mississippi's valued policy law says that when an insured building in the state is totally destroyed by fire, the insurer may not deny it was worth the full insured value when the policy was issued, and the measure of damages is the amount of insurance. Insurers may not attach a three-quarter value clause to such coverage. Since 2023 the rule does not apply to builder's risk policies, but this rental house is not one.

Reference: Miss. Code Ann. 83-13-5, as amended by Laws 2023, H.B. 544

Correct answer: C. A machine shop that regularly employs six workers

Section 71-3-5 requires coverage when an employer has five or more workers regularly in service in the same business under a contract of hire, so the six-worker machine shop is covered. The four-worker shop falls below the threshold. Nonprofit charitable, fraternal, cultural and religious corporations or associations are exempt regardless of how many people they employ, as MID's workers' compensation claims guide explains.

Reference: Mississippi Workers' Compensation Claims Guide (MWCEA, 2019), section 2.1; Miss. Code Ann. 71-3-5

Correct answer: B. The first 5 days are a waiting period, so 7 days are payable

Section 71-3-11 imposes a five-day waiting period for disability compensation, but if disability lasts more than 14 days, compensation is paid back to the date of injury. Ana's 12 days never pass the 14-day mark, so the first 5 days stay unpaid and days 6 through 12 are compensable. The days need not be consecutive under Commission Rule 1.11. Had she been disabled 15 days, all of them would be paid.

Reference: Mississippi Workers' Compensation Claims Guide (MWCEA, 2019), section 9.2; Miss. Code Ann. 71-3-11