Mississippi Property & Casualty Practice Exam

When must COA's be renewed?

1. Every year

2. Annually with prior approval

3. Every 2 years with prior approval

4. Every 5 years without approval

The correct answer is: Every 2 years with prior approval

Certificates of Authority (COAs) for insurance companies in Mississippi must be renewed every two years with prior approval from the state insurance department. This requirement helps ensure that insurance companies maintain their compliance with state regulations and continue to meet the necessary standards for financial stability and operational integrity. The two-year renewal cycle allows regulators to assess the performance and eligibility of the insurer in the marketplace, ensuring that they are still capable of fulfilling their obligations to policyholders. The requirement for prior approval serves as an additional layer of oversight. It ensures that any changes in the company's operations, financial condition, or management structure are reviewed before the renewal is granted, safeguarding the interests of consumers and maintaining market stability.