South Carolina Insurance Exam Bundle Questions & Answers Latset Update/Verified

all of the following are typically included in a life insurance policy illustration EXCEPT: A. premium of the policy B. names of the beneficiaries C. interest charged for policy loans D. cash surrender value in 20 years - ANSWER-B. names of the beneficiaries during the course of an insuranc...

Producer - ANSWER-An insurance producer is any person who sells, solicits, or negotiates insurance on behalf of an insurer. If a producer changes their address, they have how many days to notify the Department of Insurance of the change? - ANSWER-30 What option does the Director have if an ins...

An insurer is REQUIRED to offer which of the following to each long-term care applicant at the time of purchase? - ANSWER-Inflation protection Which of these riders will pay a death benefit if the insured's spouse dies? - ANSWER-Family term insurance rider Disability income plans which requir...

The SC Director of Insurance is - ANSWER-Appointed The Director must be approved by the - ANSWER-South Carolina Senate The Director has the same powers as a - ANSWER-Circuit Court Judge, but only in insurance A producer must be working for an insurance company to be licensed? - ANSWER-False...

Which of the following persons would NOT qualify for a temporary producer's license in South Carolina? a. person designated by a producer on active military duty b. part-time producer of a licensed agency c. surviving spouse of a deceased producer d. wife of a disabled producer - ANSWER-b. An...

Greg has recently been terminated from his job that covered group life insurance. How long does he have to convert his coverage to an individual policy? - ANSWER-31 days which of these would NOT be considered a presumptive disability? - ANSWER-lost of an leg or arm The premium payment mode tha...

An insurer's ability to make unpredictable payouts to policy owners is called - ANSWER-Liquidity Fraternal Benefit Society has each of the following characteristics EXCEPT - ANSWER-Exist for Profit. FBS are non-profit entities that exist for the benefit of their members An insurer's claim se...

What are the minimum requirements to a licensed producer in South Carolina? - ANSWER-Be 18 years old, good morale character, not been convicted of a felony, pay required licensing fees, pass state exam What documentation is requested by the SC Department of Insurance to process your application? ...

A carrier for a small group health plan may refuse to renew the plan if the employer exceeds a specified number of claims fails to generate minimum revenues fails below a minimum AM Best rating fails to pay the premium - ANSWER-fails to pay the premium Twisting is BEST defined as maki...

REQUIREMENTS - ANSWER-1. Must be 18 years or older 2. Person of good moral character 3. Has paid fees 4. Must have passed exam PRODUCER LICENSE - ANSWER-Ground person; out working with people; represents the company NONRESIDENT LICENSE - ANSWER-Means you live out of state, and if you want t...

What are the minimum requirements to become a licensed producer in South Carolina? - ANSWER-- at least 18 years old - good moral character - clean SLED background check - passed LAH exam - completed DOI registration application and paid fee What documentation is requested by the SC Departme...

Part A - ANSWER-Hospital Insurance, helps pay for inpatient hospital care, inpatient care in a skilled nursing facility, home health care and hospice care Part B - ANSWER-Medical Insurance, financed from monthly premiums paid by insureds and from the general revenues of the federal government ...

Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him? - ANSWER-Assisted Living Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much...

Which of the following is illegal discrimination? - ANSWER-Refusing an applicant because of marital status Under South Carolina law, what may the insurer REQUIRE to determine the exact cause of death if death appears accidental? - ANSWER-Autopsy The free look period provided in a life insuranc...

Alien Insurer - ANSWER-is an insurer whose principal office and domicile location is outside this country. Actuarial Department - ANSWER-the actuarial department calculates policy rates, reserves, and dividends. Admitted Insurer - ANSWER-an admitted or authorized insurer is an insurer who has ...

Abandonment Condition - ANSWER-A condition often contained in property insurance policies that states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value. Absolute Liability - ANSWER-Type of liability imposed by law on those participating...

Which of the following is NOT considered to be a basic service, under a nonscheduled plan a) oral surgery b) Fillings c) Dentures d) Endodontics - ANSWER-C) Dentures Which of the following is Not a characteristic or a service of an HMO plan a) Providing care on an outpatient basis b) Contra...

4 Types of Licensees - ANSWER-Producer, Nonresident, Temporary, Broker Director's General Duties and Powers - ANSWER-The duties of the Director, who is subject to state insurance law, include: 1. Supervising and regulating insurers' rates and service. 2. Enforcing and making regulations to ad...

What is the minimum age to obtain a producer's license? - ANSWER-18 years old Non -resident producers must file change of address within ___ days of moving to another state. - ANSWER-30 days The Director may issue a temporary producer license for a maximum of ___ days to a surviving spouse, b...

Insurable Property - ANSWER-Immovable property at fixed locations in coastal areas of the State, or tangible personal property located inside it. The property must be determined to be in an insurable condition using reasonable underwriting standards. individual or agency - ANSWER-may not transact...

Once the director issues a cease and desist, how soon must an insurer comply? - ANSWER-Within 30 days How many hours of continuing education is required in ethics? - ANSWER-3 hours How old do you have to be to receive your license? - ANSWER-18 How much time does an insurer have to submit a ...

What are the minimum requirements to become a licensed producer in SC? - ANSWER-At least 18, good moral character, clean SLED background, passed the LAH test, completed DOI license registration application sand paid the fee What documentation is requested by the SC Department of Insurance to proc...

What is the purpose for having an accelerated death benefit on a life insurance policy? - ANSWER-It allows for cash advances to be paid Premium for a modified whole life policy is - ANSWER-lower then typical during first few years then higher then typical for the remainder An eligible employee...

An insurance producer is BEST defined as someone who sells, solicits, or negotiates insurance contracts for compensation on be behalf of a client sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer offers to examine any policy (for a fee) for the purpose ...

Accumulated Depreciation - ANSWER-The total decrease in an item's value over a period of time. Formula:(Annual Depreciation x Number ofyears used) 1-J Acreage Reporting Date - ANSWER-The deadline for providing the insurer with an acreage report, which is used to determine the amount of coverage ...

Producer - ANSWER-Independent Insurance Agents also known as insurance sales agents that typically sell a variety of Insurance and financial products. resident producer - ANSWER-An agent who holds an insurance license in the state in which they live non-resident producer - ANSWER-Agents who ho...

South Carolina Motor Vehicle Financial Responsibility Act - ANSWER-Requires that all automobile drivers be able to show proof that they can pay for damages done to others up to a minimum amount if involved in an accident Required auto limits - ANSWER-25000/50000 for bodily injury and 25000 for pr...

Casualty Insurance - ANSWER-Synonymous with liability insurance > covers the insured for losses that cause injury or property damage to another person in which the insured is found to be legally responsible >pays "the other guy" Third Party Losses - ANSWER-occur when a person claims to ...

The reduction, decrease, or disappearance of value of a person or property insured in a policy? - ANSWER-Loss What is negligence? - ANSWER-failure to use ordinary or reasonable care Does a party need to prove negligence under absolute liability? - ANSWER-No, absolute liability exists when cond...

What are the minimum requirements to become a licensed producer in SC? - ANSWER-18 years of age good morale (character) not been convicted of felony pay fees pass state exam What documentation is requested by the SC Department of Insurance to process your application? - ANSWER-SC DOI applicat...

What is ACV equation? - ANSWER-Replacement cost-depreciation What is the coinsurance formula? - ANSWER-Cov you did have / cov should've had x loss = claim payment - deductible To serve in The Director's position they must ? - ANSWER-Appointed by governor, member of governors cabinet, serve a...

In what form do disability income policies typically pay benefits? - ANSWER-Periodic Income What cannot increase the death benefit amount - ANSWER-Waiver of premium Which type of disability would be less than total impairment and equal to permanent impairment? - ANSWER-Permanent partial disabi...

An insurance producer is BEST described as someone who A) sells, solicits, or negotiates insurance contracts for compensation on be behalf of a client B) sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer C) offers to examine any policy (for a fee) for t...

What does the word "level" in Level Term describe? - ANSWER-The face amount A Roth IRA owner must be at least what age in order to make tax-free withdrawals? - ANSWER-59 1/2 and owned account for a minimum of 5 years A Medicare Supplement basic benefit is - ANSWER-The first 3 pints of blood ...

A permanent life insurance policy where the policy owner pays premiums for a specified number of years is called a(n)... adjustable policy limited pay policy level term policy variable universal policy - ANSWER-limited pay policy Premium mode is a term used to describe the... premium pas...

Insured that faces a liability loss expected? - ANSWER-Provide prompt notification Promptly forward to the insurer any loss notice, demand, summons, or other legal process. Assist the insurer in making a settlement. Attend the trial or other proceedings, if requested. Provide witnesses informat...

Declarations - ANSWER-Includes the identity and address of the named insured, policy term or period, the amount of insurance or limits of liability, the policy premium, and any applicable deductibles. Will also include either a property description or a schedule of coverage parts and a list of any e...

Advertising insurance policies - ANSWER-Acts requiring a person to be licensed as a producer include all of the following except Enacting insurance laws - ANSWER-The chief officer of the state insurance department is not responsible for Be appointed by that insurer - ANSWER-In order to sell in...

Examination of Records - ANSWER-The Director must examine the financial affairs of each insurer operating in South Carolina prior to issuing a certificate of authority. At the very least, a company shall be then examined once every 5 years. The insurer must not impede an examination and is requi...

Abandonment Condition - ANSWER-A condition often contained in property insurance policies that states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value. Absolute Liability - ANSWER-Type of liability imposed by law on those participating...

Director of Insurance - ANSWER-they over sea the Insurance industry in South Carolina. Examination of Records - ANSWER-The Directer must examine the financial affairs of every Insurer in South Carolina prior to giving them a certificate of authority. The Insurance company has to be examined every...

All long-term care policies sold in S. Carolina are REQUIRED to pay the SAME daily benefit amount for "at home" care as compared to - ANSWER-the daily amount paid for nursing home care Prior to a disciplinary hearing, the director is required to give at least ___ days of notice - ANSWER-30 days...

What types of business are excluded from a BOP? - ANSWER-banks, auto dealers, and bars Which of the following risks is eligible for coverage under a businessowners policy? - ANSWER-Condos The authority granted to an agent through the agent's contract is referred to as - ANSWER-Express authori...

Which parts of a health insurance policy are guaranteed to be true? - ANSWER- A 15-year mortgage is best protected by what kind of life policy - ANSWER-Mortgage Redemption Policy What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time...

Homeowners insurance is also referred to as a ________ policy - ANSWER-Package policy or multiline policy > because it provides property and liability coverage in a single policy eligible for homeowners insurance - ANSWER-> owner occupied > no more than 4 family dwelling > primary...

A licensee MUST notify the department of a legal name change - ANSWER-Upon changing the name Which entity is responsible for regulating continuing education requirements in South Carolina - ANSWER-Department of insurance A producer does NOT have a fiduciary responsibility to - ANSWER-The South...

Cease and desist - ANSWER-to stop or discontinue Aurhorized Insurer - ANSWER-insurer who has received a Certificate of Authority from the department of insurance to transact insurance in this state To be licensed as an insurance producer in SC, an individual must - ANSWER-Be at least 18 years ...

Reciprocal Agreement - ANSWER-Two states allowing for non resident license What two brokers dont need a license - ANSWER-Surplus and Excess Fine for selling ins without license? - ANSWER-$10,000 Who examines foreign and alien insurers? - ANSWER-Regulatory authority What is the biennial a...

SCWHUA policies are written on - ANSWER-An annual basis Are required to be members of the property casualty guaranty association - ANSWER-Auto Insurers The minimal amount of property damage liability coverage required in South Carolina - ANSWER-$25,000 When renewing a South Carolina persona...

ISO - ANSWER-Insurance Service Office To be licensed as a insurance producer in this state an individual must meet the following minimum qualifications: - ANSWER-be at least 18 years old; Be of good moral character; have not been convicted of any felony or crime for the last 10 years that can be ...

Jonas has disability insurance through his employer . The employer pays 75 % of the premium , and Jonas pays the other 25 % . What is Jonas's tax liability for any benefits paid from the disability plan ? O Taxes must be paid on all benefits received O No taxes are payable on any benefits recei...

The branch of dentistry which deals with the replacement of missing parts is called - ANSWER-Prosthodontics Which policy feature makes a universal life policy different from a whole life policy? - ANSWER-A flexible premium schedule Tia the producer is recommending to a prospect that and existi...

Any of the following transactions will be subject to federal income tax consequences in a modified endowment contract (MEC), EXCEPT: Select one: a. Policy loans b. Policy withdrawals c. Partial withdrawals d. Death proceeds - ANSWER-Death proceeds Death benefits are the only payment not affe...

P is a producer who notices 5 questions on a life application were not answered. What actions should P take? - ANSWER-Set up a meeting with the applicant to answer the remaining questions Which of the following does Social Security NOT provide benefits for? - ANSWER-Dismemberment An Accident/H...

The Director is empowered to - ANSWER-enforce state laws relating to insurance Someone who sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer is called? - ANSWER-an insurance provider The PRIMARY purpose of the Fair Credit and Reporting Act is to - ANSW...

When creating an agency relationship in South Carolina between a real estate brokerage firm and a seller, what is required? - ANSWER-A written agency agreement What is an agency relationship - ANSWER-It is a fiduciary and consensual relationship between two persons where one person acts on behalf...

What does the "identity fraud expense" endorsement to a homeowner policy cover? - ANSWER-Covers expenses up to $15,000. This includes attorney fees to cover defense costs. Which of the following best describes the act of arson? - ANSWER-It is usually done as a motive for profit The insured i...

In NC, the legislature has made and implemented state statutes which, collectively are known as - ANSWER-insurance code a person licensed to solicit applications for, or to negotiate a policy of, insurance = - ANSWER-agent any individual who, for salary, fee, or commission, investigates or rep...

commissioner - ANSWER-The CEO of the Insurance Department Alien Company - ANSWER-an insurance company domiciled (headquartered) outside of the USA. ex: Brazil, Italy, Japan Domestic Company - ANSWER-an insurance company domiciled in North Carolina. Foreign Company - ANSWER-an insurance co...

HO 01 39 modifies a homeowner's policy to allow the insured to bring an action against the insurer for up to how many years after the loss? - ANSWER-3 years For at least how many years must an insurer keep copies of cancellation or nonrenewal notices? - ANSWER-3 years Which is NOT a typical p...

Chrystal and Craig were renting an apartment from Sandra. However, they skipped out on three month's rent and moved out, leaving behind $1,200 in damage to the apartment. Altogether they owe Sandra $3,300; so Sandra files a civil suit against them. In this case, Chrystal and Craig are: - ANSWER-Joi...

Insured Contingent Beneficiary - ANSWER-If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the uniform Simultaneous Death Act? Reimbursement - ANSWER-Which type of policy pays be...

What type of coverage is included in homeowners policies, but is not available in dwelling policies? - ANSWER-Liability coverage What are major coverages included in homeonwner policies? - ANSWER--Coverage A: Dwelling -Coverage B: Other Structures -Coverage C: Personal property -Coverage D: Lo...

Director's Powers and Duties - ANSWER-The head of the state's Insurance Department is the Director (sometimes also referred to as the Commissioner). The Director enforces the laws governing the insurance business in South Carolina. In carrying out his or her duties, the Director has the power t...

Mechanical failure including rupture/bursting caused by centrifugal force (In an equipment breakdown policy, "breakdown" has very specific definitions of a direct covered loss such as failure of pressure/vaccuum equipment, mechanical failure by centrifugal force and electric failure [unless exc...

SCWHUA does not provide -ANSWER-for manufacturing , 1971 buildings or motor vehicles inchamaree clause -ANSWER-extends coverage to machinery breakdown and explosions for marine PC guaranty association exclusions -ANSWER-line or health insurers mortgage guaranty insurers credit insurers w...

A person applying for a resident producer license must be at least how old? a. 18 b. 19 c. 20 d. 21 - ANSWER-A. A person applying for a resident producer license must be at least 18 years of age. A producer must be ____________ by an insurer in order to sell or negotiate insurance on the i...

A form of medical health insurance covering the treatment and care of gum disease is called: Medicaid Major Medical Franchise health policy Dental expense insurance - ANSWER-Dental expense insurance In South Carolina, what is the MAXIMUM length of time an insurer can defer payment of a ca...

In NC, the legislature has made and implemented state statutes which, collectively are known as - ANSWER-insurance code a person licensed to solicit applications for, or to negotiate a policy of, insurance = - ANSWER-agent any individual who, for salary, fee, or commission, investigates or rep...

An offer and acceptance is also referred to as an: - ANSWER-Agreement Several cans of gasoline stored in an insured basement is an illustration of a: - ANSWER-Hazard If a business accidentally accepts a fake travelers check, what type of coverage extension could cover the loss? - ANSWER-Forger...