100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
South Carolina Life and Health insurance Exam Prep Questions And Answers () $13.44   Add to cart

Exam (elaborations)

South Carolina Life and Health insurance Exam Prep Questions And Answers ()

 9 views  0 purchase
  • Course
  • Life and health insurance
  • Institution
  • Life And Health Insurance

South Carolina Life and Health insurance Exam Prep Questions And Answers ()

Preview 4 out of 39  pages

  • August 7, 2024
  • 39
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Life and health insurance
  • Life and health insurance
avatar-seller
manassehtaliban95
South Carolina Life/Health Final Exam 2 Exam Prep Questions And Answers
(202472025)
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 - ✔✔Death proceeds


Death benefits are the only payment not affected by the federal law regarding modified endowment
contracts.


What are the rules for genetic testing and health insurance?
Select one:
a. Genetic testing can never be used for any reason.
b. Genetic testing can be used for setting rates only.
c. Genetic testing can be used to limit coverage.

d. Genetic testing can be used to refuse to renew a policy. - ✔✔Genetic testing can never be used
for any reason.


Insurers may not discriminate based on genetic information provided in the plan. Discriminatory
acts include terminating or limiting the coverage, refusing to renew the policy, imposing a waiting
limit, or establishing new premium rates.


Which of the following is required for a contributory plan?
Select one:
a. The employer pays all fees and premiums.
b. 50% participation of eligible employees
c. 75% participation of eligible employees

,d. 100% participation of eligible employees - ✔✔75% participation of eligible employees.


A contributory plan is paid for partially by the employer and partially by the employee. 75%
participation of eligible employees is required for a contributory plan.


All of the statements are true about universal life policies, EXCEPT:
Select one:
a. The actual cost of the insurance is based on annually renewable term life insurance.
b. The policy owner can increase or decrease the death benefit during the policy term.
c. Universal life policies are only subject to the interest rates stated in the contract.

d. The interest earned by the cash accounts has a guaranteed minimum. - ✔✔Universal life policies
are only subject to the interest rates stated in the contract.


A universal life policy is subject to 2 different interest rates: the current annual rate, which varies
with current market conditions, and the rate stated in the contract.


The Fair Credit Reporting Act does not serve the purpose of:
Select one:
a. Protecting consumers credit information
b. Protect consumers from identity theft
c. Report fraud alerts

d. Prohibits disclosure to anyone not legally authorized - ✔✔Protect consumers from identity theft.


The act itself does not protect consumers from identity theft.


What option does the Director have if an insurance company becomes insolvent?
Select one:
a. Revoke the company's license
b. Fine the company

,c. Jail the officers of the company

d. All of the above - ✔✔Revoke the company's license.


The Director is entitled to revoke or suspend the licenses of insurers if he is of the opinion that the
insurance company has become insolvent, is threatened with insolvency, or falling behind on its
monetary obligations.


What is the only place that a blank insurance policy can be signed?
Select one:
a. At the insured's home
b. At the insurers office
c. At a bank

d. In a coin-operated machine - ✔✔In a coin-operated machine.


No producer may sign any blank insurance policies except with trip, travel, or transportation ticket
policies of insurance covering accidental personal or property injury, loss, or damage. And even
then, the producer must use coin-operated machines.


Which of the following is not normally an agent responsibility?
Select one:
a. Delivering the policy to the insured
b. Presenting the insured with a Buyer's guide
c. Presenting a financial accounting of the insurer to department of insurance.

d. Explaining policy benefits and features to the insured. - ✔✔Presenting a financial accounting
of the insurer to the department of insurance.


Presenting a financial accounting of the insurer to the department of insurance is not an agent
responsibility. All of the other items listed are normal responsibilities expected from an agent.


All of the following are true regarding comprehensive dental plans, EXCEPT:

, Select one:
a. Comprehensive plans have coinsurance.
b. Comprehensive plans have deductibles.
c. Benefits are paid on a first-dollar basis.

d. Comprehensive plans are also referred to as nonscheduled. - ✔✔Benefits are paid on a first-
dollar basis.


Benefits are paid on a usual, reasonable and customary basis.


Which of the following provisions is one that recognizes the rights of ownership in a policy?
Select one:
a. Payment of claims
b. Change of beneficiary
c. Time limit for legal actions

d. Waiver of Premiums - ✔✔Change of beneficiary.


When a beneficiary arrangement is present, it is a right of ownership.


All of the following are commonly used when investigating the insurability of an applicant,
EXCEPT:
Select one:
a. An attending physician's statement
b. A credit report
c. Contacting the Medical Information Bureau (MIB)

d. Talking to the neighborhood watch - ✔✔Talking to the neighborhood watch.


Insurers typically utilize the physician's statement, credit report and MIB when determining
insurability of an applicant. They do not talk to the neighborhood watch.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller manassehtaliban95. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $13.44. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80796 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$13.44
  • (0)
  Add to cart