SC Life Insurance Exam.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/SC%20Life%20Insuran
SC Life Insurance Exam
1. If a policy has a automatic loan provision, what happens if the insured diesbefore the
loan is paid back?
ANS The balance of the loan will be taken out of the death benefit
2. An insurer receives a report regarding potential insured that includes finan-cial status,
hobbies, and habits.What type of report is that?
ANS Inspection Report
3. The clause that protects the proceeds of a life insurance policy from credi-tors after the
death of the insured is known as
ANS Spendthrift Clause
4. Children's riders attached to whole life policies are usually issued as whattype of
insurance?
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,SC Life Insurance Exam.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/SC%20Life%20Insuran
ANS Term
5. An individual has just borrowed $10,000 from his bank on a 5-year install-ment loan
requiring monthly payments. What type of life insurance policy would be best suited to
this situation
ANS Decreasing Term
6. How many hours of CE must be completed every 2 years?
ANS 24 total hours,including 8 hours approved for the line of licensing that the producer
holds
7. Which of the following statements is true concerning the creditors of thedeceased
insured?
ANS The creditors have rights to the proceeds if they can showevidence of valid assignment
8. A life insurance policy has a legal purpose if both of which of the followingelements
exist?
ANS Insurable interest and consent
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9. A long stretch of national economic hardship causes a 7% rate of inflation.A policy
owner notices that the face value of her life insurance policy has beenraised 7% as a result.
Which policy rider caused this change?
ANS Cost of Living Rider
10. Which of the following Life Insurance policies would be considered inter-est-
sensitive?
ANS Universal Life
11. The authority granted to an agent through the agent's contract is referredto as
ANS Express Authority
12. What must happen when an individual policy or annuity has been person-ally
delivered to the policyowner?
ANS The policyowner must sign a delivery receipt
13. In the event of an insurer's insolvency, the South Carolina Life and HealthGuaranty
Association will
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ANS Reinsure policies of the insolvent insurer through othercompanies
14. Once the Director issues a cease and desist order, how soon must an insurer
comply with the order?
ANS within 30 days
15. When a reduced-paid up nonforfeiture option is chosen, what happens to the face
amount of the policy?
ANS It is reduced to the amount of what the cash valuewould buy as a single premium
16. All of the following are unfair claims settlement practices EXCEPT
ANS Sug-gesting negotiations in settling the claim
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