AD Banker State Laws

Question 1

In South Carolina, a producer whose license lapses for failure to meet continuing education requirements, but who later completes those requirements may reinstate the license within ________ months of the compliance deadline.

A
9

B
12

C
6

D
3

Answer 1

C (A producer whose license lapses for failure to meet continuing education requirements, but who later completes those requirements may reinstate the license within 6 months of the compliance deadline.)

Question 2

Under the South Carolina Valued Policy Law, if two or more policy’s insurance coverage on the same property exceeds the property’s insurable value, each insurer is liable for:

A
The maximum amount of coverage the each policy provides less any deductible

B
The amount insured

C
An equal amount of the entire loss

D
Its proportionate share of a loss

Answer 2

D (Under the South Carolina Valued Policy Law, if two or more policy’s insurance coverage on the same property exceeds the property’s insurable value, each insurer is liable for its proportionate share of a loss.)

Question 3

The South Carolina Wind and Hail Underwriting Association (SCWHUA) provides wind and hail insurance for the state’s:

A
Commercial districts

B
Major metropolitan areas

C
Coastal areas

D
Suburban areas

Answer 3

C (The South Carolina Wind and Hail Underwriting Association (SCWHUA) provides wind and hail insurance for the state’s coastal areas.)

Question 4

The South Carolina Property and Casualty Insurance Guaranty Association pays unpaid claims against an insolvent insurer for up to $__________ per claim.

A
$1,000,000

B
$500,000

C
$300,000

D
$750,000

Answer 4

C (The South Carolina Property and Casualty Insurance Guaranty Association pays unpaid claims against an insolvent insurer for up to $300,000 per claim and up to $10 million per insolvent insurer.)

Question 5

Under the South Carolina Property and Casualty Insurance Guaranty Association all ____________ insurers must be members as a condition of their authority to transact insurance business in South Carolina.

A
Property and casualty

B
Domestic and foreign

C
Personal lines

D
Commercial lines

Answer 5

A (Under the South Carolina Property and Casualty Insurance Guaranty Association all property and casualty insurers must be members as a condition of their authority to transact insurance business in South Carolina.)

Question 6

Which one of the following purposes of the Insurance Fraud Act is false?

A
Any person or insurer believing that another has made a false statement or a misrepresentation must notify the Federal Bureau of Investigation (FBI) and provide additional information upon request

B
Establishes the Insurance Fraud Division

C
Detects, investigates, prosecutes, and prescribes penalties, including restitution, for insurance fraud

D
Grants immunity for reporting suspected fraud in good faith and without malice

Answer 6

A (The Insurance Fraud Act requires any person or insurer believing that another has made a false statement or a misrepresentation notify the Insurance Fraud Division and provide additional information upon request.)

Question 7

A producer’s license continues for _____ years, unless revoked or suspended, as long as the producer meets continuing education requirements and pays the biennial appointment fee.

A
5

B
4

C
3

D
2

Answer 7

D (A producer’s license continues for 2 years, unless revoked or suspended, as long as the producer meets continuing education requirements and pays the biennial appointment fee.)

Question 8

For a person to be able to obtain a nonresident producer’s license all of the following must be true, except:

A
Is currently enrolled in a pre-licensing education course to become a licensed resident producer in good standing in his/her home state

B
Submits either a license application for this state or a certified copy of his/her license application that he/she submitted to his or her home state

C
Resides in a state that issues nonresident producer licenses to residents of this state on the same basis

D
Submits a request and pays required fees

Answer 8

A (For a person to be able to obtain a nonresident producer’s license he/she must currently be a licensed resident producer in good standing in his/her home state.)

Question 9

Every auto policy delivered in this state must provide uninsured motorist coverage that is subject to a $_______ deductible.

A
300

B
150

C
250

D
200

Answer 9

D (Every auto policy issued or delivered in this state must provide uninsured motorist coverage for no less than the minimum required limits for bodily injury ($25,000/$50,000) and up to at least $25,000 for property damage per accident caused by an uninsured motorist, subject to a $200 deductible.)

Question 10

Who supervises and controls the Uninsured Motorists Fund, which reduces insurance costs associated with uninsured and underinsured motorists?

A
The Department of Insurance

B
The Treasury Department

C
The Property and Casualty Guarantee Association

D
The Governor’s office

Answer 10

A (The Department of Insurance supervises and controls the Uninsured Motorists Fund, which reduces insurance costs associated with uninsured and underinsured motorists.)

Question 11

Which one of the following is not an unfair claims settlement practice?

A
Failing to attempt to settle claims in which liability has become reasonably clear

B
Compelling claimants to sue to recover claims

C
Offering to settle claims for an amount reasonably due or payable

D
Threatening to invoke policy defenses or rescind a policy to discourage or reduce a claim

Answer 11

C (Offering to settle claims for an amount less than the amount reasonably due or payable is an unfair claims settlement practice.)

Question 12

The Director may examine or investigate a person or business:

A
As necessary

B
Annually

C
At least every 2 years

D
At least once every 5 years

Answer 12

A (The Director may examine or investigate a person or business as necessary.)

Question 13

The Director may issue a temporary license for up to ______ days without examination under certain circumstances, if in the public interest.

A
180

B
60

C
90

D
30

Answer 13

A (The Director may issue a temporary license for up to 180 days without examination under certain circumstance, if in the public interest.)

Question 14

In general, a property and casualty policy in effect for more than ____ days may not be cancelled.

A
30

B
120

C
60

D
90

Answer 14

B (In general, a property and casualty policy in effect for more than 120 days may not be cancelled.)

Question 15

Under Homeowners Endorsements - Special Provisions (HO 01 39), Conditions, Suit Against Us is modified so that no action can be brought unless there has been full compliance with all of the terms under Section I of this policy and the action is started within ______ years after the date of loss.

A
3

B
4

C
6

D
5

Answer 15

A (Under Homeowners Endorsements - Special Provisions (HO 01 39), Conditions, Suit Against Us is modified so that no action can be brought unless there has been full compliance with all of the terms under Section I of this policy and the action is started within 3 years after the date of loss.)

Question 16

Under the Dwelling Endorsements - Special Provisions (DP 01 39), loss to glass or safety glazing material is covered, if directly caused by:

A
Earth movement

B
Hail

C
Wind

D
Fire

Answer 16

A (Under the Dwelling Endorsements - Special Provisions (DP 01 39), loss to glass or safety glazing material is covered, if directly caused by earth movement.)

Question 17

The South Carolina Workers’ Compensation Law is the __________ remedy of an eligible employee, his personal representative, parents, dependents or next of kin against an employer in seeking a claim for a covered injury or illness.

A
Guaranteed

B
Accepted

C
Exclusive

D
Preferred

Answer 17

C (The South Carolina Workers’ Compensation Law is the exclusive remedy of an eligible employee, his personal representative, parents, dependents or next of kin against an employer in seeking a claim for a covered injury or illness.)

Question 18

A producer must be ____________ by an insurer in order to sell or negotiate insurance on the insurer’s behalf, take an insurance application, advertise that they will receive or convey applications or policies, receive or deliver a policy, accept a premium, or transact insurance contracts, other than as an insured.

A
Appointed

B
Certified

C
Licensed and appointed

D
Licensed

Answer 18

C (A producer must be appointed by an insurer in order to sell or negotiate insurance on the insurer’s behalf, take an insurance application, advertise that he/she will receive or convey applications or policies, receive or deliver a policy, accept a premium, or transact insurance contracts, other than as an insured.)

Question 19

A producer must report any administrative action taken against him/her in another jurisdiction or by another governmental agency to the Director within ______ days of the matter’s final disposition.

A
90

B
30

C
60

D
45

Answer 19

B (A producer must report any administrative action taken against him/her in another jurisdiction or by another governmental agency to the Director within 30 days of the matter’s final disposition.)

Question 20

A property and casualty policy in effect for over 120 days may be cancelled for all of the following reasons, except for:

A
Nonpayment of premium

B
A minor change in risk

C
Material misrepresentation, if the insurer would have denied the application had the fact(s) been known at the time of application

D
A breach of a contractual duty, condition, or warranty

Answer 20

B (A property and casualty policy in effect for more than 120 days may be cancelled for a significant change in risk.)

Question 21

Under the South Carolina Workers’ Compensation Law a covered employee does not include which one of the following?

A
A person whose employment is both casual and not in the employer’s trade, business, profession, or occupation

B
A person, lawfully or unlawfully employed, who is engaged in employment under any appointment

C
A person, lawfully or unlawfully employed, who is engaged in employment under any apprenticeship including aliens and minors

D
A person, lawfully or unlawfully employed, who is engaged in employment under any hiring contract

Answer 21

A (Under the South Carolina Workers’ Compensation Law a covered employee does not include a person whose employment is both casual and not in the employer’s trade, business, profession, or occupation.)

Question 22

Under the South Carolina Valued Policy Law, an insurer may not issue a(n) _______ policy for more than the policy’s stated value or the insured property’s value, the amount must be fixed by the insurer and insured before or at issuance.

A
Fire

B
Personal injury

C
Motor vehicle

D
Watercraft

Answer 22

A (Under the South Carolina Valued Policy Law, an insurer may not issue a fire policy for more than the policy’s stated value or the insured property’s value, the amount must be fixed by the insurer and insured before or at issuance.)

Question 23

All of the following are unfair trade practices, except:

A
Offering or providing free insurance as an enticement to purchase or sell personal or real property

B
Offering any valuable consideration stated in an insurance contract in order to induce its acquisition or renewal

C
Using the protection provided by the Life and Accident and Health Guaranty Association to sell insurance

D
Publishing or disseminating any false or maliciously derogatory statement about an insurer’s financial condition with intent to injure any person in insurance business

Answer 23

C (Offering any valuable consideration not stated in an insurance contract in order to induce its acquisition or renewal is an unfair trade practice called rebating.)

Question 24

Every auto policy must cover the insured for up to at least $_________ for bodily injury or property damage per accident caused by an uninsured motorist, subject to a $200 deductible.

A
$25,000

B
$100,000

C
$10,000

D
$50,000

Answer 24

A (Every auto policy must cover the insured for up to at least $25,000 for bodily injury or property damage per accident caused by an uninsured motorist, subject to a $200 deductible.)

Question 25

Who supervises and controls the Uninsured Motorists Fund, which reduces insurance costs associated with uninsured and underinsured motorists? A The Department of Insurance B The Property and Casualty Guarantee Association C The Treasury Department D The Governor's office

Answer 25

A (The Department of Insurance supervises and controls the Uninsured Motorists Fund, which reduces insurance costs associated with uninsured and underinsured motorists.)

Question 26

Under the South Carolina Valued Policy Law, if two or more policy's insurance coverage on the same property exceeds the property's insurable value, each insurer is liable for: A An equal amount of the entire loss B Its proportionate share of a loss C The amount insured D The maximum amount of coverage the each policy provides less any deductible

Answer 26

B (Under the South Carolina Valued Policy Law, if two or more policy's insurance coverage on the same property exceeds the property's insurable value, each insurer is liable for its proportionate share of a loss.)

Question 27

Every auto policy delivered in this state must provide uninsured motorist coverage that is subject to a $_______ deductible. A 150 B 300 C 200 D 250

Answer 27

C (Every auto policy issued or delivered in this state must provide uninsured motorist coverage for no less than the minimum required limits for bodily injury ($25,000/$50,000) and up to at least $25,000 for property damage per accident caused by an uninsured motorist, subject to a $200 deductible.)

Question 28

An insurer must give a named insured a written notice at least _____ days before cancelling an auto policy. A 10 B 5 C 7 D 15

Answer 28

D (An insurer must give a named insured a written notice at least 15 days before cancelling an auto policy.)

Question 29

Under Homeowners Endorsements - Special Provisions (HO 01 39), Conditions, Suit Against Us is modified so that no action can be brought unless there has been full compliance with all of the terms under Section I of this policy and the action is started within ______ years after the date of loss. A 6 B 5 C 3 D 4

Answer 29

C (Under Homeowners Endorsements - Special Provisions (HO 01 39), Conditions, Suit Against Us is modified so that no action can be brought unless there has been full compliance with all of the terms under Section I of this policy and the action is started within 3 years after the date of loss.)

Question 30

An insurer or agent may not deny or nonrenew an auto liability policy due to the insured vehicle's _______, if the vehicle is licensed. A Customizations B Age C Appearance D Modifications

Answer 30

B (An insurer or agent may not deny or nonrenew an auto liability policy due to the insured vehicle's age, if the vehicle is licensed.)

Question 31

Under the South Carolina Motor Vehicle Financial Responsibility Act for every auto liability policy, the policy, application, and any rider or endorsement constitute the entire: A Contract B Terms of the agreement C Deal between the insurer and the insured D Policy

Answer 31

A (Under the South Carolina Motor Vehicle Financial Responsibility Act for every auto liability policy, the policy, application, and any rider or endorsement constitute the entire contract.)

Question 32

In general, a property and casualty policy in effect for more than ____ days may not be cancelled. A 30 B 90 C 120 D 60

Answer 32

C (In general, a property and casualty policy in effect for more than 120 days may not be cancelled.)

Question 33

A producer's license continues for _____ years, unless revoked or suspended, as long as the producer meets continuing education requirements and pays the biennial appointment fee. A 3 B 4 C 2 D 5

Answer 33

C (A producer's license continues for 2 years, unless revoked or suspended, as long as the producer meets continuing education requirements and pays the biennial appointment fee.)

Question 34

Which one of the following regarding the purpose of the Insurance Fraud Act is false? A Requiring any person or insurer believing that another has made a false statement or a misrepresentation notify the Federal Bureau of Investigation (FBI) and provide additional information upon request B Granting immunity for reporting suspected fraud in good faith and without malice C Establishing the Insurance Fraud Division D Detecting, investigating, prosecuting, and prescribing penalties, including restitution, for insurance fraud

Answer 34

A (The Insurance Fraud Act requires any person or insurer believing that another has made a false statement or a misrepresentation notify the Insurance Fraud Division and provide additional information upon request.)

Question 35

For a person to be able to obtain a nonresident producer's license all of the following must be true, except: A Submits either a license application for this state or a certified copy of his/her license application that he/she submitted to his or her home state B Is currently enrolled in a pre-licensing education course to become a licensed resident producer in good standing in his/her home state C Resides in a state that issues nonresident producer licenses to residents of this state on the same basis D Submits a request and pays required fees

Answer 35

B (For a person to be able to obtain a nonresident producer's license he/she must currently be a licensed resident producer in good standing in his/her home state.)

Question 36

A producer must report any administrative action taken against him/her in another jurisdiction or by another governmental agency to the Director within ______ days of the matter's final disposition. A 45 B 90 C 60 D 30

Answer 36

D (A producer must report any administrative action taken against him/her in another jurisdiction or by another governmental agency to the Director within 30 days of the matter's final disposition.)

Question 37

All of the following are unfair trade practices, except: A Offering any valuable consideration stated in an insurance contract in order to induce its acquisition or renewal B Offering or providing free insurance as an enticement to purchase or sell personal or real property C Publishing or disseminating any false or maliciously derogatory statement about an insurer's financial condition with intent to injure any person in insurance business D Using the protection provided by the Life and Accident and Health Guaranty Association to sell insurance

Answer 37

A (Offering any valuable consideration not stated in an insurance contract in order to induce its acquisition or renewal is an unfair trade practice called rebating.)

Question 38

In South Carolina, a producer whose license lapses for failure to meet continuing education requirements, but who later completes those requirements may reinstate the license within ________ months of the compliance deadline. A 3 B 9 C 6 D 12

Answer 38

C (A producer whose license lapses for failure to meet continuing education requirements, but who later completes those requirements may reinstate the license within 6 months of the compliance deadline.)

Question 39

Under the Dwelling Endorsements - Special Provisions (DP 01 39), loss to glass or safety glazing material is covered, if directly caused by: A Earth movement B Fire C Wind D Hail

Answer 39

A (Under the Dwelling Endorsements - Special Provisions (DP 01 39), loss to glass or safety glazing material is covered, if directly caused by earth movement.)

Question 40

Under the South Carolina Workers' Compensation Law a covered employee does not include which one of the following? A A person, lawfully or unlawfully employed, who is engaged in employment under any apprenticeship including aliens and minors B A person, lawfully or unlawfully employed, who is engaged in employment under any hiring contract C A person, lawfully or unlawfully employed, who is engaged in employment under any appointment D A person whose employment is both casual and not in the employer's trade, business, profession, or occupation

Answer 40

D (Under the South Carolina Workers' Compensation Law a covered employee does not include a person whose employment is both casual and not in the employer's trade, business, profession, or occupation.)

Question 41

All producers must keep a record of business transacted, showing the date, term, and amount insured; premiums; and the policyholders' names for at least _____ years. A 2 B 3 C 5 D 4

Answer 41

C (All producers must keep a record of business transacted, showing the date, term, and amount insured; premiums; and the policyholders' names for at least 5 years.)

Question 42

An auto policy application must inform the applicant of the insurer's right to cancel the policy after the first ______ days. A 30 B 45 C 90 D 60

Answer 42

C (An auto policy application must inform the applicant of the insurer's right to cancel the policy after the first 90 days.)

Question 43

Under the South Carolina Wind and Hail Underwriting Association (SCWHUA) any person having an insurable interest in insurable property, including economic interest in its safety, or its preservation from loss, destruction, or monetary damage, and who is unable to obtain coverage in the _______ insurance market is entitled to apply to SCWHUA for coverage and for property inspection. A Residual B Surplus C Normal D Excess

Answer 43

C (Under the South Carolina Wind and Hail Underwriting Association (SCWHUA) any person having an insurable interest in insurable property, including economic interest in its safety, or its preservation from loss, destruction, or monetary damage, and who is unable to obtain coverage in the normal insurance market is entitled to apply to SCWHUA for coverage and for property inspection.)

Question 44

Which one of the following is not an unfair claims settlement practice? A Compelling claimants to sue to recover claims B Failing to attempt to settle claims in which liability has become reasonably clear C Offering to settle claims for an amount reasonably due or payable D Threatening to invoke policy defenses or rescind a policy to discourage or reduce a claim

Answer 44

C (Offering to settle claims for an amount less than the amount reasonably due or payable is not an unfair claims settlement practice.)

Question 45

A producer must report any administrative action taken against him/her in another jurisdiction or by another governmental agency to the Director within ______ days of the matter's final disposition. A 45 B 60 C 90 D 30

Answer 45

D (A producer must report any administrative action taken against him/her in another jurisdiction or by another governmental agency to the Director within 30 days of the matter's final disposition.)

Question 46

All producers must keep a record of business transacted, showing the date, term, and amount insured; premiums; and the policyholders' names for at least _____ years. A 4 B 3 C 2 D 5

Answer 46

D (All producers must keep a record of business transacted, showing the date, term, and amount insured; premiums; and the policyholders' names for at least 5 years.)

Question 47

Mobile home policies may not be written for periods longer than: A 1 year B 3 years C 2 years D 6 months

Answer 47

B (Mobile home policies may not be written for periods longer than 3 years.)

Question 48

Who supervises and controls the Uninsured Motorists Fund, which reduces insurance costs associated with uninsured and underinsured motorists? A The Treasury Department B The Property and Casualty Guarantee Association C The Governor's office D The Department of Insurance

Answer 48

D (The Department of Insurance supervises and controls the Uninsured Motorists Fund, which reduces insurance costs associated with uninsured and underinsured motorists.)

Question 49

In South Carolina, an auto policy application must inform the applicant of the insurer's right to cancel the policy after the first ______ days. A 90 B 60 C 30 D 45

Answer 49

A (An auto policy application must inform the applicant of the insurer's right to cancel the policy after the first 90 days.)

Question 50

The Director may examine or investigate a person or business: A At least once every 5 years B At least every 2 years C As necessary D Annually

Answer 50

C (The Director may examine or investigate a person or business as necessary.)

Question 51

​​​​Once a wind and hail policy has been issued in South Carolina, what is the minimum policy period? A 2 years B 3 years C 1 year D 6 months

Answer 51

C (If the property is insurable and no premiums are unpaid, SCWHUA will issue a property policy for a term of at least 1 year once the premium is received.)

Question 52

For a producer to be licensed as a surplus lines broker in South Carolina, they must do all of the following, except: A Pay a nonrefundable biennial fee of $200 B Be referred by the Director for the role C File a $10,000 bond with the Department D Successfully pass the South Carolina Broker licensing exam

Answer 52

B (For someone to be licensed as a surplus lines broker, they do not need to be referred by the Director.)

Question 53

A producer may not act as an insurer's ______ unless the insurer appoints them. A Principal B Consultant C Agent D Broker

Answer 53

C (A producer may not act as an insurer's agent unless the insurer appoints them.)

Question 54

All of the following are unfair trade practices in South Carolina, except: A Offering or providing free insurance as an enticement to purchase or sell personal or real property B Publishing or disseminating a paid advertisement relating to the insurance business that gives a genuine testimony C Using the protection provided by the South Carolina Guaranty Association to sell insurance D Publishing or disseminating any false or maliciously derogatory statement about an insurer's financial condition with intent to injure any person in insurance business

Answer 54

B (Publishing a genuine advertisement is not an unfair trade practice. Publishing or disseminating an untrue, deceptive, or misleading advertisement would be an unfair practice known as false advertising.)

Question 55

To fit South Carolina's laws, Homeowners Endorsements - Special Provisions (HO 01 39), Conditions, Suit Against Us is modified so that no action can be brought unless there has been full compliance with all of the terms under Section I of this policy and the action is started within ______ years after the date of loss. A 5 B 6 C 3 D 4

Answer 55

C (Under Homeowners Endorsements - Special Provisions (HO 01 39), Conditions, Suit Against Us is modified so that no action can be brought unless there has been full compliance with all of the terms under Section I of this policy and the action is started within 3 years after the date of loss.)

Question 56

The duties of the Director, who is subject to state insurance law, include all of the following, except: A Instituting civil actions related to the insurance business B Enforcing and making regulations to administer and enforce state insurance law C Supervising and regulating insurers' rates and service D Incarcerating persons who are found guilty of violating any state insurance law

Answer 56

D (The duties of the Director, who is subject to state insurance law, include reporting criminal violations of insurance laws to law enforcement.)

Question 57

A producer licensed in South Carolina must report any administrative action taken against them in another jurisdiction or by another governmental agency to the Director within ______ days of the matter's final disposition. A 30 B 60 C 45 D 90

Answer 57

A (A producer must report any administrative action taken against them in another jurisdiction or by another governmental agency to the Director within 30 days of the matter's final disposition.)

Question 58

Any person violating a cease and desist order in South Carolina must pay a fine of up to ____________. A $1,000 (up to $5,000 if the violation is willful) B $5,000 (up to $10,000 if the violation is willful) C $2,500 ($5,000 if the violation is willful) D $2,000 (up to $10,00 if the violation is willful)

Answer 58

C (Any person, other than an insurer or an HMO, violating a cease and desist order may be fined up to $2,500, have their license suspended or revoked, or both. If the violation is willful, the fine may be up to $5,000.)

Question 59

All producers in South Carolina must keep a record of business transacted, showing the date, term, and amount insured; premiums; and the policyholders' names for at least _____ years. A 5 B 3 C 2 D 4

Answer 59

A (All producers in South Carolina must keep a record of business transacted, showing the date, term, and amount insured, premiums, and the policyholders' names for at least 5 years.)

Question 60

Under the South Carolina Motor Vehicle Financial Responsibility Act an auto liability policy may be cancelled within the first ______ days for a reason other than nonpayment of premium. A 210 B 90 C 120 D 180

Answer 60

B (Under the South Carolina Motor Vehicle Financial Responsibility Act an auto liability policy must have a term of at least 6 months and may be cancelled within the first 90 days only for a reason other than nonpayment of premium.)

Question 61

In South Carolina, a producer whose license lapses for failure to meet continuing education requirements, but who later completes those requirements may reinstate the license within ________ months of the compliance deadline. A 9 B 12 C 3 D 6

Answer 61

D (A producer whose license lapses for failure to meet continuing education requirements, but who later completes those requirements may reinstate the license within 6 months of the compliance deadline.)

Question 62

Which definition most accurately describes an Alien Captive Insurer in South Carolina? A An insurer formed to transact business for its parent companies and affiliates B An insurer formed to write insurance business for its parents and affiliates and licensed according to the laws of an alien jurisdiction C An insurer formed under the laws of a jurisdiction outside of the United States, whether or not is it permitted to do business in this State D An insurer whose domicile is outside of South Carolina

Answer 62

B (According to South Carolina, the definition of Alien Captive Insurer is "An insurer formed to write insurance business for its parents and affiliates and licensed according to the laws of an alien jurisdiction.")

Question 63

Which of the following is not an example of misappropriation of funds? A Collecting for an insurer without their authority B Securing cash advances by false statements C Turning over or accounting for all of the insurer's collections when required D Pretending to represent an insurer licensed in South Carolina

Answer 63

C (Failing to turn over or account for all the insurer's collection when required is misappropriating funds.)

Question 64

In South Carolina, a producer licensed for property and casualty, life and health, or both, must complete at least ____ hours of continuing education every 2 years. A 20 B 24 C 16 D 12

Answer 64

B

Question 65

The Consumer Information Privacy Regulation regulates the management of personal health and financial information in all of the following ways, except: A Requiring a producer to annually notify prospects and customers about privacy practices B Allowing a producer to disclose a consumer's personal financial information if the consumer is given a reasonable opportunity to opt out of disclosure after being notified of privacy practices and of their right to opt out C Setting forth the conditions under which a producer may disclose personal information D Allowing a producer to disclose a policy number to any nonaffiliated third party for marketing by mail, email, or phone

Answer 65

D (The Consumer Information Privacy Regulation regulates the management of personal health and financial information by requiring a producer not disclose a policy number to any nonaffiliated third party for marketing by mail, email, or phone.)

Question 66

All producers in South Carolina must keep a record of business transacted, showing the date, term, and amount insured; premiums; and the policyholders' names for at least _____ years. A 2 B 5 C 3 D 4

Answer 66

B (All producers in South Carolina must keep a record of business transacted, showing the date, term, and amount insured, premiums, and the policyholders' names for at least 5 years.)

Question 67

For a person to be able to obtain a nonresident producer's license in South Carolina, all of the following must be true, except: A Is currently enrolled in a pre-licensing education course to become a licensed resident producer in good standing in their home state B Resides in a state that issues nonresident producer licenses to residents of this state on the same basis C Submits a request and pays required fees D Submits either a license application for this state or a certified copy of their license application that they submitted to their home state

Answer 67

A (For a person to be able to obtain a nonresident producer's license they must currently be a licensed resident producer in good standing in their home state.)

Question 68

Under the South Carolina Valued Policy Law, an insurer may not issue a(n) _______ policy for more than the policy’s stated value or the insured property’s value, the amount must be fixed by the insurer and insured before or at issuance. A Fire B Motor vehicle C Personal injury D Watercraft

Answer 68

A (Under the South Carolina Valued Policy Law, an insurer may not issue a fire or lightning policy for more than the policy’s stated value or the insured property’s value, the amount must be fixed by the insurer and insured before or at issuance.)

Question 69

An insurance_________ is a producer who sells or negotiates insurance or takes and submits applications on behalf of insureds, advertises or otherwise gives notice that the producer receives or transmits a surplus lines application or policies, receives or delivers a policy of surplus lines insurance for an insured on behalf of a surplus lines insurer, receives, collects, or transmits a premium of surplus lines insurance, or performs another act in the making of a surplus lines insurance contract for or with an insured. A Analyst B Consultant C Agent D Broker

Answer 69

D (An insurance broker is a life and health producer who sells or negotiates insurance or takes and submits applications on behalf of insureds, advertises or otherwise gives notice that the broker receives or transmits a surplus lines application or policies, receives or delivers a policy of surplus lines insurance for an insured on behalf of a surplus lines insurer, receives, collects, or transmits a premium of surplus lines insurance, or performs another act in the making of a surplus lines insurance contract for or with an insured.)

Question 70

A producer may not act as an insurer's ______ unless the insurer appoints them. A Consultant B Principal C Broker D Agent

Answer 70

D (A producer may not act as an insurer's agent unless the insurer appoints them.)