Chapter 1: SC Insurance regulations

Question 1

ISO

Answer 1

The Insurance Services Office: creates standard policy forms

Question 2

To Qualify for a License:

Answer 2

1. At least 18 (or age of majority
2. be a good moral character,
3. not have been convicted of a felony number
   4.pay the required licensing and application fees number
4. pass the state exam with a 70 or higher

Question 3

Steps to acquire an insurance license from South Carolina Department of insurance

Answer 3

1. Take and pass the state exam
2. Apply for your license and pay the required fees
3. Acquire the criminal background checks, (FBI, and sled) by getting fingerprinted

Question 4

How much time do you have to apply for your license after you have passed the exam?

Answer 4

One year

Question 5

An agency, which is a group of insurance agents formed to sell, solicit, negotiate, issue, and deliver policies may also be licensed if:

Answer 5

1. Pay required licensing fees
2. Keeps activities within scope of the agencies purpose
3. Appoints a person to be responsible for the agencies compliance with the state insurance laws

Question 6

What information is included on an agency license?

Answer 6

1. License name
2. Address.
3. Personal identification number or license number.
4. Date of issuance.
5. The lines of authority in any other information the director determines is necessary.

Question 7

How often do appointment renewals need to be paid by the insurer?

Answer 7

Every two years on September 30 of every even numbered year

Question 8

Insurer

Answer 8

Company,

Question 9

Insured

Answer 9

Client

Question 10

NIPC

Answer 10

National insurance producer registry
Provides your national producer number from the national producer registry

Question 11

How often do you need to renew your license?

Answer 11

Every two years on the last month of your birth month
September 30 of every odd year

Question 12

Three types of licenses

Answer 12

Producer
Nonresident
Temporary

Question 13

Nonresident

Answer 13

A person who is not a resident of South Carolina

Question 14

Nonresident license qualifications

Answer 14

1. License producer is in good standing in his or her home state
2. Applies for licensure and pays they required fees on nipr.com
3. Provide the director with an original uniform application
4. Home state grants nonresident producer licenses to South Carolina residence on the same basis

Also known as reciprocal agreement

Question 16

A non-resident producer who moves from one state to another, or from another state to South Carolina, must file with the director a Change of ______ within ____ days

Answer 16

Address

30

Question 17

What is not required for non-residence

Answer 17

Fingerprints

Question 18

How long is a temporary license valid for?

Answer 18

180 days

Question 19

When is a temporary license granted

Answer 19

1. When the spouse of a licensed producer dies or is disabled.
2. A member or employee of an agency that is listed as an insurance producer.
3. A person designated by a license producer, who is entering active service in the US Armed Forces
4. Any other circumstances deemed necessary by the Department of insurance
5. A temporary license will not be issued for the purpose of continuing education

Question 20

The director may limit the lines of authority for a temporary license for the purpose of:

Answer 20

Protect protecting the public

Question 21

Once the business is disposed of, the temporary license must be

Answer 21

Terminated

Question 22

How long is a producer license valid?

Answer 22

Indefinite time unless suspended or revoked

Question 23

A producer shall report to the director of his designated any administrative action taken against the producer in another jurisdiction or by another governmental agency in the state within ___ days of conviction

Answer 23

30

Question 24

You must notify the department within ___ days of a change in address

Answer 24

30

Question 25

Failure to notify the director of a change in a legal name or address subjects the producer to:

Answer 25

A fine up to $2500 or $5000 if the act is willful License, suspension or revocation Both a fine and license suspension or revocation

Question 26

How many hours of continuing education is required before each renewal?

Answer 26

24 hours, including three hours in ethics

Question 27

What is the maximum number of credit hours that can be rolled over to the next license period?

Answer 27

18

Question 28

How long does a producer have to reinstate their license after it has been lapsed?

Answer 28

Six months

Question 29

A person charged with engaging in an unfair method of competition or committing an unfair or deceptive act or practice is entitled to

Answer 29

Hearing with at least 30 days of notice

Question 30

Cease and desist order

Answer 30

A direct order from the director saying you have to stop selling insurance Finds up to $2500 or if will full $5000 A combination of these disciplinary measures

Question 32

What happens if a producer continues to sell insurance after it has been ordered a cease and desist

Answer 32

They will face penalties such as Suspend and revoke with a 10 day notice The person shall pay a fine not to exceed $50 every day or $100 per day if willful

Question 33

If the violator of the states insurance laws is a company license in South Carolina, the director can:

Answer 33

Impose a fine up to $2500 or $5000 if the violation was willful Suspend or revoke the violator’s authority to transact insurance in South Carolina Impose a fine and suspend or revoke the violators license

Question 34

If the violator of the state insurance law is a producer, the director can:

Answer 34

Impose a line of up to $2500 or $5000 if Willful Suspend or revoke the violators producers license Impose a fine and suspend or revoke the violator’s license