Chapter 8: South Carolina Laws and Rules Pertinent to Insurance Flashcards
How often must the director examine each domestic insurance company?
Every 5 years
When a licensee’s address has changed, who must be notified of this change?
department of insurance
Which of the following is NOT a duty of the director?
establish rates for the insurers
Which of the following actions is REQUIRED by a producer who is replacing an existing life insurance policy?
Submit to the replacing insurer a list of the policies to be replaced
After a health insurance policy ahs been in force for ___ years, the policy is incontestable (except for fraud).
2
Which entity is responsible for regulating continuing education requirements in SC?
department of insurance
A license may be denied, suspended, or revoked if the licensee
is found guilty of misrepresentation
An example of false advertising would be
an insurer exaggerating its dividends in a magazine advertisement
Tia the producer is recommending to a prospect that an existing life insurance policy be replaced with a new one from her insurer. If this transaction moves forward, which of the following does NOT need to be provided to the prospect at or before the policy is delivered?
replacing insurer’s financial statements
Insurance companies that are organized in countries outside the United States are referred to as
Alien
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
misrepresentation
Merchandise with the insurer’s logo is allowed to be given for advertising purposes as long as the value does not exceed
$25. Anything given with the value over $25 is considered to be a form of inducement and is illegal
An insurance policy may NOT be cancelled by the insurer (except for fraud) after ___ years from policy issue.
2
Proof of loss on a health insurance claim must be submitted to an insurer within ___ days after the insured’s date of loss
90
All long-term care policies sold in SC are REQUIRED to pay the SAME daily benefit amount for “at home” care as compared to
the daily amount paid for nursing home care
A producer must notify the director within ______ days of a felony conviction
30
An insurer may exclude preexisting conditions on a Medicare supplement policy for _____ months
6
An eligible employee can be excluded from group health coverage for up to ____ months if he/she is considered a “late enrollee.”
18
Long-term care insurance policies sold in South Carolina are NOT required to cover
substance addiction
ABC insurance company fails to pay death proceeds after satisfactory proof of loss was submitted. ABC must then begin paying interest on the death proceeds after ____ days of receiving proof of loss.
30
On the test
South Carolina’s 10-day free-look period for life insurance policies begin at the
date of delivery
An individual accident and health insurance policy is REQUIRED to contain a(n)
payment of claims provision
If the cause of death appears to be accidental, an insurer may require a(n)
autopsy
Which type of insurance company allows their policyowners to elect a governing body?
Mutual
The director is appointed by the ______.
Governor
The typical free look period for life insurance policies sold in SC is ____ days
10
Within ____ days after policy delivery, an individual life insurance policy can be returned for a 100% premium refund.
10
Victoria’s producer license was initially issued on July 18, 2017. Her birthday is June 9, 1982. Her license will renew
June 30, 2019. Producer licenses are renewable every two years on or before the last day of the producers birth month
Which of the following is the BEST example of insurance fraud?
Purposely withholding material information from an insurer
Suggesting an insurance policy is like a share of stock
**A deliberate lie by an insured to the insurer to obtain a lower premium
An insurer in REQUIRED to offer which of the following to each long term care applicant at the time of purchase?
Inflation protection.
According to the Affordable Care Act, which of the following coverages in NOT required?
Coverage for cosmetic surgery
In South Carolina, which of the following is considered an unfair trade practice?
Coercion
The branch of dentistry which deals with the replacement of missing parts is called
Prosthodontics. Branch of dentistry concerned with the design, manufacture and fitting of artificial replacements for teeth and other parts of the mouth
A carrier for a small group health plan may refuse to renew the plan if the employer
fails to pay the premium
The free-look period for life insurance policies issued in south Carolina is ____ days
10
questions like this on test
When does the free look provision for accident and health insurance begin?
date the policy is delivered to the insured
After _____ years from date of issue, a policy can no longer be cancelled by the insurer for misstatements (except for fraud).
2
A form of medical health insurance covering the treatment and care of gum disease is called
dental expense insurance
Which of the following is NOT a circumstance to which a temporary producer license can be issued?
Prospective agent who is waiting to take the state licensing examination
In order to conduct insurance transactions in SC a(n) ______ MUST be appointed.
producer
A hearing must be held before a producer’s license can be suspended or revoked. Prior to the hearing, the Director is required to
give written notice to the producer
Which of the following does restorative dental treatment cover?
crowns
An example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
Defamation occurs when a producer makes a false statement intended to
malign another insurer
An insurer may legally defer payment of a cash surrender value for up to
6 months
A medicare supplement policy can be cancelled by the insurer for
nonpayment
The fair credit reporting act protects consumers
with guidelines regarding credit reporting and distribution
A producer has influenced an existing policyowner to convert an existing whole life policy to reduced paid up insurance. The producer then sells the policy owner a new universal life policy. This transaction is called a(n)
replacement
Under the affordable care act (ACA), health coverage is provided for dependents up to the age of.
26
