Insurance Regulation

Question 0

What are the five qualifications that the South Carolina Dir. of Insurance must determine about it applicant before deeming him qualified as an insurance producer?

Answer 0

A Qualified applicant is at least 18 years old; be of good moral character; have not been convicted of a felony or crime for at least 10 years; passes the required license examination; pays the license fee of $25.

Question 1

What is the minimum age to apply for a producer license and this state?

Answer 1

The minimum age to apply for producers license in the state is at least 18 years old.

Question 2

For how long, and under what circumstances can a temporary license be issued?

Answer 2

The director (or the directors designee) may issue a temporary insurance license for a period of up to 180 days :to a surviving spouse, a member or employee of the business entity, the designee for the insured insurance producer entering active service, or Any other circumstance that the director deems necessary.

Question 3

Under what circumstances is the licensee not required to take it written exam?

Answer 3

A written exam is not required for Insurance producers who are: writing to handle credit transactions in a bank or finance company or who have been issued a temporary license.

Question 4

For licensing procedure which lines of authority are considered unlimited?

Answer 4

Property, casualty, surety, Marine, accident and health, life and variable contracts are considered unlimited lines of authority.

Question 5

What are the licensing procedure for lines of authority better unlimited?

Answer 5

An exam and continuing education credits are required for unlimited lines of authority licensing.

Question 6

For licensing procedure which lines of authority are considered limited?

Answer 6

Credit health, credit property, credit life, travel baggage and any other credit insurance are considered limited lines of authority.

Question 7

What is the licensing procedure for Insurance producers who handle credit transactions?

Answer 7

License producers handling credit transactions are not required to complete an insurance exam nor have any continuing education requirements.

Question 8

For licensing purposes, which lines of authority are considered limited, yet require an exam?

Answer 8

For licensing purposes, license producers writing: auto physical damage, automobile liability, crop hail, industrial fire, mortgage guarantee, title, and pre-need burial policies are required to take an exam for licensing, yet have no continue education requirements.

Question 9

How does an licensed applicant become an agent?

Answer 9

Before an applicant can act as an agent for an authorized insurer the applicant must be appointed by an authorized representative of the insurer. All appointments must be submitted by the insurance company to the national insurance producer registry.

Question 10

What is a producer?

Answer 10

A producer is a person who is authorized by an insurer sell, solicit, negotiate, or receive and deliver insurance policies on behalf of of the insurer. The term producer may also include a licensed agency.

Question 11

Who is an individual producer?

Answer 11

An individual producer, an agent, is a person who is authorized by an insurer to represent it and to offer to the public insurance policies or contracts and attend services that are performed incidental to such policies or contracts;
Receives a commission, must be licensed.

Question 12

Who is a general producer?

Answer 12

A general producer, a general agent, is a person who as a representative of the insurer or insurers has the authority to supervise producers and local producers and to exercise such management authority as delegated by the principle;
Receive commissions as a producer and supervisor.

Question 13

Who is a special producer?

Answer 13

A special producer, a special agent, is a person employed by an insurer or general producer to travel to designated territory to supervise and assist producers in the proper discharge of their duties; receives a salary.

Question 14

What is an insurance broker?

Answer 14

An insurance broker is an individual license by the director or the directors designee to represent citizens of the state and placing insurance.

Question 15

What is the procedure for obtaining a surplus lines insurance broker license?

Answer 15

An individual may obtain an surplus lines insurance broker license after passing the surplus lines examination if that person already holes a property and casualty license.

Question 16

What are the maintenance requirements for producer’s license?

Answer 16

A producers license is issued for an indefinite term; however it must be renewed on an biennial basis by the last day of the licensees month of birth on it even or odd year basis depending on the year which the producer was born;
Continuing education requirement; record keeping fee of $15 ; renewal application and $25 fee.

Question 17

When are insurers require to renew appointments?

Answer 17

The insurer must renew the appointments biennial by September 30 of even-numbered years.

Question 18

When are the continuing education requirements?

Answer 18

License producers are required to obtain 24 hours of continuing education biennial by the last day of the birth month in either odd or even numbered years coinciding with the produce his birth year.

Question 19

Who gets the recordkeeping fee?

Answer 19

The continuing education recordkeeping fee is sent to the continuing education administrator.

Question 20

What are the continuing education requirements

Answer 20

24 hours every two years, 8 in each line of authority and 3 hours of ethics.

Question 21

If a producer changes his or her business or residential address or telephone number, how soon must a producer notified Department of Insurance?

Answer 21

A producer must notify the Department of Insurance about any changes to his or her business and personal address or telephone number within 30 days of the effective change.

Question 22

What are the rules regarding hearings and notices of hearing?

Answer 22

The producer must be notified in writing within 30 days of the hearing or notice of hearing :why, who cited to appear, when and where for the hearing.

Question 23

What are the applicable penalties for noncompliance with the South Carolina insurance code?

Answer 23

Administrative actions penalties: inshore equals $15,000 and individual equals $2500. Willful acts doubles the penalty.

Question 24

What are the powers of the director of insurance?

Answer 24

The director of insurance has the following powers: act as a Circuit Court judge;
Require witnesses to testify,
License individuals agencies and companies,
Issue cease and desist orders, Charged individuals with perjury.

Question 25

What are the duties of the director of insurance?

Answer 25

The directors general duties and responsibilities include: supervising and regulating the rates and services of every insurer in the state and establishing fair and reasonable standards;
ensuring that all insurance related laws of the state are fully faithfully executed;
reporting to the Atty. Gen. any criminal violations;
instituting civil actions either through the directors office or through the general attorney.

Question 26

What constitutes a rebate?

Answer 26

The sharing of a commission with an insured is considered a rebate and is illegal.

Question 27

Whose responsibility is it to determine if an insurer is authorized?

Answer 27

It is a produces responsibility to make sure that he or she is acting on behalf of of an authorized insurer. Otherwise it is considered a misdemeanor and the producer I’ll be held personally liable for the limits of the coverage on all contracts me through an unauthorized insurer.

Question 28

What information does the director of insurance verified prior to issuing a certificate of authority to insurance companies?

Answer 28

The director determines if the company is: safe,
solvent,
adequate reserves,
reinsurance agreements,
SLED reports for company officers and directors, and
Training and experience to properly manage its business and affairs.

Question 29

What is the purpose of the South Carolina Guaranty Association and who are members?

Answer 29

To continue to protect policyholders from insurer insolvencies, the South Carolina Guaranty Association was formed. Its members are all licensed insurers.

Question 30

How often must a director examined insurance companies?

Answer 30

The director must conduct an examination of every insurer authorized to transact business in the state at least every 5 years or as often as deemed.
Appropriate all examination fees and expenses are the responsibility of the company being examined, and insurer’s state of domicile.

Question 31

What is the South Carolina unfair claim settlement practices act?

Answer 31

The unfair claims settlement act makes it illegal to misrepresent information to any shored or any other person for the purpose of settling the claim loss or damage unless favorable terms than those provided by the contract or policy.
Delay reasonable payment of claims.

Question 32

What is misrepresentation?

Answer 32

Ms. Reppert hit send patient is the illegal issue, publish, or circulation of any illustration our sales material that is false, misleading, or deceptive as to the policy benefits or terms, the payment of dividends, etc. 1 on 1

Question 33

What is false advertising?

Answer 33

False advertising is advertisement that includes any untrue deceptive or misleading statements that apply to the business of insurance or anyone who conducts insurance on a wide scope of communication.

Question 34

What is deformation?

Answer 34

Deformation occurs when an oral or written statement it’s me that is intended to injure person engaged in the insurance business this also applies to statement that a maliciously critical of financial condition of any person or company.

Question 35

What is boycott?

Answer 35

Boycotting is intended to restrict fair trade or to create a monopoly in a certain part of town.