INSURANCE REGULATION (Chapter 1)

Question 1

What are the minimum requirements to become a license producer in South Carolina?

Answer 1

Be at least 18 yrs old
Be of good moral character 
No convictions
Pay licensing fee 
Pass state examination

Question 2

The what documents are required by the SC department of insurance to process your application for license

Answer 2

Take and pass the state exam
Criminal background check
Apply for license and pay fees

Question 3

How long is your exam status report good for?

Answer 3

1 yr

Question 4

How does a producer become an agent?

Answer 4

They must be appointed by an authorized representative of an insurance company (insurer)

Question 5

Name 4 types of individual licenses issued by the director

Answer 5

Producer
Non resident
Temporary - granted for upto 180 days, no exam
Brokerq

Question 6

Who does the broker represent?

Answer 6

They represent citizens (the insured)

Question 7

How long is your insurance license valid for?

Answer 7

Indefinite period of time unless it is revoked or suspended

Question 8

What must you do to keep your license from being suspended?

Answer 8

Renew by the last day of the producer’s birth month
Satisfy the continuing education requirements
Pay the renewal fee

Question 9

How does the director of insurance get the job?

Answer 9

Appointed by the governor

Question 10

The director must be bonded with a surety bond = how much?

Answer 10

$50,000 paid for by the state

Question 11

How often can the director examine books and records of any insurer?

Answer 11

As often as necessary but at least once every 5 years.

Question 12

How often does the DOI have to Examine books and records of an insurer?

Answer 12

At least once every 5 years

Question 13

Which insurers must be examined by the SC director of insurance?

Answer 13

An insurer domiciled in South Carolina

Question 14

When must the insurer Notify the department of insurance and the agent when they terminate a producer terminates

Answer 14

The insurer must notify the department within 30 days of termination

The insurer must mail notice to the producer within 15 days

Question 15

How long do producers have to maintain records of every insurance transaction?

Answer 15

At least 5 years from the date of contact.

Question 16

When can the DOI review insurance transactions of producers?

Answer 16

Anytime

Question 17

When can a producer share a commission?

Answer 17

When a person has a license to transact insurance and the same licensed line of authority

Question 18

If you attempt to replace an existing policy by lying to your customer it is called…..

Answer 18

Misrepresentation –making false statements

Question 19

If you misrepresent information to the public via any form of media it is called…..

Answer 19

False advertising

Question 20

What is the primary purpose of the insurance fraud act?

Answer 20

To address the problem of insurance fraud

Question 21

When does the producer get an opportunity to reply to their appointment being terminated?

Answer 21

Hearing within 30 days

Question 22

What method does the director of insurance used to prevent a producer from performing certain acts associated with the business of insurance?

Answer 22

Cease and desist order

Fine $2500 or $5000 willful

Question 23

How long is a temporary producer’s license valid for?

Answer 23

Upto 180 days

Question 24

How many CE credits must a producer take to maintain their license?

Answer 24

24 hours every 2 years

Question 25

How many CE credits can be carried over and applied to the next 2 year period?

Answer 25

18

Question 26

If a license lapses for CE credits how long does the producer have to run state

Answer 26

6 months if not must reapply for a new license

Question 27

What must the producer do if the License lapses for CE credits

Answer 27

Take the classes and pay the fee for reinstatement

Question 28

When does the producer have to notify the department of a legal name change or address?

Answer 28

30 days

Or pay a fine of up to $2500 or $5000 willful

Question 29

What is a person who violated insurance laws entitled to? How much notice do they get?

Answer 29

Hearing with 30 day advance notice

Question 30

How long can a license be Suspended?

Answer 30

2 years

Question 31

How much is the fee to appoint an agent and who pays the fee?

Answer 31

The insurer pays $40 by September 30th even number years

Question 32

How many hours of training does a person have to take to sell long term care insurance and when is the refresher?

Answer 32

8 hour course

on going training 4 hours every 24 months

Question 33

A certificate of authority is issued by the director to who?

Answer 33

Insurance companies

Question 34

Can a license producer split permissions with a non licensed person?

Answer 34

Never

Question 35

How much can a insurer license in the state be fined violation of insurance laws

Answer 35

$30,000 for willful and $15,000 per unwilful violations

Question 36

How much is the perspective application fee to the DOI?

Answer 36

$25