SC General Regulations

Question 1

How many hours of continuing education are required to be eligible for license renewal?

Answer 1

24 hours

Question 2

After an examiner files a report of an insurer’s examination, how much time does the insurer have to file a rebuttal?

Answer 2

30 days

Question 3

What illegal practice occurs when a producer spreads false rumors about another insurance company?

Answer 3

Defamation

Question 4

A producer’s insurance business records must be kept for a minimum of how many years?

Answer 4

5 years

Question 5

Bob Smith is an insurer in the state of SC as GTB Agency and wants to change the name of his agency to Smith Agency. What must he do before assuming the new name?

Answer 5

Notify the Director

Question 6

Which of the following is illegal?

Answer 6

• Filing a false statement of financial condition with any supervisory official
• Making a false entry in a report
• Omitting a true entry pertaining to the business of the insurer in any statement of the insurer
• ** All of the above

Question 7

All of the following are required for an insurer to operate in SC, except?

Answer 7

• Insurer pays all taxes
• Insurer performs duties as required by law
• ** Reserves are inadequate
• Insurer’s directors/officers have not been convicted of a crime of fraud

Question 8

What happens if an unlicensed producer collects for a contract of insurance?

Answer 8

The producer is guilty of a misdemeanor and liable for the limits of coverage

Question 9

Who of the following does not have to be a licensed insurance broker?

Answer 9

Someone who performs clerical duties in the acceptance of a policy of surplus lines insurance

Question 10

How often is the Director required to conduct an examination of every licensed insurer?

Answer 10

Once every 5 years

Question 11

If Mary, an insurance producer, has obtained a special designation, what percentage of the credit hours earned maintaining the designation can she use toward her continuing education requirement?

Answer 11

100%

Question 12

Who is responsible for overseeing and setting standards for rates?

Answer 12

The Director of Insurance

Question 13

If a producer claims a policy is better suited for a prospective applicant than it really is, they have committed:

Answer 13

Misrepresentation

Question 14

If an insurance producer allows his insurance license to lapse, by what date does he have to complete the continuing education requirements?

Answer 14

Nov 1st

Question 15

Which of the following constitutes an improper claim practice?

Answer 15

• Failing to promptly acknowledge communications regarding claims
• Failing to adopt standards for prompt settlement of claims
• Offering to settle claims for an amount less than the amount otherwise reasonably due
• ** All of the above

Question 16

How much time does an insurer have to inform a producer of the termination of their appointment?

Answer 16

15 days

Question 17

All of the following are required for an insurance license in SC, except?

Answer 17

• Have no felony convictions in previous 10 years
• ** Be at least 21 years of age
• Have passed a written exam
• Be of good moral character

Question 18

Who manages and operates the SC Insurance Department?

Answer 18

The Director

Question 19

How much time does an insurance producer have to notify the Department of a change in address?

Answer 19

30 days

Question 20

An applicant for an insurance agent in SC must have had no felony convictions within how many years of applying?

Answer 20

10 years

Question 21

What prohibited practice manipulates through the prospect of something desirable?

Answer 21

Coercion

Question 22

What is the max fine for an insurance person for a willful violation of a cease and desist order by the Director?

Answer 22

$100.00 per day

Question 23

Who must pay the renewal fee for an insurance producer?

Answer 23

The appointing insurer

Question 24

What is the max fine the Director can levy on an insurer who intentionally violates SC insurance law?

Answer 24

30,000.00

Question 25

As a condition to the advancing of the premiums, a producer can require which of the following?

Answer 25

• Purchase of another policy
• Purchase of a product
• Purchase of a service
• ** None of the above

Question 26

All of the following are true about a broker, except:

Answer 26

• A broker is a property and casualty producer
• A broker advertises or gives notice that he receives or transmits surplus lines applications
• ** Sells, solicits and negotiates on behalf of the insurer
• Receives and collects premiums

Question 27

What is the max fine for a person convicted of performing insurance acts without a license?

Answer 27

$10,000

Question 28

If a producer creates a pamphlet containing untrue or misleading statements, it is considered:

Answer 28

False Advertising

Question 29

An insurance agency acting as an insurance producer must submit what application?

Answer 29

Uniform Business Entity Application

Question 30

Which of the following is allowed?

Answer 30

Accepting a deferred commission for a sale that occurred while licensed, but after the license expired

Question 31

What is an insurer’s license to operate in SC called?

Answer 31

A Certificate of Authority

Question 32

The Director can issue a temporary producer license for up to:

Answer 32

180 days

Question 33

How does the Director get their position?

Answer 33

Appointed by the Governor

Question 34

Who pays for the operation of the continuing insurance education program?

Answer 34

The Producers