SC General Regulations Flashcards
How many hours of continuing education are required to be eligible for license renewal?
24 hours
After an examiner files a report of an insurer’s examination, how much time does the insurer have to file a rebuttal?
30 days
What illegal practice occurs when a producer spreads false rumors about another insurance company?
Defamation
A producer’s insurance business records must be kept for a minimum of how many years?
5 years
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?
Notify the Director
Which of the following is illegal?
- 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
All of the following are required for an insurer to operate in SC, except?
- 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
What happens if an unlicensed producer collects for a contract of insurance?
The producer is guilty of a misdemeanor and liable for the limits of coverage
Who of the following does not have to be a licensed insurance broker?
Someone who performs clerical duties in the acceptance of a policy of surplus lines insurance
How often is the Director required to conduct an examination of every licensed insurer?
Once every 5 years
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?
100%
Who is responsible for overseeing and setting standards for rates?
The Director of Insurance
If a producer claims a policy is better suited for a prospective applicant than it really is, they have committed:
Misrepresentation
If an insurance producer allows his insurance license to lapse, by what date does he have to complete the continuing education requirements?
Nov 1st
Which of the following constitutes an improper claim practice?
- 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
How much time does an insurer have to inform a producer of the termination of their appointment?
15 days
All of the following are required for an insurance license in SC, except?
- 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
Who manages and operates the SC Insurance Department?
The Director
How much time does an insurance producer have to notify the Department of a change in address?
30 days
An applicant for an insurance agent in SC must have had no felony convictions within how many years of applying?
10 years
What prohibited practice manipulates through the prospect of something desirable?
Coercion
What is the max fine for an insurance person for a willful violation of a cease and desist order by the Director?
$100.00 per day
Who must pay the renewal fee for an insurance producer?
The appointing insurer
What is the max fine the Director can levy on an insurer who intentionally violates SC insurance law?
30,000.00
As a condition to the advancing of the premiums, a producer can require which of the following?
- Purchase of another policy
- Purchase of a product
- Purchase of a service
- ** None of the above
All of the following are true about a broker, except:
- 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
What is the max fine for a person convicted of performing insurance acts without a license?
$10,000
If a producer creates a pamphlet containing untrue or misleading statements, it is considered:
False Advertising
An insurance agency acting as an insurance producer must submit what application?
Uniform Business Entity Application
Which of the following is allowed?
Accepting a deferred commission for a sale that occurred while licensed, but after the license expired
What is an insurer’s license to operate in SC called?
A Certificate of Authority
The Director can issue a temporary producer license for up to:
180 days
How does the Director get their position?
Appointed by the Governor
Who pays for the operation of the continuing insurance education program?
The Producers
