State Laws

Question 1

A person applying for a resident producer license in South Carolina must be at least
_____ years old

a. 18
b. 19
c. 20
d. 21

Answer 1

A

A person applying for a resident producer license in South Carolina must be at least 18

Question 2

A producer must be ____________ by an insurer in order to sell or negotiate insurance
on the insurer’s behalf, take an insurance application, advertise that they will receive
or convey applications or policies, receive or deliver a policy, accept a premium, or
transact insurance contracts, other than as an insured.

a. Licensed
b. Certified
c. Appointed
d. Licensed and appointed

Answer 2

D

A producer must be licensed and appointed by the insurer for which the insurance
transaction was performed

Question 3

The Director may issue a temporary license for up to ___ days without examination
under certain circumstance, if in the public interest.

a. 180
b. 90
c. 60
d. 30

Answer 3

A

The Director may issue a temporary license for up to 180 days without examination
under certain circumstance, if in the public interest

Question 4

A producer who moves to another state must file a change of address form with the
Director and provide certification from that state within ___ days.

a. 90
b. 60
c. 45
d. 30

Answer 4

D

A producer who moves to another state must file a change of address form with the
Director and provide certification from that state within 30 days

Question 5

A producer licensed for property and casualty, life and health, or both, in South Carolina
must complete at least ___ hours of CE every 2 years.

a. 24
b. 20
c. 16
d. 12

Answer 5

A

A producer licensed in South Carolina for property and casualty, life and health, or both
must complete at least 24 hours of CE every 2 years

Question 6

All of the following are actions the Director can take against a licensed person, except:

a. If the Director determines, after a hearing, that a person has engaged in an unfair trade
practice, they can issue a cease and desist order and fine the person up to $2,500 (up
to $5,000, if the violation is willful), suspend or revoke the person’s license, or both
b. In lieu of denying, revoking, or suspending a license, the Director may fine the person
up to $2,500, and up to $5,000 if the violation was willful
c. A producer whose license has been revoked or an applicant who has been refused a
license may not reapply for another license until 5 years after the effective date of the
revocation or refusal
d. Any person transacting insurance business without a license is guilty of a misdemeanor
and, upon conviction, will be fined up to $10,000, imprisoned for up to 2 years, or both

Answer 6

C

A producer whose license has been revoked or an applicant who has been refused a
license may not reapply for another license until 2 years after the effective date of the
revocation or refusal

Question 7

In South Carolina, the duties of the Director include all the following, except:

a. Make and enforce insurance laws
b. Supervise and regulate insurers’ rates
c. Report criminal violations of insurance laws to appropriate law enforcement
d. Institute civil actions related to the insurance business

Answer 7

A

The Director’s duty is to ensure that all laws are executed and make regulations to
enforce or administer the insurance laws of this State. The Director does not make or
pass laws

Question 8

The Director may examine or investigate a person or business:

a. Annually
b. At least once every 5 years
c. As necessary
d. At least every 2 years

Answer 8

C

The Director may examine or investigate a person or business as necessary

Question 9

Insurers must notify the Director after terminating a producer’s appointment and then
must mail a copy of the termination notice to the producer within ___ days.

a. 15
b. 30
c. 45
d. 60

Answer 9

A

Insurers must notify the Director after terminating a producer’s appointment and then
must mail a copy of the termination notice to the producer within 15 days.

Question 10

All producers must keep a record of business transacted, showing the date, term,
amount insured, premiums, and the policyholders’ names for at least __ years.

a. 4
b. 5
c. 2
d. 3

Answer 10

B

All producers in South Carolina must keep a record of business transacted, showing the
date, term, and amount insured, premiums, and the policyholders’ names for at least 5
years.

Question 11

see page 14 to create more questions

Question 12

All of the following are unfair trade practices in South Carolina, except:

a. Publishing or disseminating any false or maliciously derogatory statement about an
insurer’s financial condition with intent to injure any person in insurance business

b. Offering or providing free insurance as an enticement to purchase or sell personal or real property

c. Using the protection provided by the South Carolina Guaranty Association to sell
insurance

d. Publishing or disseminating a paid advertisement relating to the insurance business that
gives a genuine testimony

Answer 12

D

Publishing a genuine advertisement is not an unfair trade practice. Publishing or disseminating
an untrue, deceptive, or misleading advertisement would be an unfair practice known as false
advertising

Question 13

Which one of the following purpose of the Insurance Fraud Act is false?

a. Any person or insurer believing that another has made a false statement or a
misrepresentation must notify the Federal Bureau of Investigation (FBI) and provide
additional information upon request

b. Detects, investigates, prosecutes, and prescribes penalties, including restitution, for
insurance fraud

c. Establishes the Insurance Fraud Division
d. Grants immunity for reporting suspected fraud in good faith and without malice

Answer 13

The answer is: A

must report to Insurance Fraud Act

Question 14

The Consumer Information Privacy Regulation regulates the management of personal
health and financial information in all of the following ways, except:

a. Setting forth the conditions under which a producer may disclose personal information

b. Allowing a producer to disclose a policy number to any nonaffiliated third party for
marketing by mail, email, or phone

c. Requiring a producer to annually notify prospects and customers about privacy practices

d. Allowing a producer to disclose a consumer’s personal financial information if the
consumer is given a reasonable opportunity to opt out of disclosure after being notified
of privacy practices and of their right to opt out

Answer 14

The answer is: B

Question 15

An insurer formed to transact business for its parent companies and affiliates

Answer 15

Captive Insurer

Question 16

An insurer formed to write insurance business for its parents and affiliates
and licensed according to the laws of an alien jurisdiction.

Answer 16

Alien Captive Insurer

Question 17

Under the South Carolina Valued Policy Law, an insurer may not issue a(n) _______
policy for more than the policy’s stated value or the insured property’s value, the
amount must be fixed by the insurer and insured before or at issuance.

a. Watercraft
b. Fire
c. Motor vehicle
d. Personal injury

Answer 17

b. Fire

Question 18

The South Carolina Workers’ Compensation Law is the __________ remedy of an eligible employee, his personal representative, parents, dependents or next of kin against an employer in seeking a claim for a covered injury or illness.

A
Guaranteed

B
Exclusive

C
Preferred

D
Accepted

Answer 18

B. Exclusive

The South Carolina Workers’ Compensation Law is the exclusive remedy of an eligible employee, his personal representative, parents, dependents or next of kin against an employer in seeking a claim for a covered injury or illness.