SC PL
Mobile Homeowner
-policies may not be written for periods longer than 3 years -Policy coverage may not be issued for more than the value stated in the policy or the property value
2 years
A producer whose license has been revoked, or an applicant who has been refused a license, may not reapply for another license until how many years after the effective date of the revocation or refusal ?
6 months
A producer whose license lapses for failure to meet continuing education requirements, but who then complete those requirements, may reinstate the license within how many months of the deadline
revoked or suspended
A producer's license continues on a biennial basis unless ______________________________,as long as the producer meets continuing education requirements, pays the biennial renewal fee, and submits an online renewal application.
$10000
Any person transacting insurance business without a license is guilty of a misdemeanor and, upon conviction, will be fined up to $__________, imprisoned for up to 2 years, or both
Unfair Discrimination
Discriminating, or allowing discrimination, between individuals of the same class and risk, involving the same hazards, in an insurance product's terms.
Producer
Sell, solicit, or negotiate insurance on the insurer's behalf
Broker
Sells, solicits, or negotiates insurance on behalf of an insured
Rebating
Offering any valuable consideration not stated in an insurance contract in order to induce a person to buy or review that contract.
Homeowners Endorsements - Special Provisions (HO 01 39)
Section I - Conditions, Suit Against Us is modified so that no action can be brought unless there has been full compliance with all of the terms under Section I of this policy and the action is started within 3 years after the date of loss.
True
True/False: Surplus lines brokers may get a nonresident surplus lines broker license.
Contributive Insurance
Two or more policies covering the same property.
60 days
Under the Identity Fraud Expense Coverage (HO 04 55) the insured must within how many days of a request send to the insurer receipts, bills or other records that support the insured's claim for expenses
b. Fire
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
30 days
who moves from one state to another, or a resident producer who moves from this State to another, must file a change of address and provide certification from the new resident state within _______ days of the change of legal residence. No fee or license application is required.
30 days
A producer or applicant must pay any imposed penalty within how many days or their license will be revoked, suspended, or refused renewal.
90 days
A certificate of insurance must remain in effect for a period of at least how many days unless it is cancelled by the insurance company for a reason other than nonpayment of premium
30 days
A producer must report, to the Director, any administrative action taken against them in another jurisdiction or by another governmental agency within how many days of the matter's final disposition.
18
A person applying for a resident producer license must be at least how old?
$2500/$5000
A producer failing to notify the Director within 30 days of any change in name or address will be fined up to how much if their license suspended, or both & if the fine will be up to how much if the violation is willful
24 hours
A producer licensed for property and casualty must complete at least ___ hours of CE every 2 years
Nonresident Producer
A producer licensed in a state in which he/she is not a resident. In most states, no exam is required to obtain a Nonresident license.
licensed and appointed
A producer must be _________________________by the insurer for which the insurance transaction was performed
assumed
A producer must notify the Director before doing business under an __________________ name
30 days
A producer must report being the subject of criminal prosecution in any jurisdiction to the Director within how many days of the initial pretrial hearing date
60%
A title insurer may not pay a commission, directly or indirectly, of greater than___% on a title insurance policy.
Constructive Total Loss
A vehicle is a total loss if the cost of repairing the vehicle exceeds 75% of the fair market value of the vehicle. However, this doesn't apply to a vehicle that has a fair market value of $2,000 or less
Certificate of Insurance
An authorized insurance carrier may provide proof of financial responsibility by filing a written certificate stating that there is a motor vehicle policy in effect for the person required to provide proof. The certificate must be filed with the Department of Motor Vehicles (DMV) and may be submitted electronically.
90 days
An auto policy application must inform the applicant of the insurer's right to cancel the policy after the first ______ days
Recovery Conditions
An insured has no right to sue to recover damages under the uninsured motorist provision if the at-fault motorist is unknown
Captive Insurer
An insurer formed to transact business for its parent companies and affiliates.
Alien Captive Insurer
An insurer formed to write insurance business for its parents and affiliates and licensed according to the laws of an alien jurisdiction
$2500
Any person convicted of a misdemeanor will be fined $__________, imprisoned for up to 2 years, or both, unless another penalty is specifically provided by law
Insurance Fraud Division
Any person or insurer believing that another has made a false statement or a misrepresentation must notify who?
Identity Fraud Expense Coverage (HO 04 55)
Definitions are the same as BP 14 01, except the total payment for lost income is not to exceed $5,000, with a maximum payment of $200 per day
Boycott, Coercion, or Intimidation
Committing any act of boycott, coercion, or intimidation resulting in unreasonable restraint of, or monopoly in, the insurance business.
b. 200
Every auto policy delivered in this state must provide uninsured motorist coverage that is subject to a $_______ deductible
uninsured motorist coverage
Every auto policy issued or delivered in this State must provide this coverage for no less than the minimum required limits for bodily injury and property damage ($25,000/$50,000/$25,000) per accident caused by an uninsured motorist, subject to a $200 deductible.
10 years
For subsequent offenses, regardless of economic advantage, is a fine of $20,000-$100,000, imprisonment for up to how many years, or both
Yearly
How many times does the Director of the Insurance Fraud Division in the Office of the Attorney General must report to the General Assembly
60 days
If the DMV suspends the license, it must be done within how many days of receiving the accident report.
1 year
If the property is insurable and no premiums are unpaid, SCWHUA will issue a property policy for a term of at least how many years once the premium is received?
cease and desist order
If, after due notice and a hearing, the Director or their designee determines that an insurer has failed to meet the obligations imposed, the Director will order the insurer to cease and desist from the practice, to correct any errant business practices, and to make any payments due, including applicable interest.
b. 120
In general, a property and casualty policy in effect for more than ____ days may not be cancelled. a. 90 b. 120 c. 30 d. 60
3 years
Insurer must keep records of cancellation and nonrenewal, including copies of all notices sent to insured, for at least ____ years.
Misrepresentation
Issuing or circulating any statement misrepresenting a policy's terms, benefits, or dividends
Dwelling Endorsements - Special Provisions (DP 01 39)
Loss to glass or safety glazing material, if directly caused by earth movement. The vacancy exclusion does not apply to this coverage.
Twisting
Making a false or misleading representation or comparison of policies or insurers to induce any person to lapse, forfeit, surrender, terminate, or convert a policy or to purchase a policy from another insurer.
60 days
No later than how many days following completion of the examination, the examiner must file a written report with the Department
Prohibited Inducements
No person may engage in any of the following as an inducement to the purchaser or in connection with or as reference to the policy or annuity contract, directly or indirectly
$200
No producer may sign any blank application, contract, or policy of insurance. A producer violating this law is subject to a fine of up to how much per violation
False Advertising
Publishing or disseminating an untrue, deceptive, or misleading advertisement relating to the business of insurance or any person in the business. This includes any written format, such as notices or posters, as well as oral advertising done on the radio or television
Defamation
Publishing or disseminating any false or maliciously derogatory statement about an insurer's financial condition with intent to injure any person in the insurance business. It can include aiding or encouraging another person to make malicious statements
False Financial Statements
Publishing or disseminating any false statement about an insurer's financial condition with the intent to deceive, whether in public or in private. This includes making false entries or willfully omitting true information in a book, report, or statement of an insurer with the intent to deceive an agent or examiner.
cancellation
Termination of a policy at a date other than its expiration date
Nonrenewal
Termination of a policy at its expiration date
South Carolina Property and Casualty Insurance Guaranty Association
The Association pays unpaid claims against an insolvent insurer for up to $300,000 per claim and up to $10 million per insolvent insurer. The first $250 of a claim will not be covered. However, the Association pays Workers' Compensation claims in full; Workers' Compensation claims are not included in the $10 million cap
$200 or more
The Department of Motor Vehicles (DMV) may suspend the license of a driver involved in a motor vehicle accident causing bodily injury, death, or damage to property of how much.
15 days
The insurer must mail a copy of the termination notice to the producer at their last known address within how many days of notifying the Director.
Identity Fraud Expense Coverage (HO 04 55) Coverage
The insurer will pay up to $15,000 total for all expenses incurred as a result of identity fraud
6 months
The motor vehicle liability policy or certificate of insurance must have a term of at least how many months.
15 days
The notice must inform the insured of the right to request review by the Director within ____ days after receiving the notice
30 days
The producer also must notify the department within how many days of any change in legal name or in these addresses
30 days
The producer has how many days from receipt of that notification to file written comments with the Director and insurer due to a termination?
Insurance Fraud Act
The purpose of this Act is to confront the problem of insurance fraud in South Carolina
$50,000
The required limit of liability for bodily injury or death for 2 or more persons per accident
$25,000
The required limit of liability for property damage per accident.
Amendment of Policy Provisions (PP 01 78)
This mandatory endorsement provides coverage for bodily injury or property damage: -Intentionally caused, up to minimum legal liability requirements -Already covered under the policy, to any person who has not committed fraud
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
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
90 days
Within the first ____ days of a policy's effective date, an insurer may cancel, without cause, at any time.
Proof of Financial Responsibility
filing a certificate of insurance, a bond, or a certificate of deposit of money or securities
South Carolina Wind and Hail Underwriting Association (SCWHUA)
functions as a residual market, providing wind and hail insurance for the state's coastal areas.
$250
how is the deductible for Identity Fraud Expense Coverage (BP 14 01)
$500
how much is the deductible for Identity Fraud Expense Coverage (HO 04 55)
chief officer of insurance
in South Carolina is the Director of Insurance.
motor vehicle liability policy
is an owner or operator's policy that meets all state requirements, is certified as proof of responsibility, and is issued by an insurance carrier authorized to transact business in this State for the benefit of the named insureds or any other person using the described vehicle with express or implied permission of the named insured
Certificate of Authority
is issued by the Director and allows an insurer to transact insurance business in South Carolina.
Employee Dishonesty Optional Coverage
is shown as an applicable coverage in the Declarations, the coverage provided by this endorsement does not apply to any loss payable under this coverage.
individual or agency
may not transact insurance business until a producer's license has been issued by the Director of Insurance.
Optional underinsured motorist coverage
must be offered, but is not required to be purchased, up to the insured's limits of liability, in the event damages are sustained in excess of an at-fault driver's liability limits.
$10,000-$50,000
under insurance fraud act, the first offense is a fine of $10,000-$50,000, imprisonment for up to 5 years, or both, if the economic benefit received is how much?
$1000
under insurance fraud act, the first offense is a fine of $100-$500 or imprisonment for up to 30 days, if the economic benefit received is less than how much?
$1000-$10000
under insurance fraud act, the first offense is a fine of $2,000-$10,000, imprisonment for up to 3 years, or both, if the economic benefit received is how much
$50,000 or more
under insurance fraud act, the first offense is a fine of $20,000-$100,000, imprisonment for up to 10 years, or both, if the economic benefit received is how much?
1 year or less
the policy being renewed, known as the "original policy," is written for how many terms, and the estimated premium due must be given to the insured no fewer than 30 days prior to the expiration date of the original policy
$25,000
the required limit of liability for bodily injury or death per person per accident is how much?
60 days
under Identity Fraud Expense Coverage (BP 14 01), the insured must within how many days of a request send to the insurer receipts, bills or other records that support the insured's claim
Other Insurance Condition
under Section III - Common Policy Conditions is replaced by the following: Coverage provided under this endorsement will be excess over any other insurance or agreement covering the same loss or damage, whether the insured can collect on it or not. But the insurer will not pay more than the applicable limit of insurance.
Identity Fraud Expense Coverage (HO 04 55) Exclusions
- Loss arising out of or in connection with a "business" -Expenses" incurred due to any fraudulent, dishonest or criminal act by an "insured" or any person aiding or abetting an "insured", or by any authorized representative of an "insured", whether acting alone or in collusion with others -Loss other than "expenses
Identity Fraud Expense Coverage (BP 14 01) Expenses Incurred
-Costs for notarizing affidavits or similar documents attesting to fraud -Costs for certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit grantors -Costs for obtaining credit reports -Lost income resulting from time taken off work to complete fraud affidavits, meet with or talk to law enforcement agencies, credit agencies and/or legal counsel, up to a maximum payment of $250 per day; total payment for lost income is not to exceed $10,000 -Loan application fees for reapplying for a loan or loans when the original application is rejected solely because the lender received incorrect credit information -Attorney fees -Charges incurred for long distance telephone calls to merchants, vendors, suppliers,customers, law enforcement agencies, financial institutions or similar credit grantors, or credit agencies to report or discuss an occurrence of identity fraud
Identity Fraud Expense Coverage (BP 14 01) Exclusions
-Expenses or additional advertising expenses incurred by you as the result of any identity fraud due to any fraudulent, dishonest or criminal act by: -The insured and their partners, members, officers, managers, directors, trustees -Any authorized representative of the insured, but only if such act was committed with the knowledge or consent of partners, members, officers, managers, directors, trustees,whether acting alone or in collusion with others. -Loss other than expenses or additional advertising expenses
Identity Fraud Expense Coverage (BP 14 01) Coverage
-This endorsement modifies insurance provided under the Businessowners Coverage Form. It will pay up to $25,000 total for all expenses incurred as a result of identity fraud. - It also will pay up ot $5000 total for restoration of the insured's
20 days
After this 30 days, the Director reviews the report and Adopts the examination report as filed or with corrections, Rejects the report and reopens the examination, & Calls for a hearing, giving the insurer at least how many days' notice?
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
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
d. Offering any valuable consideration stated in an insurance contract in order to induce its acquisition or renewal
All of the following are unfair trade practices, 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. Discriminating, or allowing discrimination, between individuals of the same class and risk, involving the same hazards, in an insurance product's terms d. Offering any valuable consideration stated in an insurance contract in order to induce its acquisition or renewal
5 years
All producers must keep a record of business transacted, showing the date, term, amount insured, premiums, and the policyholders' names for at least __ years
15 days
An insurer must give a named insured a written notice at least _____ days before cancelling an auto policy
Insurable Property
Immovable property at fixed locations in coastal areas of the State, or tangible personal property located inside it. The property must be determined to be in an insurable condition using reasonable underwriting standards.
Free Insurance
Offering or providing free insurance as an enticement to purchase or sell personal or real property or services
b. Allowing a producer to disclose a policy number to any nonaffiliated third party for marketing by mail, email, or phone
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 non-affiliated 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 his/her right to opt out
30 days
The Department sends a copy to the insurer, who has how many days to submit a written rebuttal about any matters contained within the report
180 days
The Director may issue a temporary license for up to ___ days without examination under certain circumstance, if in the public interest.
5 years
The Director may: Examine an insurer as often as appropriate, but must examine each insurer at least once every how many years?
30 days
The Director must give a person written notice of at least how many days before a hearing, and the notice must state the time and place of the hearing.
10 days
The Director must give notice up to how many days, before revoking or suspending a producer's license or placing a producer on probation ?
once a year
The Director must hold a public hearing, at least how many times a year within the seacoast area, to provide the public with information and an opportunity to discuss and offer input concerning the rates, territory, and other pertinent issues regarding the South Carolina Wind and Hail Underwriting Association?
b. Coastal areas
The South Carolina Wind and Hail Underwriting Association (SCWHUA) provides wind and hail insurance for the state's: a. Major metropolitan areas b. Coastal areas c. Suburban areas d. Commercial districts
d. Property and casualty
Under the South Carolina Property and Casualty Insurance Guaranty Association all ____________ insurers must be members as a condition of their authority to transact insurance business in South Carolina. a. Domestic and foreign b. Commercial lines c. Personal lines d. Property and casualty
30 days
Violating the South Carolina Motor Vehicle Financial Responsibility Act may result in a fine of up to $100 or imprisonment of up to how many days
b. 25/50/25
What are the South Carolina minimum limits of liability? a. 20/50/20 b. 25/50/25 c. 25/50/20 d. 20/50/25
10 days
When an insurer has certified a motor vehicle policy, the insurance and certificate cannot be cancelled or terminated until how many days after written notice is filed with the DMV.
30 days
When the contract of a producer is terminated by the insurer represented, that insurer must notify the Director of the termination within how many days?
