Insurance Ch. 8 (Retention & Ch. Exam Questions)

A person applying for a resident producer license must be at least how old? a. 18 b. 19 c. 20 d. 21

A. A person applying for a resident producer license must be at least 18 years of age.

A producer licensed for property and casualty must complete at least ___ hours of CE every 2 years. a. 24 b. 20 c. 16 d. 12

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

An insurer must give a named insured a written notice at least _____ days before cancelling an auto policy. a. 15 b. 10 c. 7 d. 5

A. An insurer must give a named insured a written notice at least 15 days before cancelling an auto policy.

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

B. All producers must keep a record of business transacted, showing the date, term, and amount insured; premiums; and the policyholders' names for at least 5 years.

Every auto policy delivered in this state must provide uninsured motorist coverage that is subject to a $_______ deductible. a. 150 b. 200 c. 250 d. 300

B. Every auto policy issued or delivered in this state must provide uninsured motorist coverage for no less than the minimum required limits for bodily injury ($25,000/$50,000) and up to at least $25,000 for property damage per accident caused by an uninsured motorist, subject to a $200 deductible.

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

B. In general, a property and casualty policy in effect for more than 120 days may not be cancelled.

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

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

An insurer must meet certain qualifications regarding competency, trust, ethics, and financial stability to get a _________ issued by the Director that allows an insurer to transact insurance business in this state. a. Certificate of Authority b. License Document c. Seal of Approval d. Letter of Acceptance

A. An insurer must meet certain qualifications regarding competency, trust, ethics, and financial stability to get a Certificate of Authority issued by the Director that allows an insurer to transact insurance business in this state.

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

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.

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

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

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

A. The Insurance Fraud Act requires any person or insurer believing that another has made a false statement or a misrepresentation notify the Insurance Fraud Division and provide additional information upon request.

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 his/her right to opt out

B. The Consumer Information Privacy Regulation regulates the management of personal health and financial information by requiring a producer not disclose a policy number to any nonaffiliated third party for marketing by mail, email, or phone.

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

B. The South Carolina Wind and Hail Underwriting Association (SCWHUA) provides wind and hail insurance for the state's coastal areas.

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

B. The minimum limits of liability are $25,000 for bodily injury or death per person per accident; $50,000 for bodily injury or death for 2 or more persons per accident; and $25,000 for property damage per accident, if covered by bond.

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

B. Under the South Carolina Valued Policy Law, an insurer may not issue a fire 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.

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

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.

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

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

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

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.

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

D. Offering any valuable consideration not stated in an insurance contract in order to induce its acquisition or renewal is an unfair trade practice called rebating.

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

D. Under the South Carolina Property and Casualty Insurance Guaranty Association all property and casualty insurers must be members as a condition of their authority to transact insurance business in South Carolina.