Insurance regulation
How often are producers in South Carolina required to pay the license renewal fee?
Biennially
What is the maximum penalty for habitual willful noncompliance with the fair credit reporting act
$2,500
A licensed producer may be fined for non willful and for willful violations of insurance laws with the following respective fines:
$2,500/$5,000. A licensed producer can be fined up to $2,500 for non willful violations and up to $5,000 for willful violations of insurance laws
How many hours of continuing education in Ethics are required each compliance period
3
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
When an insurance agency published an advertising brochure, it emphasized the company's financial the company's financial stability and sound business practices. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement?
False financial statement
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?
Misrepresentation
The director has just finished examining a domestic insurer. When is the director next required to examine the same insurer
No later than 5 years from now
When are insurers required to renew appointments?
September 30th of every even-numbered year
Under the fair credit reporting act, individuals rejected for insurance due to information contained in a consumer report
must be informed of the source of the report
Dividends paid to policyholders of a mutual insurer are
not considered to be a rebate because the policy specifics that they might be paid
In order to transact insurance in this state, an agency must meet all of the following requirements except
obtain an insurance agency license
In the transaction of insurance, which of the following is considered to be representing the client
the broker
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
The customer's associates, friends, and neighbors provide the report's data
The director is conducting an examination of a foreign company transacting business in south Carolina. Who is responsible for the cost of the examination?
The foreign company
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
Without receiving written consent from an insurance regulatory authority
According to the fair credit reporting act, all of the following would be considered negative information about a consumer except
disputes
When the director finds that a license has been obtained by fraud or misrepresentation, he may suspend the license
immediately but not for more than 2 years
Rebating
offering any inducement in the sale of insurance products that is not specified in the policy, including money, reductions in commissions, promises, and personal services.
What is true regarding the director of insurance?
the director is appointed by the governor, the director must have a surety bond paid for by the state, and the director's a full-time, salaried position
Once the Director issues a cease and desist order, how soon must an insurer comply with the order?
30 days
Fines levied by the director in lieu of license revocation or suspension must be paid within
30 Days
A producer must report to the Director any criminal prosecution of the producer taken in any jurisdiction within how many of the initial pretrial hearing date?
30 days
