South Carolina Life Insurance Producer Exam Questions and Answers
Question : If a policy has a automatic loan provision, what
happens if the insured dies before the loan is paid back?
Correct answer: The balance of the loan will be taken out of
the death benefit
Question : An insurer receives a report regarding potential
insured that includes financial status, hobbies, and habits.What type of report is that?
Correct answer: Inspection Report
Question : The clause that protects the proceeds of a life
insurance policy from creditors after the death of the insured is known as
Correct answer: Spendthrift Clause
Question : Children's riders attached to whole life policies are
usually issued as what type of insurance?
Correct answer: Term
Question : An individual has just borrowed $10,000 from his
bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation
Correct answer: Decreasing Term
Question : How many hours of CE must be completed every 2
years?
Correct answer: 24 total hours, including 8 hours approved
for the line of licensing that the producer holds
Question : Which of the following statements is true
concerning the creditors of the deceased insured?
Correct answer: The creditors have rights to the proceeds if
they can show evidence of valid assignment
Question : A life insurance policy has a legal purpose if both
of which of the following elements exist?
Correct answer: Insurable interest and consent
Question : A long stretch of national economic hardship
causes a 7% rate of inflation. A policy owner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change?
Correct answer: Cost of Living Rider
Question : Which of the following Life Insurance policies
would be considered interest-sensitive?
Correct answer: Universal Life
Question : The authority granted to an agent through the
agent's contract is referred to as
Correct answer: Express Authority
Question : What must happen when an individual policy or
annuity has been personally delivered to the policyowner?
Correct answer: The policyowner must sign a delivery receipt
Question : In the event of an insurer's insolvency, the South
Carolina Life and Health Guaranty Association will
Correct answer: Reinsure policies of the insolvent insurer
through other companies
Question : Once the Director issues a cease and desist order,
how soon must an insurer comply with the order?
Correct answer: within 30 days
Question : When a reduced-paid up nonforfeiture option is
chosen, what happens to the face amount of the policy?
Correct answer: It is reduced to the amount of what the cash
value would buy as a single premium
Question : All of the following are unfair claims settlement
practices EXCEPT
Correct answer: Suggesting negotiations in settling the claim
Question : How many hours of continuing education in Ethics
are required each compliance period