SCLAHIP - South Carolina Life Accident and Health Insurance Producer Exam

Question 1: An insurer routinely offers claimants far less than their claims are worth so that they must sue to recover what is due, and those suits regularly produce much larger amounts. Which enumerated improper claim practice does this pattern describe?

Misrepresenting pertinent facts about coverage

Failing to adopt reasonable investigation standards

Settling claims in merchandise or services

Compelling claimants to institute suits

Question 2: A candidate from Beaufort searches for an approved prelicensing course before scheduling her South Carolina producer examination, expecting to present a certificate of completion. Which statement accurately describes what South Carolina requires of her before she may sit the examination?

Twenty hours of classroom study first

No prelicensing education is required

Forty hours of approved instruction

A sponsoring insurer must certify completion

Question 3: A South Carolina producer dies, and his surviving spouse asks the Director for authority to service the existing book of business while the agency is wound up. What is the maximum period of a temporary licence, and is an examination required?

One hundred eighty days, no examination

Ninety days, examination required

One year, examination required

Thirty days, no examination

Question 4: After a due notice hearing, the Director confirms that a licensee has continued to violate a cease and desist order issued under the trade practices chapter. Which daily penalty may be imposed when that violation is found to be wilful?

Fifty dollars a day

Two thousand five hundred dollars daily

Thirty thousand dollars a day

One hundred dollars a day

Question 5: Two South Carolina files reach the Director: one producer knowingly submitted an application concealing a material underwriting fact, and one insured knowingly submitted a padded claim for payment. Which pairing of statutes BEST matches each act to its governing provision?

Both fall under section 38-55-170

Both fall under section 38-43-245

Application under 38-43-245; claim under 38-55-170

Application under 38-55-580; claim under 38-43-130

Question 6: A Beaufort bank making a mortgage loan tells the borrower that credit life coverage must be bought through the bank's own affiliated agency before closing. Which statement correctly describes the limit South Carolina places on a lender in this situation?

It may require insurance, not the source

A lender may never require insurance

The borrower must accept the affiliated agency

Only the Director may approve the lender

Question 7: A South Carolina insurer refers a suspicious life claim for criminal investigation and prosecution under the Omnibus Insurance Fraud and Reporting Immunity Act. Within which office of state government did the General Assembly place the Insurance Fraud Division that handles such referrals?

The Department of Insurance

The Office of the Governor

The State Treasurer's office

The Office of the Attorney General

Question 8: A clerical employee at a Spartanburg agency answers the telephone, reads a quoted premium off her screen and takes a message for the producer. She discusses no benefits, terms or conditions. Which conclusion follows from the Title 38 definition of negotiate?

She negotiated by quoting a premium

She did not negotiate insurance

She negotiated because contact was direct

She must obtain a temporary licence

Question 9: A producer whose home state is North Carolina applies for a South Carolina nonresident licence. She holds life and health authority at home and asks whether she may also write property lines here. Which principle governs the lines she receives?

She may add lines by examination

She receives all lines South Carolina offers

Her lines match her home state authority

She may add lines after one year

Question 10: A licensed producer in Easley moves house, changes her email address and takes a new legal name after marriage, all in the same month. Which obligation does the South Carolina licensing chapter impose on her with respect to those changes?

Report only the residential move

Notify the department within thirty days

Report the changes at renewal

No report is required for name changes

Question 11: Three South Carolina licensees seek the continuing education exemption. One is seventy years old with twelve years of South Carolina licensure; one is sixty years old with thirty years; one is sixty-eight years old with twenty-six years. Which of them qualifies for the exemption?

The seventy-year-old licensee

The sixty-year-old licensee

The sixty-eight-year-old licensee

All three licensees qualify

Question 12: A South Carolina applicant assumes that the licensed individual completing her life insurance application works for her, much as an attorney would. Under the Title 38 definition of an insurance producer, whom does that licensed individual actually represent in the transaction?

The applicant herself

The insurance company

The Department of Insurance

The named beneficiary

Question 13: After her life insurer was declared insolvent, a policyowner in Anderson asks how much of the net cash surrender and net cash withdrawal value on her policy the guaranty association can pay. Her national study manual gives a different number. Which figure controls in South Carolina?

Three hundred thousand dollars

One hundred thousand dollars

Two hundred fifty thousand dollars

Fifty thousand dollars

Question 14: An insurer executes an agency contract with a newly licensed producer in Anderson and receives his first application days later. The insurer must file a notice of appointment with the Director. Within what period must that notice be filed?

Within five days

Within thirty days

Within fifteen days

Within sixty days

Question 15: The Director asks a producer to produce her file on business written several years ago. She wonders how long South Carolina obliges her to keep a full and correct record of the business she has done. Which period applies?

One year

Five years

Two years

Three years

Question 16: After a hearing held under the trade practices chapter, the Director determines that a producer engaged in a prohibited practice. Which pair of actions does South Carolina law direct the Director to take once he reaches that determination on the record?

Order cease and desist, and impose penalties

Refer the matter to the Attorney General

Suspend the licence for one year automatically

Publish the findings and close the file

Question 17: A licensed agent in Greenwood plans to give each prospect a desk clock that costs twenty dollars and carries no printing of any kind. Which requirement of the South Carolina advertising gift exception does this plan fail to meet?

The value must stay under ten dollars

The gift must be given after issue

The article must bear an advertisement

The recipient must sign a receipt

Question 18: An insurer is found to have wilfully violated a requirement of the South Carolina insurance code, and the Director decides on a fine instead of suspension. Which maximum applies to an insurer when the violation is found to be wilful?

Five thousand dollars

Thirty thousand dollars

Fifteen thousand dollars

One hundred dollars a day

Question 19: A producer sold several policies while properly licensed, then let her licence lapse without renewing. Renewal commissions on those earlier sales are still coming due. Under the South Carolina commission statute, may the insurer pay them to her now?

Yes, she was licensed at the sale

No, all payment stops upon lapse

Only if she reinstates the licence

Only through a licensed agency instead

Question 20: A producer in Rock Hill collects several months of premiums from clients, deposits them in his agency's general operating account, and remits nothing to the insurer despite repeated demands. Which South Carolina prohibition does that conduct violate most directly?

Charging an unlawful policy service fee

Rebating commission on a life policy

Failing to account for insurer collections

Selling insurance without an appointment

SCLAHIP South Carolina Life Accident and Health Insurance Producer Exam - Set 1 - Part 1