SCLAHIP - South Carolina Life Accident and Health Insurance Producer Exam

Question 21: To close a large annuity sale in Myrtle Beach, a producer offers the prospect a seat on the insurer's advisory board and a part-time job at the agency. Which South Carolina rule governs offers of that kind made to a purchaser?

Permitted if disclosed in the application

Permitted because annuities are exempt contracts

Permitted up to twenty-five dollars value

Prohibited as a special inducement

Question 22: After a member insurer is declared insolvent, the South Carolina guaranty association needs money to pay covered claims and continue coverage for the affected policyowners. From which source does Chapter 29 of Title 38 direct the association to raise those funds?

Assessments on the surviving member insurers

An annual appropriation by the legislature

A surcharge added to every policy premium

Fines collected by the Insurance Fraud Division

Question 23: A young man in Rock Hill telephones several neighbors and urges each of them to apply for a particular health policy from a particular company. He makes no sale and earns no commission. Which defined activity has he performed under Title 38?

Selling

Adjusting

Soliciting

Underwriting

Question 24: During a group sales presentation at a Conway community hall, a licensed agent wants to serve coffee and sandwiches to the attendees. South Carolina sets a separate cost limit for refreshments at such a presentation. Which limit does the statute set?

Ten dollars a person

Twenty-five dollars a person

Fifty dollars for the whole event

No refreshments may be provided

Question 25: An insurer delayed one Berkeley County health claim for months without any justification, then paid it. The Department finds no similar handling in any other claim file it reviewed. Which conclusion follows under the South Carolina improper claim practices statute?

The insurer violated the statute outright

The delay is presumed a business practice

No violation, because one act lacks frequency

The statute applies only to life insurers

Question 26: A claimant submits a fabricated accident and health claim to a South Carolina insurer, and the amount involved is well under two thousand dollars. Under the statute governing the presentation of false claims for payment, how is that offence graded?

A misdemeanor rather than a felony

A felony regardless of the amount

A civil penalty with no criminal grade

No offence unless ten thousand dollars

Question 27: During a claim investigation a South Carolina insurer finds that the insured overstated a trivial detail that would not have affected underwriting or the claim decision in any way. Which requirement of the statutory fraud definition does that shortfall defeat?

That the statement be knowingly false

That the insurer suffer an actual loss

That the statement be made in writing

That the statement be material

Question 28: An applicant in Sumter answers a health question incorrectly because she genuinely forgot a doctor visit from years earlier, and the insurer later discovers the error. Which element of South Carolina's statutory definition of a false statement and misrepresentation is missing here?

That the statement was false

That the statement was material

Knowledge of the falsity of the statement

That the insurer relied on the answer

Question 29: A South Carolina buyer receives a policy carrying a stamped warning that the issuing company is an eligible surplus lines insurer, and she asks whether the state guaranty association stands behind it. Which answer reflects South Carolina law on that point?

Covered up to the ordinary caps

Covered only for death benefits

Covered once the broker pays the tax

Not afforded guaranty fund protection

Question 30: A Department examination shows that an insurer has never written down any procedure for investigating or settling the claims it receives, and adjusters decide each file however they please. Which enumerated improper claim practice does this examination finding describe?

Failing to adopt reasonable claim handling standards

Unfair discrimination between insureds of one class

Twisting an existing policy comparison

Boycott of a competing insurer

Question 31: A South Carolina life insurer is placed in liquidation after the Director finds it insolvent, and its policyowners want to know who will continue their coverage and pay covered claims up to the statutory limits. Which body performs that function here?

South Carolina Property and Casualty Guaranty Association

A committee of the insurer's creditors

The Insurance Fraud Division

Life, Accident and Health Insurance Guaranty Association

Question 32: The Department schedules a review of an insurer's financial condition, sending examiners to inspect its books, records, accounts and papers under a warrant. How often must the Director conduct such a financial examination of every insurer licensed in South Carolina?

Not less frequently than once yearly

Not less frequently than every five years

Only when a complaint is filed

At least once every ten years

Question 33: A resident producer licensed only for life, accident and health lines reviews her continuing education obligation for the current two-year period. Under the South Carolina continuing education statute, what is the minimum number of hours she must complete biennially?

Twelve hours

Sixteen hours

Twenty-four hours

Forty hours

Question 34: A South Carolina resident covered under a health benefit plan issued by an insurer that has now been declared insolvent asks the guaranty association about its maximum obligation for that category of coverage. Which limit does the statute set for health benefit plans?

Five hundred thousand dollars

Three hundred thousand dollars

One hundred thousand dollars

Two hundred fifty thousand dollars

Question 35: Three Columbia agencies agree among themselves to stop placing business with one insurer until it raises their commission rates, and they act together to pressure it. Which feature of their conduct makes the boycott and coercion section, rather than another chapter provision, the right fit?

A written contract filed publicly

Repeated conduct over several years

Proof of actual financial harm

An agreement and concerted action

Question 36: A company officer submits an annual statement to a state supervisory official that overstates the insurer's reserves. The Department must decide whether the false financial statement section applies. Which additional element does that section require beyond the filing of an inaccurate statement?

Publication of the statement to consumers

A pattern of repeated filings

Intent to deceive

Actual loss suffered by policyholders

Question 37: A licensed Columbia agency employs several stockholders, officers and associates. Some of them regularly perform acts that the licensing chapter enumerates for producers. Which requirement does South Carolina impose on those individuals in addition to the agency holding its own licence?

Only the managing officer must be licensed

They may act under the agency licence

They must register as agency solicitors

Each must hold a current producer licence

Question 38: An insurer wants to give policyholders a wellness monitoring service at no cost alongside their coverage. South Carolina permits value-added products and services under stated conditions. Which test does the statute apply to the cost of such a service?

Not more than twenty-five dollars yearly

Reasonable compared with that customer's premiums

Approved in advance by the Director

Offered free to every South Carolina resident

Question 39: A South Carolina insurer committed one act of false advertising about a policy and, separately, mishandled one claim in a way that would be improper if repeated. Which statement best captures how the two chapters treat those isolated acts?

Both chapters require a general business practice

Neither chapter reaches a single act

Only section 38-59-20 reaches single acts

Only the trade practices chapter reaches it

Question 40: A producer in Camden offers to return half of her first-year commission in cash to a client who signs a whole life insurance application before the end of the week. Which statement correctly describes how South Carolina law treats that offer?

Prohibited as an unlawful rebate

Permitted, since life rebating is allowed

Permitted if the client agrees in writing

Permitted only above five hundred dollars

SCLAHIP South Carolina Life Accident and Health Insurance Producer Exam - Set 1 - Part 2