SCLAHIP South Carolina Life Accident and Health Insurance Producer Exam - Set 1 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: An insurer ends its contract with one of its appointed producers in Lexington for cause, and the termination takes effect on the first day of the month. Which reporting duty does South Carolina place on that insurer, and within what period?

Notify the Director within ten days

Notify the producer only, within thirty days

No notice is required for cause

Notify the Director within thirty days

Question 42: A diligent producer in Greenwood completes far more continuing education credit than her current biennium demands and asks whether the surplus can be applied to the next compliance period. What maximum number of credit hours may South Carolina law carry forward?

Twenty-four credit hours

Six credit hours

Eighteen credit hours

None may be carried forward

Question 43: An agent in Rock Hill tells a client that her existing whole life policy pays no dividends, which is untrue, so that she will surrender it and buy a replacement from him. Which prohibited practice does this misleading comparison describe?

Rebating

Twisting

Defamation

Unfair discrimination

Question 44: A producer keeps soliciting in the same prohibited way after the Director has issued a cease and desist order against him under the trade practices chapter. Which step must come before any per-day penalty may be set against him?

A criminal conviction in circuit court

A written demand from the insurer

Automatic revocation of his producer licence

A hearing before the Director on notice

Question 45: An individual holds himself out as representing a licensed insurer in Camden, collects money from the public and does business in that insurer's name, but the company never authorised him to act. Which South Carolina provision does that conduct offend?

The prohibition on rebating life premiums

The bar on acting without insurer authority

The guaranty association advertising prohibition

The duty to report administrative actions

Question 46: An insurer's special investigations unit reports a suspected false statement to an authorized agency and cooperates fully with the resulting investigation, acting throughout in good faith. Which protection does the Omnibus Insurance Fraud and Reporting Immunity Act give the insurer for doing so?

Immunity from liability arising out of reporting

A reduction in its premium tax

A statutory reward from collected fines

Exemption from the Director's market examinations

Question 47: A resident South Carolina insurance broker has collected surplus lines premium taxes during a calendar quarter and asks how quickly the money must be turned in. Which remittance schedule does South Carolina Code section 38-45-20 impose on the broker?

Annually, on the first business day

Monthly, within ten days of collection

Semiannually, in January and July

Within thirty days after each calendar quarter

Question 48: An adjuster offers a claimant considerably less than the file is worth, telling her that hiring a lawyer to recover the rest would cost her more than the shortfall. Which enumerated improper claim practice does this settlement offer match?

Failing to acknowledge claim communications promptly

Filing a false financial statement

Settling low because of expected attorneys' fees

Threatening to rescind the policy from inception

Question 49: The Insurance Fraud Division draws part of its budget from fines imposed under the fraud article, and South Carolina sets both a floor and a ceiling on that funding. Which description of the funding arrangement matches what the statute provides?

Split evenly with State Law Enforcement Division

Retained entirely by the Attorney General

Paid over to the Department of Insurance

Deposited in the state general fund only

Question 50: While settling a health claim, an adjuster tells a Sumter insured that her policy excludes a benefit she is in fact owed, hoping she will drop it. This happened only once. Which South Carolina provision reaches that statement despite the absence of any pattern?

The improper claim practices statute

The bad faith attorney fee statute

The prompt payment article

Misrepresentation in the adjustment of claims

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