SCLAHIP South Carolina Life Accident and Health Insurance Producer Exam - Set 5 - 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 individual accident and health policy has been in force for three years when the insurer discovers that the application understated a prior condition. The misstatement was careless rather than deliberate. Under the required time limit on certain defenses, what may the insurer now do?

Nothing; only fraudulent misstatements remain available

Void the policy for any misstatement

Rescind the policy and refund all premium

Cancel the policy at the next anniversary

Question 42: A policyholder in Sumter mailed written proof of loss to her health insurer three weeks ago and has heard nothing. She wants to sue immediately. The required legal actions provision in South Carolina blocks her for a set period. How long must she wait?

Thirty days after written proof

Sixty days after written proof

Ninety days after written proof

Six months after written proof

Question 43: A South Carolina insured takes out life insurance on his spouse and children for their own use and benefit. Section 38-65-90 shields the proceeds and cash surrender value from the claims of the insured's creditors up to an aggregate amount. What is that amount?

Ten thousand dollars

One hundred thousand dollars

Twenty-five thousand dollars

Fifty thousand dollars

Question 44: An insurer proposes to file a South Carolina accident and health form that reserves the right to refuse renewal at the company's option and to cancel mid-term. South Carolina restricts both features by statute. Which statement describes the position the law takes?

Both features are permitted with prior approval

Cancellation and optionally renewable policies are prohibited

Cancellation is permitted, optional renewal is not

Only group forms may include these features

Question 45: The owner of a South Carolina annuity contract fails to pay a periodic consideration when it falls due. Before the insurer may terminate the contract for nonpayment, the statute requires a grace period of a stated minimum length. What is that minimum?

Not less than ten days

Not less than seven days

Not less than ninety days

Not less than thirty-one days

Question 46: A producer in Rock Hill sells a whole life policy that will replace the applicant's existing coverage with another insurer. Because the new contract replaces insurance already in force, South Carolina lengthens the period for returning it. How long must that return period run?

Not less than twenty days

Not less than ten days

Not less than sixty days

Not less than forty-five days

Question 47: A long term care policy issued in Newberry contains a preexisting condition provision. South Carolina limits how far into the coverage a loss or confinement may begin before the insurer may still exclude it as preexisting. Which limit does the statute impose?

Twelve months following the effective date

Six months following the effective date

Two years following the effective date

Ninety days following the effective date

Question 48: A claimant who filed written proof of loss on an individual accident and health policy has been unable to settle with the insurer. Her attorney studied a national manual stating three years. Under South Carolina law, what is the outside limit for bringing suit?

Two years after written proof of loss

Three years after written proof of loss

Six years after written proof of loss

Five years after written proof of loss

Question 49: A South Carolina insurer is drafting the loan provision for a whole life policy and wants to know the highest annual interest rate it may charge on a policy loan. Section 38-63-240 sets that ceiling for policies issued after the first day of May, 1985. What is it?

Eight percent annually

Six percent annually

Ten percent annually

Twelve percent annually

Question 50: A beneficiary files due proof of death with a South Carolina insurer, and the insurer sits on the claim without paying. Section 38-63-220 requires interest at the legal rate once a stated period has run from receipt of due proof. When does interest begin?

After sixty days

After ten days

After ninety days

After thirty days

Congratulations!

You have completed all 5 question sets. Good job!

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