SCPCIP - South Carolina Property and Casualty Insurance Producer Exam

Question 1: A South Carolina producer's conduct appears to the Department to amount to a crime rather than a mere licensing violation. Under the enumerated duties of the head of the Department, which of the following describes what that official does with the criminal matter?

Convenes a grand jury in Richland County

Files the criminal indictment personally

Reports it to appropriate law enforcement officials

Sentences the producer after an administrative hearing

Question 2: A customer service representative at a Rock Hill agency reads a filed premium from a screen and prints a quote. She gives no advice about coverage terms. Which of the following explains why her work does not amount to negotiating insurance in South Carolina?

She discussed no substantive benefits, terms, conditions

She works for an agency, not insurers

She received no commission on the quote

She never signed the completed application

Question 3: The licence line for this examination covers property, casualty, surety and marine. Two of those coverages fall outside the definition of a covered claim in South Carolina's property and casualty guaranty association statute. Which pairing names coverages the association does not protect?

Homeowners and commercial general liability

Inland marine and commercial automobile

Surety bonds and ocean marine

Businessowners and workers compensation

Question 4: An agency wants to pay its unlicensed office manager a flat monthly amount for administrative work, and separately owes renewal commissions to a retired producer who was licensed when each sale was made. Which of the following describes what Section 38-43-200 allows?

Both payments are permitted as described

Neither payment may lawfully be made

Only the office manager's fee is permitted

Only the renewal commissions are permitted

Question 5: Two commercial policyholders present the same class and the same risk, yet one is quietly given a premium rebate and a special dividend advantage the other never receives. Which South Carolina provision does the insurer's handling breach in this situation?

The twisting and churning prohibition

The boycott and intimidation prohibition

The advertising gift and refreshment allowance

The bar on unfair discrimination

Question 6: A South Carolina insurer plans to give its commercial policyholders a free risk-monitoring service that is nowhere specified in the policy contract. Under South Carolina Code section 38-57-130, which test decides whether offering that service stays outside the rebating prohibition?

Cost below twenty-five dollars per policyholder

Cost reasonable compared with the customer's premiums

Approval by the Insurance Fraud Division

Written consent from every competing insurer

Question 7: A Rock Hill policyholder reports a fire loss and asks the insurer for proof of loss forms, which the insurer never sends. Under South Carolina Code section 38-59-10, how long after receipt of the notice does deemed compliance begin for that claimant?

Twenty days after receipt of notice

Ten days after receipt of notice

Fifteen days after receipt of notice

Sixty days after receipt of notice

Question 8: A producer gives a homeowner a comparison of two policies that omits several material differences, hoping the homeowner will surrender the existing contract and buy a replacement contract from him instead. Which South Carolina prohibition captures an incomplete comparison used for that purpose?

False advertising of the insurance business

Rebating a portion of the premium

Unfair discrimination between similar risks

Twisting, including churning a policyholder

Question 9: An insurer applying to write commercial property and general liability coverage in South Carolina asks whether joining the state property and casualty guaranty association is optional. Which statement describes the membership requirement Chapter 31 places on such an insurer?

Membership is voluntary for admitted carriers

Only personal lines writers must join

Membership is a condition of the licence

Surplus lines insurers must join as well

Question 10: A liability claim of four hundred thousand dollars is presented to South Carolina's property and casualty guaranty association after the member insurer writing the policy was declared insolvent. The statute caps single covered claims. Which ceiling governs that covered claim?

Three hundred thousand dollars

One hundred thousand dollars

Five hundred thousand dollars

Ten million dollars

Question 11: An agent hosts a small breakfast while presenting coverage options to a group of business owners in Aiken. South Carolina Code section 38-57-160 handles refreshments in a clause of its own. Which limit applies to that hospitality under the statute?

Twenty-five dollars for the whole group

Twenty-five dollars for each attendee

No limit if coverage is not sold

Ten dollars a person in cost

Question 12: A producer submits fabricated production figures to his insurer in order to draw an advance against future commissions on business he has not written. Which South Carolina prohibition inside the producer offences section covers that specific course of conduct?

Failing to account for premium collections

Securing cash advances by false statements

Charging fees beyond those the article allows

Collecting for an insurer without its authority

Question 13: A Rock Hill producer collects a large annual homeowners premium in cash and holds it past the insurer's remittance date while covering agency payroll. Which South Carolina prohibition most directly addresses a producer who fails to turn over collections belonging to the insurer?

Charging an unfiled policy service fee

Representing an insurer without its authority

Securing cash advances by false statements

Failing to account for insurer collections

Question 14: A producer whose home state is North Carolina, licensed there in good standing for property, casualty and personal lines, applies for a South Carolina nonresident licence by reciprocity. Which of the following describes the authority South Carolina will grant her?

All lines South Carolina offers residents

Lines matching those her home state grants

Property lines only, until she passes examinations

No authority until she becomes a resident

Question 15: A Myrtle Beach homeowner receives a policy written by an eligible surplus lines insurer and notices a stamped legend on its face. South Carolina requires that legend on every such policy. Which fact must the stamp disclose to the insured?

Its rates were approved by the Director

Its premium is exempt from tax

It has no guaranty fund protection

Its claims are adjusted by the state

Question 16: A licensed South Carolina property and casualty producer in Florence is offered a chance to write a health policy for a longtime commercial client. She holds no health line of authority. Which of the following states the rule that governs her situation?

Any licensed producer may write any line

Existing clients are exempt from line limits

Her appointment alone supplies the missing authority

She must be licensed for that line

Question 17: An insured of an insolvent carrier files a nine hundred dollar covered claim with the South Carolina Property and Casualty Insurance Guaranty Association. The Association pays only the portion of each covered claim above a stated minimum. Which minimum applies to covered claims?

Two hundred fifty dollars

One hundred dollars

Five hundred dollars

One thousand dollars

Question 18: Over many months a casualty insurer routinely ignores letters and telephone calls from injured third parties who are pursuing liability claims against its policyholders. Which item on the South Carolina list of improper claim practices does that repeated conduct match?

Paying benefits in merchandise or services

Unfair discrimination between equal risks

Failing to acknowledge communications with reasonable promptness

Coercing an insured to change insurers

Question 19: A property insurer writing homeowners business in South Carolina is declared insolvent, leaving open first-party claims. The Property and Casualty Insurance Guaranty Association steps in to pay covered claims. Which source supplies the money the Association uses to satisfy those obligations?

Assessments levied on surviving member insurers

A standing appropriation from the legislature

The insolvent insurer's remaining policyholder surplus

Premium taxes collected from surplus lines brokers

Question 20: A large South Carolina manufacturer with many open liability claims against an insolvent carrier asks when the property and casualty guaranty association's duty toward it stops entirely. The statute names an aggregate figure that ends the obligation to one insured. Which figure ends it?

Five million dollars