SCPCIP - South Carolina Property and Casualty Insurance Producer Exam

Question 21: A candidate who memorized a model claim-handling grid from another state expects South Carolina to give a fixed number of days for acknowledging and for paying claims. Which description of South Carolina Code section 38-59-20 is accurate on that point?

It sets ten days for acknowledgment

It sets fifteen days for investigation

It uses reasonable promptness, not day counts

It sets thirty days for final payment

Question 22: An insurer in Florence repeatedly refuses to make any settlement offer on liability claims even after its own investigation shows that responsibility is plain, forcing claimants to keep pressing. Which enumerated improper claim practice does that repeated pattern most directly describe?

Compelling claimants to sue for payment

Misrepresenting policy provisions to a claimant

Threatening rescission to reduce a claim

Failing to settle where liability is clear

Question 23: A South Carolina producer suspects a staged loss on a Greenville commercial property claim and wants to refer the matter to the state unit that investigates and prosecutes insurance fraud. Which office houses the Insurance Fraud Division established by the Omnibus Insurance Fraud and Reporting Immunity Act?

The Department of Insurance

The State Law Enforcement Division

The Office of the Attorney General

The South Carolina Supreme Court

Question 24: The Insurance Fraud Division draws part of its funding from fines collected in fraud prosecutions, and South Carolina directs how that money is divided between the Attorney General and the State Law Enforcement Division. Which split of those fine proceeds does the statute prescribe?

Two-thirds to the Attorney General

Equally, on a fifty-fifty basis

Entirely to the Attorney General

Entirely to the State Law Enforcement Division

Question 25: An officer submits to a state supervisory official a balance sheet that badly overstates an insurer's reserves, intending that the official be misled by it. Which South Carolina unfair trade practice section, built around exactly that state of mind, applies here?

Defamation of an insurer's financial condition

Misrepresentation in the adjustment of claims

Prohibited inducement by offering securities

False statements of financial condition

Question 26: A Columbia agency owner deposits client premium into the agency operating account and uses it to fund an office renovation before remitting. Beyond any criminal exposure, which licensing consequence does South Carolina attach to converting money received in the insurance business?

Automatic forfeiture of all earned commissions

Automatic reinstatement once restitution is paid

Grounds to suspend or revoke the licence

A one-year prohibition on nonresident licensing

Question 27: A claimant presents a fire loss claim for payment supported by receipts he knows to be forged, and the amount claimed exceeds ten thousand dollars. South Carolina grades that offence by the amount involved. Which grade and maximum imprisonment attach at that level?

Misdemeanor, up to thirty days

Misdemeanor, up to two years

Felony, up to five years

Felony, up to ten years

Question 28: At a Greenville trade show a person urges visitors to apply for a particular homeowners policy from one named company. No application is signed and no commission is ever paid. Which of the following terms does Title 38 apply to that conduct?

Selling insurance

Soliciting insurance

Negotiating insurance

Administering a group insurance plan

Question 29: A licensed producer forwards a commercial application to an underwriter knowing it omits a prior arson loss that is material to the underwriting decision. South Carolina treats that act severely. Which grade of offence does the producer commit under state law?

A civil infraction only

No offence absent an actual loss

A misdemeanor punishable by thirty days

A felony under the licensing article

Question 30: A Spartanburg bank tells a mortgage applicant that the loan will close only if the required hazard policy is purchased through the bank's own affiliated agency. Which statement correctly describes the South Carolina rule governing that demand on the borrower?

Lenders may require insurance, not the source

Lenders may never require hazard insurance

Lenders may dictate the insurer, not coverage

Lenders must accept whatever policy borrowers choose

Question 31: A licensed producer in Summerville offers to give back part of the commission she earns to two clients: one buying a personal automobile policy and one buying a homeowners policy. Which of the following describes what South Carolina permits her to do?

Both rebates, since she is licensed

The homeowners rebate only

The automobile rebate only

Neither rebate, under any circumstances

Question 32: The Director finds that a licensed producer, rather than an insurer, has violated a Title 38 provision, and the violation was not wilful. Which administrative money penalty ceiling does South Carolina Code section 38-2-10 set for that producer in this situation?

Up to five thousand dollars

Up to two thousand five hundred dollars

Up to fifteen thousand dollars

Up to thirty thousand dollars

Question 33: A licensed producer moves from Anderson to Clemson and changes her email address at the same time. Section 38-43-107 lists the addresses she must keep current with the Department. Which of the following states her deadline to report the changes?

Thirty days after the change

Ten days after the move

At the next biennial renewal

Before the change takes effect

Question 34: A Conway producer let her licence lapse after missing her compliance deadline. She now wants it back without applying as a new candidate. Which of the following describes the window South Carolina gives her and what she must do inside it?

Twelve months; retake the licensing examination

Thirty days; pay the renewal fee only

No window; she must reapply as new

Six months; meet education requirements, pay penalty

Question 35: After a member insurer's insolvency, a South Carolina policyholder seeks a refund of unearned premium from the property and casualty guaranty association. A separate retention applies to unearned premium rather than to covered claims. Which retention does the statute set here?

Fifty dollars

One hundred dollars

Two hundred fifty dollars

One thousand dollars

Question 36: A South Carolina surplus lines broker must account for premium tax on business placed during each calendar quarter ending March, June, September and December. The statute fixes how long after each quarter close the remittance is due. Which period applies?

Thirty days

Fifteen days

Forty-five days

Sixty days

Question 37: A Columbia homeowners insurer delays a single storm claim for several weeks without any good reason, but the Department reviews the carrier's other files and finds no similar conduct anywhere. Under South Carolina Code section 38-59-20, how should this isolated episode be treated?

An automatic improper claim practice violation

A misdemeanor punished by license revocation

A violation only if the insured complains

Not an improper claim practice without frequency

Question 38: A South Carolina producer dies suddenly and his surviving spouse needs authority to keep the book of business serviced while the estate is settled. Which of the following describes the maximum term and examination condition of the temporary licence available?

Ninety days, with an examination within sixty

One year, no examination required

One hundred eighty days, no examination required

Thirty days, renewable twice on request

Question 39: A producer who no longer holds any authority from a carrier keeps holding himself out as that carrier's representative and collects renewal premium from two Aiken clients. Which limb of the South Carolina producer offences section reaches that conduct most directly?

Pretending to represent an insurer without authority

Securing cash advances by false statements

Confining advances to premiums the insured wanted

Failing to account for collections when required

Question 40: A licensed South Carolina agent proposes to offer shares of a mutual fund alongside an insurance sale, which the inducement statute otherwise treats with suspicion. South Carolina Code section 38-57-150 allows it only on one condition. Which statement gives that condition completely?

A written prospectus filed with the Director

A prospectus approved by both officials

A prospectus approved by the Director alone

Approval by the Securities Commissioner alone

SCPCIP South Carolina Property and Casualty Insurance Producer Exam - Set 1 - Part 2