SCPCIP - South Carolina Property and Casualty Insurance Producer Exam

Question 21: A driver leaves her car running with the keys in it while she dashes into a convenience store, reasoning that the auto policy would pay if the car were taken. Her indifferent attitude increases the chance of a theft loss. Which hazard is described?

Morale hazard

Moral hazard

Physical hazard

Catastrophic hazard

Question 22: A claimant suing a store for a fall must show that the store owed her care, failed to provide it, that the failure led to her injury in an unbroken chain, and that she suffered harm. Which list of elements is she proving?

The defenses against a negligence claim

The four elements of negligence

The elements of an insurable risk

The categories of compensatory damages

Question 23: A pedestrian carelessly walks into the roadway in a jurisdiction that bars partly negligent claimants. The driver saw him from far off, had ample room to brake and did not. The pedestrian still recovers. Which doctrine explains that result?

Comparative negligence

Res ipsa loquitur

Assumption of risk

Last clear chance

Question 24: Two drivers collide and a court finds that each contributed to the crash, so it assigns a share of the fault to each and reduces the injured driver's award by her own share instead of denying it. Which negligence doctrine is the court applying?

Contributory negligence

Comparative negligence

Last clear chance

Intervening cause

Question 25: A driver runs a red light and strikes another car, and the impact pushes that car into a storefront window. The store owner sues the driver. To establish negligence the owner must link the driver's breach to the broken window. Which element does that link satisfy?

Legal duty owed

Assumption of risk

Proximate cause

Vicarious liability

Question 26: A Georgetown homeowner filed a claim after a hailstorm damaged the roof, and at renewal the carrier proposed to drop the policy solely because of that claim. Which South Carolina rule directly blocks the carrier from taking that step?

The act-of-God nonrenewal prohibition

The advance nonrenewal notice rule

The prohibition on territorial rating plans

The hurricane-season notice extension

Question 27: A South Carolina automobile policy has been in force for two years when the insured causes an at-fault collision. The insurer wants to cancel the policy midterm on the strength of that accident. Which of the following is correct?

Cancellation is allowed with thirty days' notice

An accident is not a permitted ground

Cancellation is allowed with fifteen days' notice

Cancellation is allowed after two at-fault losses

Question 28: A producer asks which policies fall under the general South Carolina cancellation and nonrenewal article found in Chapter 75, Article 9. Which of the following correctly states the reach of that article as the statute itself defines its scope?

Only policies written by domestic insurers

Automobile policies and homeowners policies only

Property and casualty, excluding automobile insurance

All lines including accident and health

Question 29: An insurer intends to renew a one-year commercial property policy on a Spartanburg office building but at revised terms and a higher premium. Under South Carolina law, when must the renewal terms and the statement of premium reach the insured?

At the expiration date itself

Not less than ten days before expiration

Not less than sixty days before expiration

Not less than thirty days before expiration

Question 30: A South Carolina automobile insurer mails a written notice of cancellation to its named insured in Lexington. Under the automobile cancellation statute, the notice must state an effective date falling at least how long after the date of that mailing?

Fifteen days

Ten days

Twenty days

Thirty days

Question 31: A South Carolina automobile insurer is building the underwriting rules and the rating manual it will use for new applicants across the state. Which of the following characteristics does the automobile chapter forbid the insurer to use for either purpose?

The applicant's driving record

The number of miles driven annually

The applicant's race, sex or age

The type of vehicle insured

Question 32: A South Carolina insurer is cancelling a workers' compensation policy written for a Hartsville machine shop, and the general cancellation statute adds a recipient beyond the insured and the agent of record. Which body must also receive that notice?

The Department of Motor Vehicles

The State Accident Fund

The Consumer Advocate

The Workers' Compensation Commission

Question 33: A property insurer plans a nonrenewal of a Columbia dwelling policy that will take effect in February. Under the South Carolina article governing property insurance on risks located in this State, what is the minimum notice the insurer owes the insured?

Not less than thirty days

Not less than ninety days

Not less than sixty days

Not less than one hundred twenty days

Question 34: The licence for this examination names marine coverage, yet South Carolina's rate chapter treats the two marine branches differently when it lists the classes it reaches and the classes it excludes. Which statement correctly describes that treatment of marine business?

Both branches are rate regulated

Neither branch is rate regulated

Ocean marine included, inland marine excluded

Inland marine included, ocean marine excluded

Question 35: A personal lines insurer wants to raise its South Carolina homeowners rates modestly without waiting for the Director to approve the change beforehand. Which of the following states the size of rate change that the personal lines flex band permits without prior approval?

Ten percent or less

Seven percent or less

Fifteen percent or less

Twenty-five percent or less

Question 36: After an automobile insurer refused to renew his policy, an Anderson motorist mails a written request asking for the specific reasons. South Carolina law fixes both the deadline for his request and the deadline for the insurer's answer in which unit?

Calendar days, ninety and twenty-one

Calendar days, sixty and thirty

Business days, ninety and twenty-one

Business days, thirty and ten

Question 37: A homeowners policy written in Aiken for a one-year term is approaching its expiration date, and the insurer has decided not to offer a renewal. How far before the expiration date must the written nonrenewal notice be given or mailed?

Not less than sixty days

Not less than ten days

Not less than thirty days

Not less than ninety days

Question 38: A personal lines carrier files a rate change that sits inside the South Carolina flex band and wants to know how soon the new rates may take effect if the Director raises no objection. Which of the following states that period?

Immediately on filing with the department

Not less than one year after filing

Only after written approval is issued

Not less than thirty days after filing

Question 39: After a tropical storm claim on a Mount Pleasant dwelling, the insurer renews the policy but files the risk into a higher rating tier. Considering the South Carolina act-of-God provision, which of the following best describes the insurer's position?

The provision bars any premium increase

The provision requires a refund of premium

The provision addresses nonrenewal, not rate

The provision applies only to commercial risks

Question 40: South Carolina sets a floor on the length of an automobile policy issued to satisfy the financial responsibility requirements, so that short-term contracts do not churn the motor vehicle records. Which minimum term does the statute impose on such a policy?

Not less than six months

Not less than one month

Not less than three months

Not less than twelve months

SCPCIP South Carolina Property and Casualty Insurance Producer Exam - Set 3 - Part 2