SCPCIP South Carolina Property and Casualty 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 adjuster reports a suspected fabricated theft loss to the Insurance Fraud Division and is later sued by the claimant for defamation. South Carolina grants immunity for such reports, but only on one condition. Which condition must the reporting person satisfy?

Obtaining the claimant's written consent first

Filing the report within thirty days

Acting without malice or in good faith

Securing a criminal conviction before reporting

Question 42: A claims supervisor develops reason to believe that a false statement has been made in connection with a Florence auto theft claim. South Carolina imposes an affirmative step at that point. Which action does the Omnibus Insurance Fraud and Reporting Immunity Act require?

Notifying the Insurance Fraud Division

Denying the claim within thirty days

Filing a civil suit against the claimant

Waiting for a criminal charge first

Question 43: An insurer in Mount Pleasant executes an agency contract with a newly licensed producer and must place its notice of appointment on file with the Department. Which of the following states the deadline the appointing insurer has to file that notice?

Ten days from the contract date

Thirty days from the contract date

Sixty days from the contract date

Fifteen days from the contract date

Question 44: A carrier repeatedly warns claimants that it will rescind their policies from inception, though it has no real expectation of prevailing, hoping they will accept less or walk away. Which improper claim practice does that pattern describe under Chapter 59?

Paying claims in merchandise or services

Failing to acknowledge pertinent claim communications

Threatening policy defenses to discourage claims

Discriminating between insureds of one class

Question 45: A claimant against an insolvent carrier delays presenting a first-party claim to South Carolina's property and casualty guaranty association. The statute bars claims filed after the earlier of two dates, one of them measured from the insolvency declaration. Which period applies?

Six months after the declaration

Eighteen months after the declaration

Twelve months after the declaration

Thirty-six months after the declaration

Question 46: An insurer continues doing exactly what a Chapter 57 cease and desist order forbids, and the Director now proposes to fine it for each day of the violation. Under South Carolina Code section 38-57-230, what must come first in that process?

Immediate assessment, with review afterward

Referral to the Attorney General's office

A court order confirming the violation

A hearing before the Director, upon notice

Question 47: After due notice and a hearing, the Director determines that an insurer has engaged in improper claim practices and imposes a monetary penalty. What does South Carolina law say about how that penalty may be treated in later rate proceedings for that insurer?

It is not a cost for rates

It may be listed as underwriting expense

It becomes a credit against future taxes

It suspends the insurer's certificate automatically

Question 48: A South Carolina producer also holds a contractor licence, and that other board disciplines him. The matter reaches final disposition in March after charges were filed in January. Which of the following states his reporting duty to the insurance Director?

No duty, since the action is noninsurance

Report within thirty days of the charges

Report within thirty days of final disposition

Report at his next biennial licence renewal

Question 49: Before placing a South Carolina risk with a non-admitted insurer, a broker must satisfy a statutory obligation described as due diligence, and one category of buyer can be relieved of it. Which statement best captures that obligation and its exception?

Three written declinations are always required

Due diligence applies; exempt commercial purchasers excepted

The Director must approve each placement

No search is needed for personal lines

Question 50: An adjuster tells a single claimant, falsely, that her policy excludes the damage she reported. The Department finds no other file in which the carrier did anything similar. Which statement best describes the South Carolina consequence of that one misstatement?

Section 38-57-70 is violated without any pattern

Nothing is violated without repeated conduct

Only a private lawsuit may address it

Improper claim practices are established immediately

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