SCPCIP South Carolina Property and Casualty Insurance Producer Exam - Set 3 - 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: The South Carolina article that governs cancellation and refusal to renew property insurance also gives the Director a power aimed at the computer simulations carriers rely on to price hurricane exposure along the coast. Which power does that article confer on the Director?

Power to set hurricane rates directly

Power to bar all model-based rating

Authority to license modeling firms statewide

Authority to review natural hazard catastrophe models

Question 42: Every South Carolina automobile insurance application must carry a prescribed statement warning the applicant about the insurer's early termination power over the new policy. Which of the following describes what that printed statement discloses to the person signing the application?

Cancellation without notice at any time

Ninety days of cancellation without cause

A ninety-day free look on the premium

A ninety-day grace period for premium

Question 43: A producer in Fort Mill asks how the premium charged for a contract performance bond is regulated in South Carolina, given that bonds are not property coverage. Which article of the state rate chapter governs the rates for fidelity, surety and guaranty bonds?

The fire and allied lines article

The inland marine article

The casualty and surety article

The personal lines modernization article

Question 44: A carrier will not renew a Myrtle Beach homeowners policy, and the nonrenewal is set to take effect on the fifteenth of August. How many days of advance notice does the South Carolina property article demand for that date?

Not less than thirty days

Not less than sixty days

Not less than fifteen days

Not less than ninety days

Question 45: An automobile insurer in Orangeburg responds to a policyholder's timely written request for the reasons behind a cancellation of his coverage. Beyond the specific reasons themselves, which additional item does South Carolina law require that written response to include?

A copy of the underwriting manual

The insurer's loss ratio for the territory

Names and addresses of institutional sources

A refund of the unearned premium

Question 46: A Conway policyholder receives a written notice of refusal to renew her property coverage and believes the stated reason is simply wrong. Under the South Carolina property insurance notice statute, which right must that notice inform her she holds?

A right to request the Director's review

A right to arbitration before a panel

A right to sixty days of coverage

A right to a jury trial

Question 47: A commercial casualty insurer submits a new class rate filing to the South Carolina Department of Insurance, and its producers want to know when the revised rates may first be charged. Which of the following states the waiting period the filing must sit on file?

Fifteen days, with no extension available

Thirty days, extendable another thirty days

Ninety days, extendable another ninety days

Sixty days, extendable another sixty days

Question 48: A South Carolina insurer prepares a midterm cancellation notice for a Rock Hill retail store policy and plans to mail it to the policyholder. Besides the insured, which party does section 38-75-730 require the insurer to notify when one exists?

The mortgagee named on the policy

The agent of record

The South Carolina Department of Insurance

The premium finance company

Question 49: A commercial property insurer in Florence decides to cancel a policy midterm because the insured has not paid the premium billed two months ago. Under the general South Carolina cancellation article, how much advance notice must the insurer give before the cancellation takes effect?

Not less than fifteen days

Not less than thirty days

Not less than ten days

Not less than sixty days

Question 50: South Carolina limits the reasons an insurer may use to cancel a property or casualty policy in the middle of its term, and an insurer that steps outside that list acts unlawfully. Which of the following appears among the permitted grounds?

An increase in the insured's age

Substantial change in the risk assumed

A single weather claim during the term

The insured's decision to change agents

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