SCPCIP South Carolina Property and Casualty Insurance Producer Exam - Set 4 - 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: A Columbia customer wants to strip his automobile policy down to the cheapest lawful package, and he asks his producer to drop uninsured motorist coverage entirely from the renewal. Under South Carolina Code section 38-77-150, how must the producer answer that request?

It may be rejected in writing

It may be dropped after one year

Every automobile liability policy must include it

It is optional below fifty thousand dollars

Question 42: A Myrtle Beach driver is run off the road by a car that never stops and cannot be identified. She files a police report promptly and was not careless about identifying the car. Under South Carolina Code section 38-77-170, what else does recovery require?

Physical contact with the unknown vehicle only

A criminal conviction of the fleeing driver

Two witnesses who saw the whole collision

Contact, a witness affidavit, or recorded evidence

Question 43: An applicant with a poor loss record cannot find an automobile insurer willing to write him in the ordinary market. South Carolina law authorises a mechanism to spread such risks among carriers. Which description fits that residual market device?

Equitable apportionment of applicants among licensed insurers

A fund paying claims of insolvent insurers

A reinsurance facility ceding unwanted risks statewide

A surplus lines broker placing nonadmitted coverage

Question 44: The Motor Vehicle Financial Responsibility Act in Title 56 sets the amounts a driver must be able to answer for after an accident. Under South Carolina Code section 56-9-20, how do those amounts compare with the compulsory automobile policy limits?

They are half the policy limits

They are double the policy limits

They are identical to the policy limits

They vary with the driver's record

Question 45: Two years after buying a policy, an insured sues her carrier claiming nobody ever told her about underinsured motorist coverage, but the file holds the signed section 38-77-350 offer form. What legal effect does that signed form carry in South Carolina?

It shifts the burden to the Director

It creates a rebuttable presumption only

It bars suit for exactly two years

Informed, knowing selection is conclusively presumed

Question 46: A Charleston applicant reads that South Carolina treats underinsured motorist coverage differently from uninsured motorist coverage. Under South Carolina Code section 38-77-160, which statement correctly describes the insurer's duty and the applicant's own obligation regarding that underinsured motorist coverage?

The offer is required, the purchase optional

Both the offer and purchase are mandatory

Neither the offer nor purchase is required

The purchase is required above minimum limits

Question 47: South Carolina defines who counts as an insured for automobile insurance purposes by statute, rather than leaving the question to the wording of the policy form. Under South Carolina Code section 38-77-30, which group falls inside that statutory definition?

The named insured and nobody else

Only drivers listed on the declarations

Guests in the vehicle and permissive users

Household members over twenty-five only

Question 48: A South Carolina insurer mails the approved optional coverage offer form to a new policyholder, who never signs or returns it. Under South Carolina Code section 38-77-350, subsection E, what must the insurer do once thirty days have passed?

Treat the silence as a written rejection

Cancel the policy for failure to respond

Mail a second form and wait again

Add uninsured and underinsured motorist coverages

Question 49: A Greenville applicant asks what the smallest automobile liability limits South Carolina will allow on a new policy issued to the owner of a motor vehicle. Under South Carolina Code section 38-77-140, which set of minimum limits must that policy provide?

Fifteen, thirty and ten thousand dollars

Twenty-five, fifty and ten thousand dollars

Twenty-five, fifty and twenty-five thousand dollars

Fifty, one hundred and fifty thousand dollars

Question 50: South Carolina requires the Director to approve a form used to offer the optional automobile coverages to applicants, and the statute lists the minimum contents of that form. Under South Carolina Code section 38-77-350, which item must appear on the approved form?

A list of limits and premium ranges

The applicant's driving record for three years

A sworn statement witnessed by two adults

The producer's licence number and expiration date

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