South Carolina Property and Casualty
Insurance exam questions with 100%
correct answers
The process an insurer uses to evaluate applications and determine if a policy should be issued and on
what terms, conditions, and rate is known as? - answer Underwriting
The Director is conducting an examination of a foreign company transacting business in South Carolina.
Who is responsible for the cost of the examination? - answer Foreign company
Driver A has a personal auto policy with Part C: UM/UIM limits of 100/300. He is injured by Driver B who
has Part A: Bodily Injury Liability Limits of 50/100. It is determined that Driver B is at fault for the
accident . Driver A has $125,000 in medical expenses. How much will Part C: UM/UIM coverage will pay?
- answer 50,000
A premium discount is the term that describes when an insured owes a total standard premium greater
than? - answer 5,000
According to SC law, comprehensive deductibles do not apply to - answer safety glass
Who is an insurance producer? - answer Any person licensed to sell, solicit or negotiate insurance
Employee fidelity may be written in all the following ways EXCEPT - answer Location schedule
Section 1 of boatowners policy covers - answer Physical Damage
Which type of losses are covered by the South Carolina Wind and Hail Underwriting Association? -
answer Both Direct and Indirect losses
,Before granting a Certificate of Authority to a company, the Director must be satisfied by proper
evidence that all of the following are true EXCEPT - answer The insurer does not have a Certificate of
Authority in any other state
Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by
Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own.
Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy
cover the claim? - answer No, because the claim results from copyright infringement and is not in an
advertisement
When the insured's car was totaled in a recent accident, the ownership of the car was transferred to the
insurer. The insurer then sold off the wrecked car to recover some of the loss it paid to the insured. What
is the term for this action? - answer Salvage
The reduction, decrease, or disappearance of value of the person or property insured in a policy by a
peril insured against is known as - answer loss
A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and
hurts someone because he did not do the job correctly? - answer Completed operations
Which employee fidelity bond pays no more than its limit of liability for each separate occurrence no
matter that several separately identifiable employees were involved in a single loss? - answer
commercial blanket position
If an employee consumes alcohol, becomes intoxicated, and is injured at work, he/she is __________. -
answer Not covered if the consumption of alcohol is proven to have caused the injury
Under Coverage C of a farm policy, what is the limit payable on business property located away from the
premises? - answer $500
Within how many days of requesting an investigative consumer report must an insurer notify the
consumer in writing that the report will be obtained? - answer 5 days
, What is the purpose of the government crime coverage form? - answer To provide crime coverage to
those who do not qualify in the normal market
Which of the following insurance options would be considered a risk-sharing arrangement? - answer
Reciprocal
According to the loss payment condition in HO policies, losses must be paid within how many days of the
insurer receiving proof of loss? - answer 60 days
Which of the following is true of dwelling policy coverage? - answer Exclusion apply to all three policy
forms
The individual named insured endorsement under a commercial auto policy provides coverage for which
of the following? - answer The sole proprietor of the business and his or hers family members
The type of crime policy under which coverage is triggered by a loss that happens during the policy
period but is not necessarily discovered during the policy period is the _____________. - answer Loss
sustained form
What type of coverage protects the insured in an accident caused by a driver with insufficient coverage?
- answer Underinsured Motorist
In which of the following sections of a commercial auto policy will you find specific information about
the policy period? - answer Conditions
Faulty wiring in a home is an example of a _______. - answer Hazard
Which of the following list all the required elements for establishing a charge of negligence? - answer
legal duty owed, standard of care, proximate cause, damages
Which of the following is true regarding the premium computation for workers compensation insurance?
- answer a premium auditor has the right to examine the insured's compensation records at the end of
the policy period to determine the actual premium basis
Insurance exam questions with 100%
correct answers
The process an insurer uses to evaluate applications and determine if a policy should be issued and on
what terms, conditions, and rate is known as? - answer Underwriting
The Director is conducting an examination of a foreign company transacting business in South Carolina.
Who is responsible for the cost of the examination? - answer Foreign company
Driver A has a personal auto policy with Part C: UM/UIM limits of 100/300. He is injured by Driver B who
has Part A: Bodily Injury Liability Limits of 50/100. It is determined that Driver B is at fault for the
accident . Driver A has $125,000 in medical expenses. How much will Part C: UM/UIM coverage will pay?
- answer 50,000
A premium discount is the term that describes when an insured owes a total standard premium greater
than? - answer 5,000
According to SC law, comprehensive deductibles do not apply to - answer safety glass
Who is an insurance producer? - answer Any person licensed to sell, solicit or negotiate insurance
Employee fidelity may be written in all the following ways EXCEPT - answer Location schedule
Section 1 of boatowners policy covers - answer Physical Damage
Which type of losses are covered by the South Carolina Wind and Hail Underwriting Association? -
answer Both Direct and Indirect losses
,Before granting a Certificate of Authority to a company, the Director must be satisfied by proper
evidence that all of the following are true EXCEPT - answer The insurer does not have a Certificate of
Authority in any other state
Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by
Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own.
Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy
cover the claim? - answer No, because the claim results from copyright infringement and is not in an
advertisement
When the insured's car was totaled in a recent accident, the ownership of the car was transferred to the
insurer. The insurer then sold off the wrecked car to recover some of the loss it paid to the insured. What
is the term for this action? - answer Salvage
The reduction, decrease, or disappearance of value of the person or property insured in a policy by a
peril insured against is known as - answer loss
A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and
hurts someone because he did not do the job correctly? - answer Completed operations
Which employee fidelity bond pays no more than its limit of liability for each separate occurrence no
matter that several separately identifiable employees were involved in a single loss? - answer
commercial blanket position
If an employee consumes alcohol, becomes intoxicated, and is injured at work, he/she is __________. -
answer Not covered if the consumption of alcohol is proven to have caused the injury
Under Coverage C of a farm policy, what is the limit payable on business property located away from the
premises? - answer $500
Within how many days of requesting an investigative consumer report must an insurer notify the
consumer in writing that the report will be obtained? - answer 5 days
, What is the purpose of the government crime coverage form? - answer To provide crime coverage to
those who do not qualify in the normal market
Which of the following insurance options would be considered a risk-sharing arrangement? - answer
Reciprocal
According to the loss payment condition in HO policies, losses must be paid within how many days of the
insurer receiving proof of loss? - answer 60 days
Which of the following is true of dwelling policy coverage? - answer Exclusion apply to all three policy
forms
The individual named insured endorsement under a commercial auto policy provides coverage for which
of the following? - answer The sole proprietor of the business and his or hers family members
The type of crime policy under which coverage is triggered by a loss that happens during the policy
period but is not necessarily discovered during the policy period is the _____________. - answer Loss
sustained form
What type of coverage protects the insured in an accident caused by a driver with insufficient coverage?
- answer Underinsured Motorist
In which of the following sections of a commercial auto policy will you find specific information about
the policy period? - answer Conditions
Faulty wiring in a home is an example of a _______. - answer Hazard
Which of the following list all the required elements for establishing a charge of negligence? - answer
legal duty owed, standard of care, proximate cause, damages
Which of the following is true regarding the premium computation for workers compensation insurance?
- answer a premium auditor has the right to examine the insured's compensation records at the end of
the policy period to determine the actual premium basis
