South Carolina Property and Casualty
Insurance Producer License Exam
Practice Questions And Correct Answers
(Verified Answers) Plus Rationale 2026
Q&A| Instant Download Pdf
1. Which of the following best describes the primary purpose of South
Carolina’s Property and Casualty Insurance laws?
A. To maximize insurer profits
B. To protect the public by regulating insurance practices
C. To establish fixed premium rates
D. To eliminate competition among insurers
Bolded rationale: South Carolina insurance laws are designed
primarily to protect consumers by regulating practices, licensing
producers and insurers, and ensuring fair treatment in the insurance
marketplace.
2. In South Carolina, an individual must complete how many hours of
pre-licensing education before taking the Property and Casualty
Insurance Producer exam?
A. 10 hours
B. 20 hours
C. 40 hours
D. 60 hours
Bolded rationale: South Carolina requires 20 hours of pre-licensing
education specific to property and casualty insurance before the
candidate may sit for the licensing examination.
3. A South Carolina producer license is renewed every:
A. One year
B. Three years
, C. Two years
D. Five years
Bolded rationale: In South Carolina, producer licenses must be
renewed every two years during the established renewal period to
remain active and compliant with state law.
4. What type of insurance contract covers losses to real or personal
property caused by specified perils?
A. Liability insurance
B. Property insurance
C. Health insurance
D. Life insurance
Bolded rationale: Property insurance indemnifies the insured for loss
or damage to real or personal property when caused by perils listed
in the policy.
5. Which of the following is considered a “named peril” form?
A. Open peril
B. Replacement cost
C. Fire, lightning and theft perils listed specifically
D. Guaranteed replacement cost
Bolded rationale: A named peril form lists specific perils that are
covered; only those perils are insured against.
6. In South Carolina, a producer who intentionally misrepresents policy
terms to induce a client to lapse their coverage could be charged with:
A. Rebating
B. Fraud
C. Twisting
D. Defamation
Bolded rationale: Misrepresentation of policy terms intended to
harm the insured or induce inappropriate action constitutes fraud
under state insurance law.
7. Coverage that pays the insured for damage to a third party’s property
is known as:
A. First-party coverage
B. Property damage waiver
C. Liability coverage
, D. Collision coverage
Bolded rationale: Liability coverage compensates third parties for
bodily injury or property damage caused by the insured’s actions.
8. Under a Homeowners Policy, which section describes duties after a
loss?
A. Conditions
B. Declarations
C. Conditions
D. Insuring agreement
Bolded rationale: The Conditions section outlines the insured’s
responsibilities after a loss, such as notifying the insurer and
protecting the property.
9. The South Carolina Unfair Claims Settlement Practices Act prohibits all
EXCEPT:
A. Misrepresenting policy provisions
B. Failing to acknowledge communications
C. Offering replacement cost coverage
D. Unduly delaying claim payments
Bolded rationale: Offering legitimate coverage options like
replacement cost is not prohibited; the Act forbids unfair or deceptive
settlement conduct.
10. Which coverage in an auto policy applies regardless of fault?
A. Collision
B. Personal Injury Protection (PIP)
C. Liability
D. Uninsured motorist property damage
Bolded rationale: PIP is no-fault coverage that pays for medical
expenses and other benefits regardless of who caused the accident.
11. The limit that represents the maximum the insurer will pay for
all losses during a policy period is known as:
A. Deductible
B. Aggregate limit
C. Per occurrence limit
D. Coinsurance
Insurance Producer License Exam
Practice Questions And Correct Answers
(Verified Answers) Plus Rationale 2026
Q&A| Instant Download Pdf
1. Which of the following best describes the primary purpose of South
Carolina’s Property and Casualty Insurance laws?
A. To maximize insurer profits
B. To protect the public by regulating insurance practices
C. To establish fixed premium rates
D. To eliminate competition among insurers
Bolded rationale: South Carolina insurance laws are designed
primarily to protect consumers by regulating practices, licensing
producers and insurers, and ensuring fair treatment in the insurance
marketplace.
2. In South Carolina, an individual must complete how many hours of
pre-licensing education before taking the Property and Casualty
Insurance Producer exam?
A. 10 hours
B. 20 hours
C. 40 hours
D. 60 hours
Bolded rationale: South Carolina requires 20 hours of pre-licensing
education specific to property and casualty insurance before the
candidate may sit for the licensing examination.
3. A South Carolina producer license is renewed every:
A. One year
B. Three years
, C. Two years
D. Five years
Bolded rationale: In South Carolina, producer licenses must be
renewed every two years during the established renewal period to
remain active and compliant with state law.
4. What type of insurance contract covers losses to real or personal
property caused by specified perils?
A. Liability insurance
B. Property insurance
C. Health insurance
D. Life insurance
Bolded rationale: Property insurance indemnifies the insured for loss
or damage to real or personal property when caused by perils listed
in the policy.
5. Which of the following is considered a “named peril” form?
A. Open peril
B. Replacement cost
C. Fire, lightning and theft perils listed specifically
D. Guaranteed replacement cost
Bolded rationale: A named peril form lists specific perils that are
covered; only those perils are insured against.
6. In South Carolina, a producer who intentionally misrepresents policy
terms to induce a client to lapse their coverage could be charged with:
A. Rebating
B. Fraud
C. Twisting
D. Defamation
Bolded rationale: Misrepresentation of policy terms intended to
harm the insured or induce inappropriate action constitutes fraud
under state insurance law.
7. Coverage that pays the insured for damage to a third party’s property
is known as:
A. First-party coverage
B. Property damage waiver
C. Liability coverage
, D. Collision coverage
Bolded rationale: Liability coverage compensates third parties for
bodily injury or property damage caused by the insured’s actions.
8. Under a Homeowners Policy, which section describes duties after a
loss?
A. Conditions
B. Declarations
C. Conditions
D. Insuring agreement
Bolded rationale: The Conditions section outlines the insured’s
responsibilities after a loss, such as notifying the insurer and
protecting the property.
9. The South Carolina Unfair Claims Settlement Practices Act prohibits all
EXCEPT:
A. Misrepresenting policy provisions
B. Failing to acknowledge communications
C. Offering replacement cost coverage
D. Unduly delaying claim payments
Bolded rationale: Offering legitimate coverage options like
replacement cost is not prohibited; the Act forbids unfair or deceptive
settlement conduct.
10. Which coverage in an auto policy applies regardless of fault?
A. Collision
B. Personal Injury Protection (PIP)
C. Liability
D. Uninsured motorist property damage
Bolded rationale: PIP is no-fault coverage that pays for medical
expenses and other benefits regardless of who caused the accident.
11. The limit that represents the maximum the insurer will pay for
all losses during a policy period is known as:
A. Deductible
B. Aggregate limit
C. Per occurrence limit
D. Coinsurance
