SOUTH CAROLINA INSURANCE EXAM
BUNDLED EXAMS TEST BANK 2026
COMPLETE ANSWERS ALREADY PASSED
GRADED A+
⩥ what procedure is used by an insurer to protect itself in the event a
dispute arises and the applicant and the agent do not recall the changes
that were made in a completed application? Answer: the applicant and
possibly the agent initial any changes made
⩥ what is it called when a life insurance policy pays a multiple of the
coverage amount when certain types of accidents occur? Answer:
multiple indemnity
⩥ Which problem was universal life insurance designed to address?
Answer: low interest rates during high periods of inflation
⩥ which of the following was specifically designed to address STOLI
and IOLI practices? Answer: NCOIL act
⩥ in which of the following must a beneficiary change request be filed
in writing to the insurer and is made effective by the insurance company
recording the change in its records? Answer: recording method
,⩥ which of the following provides for the continuance of life insurance
coverage on a juvenile in the event of the death or total disability of the
individual responsible for the payments of the premium? Answer: payor
clause
⩥ which of the following is true of an equity-indexed annuity? Answer:
it has a guaranteed minimum interest rate
⩥ At which point are contractual death benefit settlement options
determined and by whom? Answer: at the time the policy is purchased
by the owner of the policy
⩥ all of the following are tax qualified retirement plans except
-keogh
- section 529 plan
- SEP
-401k Answer: section 529 plan
⩥ what is a common approach to addressing the problems inherent is
naming a minor as a beneficiary to a life insurance policy? Answer:
establishing a trust to administer proceeds
⩥ which type of annuity covers two or more annuitants and provides
monthly income only until the first annuitant dies? Answer: Joint life
annuity
, ⩥ which of the following lists the three common types of permanent
individual life insurance? Answer: variable life, whole life, universal life
⩥ the group conversion option is allowed for all of the following except
Answer: during the annual benefits enrollment period
⩥ what is the primary advantage for obtaining a reinstatement of a
policy rather than obtaining a new one? Answer: insured original age is
used
⩥ all of the following are ownership rights except Answer: switching the
policy from one insured to another
⩥ in noncontributory plans, what percentage of eligible members must
participate? Answer: 1
⩥ which of the following is true of the limited pay whole life policy?
Answer: coverage continues after the policy is paid up
⩥ which of the following is common in an increasing term life policy?
Answer: it begins with little or no insurance protection
BUNDLED EXAMS TEST BANK 2026
COMPLETE ANSWERS ALREADY PASSED
GRADED A+
⩥ what procedure is used by an insurer to protect itself in the event a
dispute arises and the applicant and the agent do not recall the changes
that were made in a completed application? Answer: the applicant and
possibly the agent initial any changes made
⩥ what is it called when a life insurance policy pays a multiple of the
coverage amount when certain types of accidents occur? Answer:
multiple indemnity
⩥ Which problem was universal life insurance designed to address?
Answer: low interest rates during high periods of inflation
⩥ which of the following was specifically designed to address STOLI
and IOLI practices? Answer: NCOIL act
⩥ in which of the following must a beneficiary change request be filed
in writing to the insurer and is made effective by the insurance company
recording the change in its records? Answer: recording method
,⩥ which of the following provides for the continuance of life insurance
coverage on a juvenile in the event of the death or total disability of the
individual responsible for the payments of the premium? Answer: payor
clause
⩥ which of the following is true of an equity-indexed annuity? Answer:
it has a guaranteed minimum interest rate
⩥ At which point are contractual death benefit settlement options
determined and by whom? Answer: at the time the policy is purchased
by the owner of the policy
⩥ all of the following are tax qualified retirement plans except
-keogh
- section 529 plan
- SEP
-401k Answer: section 529 plan
⩥ what is a common approach to addressing the problems inherent is
naming a minor as a beneficiary to a life insurance policy? Answer:
establishing a trust to administer proceeds
⩥ which type of annuity covers two or more annuitants and provides
monthly income only until the first annuitant dies? Answer: Joint life
annuity
, ⩥ which of the following lists the three common types of permanent
individual life insurance? Answer: variable life, whole life, universal life
⩥ the group conversion option is allowed for all of the following except
Answer: during the annual benefits enrollment period
⩥ what is the primary advantage for obtaining a reinstatement of a
policy rather than obtaining a new one? Answer: insured original age is
used
⩥ all of the following are ownership rights except Answer: switching the
policy from one insured to another
⩥ in noncontributory plans, what percentage of eligible members must
participate? Answer: 1
⩥ which of the following is true of the limited pay whole life policy?
Answer: coverage continues after the policy is paid up
⩥ which of the following is common in an increasing term life policy?
Answer: it begins with little or no insurance protection
