CHAPTER 527 AND CHAPTER 5J20 LAWS
AND RULES STUDY GUIDE EXAM 2026
EXAM SCRIPT QUESTIONS AND ANSWERS
STRUCTURED PREPARATION KIT GRADED
A+
⩥ In South Carolina, what is the MAXIMUM length of time an insurer
can defer payment of a cash surrender value of an annuity?
6 months
12 months
18 months
24 months.
Answer: 6 months
⩥ When can a policy no longer be cancelled for nonfraudulent
misstatements after its date of issue?
1 year
2 years
5 years
At any time.
Answer: 2 years
,⩥ Which of the following is NOT an example of inducement to purchase
insurance?
A promise of employment
A gift having a value less than $25
A special favor in the payment of premiums
Giving merchandise to a client with a value of $100.
Answer: A gift having a value less than $25
⩥ The Director MUST examine domestic insurers AT LEAST once
every:
year
3 years
5 years
7 years.
Answer: 5 years
⩥ An insurer may refuse to issue a policy to a particular insurance
applicant for a reason based solely on:
medical condition
race
gender
creed.
Answer: medical condition
, ⩥ Mary is issued an initial producer's license on April 29, 2012. Her
birthdate is March 14, 1980. When does her license renew?
March 31, 2013
April 29, 2013
March 31, 2014
April 29, 2014.
Answer: March 31, 2014
⩥ An insurance producer CANNOT act as an agent of an insurer until
the insurance producer becomes:
licensed
designated responsible producer
a member of the National Association of Insurance Commissioners
(NAIC)
appointed by the insurer.
Answer: appointed by the insurer
⩥ A policy illustration given at time of sale does NOT typically include
the:
cash value of the policy
names of the beneficiary
effective interest rate for policy loans
AND RULES STUDY GUIDE EXAM 2026
EXAM SCRIPT QUESTIONS AND ANSWERS
STRUCTURED PREPARATION KIT GRADED
A+
⩥ In South Carolina, what is the MAXIMUM length of time an insurer
can defer payment of a cash surrender value of an annuity?
6 months
12 months
18 months
24 months.
Answer: 6 months
⩥ When can a policy no longer be cancelled for nonfraudulent
misstatements after its date of issue?
1 year
2 years
5 years
At any time.
Answer: 2 years
,⩥ Which of the following is NOT an example of inducement to purchase
insurance?
A promise of employment
A gift having a value less than $25
A special favor in the payment of premiums
Giving merchandise to a client with a value of $100.
Answer: A gift having a value less than $25
⩥ The Director MUST examine domestic insurers AT LEAST once
every:
year
3 years
5 years
7 years.
Answer: 5 years
⩥ An insurer may refuse to issue a policy to a particular insurance
applicant for a reason based solely on:
medical condition
race
gender
creed.
Answer: medical condition
, ⩥ Mary is issued an initial producer's license on April 29, 2012. Her
birthdate is March 14, 1980. When does her license renew?
March 31, 2013
April 29, 2013
March 31, 2014
April 29, 2014.
Answer: March 31, 2014
⩥ An insurance producer CANNOT act as an agent of an insurer until
the insurance producer becomes:
licensed
designated responsible producer
a member of the National Association of Insurance Commissioners
(NAIC)
appointed by the insurer.
Answer: appointed by the insurer
⩥ A policy illustration given at time of sale does NOT typically include
the:
cash value of the policy
names of the beneficiary
effective interest rate for policy loans
