South Carolina Insurance Exam Questions and Answers
2023 with complete solution
An insurer is REQUIRED to offer which of the following to each long-term care applicant
at the time of purchase?
Inflation protection
Which of these riders will pay a death benefit if the insured's spouse dies?
Family term insurance rider
Disability income plans which require that the insurer can NEVER change or alter
premium rates are usually considered
Nonconcellable
What is the required action to be taken by a South Carolina licensee before operating
under an assumed business name?
Notify the Director
The suicide clause of a life insurance policy states that if an insured commits suicide
within a stated period from the policy's inception, the insurer will only be liable for a
return of premiums paid
minus indebtedness and without interest
If an annuitant dies before the annuity start date
the premiums paid plus interest will be given to the beneficiary
The purpose of the Coordination of Benefits provision in group accident and health
plans is to
avoid overpayment of claims
The typical long-term care insurance policy is designed to provide a minimum
of___year(s) of coverage
1
Decreasing term life insurance is often used to
provide coverage for a home mortgage
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive?
Endowment policy
A life insurance policy normally contains a provision that restricts coverage in the event
of death under all of the following situations EXCEPT
fare-paying passenger
All _____ policies must be guaranteed renewable.
long-term care
What type of injury would NOT be covered under a health insurance policy?
Work related
All of these are common exclusions to a life insurance policy EXCEPT
accidental health
Which of the following decisions would a Health Savings Account (HSA) owner NOT be
able to make?
The amount contributed by the employer
A whole life insurance policy accumulates cash value that becomes
the policy loan value which the insured may borrow against
, Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on
any money withdrawn.
income
An interest-sensitive life insurance policyowner may be able to withdraw the policy's
cash value interest free. The provision that allows this is called
Partial Surrender
Krissa purchases a 10-year level term life insurance policy that has a death benefit of
$200,000. Which of these statements is true?
The face amount and premium will remain constant over the 10-year period
Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies,
this income will become payable to their children for the remainder of the period. Kristi
has what kind of annuity?
Temporary annuity certain
When a qualified plan starts making payments to its recipient, which portion of the
distributions is taxable?
Gains
Pre-death distributions from a modified endowment contract (MEC) receive different tax
treatment than other life insurance policies because
the MEC tends to be an investment vehicle
A medical provider that accepts Medicare Assignment must
accept payment based upon a defined Medicare schedule as payment in full
Proof of loss on a health insurance claim must be submitted to an insurer within___days
after the insured's date of loss
90
The entire contract includes the actual policy and the
application
The factor used most often when underwriting a disability income policy is
annual earnings
David submits a $500 claim for medical expenses. There is a past-due amount owed for
insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This
deduction came as a result of which provision?
Unpaid provision
Which of these is NOT considered to be a purpose of an annuity?
Annuities are intended to create an estate
Which of the following is NOT a circumstance to which a temporary producer license
can be issued?
prospective producer who is waiting to take the state licensing examination
In what form do disability income policies typically pay benefits?
periodic income
A renewable Term Life insurance policy allows the policyowner the right to renew the
policy
without producing proof of insurability
Donald is the primary insured of a life insurance policy and adds a children's term rider.
What is the advantage of adding this rider?
Can be converted to permanent coverage without evidence of insurability
2023 with complete solution
An insurer is REQUIRED to offer which of the following to each long-term care applicant
at the time of purchase?
Inflation protection
Which of these riders will pay a death benefit if the insured's spouse dies?
Family term insurance rider
Disability income plans which require that the insurer can NEVER change or alter
premium rates are usually considered
Nonconcellable
What is the required action to be taken by a South Carolina licensee before operating
under an assumed business name?
Notify the Director
The suicide clause of a life insurance policy states that if an insured commits suicide
within a stated period from the policy's inception, the insurer will only be liable for a
return of premiums paid
minus indebtedness and without interest
If an annuitant dies before the annuity start date
the premiums paid plus interest will be given to the beneficiary
The purpose of the Coordination of Benefits provision in group accident and health
plans is to
avoid overpayment of claims
The typical long-term care insurance policy is designed to provide a minimum
of___year(s) of coverage
1
Decreasing term life insurance is often used to
provide coverage for a home mortgage
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive?
Endowment policy
A life insurance policy normally contains a provision that restricts coverage in the event
of death under all of the following situations EXCEPT
fare-paying passenger
All _____ policies must be guaranteed renewable.
long-term care
What type of injury would NOT be covered under a health insurance policy?
Work related
All of these are common exclusions to a life insurance policy EXCEPT
accidental health
Which of the following decisions would a Health Savings Account (HSA) owner NOT be
able to make?
The amount contributed by the employer
A whole life insurance policy accumulates cash value that becomes
the policy loan value which the insured may borrow against
, Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on
any money withdrawn.
income
An interest-sensitive life insurance policyowner may be able to withdraw the policy's
cash value interest free. The provision that allows this is called
Partial Surrender
Krissa purchases a 10-year level term life insurance policy that has a death benefit of
$200,000. Which of these statements is true?
The face amount and premium will remain constant over the 10-year period
Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies,
this income will become payable to their children for the remainder of the period. Kristi
has what kind of annuity?
Temporary annuity certain
When a qualified plan starts making payments to its recipient, which portion of the
distributions is taxable?
Gains
Pre-death distributions from a modified endowment contract (MEC) receive different tax
treatment than other life insurance policies because
the MEC tends to be an investment vehicle
A medical provider that accepts Medicare Assignment must
accept payment based upon a defined Medicare schedule as payment in full
Proof of loss on a health insurance claim must be submitted to an insurer within___days
after the insured's date of loss
90
The entire contract includes the actual policy and the
application
The factor used most often when underwriting a disability income policy is
annual earnings
David submits a $500 claim for medical expenses. There is a past-due amount owed for
insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This
deduction came as a result of which provision?
Unpaid provision
Which of these is NOT considered to be a purpose of an annuity?
Annuities are intended to create an estate
Which of the following is NOT a circumstance to which a temporary producer license
can be issued?
prospective producer who is waiting to take the state licensing examination
In what form do disability income policies typically pay benefits?
periodic income
A renewable Term Life insurance policy allows the policyowner the right to renew the
policy
without producing proof of insurability
Donald is the primary insured of a life insurance policy and adds a children's term rider.
What is the advantage of adding this rider?
Can be converted to permanent coverage without evidence of insurability
