SOUTH CAROLINA INSURANCE EXAM
2024 ACTUAL EXAM 2 VERSIONS
(VERSION A AND B) COMPLETE 400
QUESTIONS WITH DETAILED
VERIFIED ANSWERS / ALREADY
GRADED A+
A renewable Term Life insurance policy allows the
policyowner the right to renew the policy -
....ANSWER...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? - ....ANSWER...Can be
converted to permanent coverage without evidence
of insurability
,A producer has committed an insurance crime that
violates US Code 1033 (interstate commerce). Who
would be responsible for the persecution of this
crime? - ....ANSWER...US attorney general
Under a group life policy, the insurer will issue an
individual _____ to the policyowner for delivery to
each person insured. - ....ANSWER...certificate
Frank is shopping for a disability income policy.
Which of the following would have the HIGHEST
premium? - ....ANSWER...14 day period / 10 year
benefit period
XYZ Company has applied for a group health
insurance for its employees. What information would
the insurers underwriters likely use to determine
the appropriate coverage and final premium rate
given to the group? - ....ANSWER...Experience rating
In regards to a life insurance contract, which of the
following statements is NOT true regarding the
concept of insurable interest? -
....ANSWER...Insurable interest can be established
sufficiently by sentimental attachment alone
,Under a Modified Endowment Contract, what are the
likely tax consequences? - ....ANSWER...Pre-death
distributions will become taxable
Key person Disability Insurance pays benefits to the
- ....ANSWER...employer
Sonya applied for a health insurance policy on April
1. Her agent submitted the information to the
insurance company on April 6. She paid the premium
on May 15 with the policy indicating the effective date
being May 30. On which date would Sonya have
coverage? - ....ANSWER...May 30
What happens to interest earned if the annuitant dies
before the payout start date? - ....ANSWER...It is
taxable
The taxable portion of each annuity payment is
calculated using which method? -
....ANSWER...Exclusion Ratio
, What kind of life insurance policy issued by a mutual
insurer provides a return of divisible surplus? -
....ANSWER...participating life insurance policy
What happens to the coverage under a children's
term rider when that child reached a certain
specified age? - ....ANSWER...Coverage is eliminated
Under a disability income policy, which provision
would be payable if the cause of an injury is
unexpected and accidental? - ....ANSWER...accidental
bodily injury provision
Which of approach predicts a persons earning
potential and determines how much of that amount
would be devoted to dependents? -
....ANSWER...Human life value approach
Which of these will have the highest monthly payout
upon annuitization - ....ANSWER...Straight life
Which of the following is NOT an Unfair Claim
Settlement Practice? - ....ANSWER...Providing claim
payments to insureds according to the policy's
coverage guidelines
2024 ACTUAL EXAM 2 VERSIONS
(VERSION A AND B) COMPLETE 400
QUESTIONS WITH DETAILED
VERIFIED ANSWERS / ALREADY
GRADED A+
A renewable Term Life insurance policy allows the
policyowner the right to renew the policy -
....ANSWER...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? - ....ANSWER...Can be
converted to permanent coverage without evidence
of insurability
,A producer has committed an insurance crime that
violates US Code 1033 (interstate commerce). Who
would be responsible for the persecution of this
crime? - ....ANSWER...US attorney general
Under a group life policy, the insurer will issue an
individual _____ to the policyowner for delivery to
each person insured. - ....ANSWER...certificate
Frank is shopping for a disability income policy.
Which of the following would have the HIGHEST
premium? - ....ANSWER...14 day period / 10 year
benefit period
XYZ Company has applied for a group health
insurance for its employees. What information would
the insurers underwriters likely use to determine
the appropriate coverage and final premium rate
given to the group? - ....ANSWER...Experience rating
In regards to a life insurance contract, which of the
following statements is NOT true regarding the
concept of insurable interest? -
....ANSWER...Insurable interest can be established
sufficiently by sentimental attachment alone
,Under a Modified Endowment Contract, what are the
likely tax consequences? - ....ANSWER...Pre-death
distributions will become taxable
Key person Disability Insurance pays benefits to the
- ....ANSWER...employer
Sonya applied for a health insurance policy on April
1. Her agent submitted the information to the
insurance company on April 6. She paid the premium
on May 15 with the policy indicating the effective date
being May 30. On which date would Sonya have
coverage? - ....ANSWER...May 30
What happens to interest earned if the annuitant dies
before the payout start date? - ....ANSWER...It is
taxable
The taxable portion of each annuity payment is
calculated using which method? -
....ANSWER...Exclusion Ratio
, What kind of life insurance policy issued by a mutual
insurer provides a return of divisible surplus? -
....ANSWER...participating life insurance policy
What happens to the coverage under a children's
term rider when that child reached a certain
specified age? - ....ANSWER...Coverage is eliminated
Under a disability income policy, which provision
would be payable if the cause of an injury is
unexpected and accidental? - ....ANSWER...accidental
bodily injury provision
Which of approach predicts a persons earning
potential and determines how much of that amount
would be devoted to dependents? -
....ANSWER...Human life value approach
Which of these will have the highest monthly payout
upon annuitization - ....ANSWER...Straight life
Which of the following is NOT an Unfair Claim
Settlement Practice? - ....ANSWER...Providing claim
payments to insureds according to the policy's
coverage guidelines
