South Carolina Property and Casualty Insurance
Exam Latest Update 2025-2026 Exam 175
Questions with 100% Verified Correct Answers
Guaranteed A+
A licensed producer may be fined for nonwillful and for willful violations of insurance
laws with the following respective fines: - CORRECT ANSWER: $2,500/$5,000
A plasterer has finished a job. What kind of liability coverage would protect him if the
plaster falls and hurts someone because he did not do the job correctly? - CORRECT
ANSWER: Completed operations
A policy condition that states if a policy is broadened with no additional premium, then
the expanded coverage will be automatically applied to all policies of the same type is
known as _________. - CORRECT ANSWER: Liberalization clause
A premium discount is the term that describes when an insured owes a total standard
premium greater than? - CORRECT ANSWER: 5,000
A tornado that destroys property would be an example of which of the following? -
CORRECT ANSWER: A peril
According to SC law, comprehensive deductibles do not apply to - CORRECT
ANSWER: safety glass
According to the loss payment condition in HO policies, losses must be paid within how
many days of the insurer receiving proof of loss? - CORRECT ANSWER: 60 days
According to the standard mortgage clause, who has the right to bring a suit in their own
name to recover damages, pay policy premiums, and submit a proof of loss? -
CORRECT ANSWER: Mortgagee
,According to the standard workers compensation and employer liability policy form, a
state should be listed in Part Three-other states' insurance of the workers compensation
and employers liability policy when ___________. - CORRECT ANSWER: The insured
expects to extend operations to that state
Additional coverages in the liability section of a home owners policy cover all of the
following EXCEPT: - CORRECT ANSWER: Damage to a third party property for which
the insured is legally liable
Additional coverages in the liability section of a homeowners policy cover all of the
following EXCEPT: - CORRECT ANSWER: Damage to a third-party property for which
the insured is legally liable
After acceptance of an application by the SCWHUA how long is the waiting period
before coverage is effective? - CORRECT ANSWER: 15 days
All are true about the South Carolina Property and Casualty Insurance Guaranty
Association EXCEPT: - CORRECT ANSWER: It does not cover workers compensation
claims
All of the following are classes of inland marine risks EXCEPT: - CORRECT ANSWER:
Common carrier cargo liability
All of the following are examples of risk retention EXCEPT: - CORRECT ANSWER:
Premiums
All of the following are exclusions under farm property coverage EXCEPT: - CORRECT
ANSWER: Loss of use
All of the following are optional coverages that may be attached to an HO-3 policy
EXCEPT: - CORRECT ANSWER: Dwelling replacement cost
, All of the following are true regarding physical damage coverage EXCEPT: - CORRECT
ANSWER: The limit of liability is the greater of the actual cash value of the vehicle at the
time of loss or the amount necessary to repair or replace the vehicle is
All of the following are true statements regarding the supplementary payments of a
commercial general liability policy EXCEPT: - CORRECT ANSWER: They pay defense
costs even after the aggregate limit has been reached
All of the following are unfair claims settlement practices EXCEPT: - CORRECT
ANSWER: Suggesting negotiations in settling the claim
All of the following statements concerning coinsurance are true EXCEPT: - CORRECT
ANSWER: The coinsurance formula will also be applied to total losses
An applicant is denied insurance because of information found on a consumer report.
Which of the following requires that the insurance company supply the applicant with
the name and address of the consumer reporting company? - CORRECT ANSWER:
The Fair Credit Reporting Act
An installation floater is used to insure ____________. - CORRECT ANSWER:
Appliances intended to become a permanent part of the building
An insurance company sells an insurance policy over the phone in response to a TV ad.
Which of the following best describes this act? - CORRECT ANSWER: Direct response
marketing
An insured condominium unit owner wants to purchase fire and extended coverage for
personal property and liability coverage for himself and his family members. He should
purchase __________. - CORRECT ANSWER: HO-6
An insured purchased an insurance policy 5 years ago. Last year she received a
dividend check from the insurance company that was not taxable. This year, she did not
receive a check from the insurer. From what type of insurer did the insured purchase the
policy? - CORRECT ANSWER: mutual
Exam Latest Update 2025-2026 Exam 175
Questions with 100% Verified Correct Answers
Guaranteed A+
A licensed producer may be fined for nonwillful and for willful violations of insurance
laws with the following respective fines: - CORRECT ANSWER: $2,500/$5,000
A plasterer has finished a job. What kind of liability coverage would protect him if the
plaster falls and hurts someone because he did not do the job correctly? - CORRECT
ANSWER: Completed operations
A policy condition that states if a policy is broadened with no additional premium, then
the expanded coverage will be automatically applied to all policies of the same type is
known as _________. - CORRECT ANSWER: Liberalization clause
A premium discount is the term that describes when an insured owes a total standard
premium greater than? - CORRECT ANSWER: 5,000
A tornado that destroys property would be an example of which of the following? -
CORRECT ANSWER: A peril
According to SC law, comprehensive deductibles do not apply to - CORRECT
ANSWER: safety glass
According to the loss payment condition in HO policies, losses must be paid within how
many days of the insurer receiving proof of loss? - CORRECT ANSWER: 60 days
According to the standard mortgage clause, who has the right to bring a suit in their own
name to recover damages, pay policy premiums, and submit a proof of loss? -
CORRECT ANSWER: Mortgagee
,According to the standard workers compensation and employer liability policy form, a
state should be listed in Part Three-other states' insurance of the workers compensation
and employers liability policy when ___________. - CORRECT ANSWER: The insured
expects to extend operations to that state
Additional coverages in the liability section of a home owners policy cover all of the
following EXCEPT: - CORRECT ANSWER: Damage to a third party property for which
the insured is legally liable
Additional coverages in the liability section of a homeowners policy cover all of the
following EXCEPT: - CORRECT ANSWER: Damage to a third-party property for which
the insured is legally liable
After acceptance of an application by the SCWHUA how long is the waiting period
before coverage is effective? - CORRECT ANSWER: 15 days
All are true about the South Carolina Property and Casualty Insurance Guaranty
Association EXCEPT: - CORRECT ANSWER: It does not cover workers compensation
claims
All of the following are classes of inland marine risks EXCEPT: - CORRECT ANSWER:
Common carrier cargo liability
All of the following are examples of risk retention EXCEPT: - CORRECT ANSWER:
Premiums
All of the following are exclusions under farm property coverage EXCEPT: - CORRECT
ANSWER: Loss of use
All of the following are optional coverages that may be attached to an HO-3 policy
EXCEPT: - CORRECT ANSWER: Dwelling replacement cost
, All of the following are true regarding physical damage coverage EXCEPT: - CORRECT
ANSWER: The limit of liability is the greater of the actual cash value of the vehicle at the
time of loss or the amount necessary to repair or replace the vehicle is
All of the following are true statements regarding the supplementary payments of a
commercial general liability policy EXCEPT: - CORRECT ANSWER: They pay defense
costs even after the aggregate limit has been reached
All of the following are unfair claims settlement practices EXCEPT: - CORRECT
ANSWER: Suggesting negotiations in settling the claim
All of the following statements concerning coinsurance are true EXCEPT: - CORRECT
ANSWER: The coinsurance formula will also be applied to total losses
An applicant is denied insurance because of information found on a consumer report.
Which of the following requires that the insurance company supply the applicant with
the name and address of the consumer reporting company? - CORRECT ANSWER:
The Fair Credit Reporting Act
An installation floater is used to insure ____________. - CORRECT ANSWER:
Appliances intended to become a permanent part of the building
An insurance company sells an insurance policy over the phone in response to a TV ad.
Which of the following best describes this act? - CORRECT ANSWER: Direct response
marketing
An insured condominium unit owner wants to purchase fire and extended coverage for
personal property and liability coverage for himself and his family members. He should
purchase __________. - CORRECT ANSWER: HO-6
An insured purchased an insurance policy 5 years ago. Last year she received a
dividend check from the insurance company that was not taxable. This year, she did not
receive a check from the insurer. From what type of insurer did the insured purchase the
policy? - CORRECT ANSWER: mutual
