South Carolina Insurance Exam Questions
with 100% correct detailed verified
answers latest update 2025
A producer has committed an insurance crime that violates US Code
1033 (interstate commerce). Who would be responsible for the
persecution of this crime? --- correct precise answers ---US attorney
general
Under a group life policy, the insurer will issue an individual _____ to
the policyowner for delivery to each person insured. --- correct
precise answers ---certificate
Frank is shopping for a disability income policy. Which of the
following would have the HIGHEST premium? --- correct precise
answers ---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? --- correct precise answers ---Experience rating
In regards to a life insurance contract, which of the following
statements is NOT true regarding the concept of insurable interest? ---
correct precise answers ---Insurable interest can be established
sufficiently by sentimental attachment alone
Under a Modified Endowment Contract, what are the likely tax
consequences? --- correct precise answers ---Pre-death distributions
will become taxable
Key person Disability Insurance pays benefits to the --- correct
precise answers ---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? ---
correct precise answers ---May 30
, What happens to interest earned if the annuitant dies before the
payout start date? --- correct precise answers ---It is taxable
The taxable portion of each annuity payment is calculated using which
method? --- correct precise answers ---Exclusion Ratio
What kind of life insurance policy issued by a mutual insurer provides
a return of divisible surplus? --- correct precise answers ---
participating life insurance policy
What happens to the coverage under a children's term rider when that
child reached a certain specified age? --- correct precise answers ---
Coverage is eliminated
Under a disability income policy, which provision would be payable if
the cause of an injury is unexpected and accidental? --- correct
precise answers ---accidental bodily injury provision
Which of approach predicts a persons earning potential and
determines how much of that amount would be devoted to
dependents? --- correct precise answers ---Human life value approach
with 100% correct detailed verified
answers latest update 2025
A producer has committed an insurance crime that violates US Code
1033 (interstate commerce). Who would be responsible for the
persecution of this crime? --- correct precise answers ---US attorney
general
Under a group life policy, the insurer will issue an individual _____ to
the policyowner for delivery to each person insured. --- correct
precise answers ---certificate
Frank is shopping for a disability income policy. Which of the
following would have the HIGHEST premium? --- correct precise
answers ---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? --- correct precise answers ---Experience rating
In regards to a life insurance contract, which of the following
statements is NOT true regarding the concept of insurable interest? ---
correct precise answers ---Insurable interest can be established
sufficiently by sentimental attachment alone
Under a Modified Endowment Contract, what are the likely tax
consequences? --- correct precise answers ---Pre-death distributions
will become taxable
Key person Disability Insurance pays benefits to the --- correct
precise answers ---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? ---
correct precise answers ---May 30
, What happens to interest earned if the annuitant dies before the
payout start date? --- correct precise answers ---It is taxable
The taxable portion of each annuity payment is calculated using which
method? --- correct precise answers ---Exclusion Ratio
What kind of life insurance policy issued by a mutual insurer provides
a return of divisible surplus? --- correct precise answers ---
participating life insurance policy
What happens to the coverage under a children's term rider when that
child reached a certain specified age? --- correct precise answers ---
Coverage is eliminated
Under a disability income policy, which provision would be payable if
the cause of an injury is unexpected and accidental? --- correct
precise answers ---accidental bodily injury provision
Which of approach predicts a persons earning potential and
determines how much of that amount would be devoted to
dependents? --- correct precise answers ---Human life value approach
