SOUTH CAROLINA LIFE AND HEALTH
INSURANCE PRACTICE EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. What is the primary purpose of life insurance?
A. To accumulate wealth
B. To provide financial protection to beneficiaries
C. To pay off mortgages
D. To avoid taxation
The main goal of life insurance is to offer financial support to beneficiaries
after the insured's death.
2. In South Carolina, how many days does a policyowner have to return a life
insurance policy under the free-look period?
A. 5 days
B. 10 days
C. 20 days
D. 30 days
The free-look period in South Carolina is 10 days from policy delivery.
, 3. Which of the following is a required provision in a health insurance policy?
A. Grace period
B. Time limit on certain defenses
C. Consideration
D. Optional renewability
“Time Limit on Certain Defenses” is a mandatory provision to limit
insurer’s ability to contest claims.
4. What does the term “level term” refer to in life insurance?
A. The premiums increase yearly
B. The death benefit remains the same throughout the term
C. The term lasts for life
D. Cash value builds over time
Level term insurance offers a fixed death benefit during the policy term.
5. Under South Carolina law, who must be licensed to sell insurance?
A. Anyone who files claims
B. Medical examiners
C. Any person who solicits or negotiates insurance contracts
D. Actuaries
Only individuals actively selling, soliciting, or negotiating insurance must
be licensed.
6. What does the term “beneficiary” mean?
A. A person who buys insurance
B. A person who receives the death benefit
C. The underwriter of the policy
INSURANCE PRACTICE EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. What is the primary purpose of life insurance?
A. To accumulate wealth
B. To provide financial protection to beneficiaries
C. To pay off mortgages
D. To avoid taxation
The main goal of life insurance is to offer financial support to beneficiaries
after the insured's death.
2. In South Carolina, how many days does a policyowner have to return a life
insurance policy under the free-look period?
A. 5 days
B. 10 days
C. 20 days
D. 30 days
The free-look period in South Carolina is 10 days from policy delivery.
, 3. Which of the following is a required provision in a health insurance policy?
A. Grace period
B. Time limit on certain defenses
C. Consideration
D. Optional renewability
“Time Limit on Certain Defenses” is a mandatory provision to limit
insurer’s ability to contest claims.
4. What does the term “level term” refer to in life insurance?
A. The premiums increase yearly
B. The death benefit remains the same throughout the term
C. The term lasts for life
D. Cash value builds over time
Level term insurance offers a fixed death benefit during the policy term.
5. Under South Carolina law, who must be licensed to sell insurance?
A. Anyone who files claims
B. Medical examiners
C. Any person who solicits or negotiates insurance contracts
D. Actuaries
Only individuals actively selling, soliciting, or negotiating insurance must
be licensed.
6. What does the term “beneficiary” mean?
A. A person who buys insurance
B. A person who receives the death benefit
C. The underwriter of the policy
