SC Life Insurance Exam Questions and
Answers Already Graded A+
The balance of the loan will be taken out of the death benefit answer - If a policy has a
automatic loan provision, what happens if the insured dies before the loan is paid back?
Inspection Report answer - An insurer receives a report regarding potential insured that
includes financial status, hobbies, and habits. What type of report is that?
Spendthrift Clause answer - The clause that protects the proceeds of a life insurance policy
from creditors after the death of the insured is known as
Term answer - Children's riders attached to whole life policies are usually issued as what type of
insurance?
Decreasing Term answer - An individual has just borrowed $10,000 from his bank on a 5-year
installment loan requiring monthly payments. What type of life insurance policy would be best
suited to this situation
24 total hours, including 8 hours approved for the line of licensing that the producer holds
answer - How many hours of CE must be completed every 2 years?
The creditors have rights to the proceeds if they can show evidence of valid assignment answer
- Which of the following statements is true concerning the creditors of the deceased insured?
Insurable interest and consent answer - A life insurance policy has a legal purpose if both of
which of the following elements exist?
,Cost of Living Rider answer - A long stretch of national economic hardship causes a 7% rate of
inflation. A policy owner notices that the face value of her life insurance policy has been raised
7% as a result. Which policy rider caused this change?
Universal Life answer - Which of the following Life Insurance policies would be considered
interest-sensitive?
Express Authority answer - The authority granted to an agent through the agent's contract is
referred to as
The policyowner must sign a delivery receipt answer - What must happen when an individual
policy or annuity has been personally delivered to the policyowner?
Reinsure policies of the insolvent insurer through other companies answer - In the event of an
insurer's insolvency, the South Carolina Life and Health Guaranty Association will
within 30 days answer - Once the Director issues a cease and desist order, how soon must an
insurer comply with the order?
It is reduced to the amount of what the cash value would buy as a single premium answer -
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of
the policy?
Suggesting negotiations in settling the claim answer - All of the following are unfair claims
settlement practices EXCEPT
3 answer - How many hours of continuing education in Ethics are required each compliance
period
, The Broker answer - In the transaction of insurance, which of the following is considered to be
representing the client?
The beneficiary answer - In a group life insurance policy, the employer may select all of the
following EXCEPT
Lower answer - The premium of a survivorship life policy compared with that of a joint life
policy would be
It begins when the policy is delivered. answer - Which of the following is TRUE about the 10-
day-free=look period in a Life Insurance policy?
It is a life contingency option answer - All of the following statements are true regarding
installments for a fixed period annuity settlement option EXCEPT
The Client answer - An insurance producer has not been appointed to an insurance company.
Who is the producer considered to represent?
Any form of life insurance answer - Partners in a business enter into a buy-sell agreement to
purchase life insurance, which states that should one of them die prematurely, the other would
be financially able to buy the interest of the deceased partner. What type of insurance policy
may be used to fund this agreement
Any person licensed to sell, solicit or negotiate insurance answer - Who is an insurance
producer
The owner answer - In life settlement contract, who does the life settlement broker represent?
The payable premium amount steadily declines throughout the duration of the contract.
answer - All of the following are true regarding a decreasing term policy EXCEPT
Answers Already Graded A+
The balance of the loan will be taken out of the death benefit answer - If a policy has a
automatic loan provision, what happens if the insured dies before the loan is paid back?
Inspection Report answer - An insurer receives a report regarding potential insured that
includes financial status, hobbies, and habits. What type of report is that?
Spendthrift Clause answer - The clause that protects the proceeds of a life insurance policy
from creditors after the death of the insured is known as
Term answer - Children's riders attached to whole life policies are usually issued as what type of
insurance?
Decreasing Term answer - An individual has just borrowed $10,000 from his bank on a 5-year
installment loan requiring monthly payments. What type of life insurance policy would be best
suited to this situation
24 total hours, including 8 hours approved for the line of licensing that the producer holds
answer - How many hours of CE must be completed every 2 years?
The creditors have rights to the proceeds if they can show evidence of valid assignment answer
- Which of the following statements is true concerning the creditors of the deceased insured?
Insurable interest and consent answer - A life insurance policy has a legal purpose if both of
which of the following elements exist?
,Cost of Living Rider answer - A long stretch of national economic hardship causes a 7% rate of
inflation. A policy owner notices that the face value of her life insurance policy has been raised
7% as a result. Which policy rider caused this change?
Universal Life answer - Which of the following Life Insurance policies would be considered
interest-sensitive?
Express Authority answer - The authority granted to an agent through the agent's contract is
referred to as
The policyowner must sign a delivery receipt answer - What must happen when an individual
policy or annuity has been personally delivered to the policyowner?
Reinsure policies of the insolvent insurer through other companies answer - In the event of an
insurer's insolvency, the South Carolina Life and Health Guaranty Association will
within 30 days answer - Once the Director issues a cease and desist order, how soon must an
insurer comply with the order?
It is reduced to the amount of what the cash value would buy as a single premium answer -
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of
the policy?
Suggesting negotiations in settling the claim answer - All of the following are unfair claims
settlement practices EXCEPT
3 answer - How many hours of continuing education in Ethics are required each compliance
period
, The Broker answer - In the transaction of insurance, which of the following is considered to be
representing the client?
The beneficiary answer - In a group life insurance policy, the employer may select all of the
following EXCEPT
Lower answer - The premium of a survivorship life policy compared with that of a joint life
policy would be
It begins when the policy is delivered. answer - Which of the following is TRUE about the 10-
day-free=look period in a Life Insurance policy?
It is a life contingency option answer - All of the following statements are true regarding
installments for a fixed period annuity settlement option EXCEPT
The Client answer - An insurance producer has not been appointed to an insurance company.
Who is the producer considered to represent?
Any form of life insurance answer - Partners in a business enter into a buy-sell agreement to
purchase life insurance, which states that should one of them die prematurely, the other would
be financially able to buy the interest of the deceased partner. What type of insurance policy
may be used to fund this agreement
Any person licensed to sell, solicit or negotiate insurance answer - Who is an insurance
producer
The owner answer - In life settlement contract, who does the life settlement broker represent?
The payable premium amount steadily declines throughout the duration of the contract.
answer - All of the following are true regarding a decreasing term policy EXCEPT
