Laws and Rules Pertinent to Insurance Exam
(Latest ) Tested Questions with
Revised Answers, (A+ Guarantee)
A form of medical health insurance covering the treatment and care of gum disease is called:
Medicaid
Major Medical
Franchise health policy
Dental expense insurance - CORRECT ANSWERS Dental expense insurance
In South Carolina, what is the MAXIMUM length of time an insurer can defer payment of a cash
surrender value of an annuity?
6 months
12 months
18 months
24 months - CORRECT ANSWERS 6 months
When can a policy no longer be cancelled for nonfraudulent misstatements after its date of issue?
1 year
2 years
5 years
At any time - CORRECT ANSWERS 2 years
Which of the following is NOT an example of inducement to purchase insurance?
A promise of employment
,A gift having a value less than $25
A special favor in the payment of premiums
Giving merchandise to a client with a value of $100 - CORRECT ANSWERS A gift having a value
less than $25
The Director MUST examine domestic insurers AT LEAST once every:
year
3 years
5 years
7 years - CORRECT ANSWERS 5 years
An insurer may refuse to issue a policy to a particular insurance applicant for a reason based solely on:
medical condition
race
gender
creed - CORRECT ANSWERS medical condition
Mary is issued an initial producer's license on April 29, 2012. Her birthdate is March 14, 1980. When
does her license renew?
March 31, 2013
April 29, 2013
March 31, 2014
April 29, 2014 - CORRECT ANSWERS March 31, 2014
An insurance producer CANNOT act as an agent of an insurer until the insurance producer becomes:
licensed
, designated responsible producer
a member of the National Association of Insurance Commissioners (NAIC)
appointed by the insurer - CORRECT ANSWERS appointed by the insurer
A policy illustration given at time of sale does NOT typically include the:
cash value of the policy
names of the beneficiary
effective interest rate for policy loans
10th and 20th year cost surrender value - CORRECT ANSWERS Names of the beneficiary
Someone who sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer
is called:
an insurance broker
an insurance producer
an insurance advisor
an insurance solicitor - CORRECT ANSWERS an insurance producer
How many years is a producer REQUIRED to maintain transaction records of a policy?
3 years
5 years
7 years
10 years - CORRECT ANSWERS 5 years
According to the Affordable Care Act, what metal tier is required to have an actuarial value of 70% with
covered individuals paying 30% through deductibles, co-pays, and other cost sharing features?
Bronze Plan
(Latest ) Tested Questions with
Revised Answers, (A+ Guarantee)
A form of medical health insurance covering the treatment and care of gum disease is called:
Medicaid
Major Medical
Franchise health policy
Dental expense insurance - CORRECT ANSWERS Dental expense insurance
In South Carolina, what is the MAXIMUM length of time an insurer can defer payment of a cash
surrender value of an annuity?
6 months
12 months
18 months
24 months - CORRECT ANSWERS 6 months
When can a policy no longer be cancelled for nonfraudulent misstatements after its date of issue?
1 year
2 years
5 years
At any time - CORRECT ANSWERS 2 years
Which of the following is NOT an example of inducement to purchase insurance?
A promise of employment
,A gift having a value less than $25
A special favor in the payment of premiums
Giving merchandise to a client with a value of $100 - CORRECT ANSWERS A gift having a value
less than $25
The Director MUST examine domestic insurers AT LEAST once every:
year
3 years
5 years
7 years - CORRECT ANSWERS 5 years
An insurer may refuse to issue a policy to a particular insurance applicant for a reason based solely on:
medical condition
race
gender
creed - CORRECT ANSWERS medical condition
Mary is issued an initial producer's license on April 29, 2012. Her birthdate is March 14, 1980. When
does her license renew?
March 31, 2013
April 29, 2013
March 31, 2014
April 29, 2014 - CORRECT ANSWERS March 31, 2014
An insurance producer CANNOT act as an agent of an insurer until the insurance producer becomes:
licensed
, designated responsible producer
a member of the National Association of Insurance Commissioners (NAIC)
appointed by the insurer - CORRECT ANSWERS appointed by the insurer
A policy illustration given at time of sale does NOT typically include the:
cash value of the policy
names of the beneficiary
effective interest rate for policy loans
10th and 20th year cost surrender value - CORRECT ANSWERS Names of the beneficiary
Someone who sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer
is called:
an insurance broker
an insurance producer
an insurance advisor
an insurance solicitor - CORRECT ANSWERS an insurance producer
How many years is a producer REQUIRED to maintain transaction records of a policy?
3 years
5 years
7 years
10 years - CORRECT ANSWERS 5 years
According to the Affordable Care Act, what metal tier is required to have an actuarial value of 70% with
covered individuals paying 30% through deductibles, co-pays, and other cost sharing features?
Bronze Plan
