SOUTH CAROLINA INSURANCE EXAM LATEST 2026 UPDATED
QUESTIONS AND VERIFIED 100% SOLUTIONS (2026/2027) |A+
GRADED |GUARANTEED PASS
Frank is shopping for a disability income policy. Which of the following would have the HIGHEST
premium? - 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? - Answers -Experience rating
In regards to a life insurance contract, which of the following statements is NOT true regarding
the concept of insurable interest? - Answers -Insurable interest can be established sufficiently
by sentimental attachment alone
Under a Modified Endowment Contract, what are the likely tax consequences? - Answers -Pre-
death distributions will become taxable
Key person Disability Insurance pays benefits to the - 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? - Answers -May 30
1|Page
,What happens to interest earned if the annuitant dies before the payout start date? - Answers -
It is taxable
The taxable portion of each annuity payment is calculated using which method? - Answers -
Exclusion Ratio
What kind of life insurance policy issued by a mutual insurer provides a return of divisible
surplus? - Answers -participating life insurance policy
What happens to the coverage under a children's term rider when that child reached a certain
specified age? - Answers -Coverage is eliminated
Under a disability income policy, which provision would be payable if the cause of an injury is
unexpected and accidental? - 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? - Answers -Human life value approach
Which of these will have the highest monthly payout upon annuitization - Answers -Straight life
2|Page
, Which of the following is NOT an Unfair Claim Settlement Practice? - Answers -Providing claim
payments to insureds according to the policy's coverage guidelines
With a scheduled dental policy, how are covered expenses paid? - Answers -Benefits are limited
to a specific maximum dollar amount per procedure
Medicare Part A (aka Hospital Insurance or HI) covers - Answers -inpatient hospital stay
Within___days after policy delivery, an individual life insurance policy can be returned for a
100% premium refund - Answers -10
Tyler purchased a disability policy with a waiver of premium rider on April 1. He is disabled on
May 1. On June 1, he receives proof of permanent and total disability, and submits a claim. He
begins receiving benefits on June 15. When are his premiums waived? - Answers -May 1
Sole proprietors are permitted tax deduction for health cost paid from their earnings in the
amount of - Answers -100% of cost
Health Insurance will typically cover which of the following perils? - Answers -Injury due to
accident
3|Page
QUESTIONS AND VERIFIED 100% SOLUTIONS (2026/2027) |A+
GRADED |GUARANTEED PASS
Frank is shopping for a disability income policy. Which of the following would have the HIGHEST
premium? - 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? - Answers -Experience rating
In regards to a life insurance contract, which of the following statements is NOT true regarding
the concept of insurable interest? - Answers -Insurable interest can be established sufficiently
by sentimental attachment alone
Under a Modified Endowment Contract, what are the likely tax consequences? - Answers -Pre-
death distributions will become taxable
Key person Disability Insurance pays benefits to the - 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? - Answers -May 30
1|Page
,What happens to interest earned if the annuitant dies before the payout start date? - Answers -
It is taxable
The taxable portion of each annuity payment is calculated using which method? - Answers -
Exclusion Ratio
What kind of life insurance policy issued by a mutual insurer provides a return of divisible
surplus? - Answers -participating life insurance policy
What happens to the coverage under a children's term rider when that child reached a certain
specified age? - Answers -Coverage is eliminated
Under a disability income policy, which provision would be payable if the cause of an injury is
unexpected and accidental? - 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? - Answers -Human life value approach
Which of these will have the highest monthly payout upon annuitization - Answers -Straight life
2|Page
, Which of the following is NOT an Unfair Claim Settlement Practice? - Answers -Providing claim
payments to insureds according to the policy's coverage guidelines
With a scheduled dental policy, how are covered expenses paid? - Answers -Benefits are limited
to a specific maximum dollar amount per procedure
Medicare Part A (aka Hospital Insurance or HI) covers - Answers -inpatient hospital stay
Within___days after policy delivery, an individual life insurance policy can be returned for a
100% premium refund - Answers -10
Tyler purchased a disability policy with a waiver of premium rider on April 1. He is disabled on
May 1. On June 1, he receives proof of permanent and total disability, and submits a claim. He
begins receiving benefits on June 15. When are his premiums waived? - Answers -May 1
Sole proprietors are permitted tax deduction for health cost paid from their earnings in the
amount of - Answers -100% of cost
Health Insurance will typically cover which of the following perils? - Answers -Injury due to
accident
3|Page
