SOUTH CAROLINA LIFE AND HEALTH INSURANCE
2024 EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE 294 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS) /
ALREADY GRADED A+
A guaranteed issue insurance policy has no - ANSWER....medical underwriting
Pre-death distributions from a modified endowment contract (MEC) receive different tax
treatment than other life insurance policies because - ANSWER....the MEC tends to be an
investment vehicle.
Which of these premium payment frequencies is not typically available to a policyowner? -
ANSWER....biweekly
all of the following are examples of a business continuation plan except - ANSWER....deferred
compensation
what is the purpose for having an accelerated death benefit on an life insurance policy -
ANSWER....it allows for cash advances to be paid against the death benefit if the insured
becomes terminally ill.
which of the following unfair trade practices involves a producer who makes public, malicious
statements about an insurers financial condition. - ANSWER....defamation
a life insurance policy written on one contract for two people in which it is payable upon the first
death is called - ANSWER....joint
under which circumstance may a commission be shared between two producers -
ANSWER....when they are both licensed in the same line of business
a producer must renew their license every - ANSWER....two years
all of these are considered key factors in underwriting life insurance except -
ANSWER....marital status
A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax
consequences. - ANSWER....60
an insurer formed according to the legal requirements of another country is considered an -
ANSWER....alien insurer
which of these is not an unfair claims settlement practice - ANSWER....providing claim
payments to insured under the guidelines of the insurance contract
,the typical free look period for life insurance policies sold in SC is ___ days - ANSWER....10
kurt is an active-duty serviceman who was recently killed in an accident while home on leave
which military service exclusion clause would pay upon his death - ANSWER....results clause
Which type of rider will waive the premium on a child's life insurance policy if the parent paying
the premium dies? - ANSWER....payor benefit
who assumes the investment risk with a fixed annuity contract? - ANSWER....the insurer
legal purpose is a term used in contract law meaning - ANSWER....there must be legal reasons
for entering the contract
A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n) -
ANSWER....partial surrender
A type of group that has a constitution and bylaws and has been organized for purposes other
than obtaining insurance is called a(n) - ANSWER....association or labor group
a life insurance policy becomes incontestable after it has been in force for - ANSWER....two
years
Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the
cash value has accumulated to $100,000 and the policy's face amount has become $600,000.
Which type of life insurance policy is this? - ANSWER....universal life
The deeds and actions of a producer indicate what kind of authority? - ANSWER....apparent
An attending physician's statement would be appropriate for which life insurance purpose? -
ANSWER....at the request of the insurer to assist in the underwriting decision
a life insurance REPLACEMENT transaction gives the policyowner the right to return the policy
for a 100% refund within _____ days of policy delivery - ANSWER....30
all of the following are typically included in a life insurance policy illustration except -
ANSWER....names of the beneficiaries
under a non-qualified annutity interests is taxed after the - ANSWER....exclusion ratio has been
calculated
craig purchased a life insurance policy for enabling his heirs to pay estate taxes what is this
called - ANSWER....estate conversion
a producer must report to the director any administrative action or criminal charges taken against
the producer within ____ days - ANSWER....30
, Kathys annuity is currently experiencing tax-deffered growth until she retires. which phase is the
annuity in - ANSWER....accumilation period
a life insurance policy owner was injured in a automobile accident which results in a total and
permanent disability. which rider would pay a monthly amount because of this disability? -
ANSWER....disability income rider
ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation
is called - ANSWER....reinsurance
Which market index is normally associated with an indexed annuity's rate of return? -
ANSWER....S&P 500
OF THE FOLLOWING DIVIDEND OPTIONS WHICH OF THESE IS TAXABLE -
ANSWER....accumulation at interests
loans obtained by a policyowner against the cash value of a life insurance policy -
ANSWER....would not be treated as taxable income
Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she
purchase that is designed to pay off the loan balance if she dies within the 30-year period? -
ANSWER....decreasing term insurance
Interest on benefits of a life insurance policy shall begin to accrue ____ days from the date of
receipt of proof of death by the insurer. - ANSWER....30
what is the automatic continuance of insurance coverage referred to as - ANSWER....renewal
all of the following actions are considered rebating except - ANSWER....sharing commissions
with other licensed and appointed producers
which of the following are the premium payments for a universal life policy NOT used for -
ANSWER....separate account investments
Barbara's policy includes a rider which allows her to purchase additional insurance at specific
dates or events without evidence of insurability. This rider is called a(n) -
ANSWER....guaranteed insurability rider
over the course of a year which premium payment mode is most expensive -
ANSWER....monthly payments
An example of an unfair claims settlement practice is - ANSWER....failing to provide a
reasonable basis for the denial of a claim upon request
2024 EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE 294 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS) /
ALREADY GRADED A+
A guaranteed issue insurance policy has no - ANSWER....medical underwriting
Pre-death distributions from a modified endowment contract (MEC) receive different tax
treatment than other life insurance policies because - ANSWER....the MEC tends to be an
investment vehicle.
Which of these premium payment frequencies is not typically available to a policyowner? -
ANSWER....biweekly
all of the following are examples of a business continuation plan except - ANSWER....deferred
compensation
what is the purpose for having an accelerated death benefit on an life insurance policy -
ANSWER....it allows for cash advances to be paid against the death benefit if the insured
becomes terminally ill.
which of the following unfair trade practices involves a producer who makes public, malicious
statements about an insurers financial condition. - ANSWER....defamation
a life insurance policy written on one contract for two people in which it is payable upon the first
death is called - ANSWER....joint
under which circumstance may a commission be shared between two producers -
ANSWER....when they are both licensed in the same line of business
a producer must renew their license every - ANSWER....two years
all of these are considered key factors in underwriting life insurance except -
ANSWER....marital status
A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax
consequences. - ANSWER....60
an insurer formed according to the legal requirements of another country is considered an -
ANSWER....alien insurer
which of these is not an unfair claims settlement practice - ANSWER....providing claim
payments to insured under the guidelines of the insurance contract
,the typical free look period for life insurance policies sold in SC is ___ days - ANSWER....10
kurt is an active-duty serviceman who was recently killed in an accident while home on leave
which military service exclusion clause would pay upon his death - ANSWER....results clause
Which type of rider will waive the premium on a child's life insurance policy if the parent paying
the premium dies? - ANSWER....payor benefit
who assumes the investment risk with a fixed annuity contract? - ANSWER....the insurer
legal purpose is a term used in contract law meaning - ANSWER....there must be legal reasons
for entering the contract
A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n) -
ANSWER....partial surrender
A type of group that has a constitution and bylaws and has been organized for purposes other
than obtaining insurance is called a(n) - ANSWER....association or labor group
a life insurance policy becomes incontestable after it has been in force for - ANSWER....two
years
Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the
cash value has accumulated to $100,000 and the policy's face amount has become $600,000.
Which type of life insurance policy is this? - ANSWER....universal life
The deeds and actions of a producer indicate what kind of authority? - ANSWER....apparent
An attending physician's statement would be appropriate for which life insurance purpose? -
ANSWER....at the request of the insurer to assist in the underwriting decision
a life insurance REPLACEMENT transaction gives the policyowner the right to return the policy
for a 100% refund within _____ days of policy delivery - ANSWER....30
all of the following are typically included in a life insurance policy illustration except -
ANSWER....names of the beneficiaries
under a non-qualified annutity interests is taxed after the - ANSWER....exclusion ratio has been
calculated
craig purchased a life insurance policy for enabling his heirs to pay estate taxes what is this
called - ANSWER....estate conversion
a producer must report to the director any administrative action or criminal charges taken against
the producer within ____ days - ANSWER....30
, Kathys annuity is currently experiencing tax-deffered growth until she retires. which phase is the
annuity in - ANSWER....accumilation period
a life insurance policy owner was injured in a automobile accident which results in a total and
permanent disability. which rider would pay a monthly amount because of this disability? -
ANSWER....disability income rider
ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation
is called - ANSWER....reinsurance
Which market index is normally associated with an indexed annuity's rate of return? -
ANSWER....S&P 500
OF THE FOLLOWING DIVIDEND OPTIONS WHICH OF THESE IS TAXABLE -
ANSWER....accumulation at interests
loans obtained by a policyowner against the cash value of a life insurance policy -
ANSWER....would not be treated as taxable income
Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she
purchase that is designed to pay off the loan balance if she dies within the 30-year period? -
ANSWER....decreasing term insurance
Interest on benefits of a life insurance policy shall begin to accrue ____ days from the date of
receipt of proof of death by the insurer. - ANSWER....30
what is the automatic continuance of insurance coverage referred to as - ANSWER....renewal
all of the following actions are considered rebating except - ANSWER....sharing commissions
with other licensed and appointed producers
which of the following are the premium payments for a universal life policy NOT used for -
ANSWER....separate account investments
Barbara's policy includes a rider which allows her to purchase additional insurance at specific
dates or events without evidence of insurability. This rider is called a(n) -
ANSWER....guaranteed insurability rider
over the course of a year which premium payment mode is most expensive -
ANSWER....monthly payments
An example of an unfair claims settlement practice is - ANSWER....failing to provide a
reasonable basis for the denial of a claim upon request
