©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Laws and Rules Pertinent to Insurance
Questions And Answers Updated 2024/2025
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 - answer✔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 - answer✔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 - answer✔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
1|Page
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ALL RIGHTS RESERVED.
A special favor in the payment of premiums
Giving merchandise to a client with a value of $100 - answer✔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 - answer✔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 - answer✔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 - answer✔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 - answer✔appointed by the insurer
A policy illustration given at time of sale does NOT typically include the:
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, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
cash value of the policy
names of the beneficiary
effective interest rate for policy loans
10th and 20th year cost surrender value - answer✔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 - answer✔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 - answer✔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
Silver Plan
Gold Plan
Platinum Plan - answer✔Silver plan
When a life insurance policy is issued to replace another life insurance policy, which of the
following does NOT need to be provided to the purchaser at or before the time the policy is
delivered?
Disclosure Statement
The replacing insurer's financial statements
A policy summary
3|Page
ALL RIGHTS RESERVED.
Laws and Rules Pertinent to Insurance
Questions And Answers Updated 2024/2025
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 - answer✔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 - answer✔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 - answer✔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
1|Page
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
A special favor in the payment of premiums
Giving merchandise to a client with a value of $100 - answer✔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 - answer✔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 - answer✔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 - answer✔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 - answer✔appointed by the insurer
A policy illustration given at time of sale does NOT typically include the:
2|Page
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
cash value of the policy
names of the beneficiary
effective interest rate for policy loans
10th and 20th year cost surrender value - answer✔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 - answer✔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 - answer✔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
Silver Plan
Gold Plan
Platinum Plan - answer✔Silver plan
When a life insurance policy is issued to replace another life insurance policy, which of the
following does NOT need to be provided to the purchaser at or before the time the policy is
delivered?
Disclosure Statement
The replacing insurer's financial statements
A policy summary
3|Page
