Laws And Rules Pertinent To Insurance Acual
Questions And Answers With Well Detailed
Solutions Grade A+.
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
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:
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
Questions And Answers With Well Detailed
Solutions Grade A+.
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
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:
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
