SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE EXAM
LATEST 2026 UPDATED QUESTIONS AND VERIFIED 100% SOLUTIONS
(2026/2027) |A+ GRADED |GUARANTEED PASS
In a farm policy, which of the following coverages would reimburse the insured for loss of rental
income following damage to the insured dwelling by an insured peril? - Answers -Coverage D
What provision in a property policy applies when the insurer broadens coverage but does not
increase the premium? - Answers -Liberalization clause
The primary purpose of a surety bond is to ________. - Answers -Make sure obligations are
fulfilled
According to the standard mortgage clause, who has the right to bring a suit in their own name
to recover damages, pay policy premiums, and submit a proof of loss? - Answers -Mortgagee
Once the Director issues a cease and desist order, how soon must as insurer comply with the
order? - Answers -Within 30 days
Which of the following statements is true regarding the commercial general liability policy's
Coverage C- Medical Payments? - Answers -The coverage is considered good will because
payments are made without regard to fault
1|Page
,Which of the following is a mandatory part of an insurance policy that varies with each
individual policy? - Answers -Declarations
Which of the following property coverages would provide protection to contents damaged by
fire? - Answers -Coverage C
Which of the following is NOT an optional coverage available in a business owners policy? -
Answers -Workers Compensation
Which of the following home owners policies covers those who rent their dwelling? - Answers -
HO-4
Coverage A- Bodily Injury and Property Damage in the commercial general liability policy will
cover _________. - Answers -Losses due to the insured's negligence
Illegal use of narcotics would be an example of a - Answers -moral hazard
Which of the following types of valuation works best for property whose value does not
fluctuate much? - Answers -Agreed Value
2|Page
, After acceptance of an application by the SCWHUA how long is the waiting period before
coverage is effective? - Answers -15 days
An insured's has an actual cash value of $200,000 and he has insured the property for $120,000
with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? -
Answers -$30,000
Which of the following would be included in the farm liability coverage forms? - Answers -Bodily
injury to a residence employee
Which of the following would the livestock coverage form NOT insure against? - Answers -The
euthanasia of livestock after being hit by a vehicle
If the premium charged for a particular insured is increased or decreased for a future period
based on that insured's loss experience for a period in the recent past, the policy uses a/an
_______. - Answers -Experience rating plan
A policy condition that states if a policy is broadened with no additional premium, then the
expanded coverage will be automatically applied to all policies of the same type is known as
_________. - Answers -Liberalization clause
A tornado that destroys property would be an example of which of the following? - Answers -A
peril
3|Page
LATEST 2026 UPDATED QUESTIONS AND VERIFIED 100% SOLUTIONS
(2026/2027) |A+ GRADED |GUARANTEED PASS
In a farm policy, which of the following coverages would reimburse the insured for loss of rental
income following damage to the insured dwelling by an insured peril? - Answers -Coverage D
What provision in a property policy applies when the insurer broadens coverage but does not
increase the premium? - Answers -Liberalization clause
The primary purpose of a surety bond is to ________. - Answers -Make sure obligations are
fulfilled
According to the standard mortgage clause, who has the right to bring a suit in their own name
to recover damages, pay policy premiums, and submit a proof of loss? - Answers -Mortgagee
Once the Director issues a cease and desist order, how soon must as insurer comply with the
order? - Answers -Within 30 days
Which of the following statements is true regarding the commercial general liability policy's
Coverage C- Medical Payments? - Answers -The coverage is considered good will because
payments are made without regard to fault
1|Page
,Which of the following is a mandatory part of an insurance policy that varies with each
individual policy? - Answers -Declarations
Which of the following property coverages would provide protection to contents damaged by
fire? - Answers -Coverage C
Which of the following is NOT an optional coverage available in a business owners policy? -
Answers -Workers Compensation
Which of the following home owners policies covers those who rent their dwelling? - Answers -
HO-4
Coverage A- Bodily Injury and Property Damage in the commercial general liability policy will
cover _________. - Answers -Losses due to the insured's negligence
Illegal use of narcotics would be an example of a - Answers -moral hazard
Which of the following types of valuation works best for property whose value does not
fluctuate much? - Answers -Agreed Value
2|Page
, After acceptance of an application by the SCWHUA how long is the waiting period before
coverage is effective? - Answers -15 days
An insured's has an actual cash value of $200,000 and he has insured the property for $120,000
with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? -
Answers -$30,000
Which of the following would be included in the farm liability coverage forms? - Answers -Bodily
injury to a residence employee
Which of the following would the livestock coverage form NOT insure against? - Answers -The
euthanasia of livestock after being hit by a vehicle
If the premium charged for a particular insured is increased or decreased for a future period
based on that insured's loss experience for a period in the recent past, the policy uses a/an
_______. - Answers -Experience rating plan
A policy condition that states if a policy is broadened with no additional premium, then the
expanded coverage will be automatically applied to all policies of the same type is known as
_________. - Answers -Liberalization clause
A tornado that destroys property would be an example of which of the following? - Answers -A
peril
3|Page
