SOUTH CAROLINA LIFE INSURANCE
PRODUCER | COMPREHENSIVE LICENSING
EXAM PREP, PRACTICE QUESTIONS,
CORRECT ANSWERS AND STUDY GUIDE
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Updated 2026 Questions and Answers
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,reporting of actions a producer must report any bankruptcy, felony conviction, and the other administrative
action that occurs in South Carolina or another jurisdiction to the insurance department
within 30 days.
change of address producer must report to the insurance commissioner within 30 days any changes to legal
name or address.
assumed names an insurance producer doing business under any name other than the producers legal
name is required to notify the insurance commissioner.
continuing education producers are required to have 24 hours of this training every two years.
cease and desist order this order is given by a government administrative agency or the courts to stop any
suspicious or illegal activity.
notice of hearings the director make call and hold a ________ for any purpose deemed necessary. The notice
must be given to a person cited at least 30 days prior to the designated date.
penalties any person who performs an act without a license is guilty of a misdemeanor and upon
conviction must be fine not more than $10,000 or in prison for two years or both.
director's duties and powers the director must follow the general policies and broad objectives enacted by the
general assembly regarding the operation of insurance industry in this state. C-section 38
- 3 - 110 and the code for more info.
certificate of authority a license issued by the state to an insurance company that allows the company to
conduct its business.
insolvency a financial state that occurs if liabilities are greater than assets. the director will suspend
the Certificate of Authority for any insurer that falls into this category or is delinquent in
claims payment.
rates life insurance cost usually paid as a premium for a set amount of time. this is regulated by
the director of insurance.
policy forms State insurance commissioners have the authority to approve or disapprove new
contracts or certificates before they are sold to the public.
, Unfair Claims Settlement practices Failing to approve or deny coverage of a claim within a reasonable period after a proof-
of-loss statement has been completed or attempting to reduce the size of the claim.
inspection The director may examine books and records for any insurer, any pension fund,
retirement system, or organization authorized in the state of SC every 5 years.
appointment authorized insurers have the right to appoint any number of producers to take risk for
transact any business of insurance in the state. Notice of appointments must be filed
within 15 days.
termination of appointment when a contract of a producer is canceled by the represented insurer, that insurer shall
notify the department of the cancellation within the guidelines and time period listed in
section 38 - 43 - 55.
records maintenance all companies doing any kind of insurance business in this state shall make and keep a full
and correct record of the business done by them for a minimum of five years.
misappropriation of funds the use of money for a purpose other than that for which it was intended or legally
required to be used
blank forms unless otherwise stated, no producer may sign any blank application, contract, or policy
of insurance
sharing commissions an option for splitting income with another producer only when the other producer is
licensed in the same line of business.
representing an unauthorized insurer considered a misdemeanor, producers are personally liable for transacting business on
behalf of an insurer that is not licensed to do business in the state of South Carolina.
misrepresentation it is an illegal practice to do this for any facts about an insurance policy such as a policy,
terms, benefits, value, cost, effective date, or existence of a contract of insurance
false advertising it is illegal practice to do this with insurance products or services in any way this included
circulating statements, letters, or statements in newspapers, magazines or other
solicitation materials.
defamation is illegal practice to make any public statement or advertisement that contains false and
malicious information or unsubstantiated criticisms about an insurance company.
PRODUCER | COMPREHENSIVE LICENSING
EXAM PREP, PRACTICE QUESTIONS,
CORRECT ANSWERS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,reporting of actions a producer must report any bankruptcy, felony conviction, and the other administrative
action that occurs in South Carolina or another jurisdiction to the insurance department
within 30 days.
change of address producer must report to the insurance commissioner within 30 days any changes to legal
name or address.
assumed names an insurance producer doing business under any name other than the producers legal
name is required to notify the insurance commissioner.
continuing education producers are required to have 24 hours of this training every two years.
cease and desist order this order is given by a government administrative agency or the courts to stop any
suspicious or illegal activity.
notice of hearings the director make call and hold a ________ for any purpose deemed necessary. The notice
must be given to a person cited at least 30 days prior to the designated date.
penalties any person who performs an act without a license is guilty of a misdemeanor and upon
conviction must be fine not more than $10,000 or in prison for two years or both.
director's duties and powers the director must follow the general policies and broad objectives enacted by the
general assembly regarding the operation of insurance industry in this state. C-section 38
- 3 - 110 and the code for more info.
certificate of authority a license issued by the state to an insurance company that allows the company to
conduct its business.
insolvency a financial state that occurs if liabilities are greater than assets. the director will suspend
the Certificate of Authority for any insurer that falls into this category or is delinquent in
claims payment.
rates life insurance cost usually paid as a premium for a set amount of time. this is regulated by
the director of insurance.
policy forms State insurance commissioners have the authority to approve or disapprove new
contracts or certificates before they are sold to the public.
, Unfair Claims Settlement practices Failing to approve or deny coverage of a claim within a reasonable period after a proof-
of-loss statement has been completed or attempting to reduce the size of the claim.
inspection The director may examine books and records for any insurer, any pension fund,
retirement system, or organization authorized in the state of SC every 5 years.
appointment authorized insurers have the right to appoint any number of producers to take risk for
transact any business of insurance in the state. Notice of appointments must be filed
within 15 days.
termination of appointment when a contract of a producer is canceled by the represented insurer, that insurer shall
notify the department of the cancellation within the guidelines and time period listed in
section 38 - 43 - 55.
records maintenance all companies doing any kind of insurance business in this state shall make and keep a full
and correct record of the business done by them for a minimum of five years.
misappropriation of funds the use of money for a purpose other than that for which it was intended or legally
required to be used
blank forms unless otherwise stated, no producer may sign any blank application, contract, or policy
of insurance
sharing commissions an option for splitting income with another producer only when the other producer is
licensed in the same line of business.
representing an unauthorized insurer considered a misdemeanor, producers are personally liable for transacting business on
behalf of an insurer that is not licensed to do business in the state of South Carolina.
misrepresentation it is an illegal practice to do this for any facts about an insurance policy such as a policy,
terms, benefits, value, cost, effective date, or existence of a contract of insurance
false advertising it is illegal practice to do this with insurance products or services in any way this included
circulating statements, letters, or statements in newspapers, magazines or other
solicitation materials.
defamation is illegal practice to make any public statement or advertisement that contains false and
malicious information or unsubstantiated criticisms about an insurance company.
