South Carolina Insurance Exam 2024 with 100% correct answers

An insurer is REQUIRED to offer which of the following to each long-term care applicant at the time of purchase? - ANS - Inflation protection Which of these riders will pay a death benefit if the insured's spouse dies? - ANS - Family term insurance rider Disability income plans which require that the insurer can NEVER change or alter premium rates are usually considered - ANS - Nonconcellable What is the required action to be taken by a South Carolina licensee before operating under an assumed business name? - ANS - Notify the Director The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid - ANS - minus indebtedness and without interest If an annuitant dies before the annuity start date - ANS - the premiums paid plus interest will be given to the beneficiary The purpose of the Coordination of Benefits provision in group accident and health plans is to - ANS - avoid overpayment of claims The typical long-term care insurance policy is designed to provide a minimum of___year(s) of coverage - ANS - 1 Decreasing term life insurance is often used to - ANS - provide coverage for a home mortgage Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? - ANS - Endowment policy A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT - ANS - fare-paying passenger All _____ policies must be guaranteed renewable. - ANS - long-term care What type of injury would NOT be covered under a health insurance policy? - ANS - Work related All of these are common exclusions to a life insurance policy EXCEPT - ANS - accidental health Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make? - ANS - The amount contributed by the employer A whole life insurance policy accumulates cash value that becomes - ANS - the policy loan value which the insured may borrow against Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on any money withdrawn. - ANS - income An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called - ANS - Partial Surrender Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of these statements is true? - ANS - The face amount and premium will remain constant over the 10-year period Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies, this income will become payable to their children for the remainder of the period. Kristi has what kind of annuity? - ANS - Temporary annuity certain When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable? - ANS - Gains Pre-death distributions from a modified endowment contract (MEC) receive different