SC Insurance Brokers Exam Questions and Answer 100% Accurate

Nonresident Licensing Requirements -ANSWER- 1. File application on form prescribed by the director. 2. File affidavit stating insurance on a risk in this state will only be placed with licensed agents of insurers licensed to operate in SC. 3. File an affidavit stating he is a licensed broker in another state. 4. Pay a biennial fee of $200. What is the term of a brokers license? -ANSWER- Brokers licenses are indefinite unless suspended or revoked as long as licensing fees are paid. Can municipalities impose license fees? -ANSWER- Yes. What disciplinary actions may the SCDOI Director take? -ANSWER- After an investigation and upon 10 days notice, the director may (a) impose fines up to $2500 ($5000 for willful acts) and/or (b) suspend or revoke the license of the person. These actions do not preclude civil or criminal penalties. What is the SC P&C Insurance Guaranty Association? -ANSWER- Assoc created to help detect and prevent insurance company insolvencies and protect policy holders and claimants in the case of insolvencies. The assoc will pay 'covered claims' as defined by act. Only applies to P&C, not LA&H. The Guaranty Association is divided into what four accounts? -ANSWER- 1. Workers compensation 2. Auto 3. Homeowners and Farmowners 4. All other applicable types of insurance Insurer Certificate of Authority may be suspended or revoked for what criteria? -ANSWER- 1. Insurer is in an unsound condition. 2. Insurer has not complied with the law or provisions of its carter. 3. Insurer's condition renders its proceedings hazardous to the public or its policyholders.