SC Insurance Brokers Exam Questions with complete solutions

Resident Licensing Requirements - ANSWER-1. Be licensed as a resident property and casualty insurance producer. 2. Pass the SC broker licensing examination with 70% or better. 3. Pay a biennial fee of $200 4. File surety bond in favor of SC in amount of $10,000. 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.