Chapter 15 - South Carolina State Law Exam Questions & Answers Graded A

4 Types of Licensees - ANSWER-Producer, Nonresident, Temporary, Broker Director's General Duties and Powers - ANSWER-The duties of the Director, who is subject to state insurance law, include: 1. Supervising and regulating insurers' rates and service. 2. Enforcing and making regulations to administer and enforce state insurance laws. 3. Reporting criminal violations of insurance laws to law enforcement. 4. Instituting civil actions related to the insurance business. Certificate of Authority - ANSWER-The license issued by the Director that allows an insurer to transact insurance business in this state. Producer Regulations: Misappropriation of Funds - ANSWER-It is unlawful for a producer to use false statements to obtain cash advances, or to fail to account for collections made on an insurer's behalf. Producer Regulations: Blank Forms - ANSWER-1. It is unlawful for a producer to sign a blank application, contract, or policy. Exceptions: Travel or transportation ticket policies. 2. A producer violating this law is subject to a fine of up to $200 per violation. Producer Regulations: Commission Sharing: Prohibited Sharing - ANSWER-A producer may not pay a commission or other consideration to any person not duly licensed as producer, and a person may not accept such payment unless duly licensed. Producer Regulations: Commission Sharing: Permitted Sharing - ANSWER-a. A producer licensed for other than life or health insurance may write insurance at the request of other licensed producers and share up to 50% of the commissions he/she receives.