SC Laws & Rules Exam Questions with Correct Answers

Examination of Records - ANSWER-The Director must examine the financial affairs of each insurer operating in South Carolina prior to issuing a certificate of authority. At the very least, a company shall be then examined once every 5 years. The insurer must not impede an examination and is required to assist in the examination procedures Notice and Hearing - ANSWER-The Director may call and hold hearings for any purpose deemed necessary. The notice of the hearing must be given to the person cited at least 30 days prior to the designated date. Ins Co Penalties - ANSWER-Insurance companies can be fined up to $15,000 per violation and/or suspend or revoke authority to do business in this State. If violation is willful, the fine can be up to $30,000 as well as possible suspension or revocation of authority to do business. Misdemeanor Penalties - ANSWER-Misdemeanors are fined up to $2,500 or face maximum imprisonment of 2 years, or both. Performing w/o License Penalty - ANSWER-Any person performing an insurance act without a license can be found guilty of a misdemeanor, fined up to $10,000, and/or imprisoned up to 2 years. Cease and Desist Order - ANSWER-The Director may issue a cease-and-desist order to any person found to have committed an unfair or deceptive act or has violated a state insurance law. Certificate of Authority - ANSWER-The Director will examine the financial affairs of all insurers before issuing a certificate of authority to transact business in South Carolina.