SC Life Insurance Exam Exam Prep Questions And Answers (202472025)
The balance of the loan will be taken out of the death benefit - ✔✔If a policy has a automatic loan
provision, what happens if the insured dies before the loan is paid back?
Inspection Report - ✔✔An insurer receives a report regarding potential insured that includes
financial status, hobbies, and habits. What type of report is that?
Spendthrift Clause - ✔✔The clause that protects the proceeds of a life insurance policy from
creditors after the death of the insured is known as
Term - ✔✔Children's riders attached to whole life policies are usually issued as what type of
insurance?
Decreasing Term - ✔✔An individual has just borrowed $10,000 from his bank on a 5-year
installment loan requiring monthly payments. What type of life insurance policy would be best
suited to this situation
24 total hours, including 8 hours approved for the line of licensing that the producer holds -
✔✔How many hours of CE must be completed every 2 years?
The creditors have rights to the proceeds if they can show evidence of valid assignment -
✔✔Which of the following statements is true concerning the creditors of the deceased insured?
Insurable interest and consent - ✔✔A life insurance policy has a legal purpose if both of which of
the following elements exist?
Cost of Living Rider - ✔✔A long stretch of national economic hardship causes a 7% rate of
inflation. A policy owner notices that the face value of her life insurance policy has been raised
7% as a result. Which policy rider caused this change?
,Universal Life - ✔✔Which of the following Life Insurance policies would be considered interest-
sensitive?
Express Authority - ✔✔The authority granted to an agent through the agent's contract is referred
to as
The policyowner must sign a delivery receipt - ✔✔What must happen when an individual policy
or annuity has been personally delivered to the policyowner?
Reinsure policies of the insolvent insurer through other companies - ✔✔In the event of an insurer's
insolvency, the South Carolina Life and Health Guaranty Association will
within 30 days - ✔✔Once the Director issues a cease and desist order, how soon must an insurer
comply with the order?
It is reduced to the amount of what the cash value would buy as a single premium - ✔✔When a
reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
Suggesting negotiations in settling the claim - ✔✔All of the following are unfair claims settlement
practices EXCEPT
3 - ✔✔How many hours of continuing education in Ethics are required each compliance period
The Broker - ✔✔In the transaction of insurance, which of the following is considered to be
representing the client?
The beneficiary - ✔✔In a group life insurance policy, the employer may select all of the following
EXCEPT
Lower - ✔✔The premium of a survivorship life policy compared with that of a joint life policy
would be
, It begins when the policy is delivered. - ✔✔Which of the following is TRUE about the 10- day-
free=look period in a Life Insurance policy?
It is a life contingency option - ✔✔All of the following statements are true regarding installments
for a fixed period annuity settlement option EXCEPT
The Client - ✔✔An insurance producer has not been appointed to an insurance company. Who is
the producer considered to represent?
Any form of life insurance - ✔✔Partners in a business enter into a buy-sell agreement to purchase
life insurance, which states that should one of them die prematurely, the other would be financially
able to buy the interest of the deceased partner. What type of insurance policy may be used to fund
this agreement
Any person licensed to sell, solicit or negotiate insurance - ✔✔Who is an insurance producer
The owner - ✔✔In life settlement contract, who does the life settlement broker represent?
The payable premium amount steadily declines throughout the duration of the contract. - ✔✔All
of the following are true regarding a decreasing term policy EXCEPT
Yes, it is possible as long as both are licensed for that line of business - ✔✔Is it ever possible for
more than one producer to split the commissions on an insurance transaction in this state?
tax deductible - ✔✔Traditional IRA contributions are
Its premium steadily decreases over time, in response to its growing cash value. - ✔✔Which
statement is not true regarding a Straight Life policy
The balance of the loan will be taken out of the death benefit - ✔✔If a policy has a automatic loan
provision, what happens if the insured dies before the loan is paid back?
Inspection Report - ✔✔An insurer receives a report regarding potential insured that includes
financial status, hobbies, and habits. What type of report is that?
Spendthrift Clause - ✔✔The clause that protects the proceeds of a life insurance policy from
creditors after the death of the insured is known as
Term - ✔✔Children's riders attached to whole life policies are usually issued as what type of
insurance?
Decreasing Term - ✔✔An individual has just borrowed $10,000 from his bank on a 5-year
installment loan requiring monthly payments. What type of life insurance policy would be best
suited to this situation
24 total hours, including 8 hours approved for the line of licensing that the producer holds -
✔✔How many hours of CE must be completed every 2 years?
The creditors have rights to the proceeds if they can show evidence of valid assignment -
✔✔Which of the following statements is true concerning the creditors of the deceased insured?
Insurable interest and consent - ✔✔A life insurance policy has a legal purpose if both of which of
the following elements exist?
Cost of Living Rider - ✔✔A long stretch of national economic hardship causes a 7% rate of
inflation. A policy owner notices that the face value of her life insurance policy has been raised
7% as a result. Which policy rider caused this change?
,Universal Life - ✔✔Which of the following Life Insurance policies would be considered interest-
sensitive?
Express Authority - ✔✔The authority granted to an agent through the agent's contract is referred
to as
The policyowner must sign a delivery receipt - ✔✔What must happen when an individual policy
or annuity has been personally delivered to the policyowner?
Reinsure policies of the insolvent insurer through other companies - ✔✔In the event of an insurer's
insolvency, the South Carolina Life and Health Guaranty Association will
within 30 days - ✔✔Once the Director issues a cease and desist order, how soon must an insurer
comply with the order?
It is reduced to the amount of what the cash value would buy as a single premium - ✔✔When a
reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
Suggesting negotiations in settling the claim - ✔✔All of the following are unfair claims settlement
practices EXCEPT
3 - ✔✔How many hours of continuing education in Ethics are required each compliance period
The Broker - ✔✔In the transaction of insurance, which of the following is considered to be
representing the client?
The beneficiary - ✔✔In a group life insurance policy, the employer may select all of the following
EXCEPT
Lower - ✔✔The premium of a survivorship life policy compared with that of a joint life policy
would be
, It begins when the policy is delivered. - ✔✔Which of the following is TRUE about the 10- day-
free=look period in a Life Insurance policy?
It is a life contingency option - ✔✔All of the following statements are true regarding installments
for a fixed period annuity settlement option EXCEPT
The Client - ✔✔An insurance producer has not been appointed to an insurance company. Who is
the producer considered to represent?
Any form of life insurance - ✔✔Partners in a business enter into a buy-sell agreement to purchase
life insurance, which states that should one of them die prematurely, the other would be financially
able to buy the interest of the deceased partner. What type of insurance policy may be used to fund
this agreement
Any person licensed to sell, solicit or negotiate insurance - ✔✔Who is an insurance producer
The owner - ✔✔In life settlement contract, who does the life settlement broker represent?
The payable premium amount steadily declines throughout the duration of the contract. - ✔✔All
of the following are true regarding a decreasing term policy EXCEPT
Yes, it is possible as long as both are licensed for that line of business - ✔✔Is it ever possible for
more than one producer to split the commissions on an insurance transaction in this state?
tax deductible - ✔✔Traditional IRA contributions are
Its premium steadily decreases over time, in response to its growing cash value. - ✔✔Which
statement is not true regarding a Straight Life policy
