XCEL Chapter 12: South Carolina
Laws and Rules Questions with
ACCURATE Answers
An insurance producer is BEST described as someone who
A) sells, solicits, or negotiates insurance contracts for compensation on be behalf of a client
B) sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer
C) offers to examine any policy (for a fee) for the purpose of giving advice or recommendations
D) Investigates insurance claims to determine the extent of the insurer's liability - CORRECT
ANSWER✅✅✅B) sells, solicits, or negotiates insurance contracts for compensation on
behalf of an insurer
A producer does NOT have a fiduciary responsibilty to
A) applicants
B) insureds
C) insurers
D) the South Carolina Guaranty Association - CORRECT ANSWER✅✅✅D) the South
Carolina Guaranty Association
If a producer has broken a state insurance statute, the Director may issue a cease and desist order.
This order demands that the producer
A) be incarcerated
B) stop engaging in the act
C) pay a fine
,D) have his/her appointment terminated - CORRECT ANSWER✅✅✅B) stop engaging in
the act
Tia the producer is recommending to a prospect that an existing life insurance policy be replaced
with a new one from her insurer. If this transaction moves forward, which of the following does
NOT need to be provided to the prospect at or before the policy is delivered?
A) Notice Regarding Replacement
B) Replacing insurer's financial statements
C) Buyer's Guide
D) Policy Summary - CORRECT ANSWER✅✅✅B) Replacing insurer's financial
statements
Which of these is NOT subject to false advertising regulations?
A) Gifts
B) Brochures
C) Billboards
D) Letters - CORRECT ANSWER✅✅✅A) Gifts
Barry the producer offers Chris his mountain cabin for the weekend to secure his order for his
insruance business. This is an example of
A) bartering
B) rebating
C) subrogation
D) twisting - CORRECT ANSWER✅✅✅B) rebating
Which of the following actions is REQUIRED by a producer who is replacing an existing life
insurance policy?
, A) Keep replacement records on file for at least 10 years
B) Notify the existing insurer of the proposed replacement
C) Submit to the replacing insurer a list of the policies to be replaced
D) Offer the insured a 60-day free-look period - CORRECT ANSWER✅✅✅C) Submit to
the replacing insurer a list of the policies to be replaced
Which of the following is NOT a duty of the Director?
A) Establish rates for the insurers
B) Enforce insurance laws and regulations
C) Oversee the licensing of producers and insurers
D) Administer oaths and affirmations - CORRECT ANSWER✅✅✅A) Establish rates for
the insurers
If the cause of death appears to be accidental, an insurer may require a
A) police report
B) background check
C) hospital report
D) autopsy - CORRECT ANSWER✅✅✅D) autopsy
When the Director is examining an insurer's books and records, the insurer
A) is NOT required to assist in the examination procedures
B) can determine which records to make available
C) has the authority to stop the examination at any time
D) must NOT impede an examination - CORRECT ANSWER✅✅✅D) must NOT impede
an examination
Laws and Rules Questions with
ACCURATE Answers
An insurance producer is BEST described as someone who
A) sells, solicits, or negotiates insurance contracts for compensation on be behalf of a client
B) sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer
C) offers to examine any policy (for a fee) for the purpose of giving advice or recommendations
D) Investigates insurance claims to determine the extent of the insurer's liability - CORRECT
ANSWER✅✅✅B) sells, solicits, or negotiates insurance contracts for compensation on
behalf of an insurer
A producer does NOT have a fiduciary responsibilty to
A) applicants
B) insureds
C) insurers
D) the South Carolina Guaranty Association - CORRECT ANSWER✅✅✅D) the South
Carolina Guaranty Association
If a producer has broken a state insurance statute, the Director may issue a cease and desist order.
This order demands that the producer
A) be incarcerated
B) stop engaging in the act
C) pay a fine
,D) have his/her appointment terminated - CORRECT ANSWER✅✅✅B) stop engaging in
the act
Tia the producer is recommending to a prospect that an existing life insurance policy be replaced
with a new one from her insurer. If this transaction moves forward, which of the following does
NOT need to be provided to the prospect at or before the policy is delivered?
A) Notice Regarding Replacement
B) Replacing insurer's financial statements
C) Buyer's Guide
D) Policy Summary - CORRECT ANSWER✅✅✅B) Replacing insurer's financial
statements
Which of these is NOT subject to false advertising regulations?
A) Gifts
B) Brochures
C) Billboards
D) Letters - CORRECT ANSWER✅✅✅A) Gifts
Barry the producer offers Chris his mountain cabin for the weekend to secure his order for his
insruance business. This is an example of
A) bartering
B) rebating
C) subrogation
D) twisting - CORRECT ANSWER✅✅✅B) rebating
Which of the following actions is REQUIRED by a producer who is replacing an existing life
insurance policy?
, A) Keep replacement records on file for at least 10 years
B) Notify the existing insurer of the proposed replacement
C) Submit to the replacing insurer a list of the policies to be replaced
D) Offer the insured a 60-day free-look period - CORRECT ANSWER✅✅✅C) Submit to
the replacing insurer a list of the policies to be replaced
Which of the following is NOT a duty of the Director?
A) Establish rates for the insurers
B) Enforce insurance laws and regulations
C) Oversee the licensing of producers and insurers
D) Administer oaths and affirmations - CORRECT ANSWER✅✅✅A) Establish rates for
the insurers
If the cause of death appears to be accidental, an insurer may require a
A) police report
B) background check
C) hospital report
D) autopsy - CORRECT ANSWER✅✅✅D) autopsy
When the Director is examining an insurer's books and records, the insurer
A) is NOT required to assist in the examination procedures
B) can determine which records to make available
C) has the authority to stop the examination at any time
D) must NOT impede an examination - CORRECT ANSWER✅✅✅D) must NOT impede
an examination
