SOUTH CAROLINA INSURANCE EXAM
QUESTIONS
AND ANSWERS
RATED A (EXPERT VERIFIED) 2025
A health care provider claim may be settled using which of the following
payment
methods? - ✔✔✔ CORRECT ANSWER > Fee-for-service
A health insurance policy where the insurer has the right to terminate
the policy
for reason other than the insured's health is called - ✔✔✔ CORRECT
ANSWER >
conditionally renewable
A life insurance policy normally contains a provision that restricts
coverage in the
event of death under all of the following situations EXCEPT - ✔✔✔
CORRECT
ANSWER > fare-paying passenger
A life insurance policy that contains a guaranteed interest rate with the
chance to
earn a rate that is higher than the guaranteed rate is called? - ✔✔✔
CORRECT
ANSWER > universal life
A life insurance policy that has premiums fully paid up within a stated
time period
is called - ✔✔✔ CORRECT ANSWER > limited payment insurance
A life insurance rider that allows an individual to purchase insurance as
they grow
older, regardless of insurability, is called a(n) - ✔✔✔ CORRECT
ANSWER >
guaranteed insurability rider
A medical provider that accepts Medicare Assignment must - ✔✔✔
CORRECT
ANSWER > accept payment based upon a defined Medicare schedule as
payment
in full
2
, A producer has committed an insurance crime that violates US Code
1033
(interstate commerce). Who would be responsible for the persecution of
this
crime? - ✔✔✔ CORRECT ANSWER > US attorney general
A producers license MUST be renewed every____year(s) - ✔✔✔
CORRECT
ANSWER > 2
A renewable Term Life insurance policy allows the policyowner the right
to renew
the policy - ✔✔✔ CORRECT ANSWER > without producing proof of
insurability
A type of insurer that is owned by its policy owners is called - ✔✔✔
CORRECT
ANSWER > mutual
A whole life insurance policy accumulates cash value that becomes -
✔✔✔
CORRECT ANSWER > the policy loan value which the insured may borrow
against
According to the Affordable Care Act, what metal tier is required to have
an
actuarial value of 70% with covered individuals paying 30% through
deductibles,
co-pays, and other cost sharing features? - ✔✔✔ CORRECT ANSWER >
Silver Plan
All _____ policies must be guaranteed renewable. - ✔✔✔ CORRECT
ANSWER >
long-term care
All of the following are qualifications for establishing a health savings
account
(HSA) EXCEPT - ✔✔✔ CORRECT ANSWER > Enrolled in a health plan
with a
prescription drug benefit
3
All of these are characteristics of a major medical expense policy EXCEPT
- ✔✔✔
CORRECT ANSWER > elimination periods
All of these are common exclusions to a life insurance policy EXCEPT -
✔✔✔
CORRECT ANSWER > accidental health
QUESTIONS
AND ANSWERS
RATED A (EXPERT VERIFIED) 2025
A health care provider claim may be settled using which of the following
payment
methods? - ✔✔✔ CORRECT ANSWER > Fee-for-service
A health insurance policy where the insurer has the right to terminate
the policy
for reason other than the insured's health is called - ✔✔✔ CORRECT
ANSWER >
conditionally renewable
A life insurance policy normally contains a provision that restricts
coverage in the
event of death under all of the following situations EXCEPT - ✔✔✔
CORRECT
ANSWER > fare-paying passenger
A life insurance policy that contains a guaranteed interest rate with the
chance to
earn a rate that is higher than the guaranteed rate is called? - ✔✔✔
CORRECT
ANSWER > universal life
A life insurance policy that has premiums fully paid up within a stated
time period
is called - ✔✔✔ CORRECT ANSWER > limited payment insurance
A life insurance rider that allows an individual to purchase insurance as
they grow
older, regardless of insurability, is called a(n) - ✔✔✔ CORRECT
ANSWER >
guaranteed insurability rider
A medical provider that accepts Medicare Assignment must - ✔✔✔
CORRECT
ANSWER > accept payment based upon a defined Medicare schedule as
payment
in full
2
, A producer has committed an insurance crime that violates US Code
1033
(interstate commerce). Who would be responsible for the persecution of
this
crime? - ✔✔✔ CORRECT ANSWER > US attorney general
A producers license MUST be renewed every____year(s) - ✔✔✔
CORRECT
ANSWER > 2
A renewable Term Life insurance policy allows the policyowner the right
to renew
the policy - ✔✔✔ CORRECT ANSWER > without producing proof of
insurability
A type of insurer that is owned by its policy owners is called - ✔✔✔
CORRECT
ANSWER > mutual
A whole life insurance policy accumulates cash value that becomes -
✔✔✔
CORRECT ANSWER > the policy loan value which the insured may borrow
against
According to the Affordable Care Act, what metal tier is required to have
an
actuarial value of 70% with covered individuals paying 30% through
deductibles,
co-pays, and other cost sharing features? - ✔✔✔ CORRECT ANSWER >
Silver Plan
All _____ policies must be guaranteed renewable. - ✔✔✔ CORRECT
ANSWER >
long-term care
All of the following are qualifications for establishing a health savings
account
(HSA) EXCEPT - ✔✔✔ CORRECT ANSWER > Enrolled in a health plan
with a
prescription drug benefit
3
All of these are characteristics of a major medical expense policy EXCEPT
- ✔✔✔
CORRECT ANSWER > elimination periods
All of these are common exclusions to a life insurance policy EXCEPT -
✔✔✔
CORRECT ANSWER > accidental health
