South Carolina Life Insurance Exam ( Updated
2025-2026 ) 1-100 Complete Questions &
Answers (Solved) 100% Correct Graded A+
During which stage in the insurance process do insurers
evaluate information that identifies it adverse selection risk -
✔ANASWER✔-Underwriting
If an insurer needs to obtain information about the applicant
from investigators, what is the insurer required to do? -
✔ANASWER✔-Provide the applicant a disclosure authorization
notice
What are the four elements of an insurance contract? -
✔ANASWER✔-Agreement (offer and acceptance),
consideration, competent parties, and legal purpose
,If an applicant does not receive a copy of the new insurance
policy, who would be held responsible - ✔ANASWER✔-The
agent
Health contracts are prepared by insurers and must be
accepted by the insured on an 'as is' basis. This describes what
aspect of a health insurance contract? - ✔ANASWER✔-contract
of adhesion
When must enable interest exist in a life insurance policy? -
✔ANASWER✔-At the time of application
What risk classification would typically qualify for lower
premiums? - ✔ANASWER✔-preferred risk
What is the purpose of the agents report during the application
process? - ✔ANASWER✔-The agents report discusses the
agents personal observation about the proposed insured that
may help in the underwriting process
What law protects consumers from the circulation of inaccurate
or obsolete information? - ✔ANASWER✔-Fair Credit Reporting
Act
,And health insurance contracts the insured is not legally bound
to any particular action. However, the insurer is obligated to
pay for losses covered by the policy. What contract element
does this describe? - ✔ANASWER✔-Unilateral
When would a misrepresentation be considered material? -
✔ANASWER✔-When it may alter the underwriting decision
What do individuals use to transfer their risk of loss to a larger
group? - ✔ANASWER✔-insurance
When a change needs to be made on the application for
insurance, which is the best method for correcting the
information - ✔ANASWER✔-Complete a new application or ask
the applicant to initial the correction on the original application
Who is a field underwriter? - ✔ANASWER✔-Agent/Producer
What is policy replacement? - ✔ANASWER✔-A new policy is
issued while an existing policy is terminated or reissued with a
reduction in cash value
, What entities make up the medical information bureau? -
✔ANASWER✔-Insurers
What is a warranty in an insurance contract? - ✔ANASWER✔-
An absolutely true statement upon which the validity of the
policy depends
What type of report provides information about the applicants
hobbies, habits, and financial status? - ✔ANASWER✔-
Investigative consumer report
If an agent fails to obtain the applicant signature on the
entrance application, what must the insurer do? -
✔ANASWER✔-Send the application back to the applicant for
signature
How can health insurance policies be delivered to the insurer? -
✔ANASWER✔-Personally, delivered by the agent or mailed
What are the three types of risk rating classifications in life
insurance? - ✔ANASWER✔-Standard, substandard, and
preferred
2025-2026 ) 1-100 Complete Questions &
Answers (Solved) 100% Correct Graded A+
During which stage in the insurance process do insurers
evaluate information that identifies it adverse selection risk -
✔ANASWER✔-Underwriting
If an insurer needs to obtain information about the applicant
from investigators, what is the insurer required to do? -
✔ANASWER✔-Provide the applicant a disclosure authorization
notice
What are the four elements of an insurance contract? -
✔ANASWER✔-Agreement (offer and acceptance),
consideration, competent parties, and legal purpose
,If an applicant does not receive a copy of the new insurance
policy, who would be held responsible - ✔ANASWER✔-The
agent
Health contracts are prepared by insurers and must be
accepted by the insured on an 'as is' basis. This describes what
aspect of a health insurance contract? - ✔ANASWER✔-contract
of adhesion
When must enable interest exist in a life insurance policy? -
✔ANASWER✔-At the time of application
What risk classification would typically qualify for lower
premiums? - ✔ANASWER✔-preferred risk
What is the purpose of the agents report during the application
process? - ✔ANASWER✔-The agents report discusses the
agents personal observation about the proposed insured that
may help in the underwriting process
What law protects consumers from the circulation of inaccurate
or obsolete information? - ✔ANASWER✔-Fair Credit Reporting
Act
,And health insurance contracts the insured is not legally bound
to any particular action. However, the insurer is obligated to
pay for losses covered by the policy. What contract element
does this describe? - ✔ANASWER✔-Unilateral
When would a misrepresentation be considered material? -
✔ANASWER✔-When it may alter the underwriting decision
What do individuals use to transfer their risk of loss to a larger
group? - ✔ANASWER✔-insurance
When a change needs to be made on the application for
insurance, which is the best method for correcting the
information - ✔ANASWER✔-Complete a new application or ask
the applicant to initial the correction on the original application
Who is a field underwriter? - ✔ANASWER✔-Agent/Producer
What is policy replacement? - ✔ANASWER✔-A new policy is
issued while an existing policy is terminated or reissued with a
reduction in cash value
, What entities make up the medical information bureau? -
✔ANASWER✔-Insurers
What is a warranty in an insurance contract? - ✔ANASWER✔-
An absolutely true statement upon which the validity of the
policy depends
What type of report provides information about the applicants
hobbies, habits, and financial status? - ✔ANASWER✔-
Investigative consumer report
If an agent fails to obtain the applicant signature on the
entrance application, what must the insurer do? -
✔ANASWER✔-Send the application back to the applicant for
signature
How can health insurance policies be delivered to the insurer? -
✔ANASWER✔-Personally, delivered by the agent or mailed
What are the three types of risk rating classifications in life
insurance? - ✔ANASWER✔-Standard, substandard, and
preferred
