SC Life and Health Pre-Licensing
Study Guide Exam and Actual
Answers (2025) Updated.
A licensed producer MUST be _________ by an insurer to be eligible for soliciting insurance
contracts. - Answer Appointed
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? -
Answer Replacing insurer's financial statements
Acme Corporation recently purchased a group health plan for its employees. Who would receive
a certificate of coverage? - Answer Employees
Which of the following actions is REQUIRED by a producer who is replacing an existing life
insurance policy? - Answer Submit to the replacing insurer a list of the policies to be replaced
If a health policy is reinstated after it had lapsed for nonpayment, there is a waiting period of
___ days before a claim covering sickness will be covered. - Answer 10
If a Medicare Supplement policy replaces another that had been in effect for at least 6 months,
the replacing policy may impose which of the following time exclusions for pre-existing
conditions? - Answer 0 Months
A Fraternal Benefit Society has each of the following characteristics EXCEPT - Answer Exists For
profit
Long-Term Care policies must provide coverage for claims arising from - Answer Senile
dementia
Which of these is NOT a qualifying event for Medicare? - Answer Falling below the federal
poverty level
,Long-term care policies sold in South Carolina may exclude coverage related to - Answer
substance addictions
Defamation can be BEST described as - Answer making a statement that is false or maliciously
critical of the financial condition of an insurer
The free-look period in South Carolina for individual health insurance policies is ___ day -
Answer 10
In order to conduct insurance transactions in South Carolina, a(n) ________ MUST be appointed
- Answer producer
What is the maximum number of employees a small employer may employ - Answer 50
employees
A producer's license MUST be renewed every ___ year(s). - Answer 2
A temporary license is valid for a maximum of __ days - Answer 180
When a licensee's address has changed, who must be notified of this change? - Answer
Department of Insurance
A life insurance policy becomes incontestable after it has been in force for - Answer 2 years
An insurer must send a notice of appointment for a producer within __ days from the date of an
executed agency contract or after submitting the first application to the insurer - Answer 15
A medical provider that accepts Medicare Assignment must - Answer accept payment based
upon a defined Medicare schedule as payment in full
Every producer licensed in South Carolina must notify the Director within __ days of any change
of address. - Answer 30
Failing to promptly provide a reasonable explanation for the denial of a claim is considered to
,A carrier for a small group health plan may refuse to renew the plan if the employer - Answer
fails to pay the premium
Replacement forms MUST be kept on file by the insurer for a MINIMUM of how many years? -
Answer 5
Replacement regulation is designed to protect - Answer policyowners from misrepresentations
and loss of benefits
South Carolina requires that a licensee completes ___ hours of continuing education on the
subject of ethics every reporting period. - Answer 3
Medicaid is a government-funded program designed to provide health care to - Answer poor
people
The standard grace period for a life insurance policy sold in South Carolina is - Answer 31 days
An insurer may exclude preexisting conditions on a Medicare Supplement policy for ___
months. - Answer 6
If the cause of death appears to be accidental, an insurer may require a(n) - Answer autopsy
Violations of US Code Title 18 section 1033, may result in - Answer Fine and/or imprisonment
What is the required action to be taken by a South Carolina licensee before operating under an
assumed business name? - Answer Notify Director
Proof of loss on a health insurance claim must be submitted to an insurer within ___ days after
the insured's date of loss. - Answer 90
Which provision states that the policy and the application shall constitute the entire contract
between the parties? - Answer Entire Contract provision
, A dependent child may remain on a parent's health insurance plan beyond the limiting age if
the child - Answer has a mental or physical handicap and remains dependent on the parent
A Medicare Supplement policy can be rescinded by the insurer for - Answer material
misrepresentation
Which type of annuity stops all payments upon the death of the annuitant? - Answer Life
annuity
A disability elimination period is best described as a - Answer time deductible
How do interest earnings accumulate in a deferred annuity? - Answer On a tax-deferred basis
Justin is receiving disability income benefits from a group policy paid for by his employer. How
are these benefits treated for tax purposes? - Answer Taxable income
When an insured changes to a more hazardous occupation, which disability policy provision
allows an insurer to adjust policy benefits and rates? - Answer Change of occupation provision
Key Person Disability Insurance pays benefits to the - Answer employer
ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation is
called - Answer reinsurance
What is the purpose of a Disability Income Benefit? - Answer Provide money for living
expenses
Under the subrogation clause, legal action can be taken by the insurer against the - Answer
responsible third party
An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon
receiving a notice of claim. - Answer 15
Study Guide Exam and Actual
Answers (2025) Updated.
A licensed producer MUST be _________ by an insurer to be eligible for soliciting insurance
contracts. - Answer Appointed
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? -
Answer Replacing insurer's financial statements
Acme Corporation recently purchased a group health plan for its employees. Who would receive
a certificate of coverage? - Answer Employees
Which of the following actions is REQUIRED by a producer who is replacing an existing life
insurance policy? - Answer Submit to the replacing insurer a list of the policies to be replaced
If a health policy is reinstated after it had lapsed for nonpayment, there is a waiting period of
___ days before a claim covering sickness will be covered. - Answer 10
If a Medicare Supplement policy replaces another that had been in effect for at least 6 months,
the replacing policy may impose which of the following time exclusions for pre-existing
conditions? - Answer 0 Months
A Fraternal Benefit Society has each of the following characteristics EXCEPT - Answer Exists For
profit
Long-Term Care policies must provide coverage for claims arising from - Answer Senile
dementia
Which of these is NOT a qualifying event for Medicare? - Answer Falling below the federal
poverty level
,Long-term care policies sold in South Carolina may exclude coverage related to - Answer
substance addictions
Defamation can be BEST described as - Answer making a statement that is false or maliciously
critical of the financial condition of an insurer
The free-look period in South Carolina for individual health insurance policies is ___ day -
Answer 10
In order to conduct insurance transactions in South Carolina, a(n) ________ MUST be appointed
- Answer producer
What is the maximum number of employees a small employer may employ - Answer 50
employees
A producer's license MUST be renewed every ___ year(s). - Answer 2
A temporary license is valid for a maximum of __ days - Answer 180
When a licensee's address has changed, who must be notified of this change? - Answer
Department of Insurance
A life insurance policy becomes incontestable after it has been in force for - Answer 2 years
An insurer must send a notice of appointment for a producer within __ days from the date of an
executed agency contract or after submitting the first application to the insurer - Answer 15
A medical provider that accepts Medicare Assignment must - Answer accept payment based
upon a defined Medicare schedule as payment in full
Every producer licensed in South Carolina must notify the Director within __ days of any change
of address. - Answer 30
Failing to promptly provide a reasonable explanation for the denial of a claim is considered to
,A carrier for a small group health plan may refuse to renew the plan if the employer - Answer
fails to pay the premium
Replacement forms MUST be kept on file by the insurer for a MINIMUM of how many years? -
Answer 5
Replacement regulation is designed to protect - Answer policyowners from misrepresentations
and loss of benefits
South Carolina requires that a licensee completes ___ hours of continuing education on the
subject of ethics every reporting period. - Answer 3
Medicaid is a government-funded program designed to provide health care to - Answer poor
people
The standard grace period for a life insurance policy sold in South Carolina is - Answer 31 days
An insurer may exclude preexisting conditions on a Medicare Supplement policy for ___
months. - Answer 6
If the cause of death appears to be accidental, an insurer may require a(n) - Answer autopsy
Violations of US Code Title 18 section 1033, may result in - Answer Fine and/or imprisonment
What is the required action to be taken by a South Carolina licensee before operating under an
assumed business name? - Answer Notify Director
Proof of loss on a health insurance claim must be submitted to an insurer within ___ days after
the insured's date of loss. - Answer 90
Which provision states that the policy and the application shall constitute the entire contract
between the parties? - Answer Entire Contract provision
, A dependent child may remain on a parent's health insurance plan beyond the limiting age if
the child - Answer has a mental or physical handicap and remains dependent on the parent
A Medicare Supplement policy can be rescinded by the insurer for - Answer material
misrepresentation
Which type of annuity stops all payments upon the death of the annuitant? - Answer Life
annuity
A disability elimination period is best described as a - Answer time deductible
How do interest earnings accumulate in a deferred annuity? - Answer On a tax-deferred basis
Justin is receiving disability income benefits from a group policy paid for by his employer. How
are these benefits treated for tax purposes? - Answer Taxable income
When an insured changes to a more hazardous occupation, which disability policy provision
allows an insurer to adjust policy benefits and rates? - Answer Change of occupation provision
Key Person Disability Insurance pays benefits to the - Answer employer
ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation is
called - Answer reinsurance
What is the purpose of a Disability Income Benefit? - Answer Provide money for living
expenses
Under the subrogation clause, legal action can be taken by the insurer against the - Answer
responsible third party
An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon
receiving a notice of claim. - Answer 15
