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
1|Page
,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
2|Page
,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
3|Page
, 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
4|Page
(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
1|Page
,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
2|Page
,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
3|Page
, 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
4|Page
