SC Life Insurance Exam Questions And
Answers
If a policy has a automatic loan provision, what happens if the insured dies before
the loan is paid back? - ANSWER>>The balance of the loan will be taken out of the
death benefit
An insurer receives a report regarding potential insured that includes financial
status, hobbies, and habits. What type of report is that? - ANSWER>>Inspection
Report
The clause that protects the proceeds of a life insurance policy from creditors
after the death of the insured is known as - ANSWER>>Spendthrift Clause
Children's riders attached to whole life policies are usually issued as what type of
insurance? - ANSWER>>Term
An individual has just borrowed $10,000 from his bank on a 5-year installment
loan requiring monthly payments. What type of life insurance policy would be
best suited to this situation - ANSWER>>Decreasing Term
How many hours of CE must be completed every 2 years? - ANSWER>>24 total
hours, including 8 hours approved for the line of licensing that the producer holds
Which of the following statements is true concerning the creditors of the
deceased insured? - ANSWER>>The creditors have rights to the proceeds if they
can show evidence of valid assignment
A life insurance policy has a legal purpose if both of which of the following
elements exist? - ANSWER>>Insurable interest and consent
,A long stretch of national economic hardship causes a 7% rate of inflation. A
policy owner notices that the face value of her life insurance policy has been
raised 7% as a result. Which policy rider caused this change? - ANSWER>>Cost of
Living Rider
Which of the following Life Insurance policies would be considered interest-
sensitive? - ANSWER>>Universal Life
The authority granted to an agent through the agent's contract is referred to as -
ANSWER>>Express Authority
What must happen when an individual policy or annuity has been personally
delivered to the policyowner? - ANSWER>>The policyowner must sign a delivery
receipt
In the event of an insurer's insolvency, the South Carolina Life and Health
Guaranty Association will - ANSWER>>Reinsure policies of the insolvent insurer
through other companies
Once the Director issues a cease and desist order, how soon must an insurer
comply with the order? - ANSWER>>within 30 days
When a reduced-paid up nonforfeiture option is chosen, what happens to the
face amount of the policy? - ANSWER>>It is reduced to the amount of what the
cash value would buy as a single premium
All of the following are unfair claims settlement practices EXCEPT -
ANSWER>>Suggesting negotiations in settling the claim
How many hours of continuing education in Ethics are required each compliance
period - ANSWER>>3
, In the transaction of insurance, which of the following is considered to be
representing the client? - ANSWER>>The Broker
In a group life insurance policy, the employer may select all of the following
EXCEPT - ANSWER>>The beneficiary
The premium of a survivorship life policy compared with that of a joint life policy
would be - ANSWER>>Lower
Which of the following is TRUE about the 10- day-free=look period in a Life
Insurance policy? - ANSWER>>It begins when the policy is delivered.
All of the following statements are true regarding installments for a fixed period
annuity settlement option EXCEPT - ANSWER>>It is a life contingency option
An insurance producer has not been appointed to an insurance company. Who is
the producer considered to represent? - ANSWER>>The Client
Partners in a business enter into a buy-sell agreement to purchase life insurance,
which states that should one of them die prematurely, the other would be
financially able to buy the interest of the deceased partner. What type of
insurance policy may be used to fund this agreement - ANSWER>>Any form of life
insurance
Who is an insurance producer - ANSWER>>Any person licensed to sell, solicit or
negotiate insurance
In life settlement contract, who does the life settlement broker represent? -
ANSWER>>The owner
All of the following are true regarding a decreasing term policy EXCEPT -
ANSWER>>The payable premium amount steadily declines throughout the
duration of the contract.
Answers
If a policy has a automatic loan provision, what happens if the insured dies before
the loan is paid back? - ANSWER>>The balance of the loan will be taken out of the
death benefit
An insurer receives a report regarding potential insured that includes financial
status, hobbies, and habits. What type of report is that? - ANSWER>>Inspection
Report
The clause that protects the proceeds of a life insurance policy from creditors
after the death of the insured is known as - ANSWER>>Spendthrift Clause
Children's riders attached to whole life policies are usually issued as what type of
insurance? - ANSWER>>Term
An individual has just borrowed $10,000 from his bank on a 5-year installment
loan requiring monthly payments. What type of life insurance policy would be
best suited to this situation - ANSWER>>Decreasing Term
How many hours of CE must be completed every 2 years? - ANSWER>>24 total
hours, including 8 hours approved for the line of licensing that the producer holds
Which of the following statements is true concerning the creditors of the
deceased insured? - ANSWER>>The creditors have rights to the proceeds if they
can show evidence of valid assignment
A life insurance policy has a legal purpose if both of which of the following
elements exist? - ANSWER>>Insurable interest and consent
,A long stretch of national economic hardship causes a 7% rate of inflation. A
policy owner notices that the face value of her life insurance policy has been
raised 7% as a result. Which policy rider caused this change? - ANSWER>>Cost of
Living Rider
Which of the following Life Insurance policies would be considered interest-
sensitive? - ANSWER>>Universal Life
The authority granted to an agent through the agent's contract is referred to as -
ANSWER>>Express Authority
What must happen when an individual policy or annuity has been personally
delivered to the policyowner? - ANSWER>>The policyowner must sign a delivery
receipt
In the event of an insurer's insolvency, the South Carolina Life and Health
Guaranty Association will - ANSWER>>Reinsure policies of the insolvent insurer
through other companies
Once the Director issues a cease and desist order, how soon must an insurer
comply with the order? - ANSWER>>within 30 days
When a reduced-paid up nonforfeiture option is chosen, what happens to the
face amount of the policy? - ANSWER>>It is reduced to the amount of what the
cash value would buy as a single premium
All of the following are unfair claims settlement practices EXCEPT -
ANSWER>>Suggesting negotiations in settling the claim
How many hours of continuing education in Ethics are required each compliance
period - ANSWER>>3
, In the transaction of insurance, which of the following is considered to be
representing the client? - ANSWER>>The Broker
In a group life insurance policy, the employer may select all of the following
EXCEPT - ANSWER>>The beneficiary
The premium of a survivorship life policy compared with that of a joint life policy
would be - ANSWER>>Lower
Which of the following is TRUE about the 10- day-free=look period in a Life
Insurance policy? - ANSWER>>It begins when the policy is delivered.
All of the following statements are true regarding installments for a fixed period
annuity settlement option EXCEPT - ANSWER>>It is a life contingency option
An insurance producer has not been appointed to an insurance company. Who is
the producer considered to represent? - ANSWER>>The Client
Partners in a business enter into a buy-sell agreement to purchase life insurance,
which states that should one of them die prematurely, the other would be
financially able to buy the interest of the deceased partner. What type of
insurance policy may be used to fund this agreement - ANSWER>>Any form of life
insurance
Who is an insurance producer - ANSWER>>Any person licensed to sell, solicit or
negotiate insurance
In life settlement contract, who does the life settlement broker represent? -
ANSWER>>The owner
All of the following are true regarding a decreasing term policy EXCEPT -
ANSWER>>The payable premium amount steadily declines throughout the
duration of the contract.
