LAWS AND RULES PERTINENT TO INSURANCE ACTUAL
EXAM QUESTIONS WITH ANSWERS GRADED A+ 2025/2026
Under long-term care insurance, which of the following MUST an insurer offer to each
policyowner at the time of purchase?
A decrease in annual benefit levels
Lifetime minimum benefit levels
An inflation protection feature
Minimum benefit levels - An inflation protection feature
An insurance producer has fiduciary responsibilities to all of the following entities
EXCEPT:
insurers
insureds
applicants
the Guaranty Association - The Guaranty Association
In South Carolina, within how many days does the free-look provision allow the insured
the right to return an individual insurance policy for full premium?
5 days
10 days
15 days
45 days - 10 days
If an insurance agent receives compensation for giving advice to a member of the public
and properly documents the transaction and amount with a memo signed by the person
paying the fee, a copy of the memo or contract MUST be retained by the agent for AT
LEAST
1 year
3 years
5 years
7 years - 5 years
According to the South Carolina Code, when an insurance licensee changes his or her
address, who MUST be notified?
The National Association of Insurance Commissioners
The Insurance Agents Associations
The Department of Insurance
The Department of Labor and Industry - The Department of Insurance
A temporary producer license can be issued in any of the following circumstances
EXCEPT
surviving spouse of a producer
a prospective producer who is enrolled in an insurance pre-license class
designee of a producer entering active service in the armed services
, any circumstance the Director deems to be in the public interest - A prospective
producer who is enrolled in an insurance pre-license class.
Group dental plans will frequently place a limit on annual benefits in order to minimize
adverse selection
enrollment
coinsurance
administrative costs - adverse selection
Under the Affordable Care Act, which of these plans is designed to provide coverage
that is actuarially equivalent to 80% of the full actuarial value of the benefits provided
under the plan?
Gold
Platinum
Silver
Bronze - Gold
An example of an alien insurer would be
a United States-based insurer providing policies for immigrants to the United States
an insurer formed according to the legal requirements of another country
a Tennessee-based insurer providing insurance policies for travel to foreign countries
a Virginia-based insurer that also insures people from foreign countries - An insurer
formed according to the legal requirements of another country.
Which of the following MUST meet South Carolina continuing education requirements?
Underwriter
Resident producer
Limited lines producer
Surplus lines broker - Resident producer
A Pre-existing Condition Provision applies to a covered person if the previous creditable
coverage was continuous to a date NOT more than how many days prior to the
enrollment date of the new coverage?
25 days
50 days
63 days
100 days - 63 days
Long-term care policies MUST pay for "at-home" care at the same daily amount as
paid for adult day care
paid for respite care
paid for a nursing home
paid for therapy - paid for a nursing home
If the Director determines that an individual has engaged in an act violating state
insurance laws, the Director may issue an order requiring the violator to
EXAM QUESTIONS WITH ANSWERS GRADED A+ 2025/2026
Under long-term care insurance, which of the following MUST an insurer offer to each
policyowner at the time of purchase?
A decrease in annual benefit levels
Lifetime minimum benefit levels
An inflation protection feature
Minimum benefit levels - An inflation protection feature
An insurance producer has fiduciary responsibilities to all of the following entities
EXCEPT:
insurers
insureds
applicants
the Guaranty Association - The Guaranty Association
In South Carolina, within how many days does the free-look provision allow the insured
the right to return an individual insurance policy for full premium?
5 days
10 days
15 days
45 days - 10 days
If an insurance agent receives compensation for giving advice to a member of the public
and properly documents the transaction and amount with a memo signed by the person
paying the fee, a copy of the memo or contract MUST be retained by the agent for AT
LEAST
1 year
3 years
5 years
7 years - 5 years
According to the South Carolina Code, when an insurance licensee changes his or her
address, who MUST be notified?
The National Association of Insurance Commissioners
The Insurance Agents Associations
The Department of Insurance
The Department of Labor and Industry - The Department of Insurance
A temporary producer license can be issued in any of the following circumstances
EXCEPT
surviving spouse of a producer
a prospective producer who is enrolled in an insurance pre-license class
designee of a producer entering active service in the armed services
, any circumstance the Director deems to be in the public interest - A prospective
producer who is enrolled in an insurance pre-license class.
Group dental plans will frequently place a limit on annual benefits in order to minimize
adverse selection
enrollment
coinsurance
administrative costs - adverse selection
Under the Affordable Care Act, which of these plans is designed to provide coverage
that is actuarially equivalent to 80% of the full actuarial value of the benefits provided
under the plan?
Gold
Platinum
Silver
Bronze - Gold
An example of an alien insurer would be
a United States-based insurer providing policies for immigrants to the United States
an insurer formed according to the legal requirements of another country
a Tennessee-based insurer providing insurance policies for travel to foreign countries
a Virginia-based insurer that also insures people from foreign countries - An insurer
formed according to the legal requirements of another country.
Which of the following MUST meet South Carolina continuing education requirements?
Underwriter
Resident producer
Limited lines producer
Surplus lines broker - Resident producer
A Pre-existing Condition Provision applies to a covered person if the previous creditable
coverage was continuous to a date NOT more than how many days prior to the
enrollment date of the new coverage?
25 days
50 days
63 days
100 days - 63 days
Long-term care policies MUST pay for "at-home" care at the same daily amount as
paid for adult day care
paid for respite care
paid for a nursing home
paid for therapy - paid for a nursing home
If the Director determines that an individual has engaged in an act violating state
insurance laws, the Director may issue an order requiring the violator to
