LAWS AND RULES PERTINENT TO INSURANCE QUESTIONS
WITH ANSWERS GRADED A+ 2025/2026
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
pay restitution to his or her victims
stop engaging in those acts
appear before a jury of his or her peers
perform community service - stop engaging in those acts
Which of the following does restorative dental treatment cover?
X-rays
Cleanings
Dentures
Crowns - Crowns
When can a producer share commission with another producer?
It is never a legal act
When both live in South Carolina
When the other producer is licensed in any line of business
When the other producer is licensed in the same line of business - When the other
producer is licensed in the same line of business
Which of the following is NOT covered under long-term care insurance in South
Carolina?
Alcohol and drug addiction
Organic brain disease
Alzheimer's disease
AIDS - alcohol and drug addiction
As classified by the Affordable Care Act (ACA), a Silver Plan offers
60% actuarial level of coverage provided
70% actuarial level of coverage provided
80% actuarial level of coverage provided
90% actuarial level of coverage provided - 70%
Under the Affordable Care Act, how would a grandfathered health plan lose its
grandfathered status?
The insurer applies a lifetime dollar limit on essential health benefits
The insurer does not re-apply for grandfathered status
The insurer raises premiums across the board by 50%
The insurer significantly raises co-insurance charges, deductibles, or co-payment
charges - The insurer significantly raises co-insurance charges, deductibles, or co-
payment charges
Which of these licensees MUST be appointed in order to conduct insurance business?
, Broker
Adjuster
Producer
Consultant - Producer
All Health Benefit Plans issued after January 1, 2014 must provide
long-term care
dental care
adult vision care
preventative health services - preventative health services
In the State of South Carolina, the Director may issue a temporary producer license for
a MAXIMUM period of
90 days
180 days
1 year
2 years - 180 days
According to the Affordable Care Act, any plan in existence prior to which date is
considered a grandfathered plan?
March 23, 2010
March 23, 2011
March 23, 2012
March 23, 2013 - March 23, 2010
Which of the following is an example of an Unfair Claim Settlement Practice?
Failure to settle a claim based on all available information
Failure to provide a reasonable basis for the denial of a claim upon request
Failure to make an offer of coverage on a claim
Failure to notify a claimant of her right to make claim - Failure to provide a reasonable
basis for the denial of a claim upon request
The responsibility for regulating the insurance continuing education requirements and
approving insurance continuing education courses belongs to the
Department of Insurance
Federal Department of Commerce and Insurance
National Association of Insurance Commissioners
Continuing Education Administration Board - Department of Insurance
All of the following are subject to false advertising regulations EXCEPT
gifts
letters
circulars
statements - gifts
WITH ANSWERS GRADED A+ 2025/2026
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
pay restitution to his or her victims
stop engaging in those acts
appear before a jury of his or her peers
perform community service - stop engaging in those acts
Which of the following does restorative dental treatment cover?
X-rays
Cleanings
Dentures
Crowns - Crowns
When can a producer share commission with another producer?
It is never a legal act
When both live in South Carolina
When the other producer is licensed in any line of business
When the other producer is licensed in the same line of business - When the other
producer is licensed in the same line of business
Which of the following is NOT covered under long-term care insurance in South
Carolina?
Alcohol and drug addiction
Organic brain disease
Alzheimer's disease
AIDS - alcohol and drug addiction
As classified by the Affordable Care Act (ACA), a Silver Plan offers
60% actuarial level of coverage provided
70% actuarial level of coverage provided
80% actuarial level of coverage provided
90% actuarial level of coverage provided - 70%
Under the Affordable Care Act, how would a grandfathered health plan lose its
grandfathered status?
The insurer applies a lifetime dollar limit on essential health benefits
The insurer does not re-apply for grandfathered status
The insurer raises premiums across the board by 50%
The insurer significantly raises co-insurance charges, deductibles, or co-payment
charges - The insurer significantly raises co-insurance charges, deductibles, or co-
payment charges
Which of these licensees MUST be appointed in order to conduct insurance business?
, Broker
Adjuster
Producer
Consultant - Producer
All Health Benefit Plans issued after January 1, 2014 must provide
long-term care
dental care
adult vision care
preventative health services - preventative health services
In the State of South Carolina, the Director may issue a temporary producer license for
a MAXIMUM period of
90 days
180 days
1 year
2 years - 180 days
According to the Affordable Care Act, any plan in existence prior to which date is
considered a grandfathered plan?
March 23, 2010
March 23, 2011
March 23, 2012
March 23, 2013 - March 23, 2010
Which of the following is an example of an Unfair Claim Settlement Practice?
Failure to settle a claim based on all available information
Failure to provide a reasonable basis for the denial of a claim upon request
Failure to make an offer of coverage on a claim
Failure to notify a claimant of her right to make claim - Failure to provide a reasonable
basis for the denial of a claim upon request
The responsibility for regulating the insurance continuing education requirements and
approving insurance continuing education courses belongs to the
Department of Insurance
Federal Department of Commerce and Insurance
National Association of Insurance Commissioners
Continuing Education Administration Board - Department of Insurance
All of the following are subject to false advertising regulations EXCEPT
gifts
letters
circulars
statements - gifts
