A licensed insurance agent sells an individual accident and health policy in South Carolina. The policy is not a trip or travel ticket policy. How long does the required notice give the insured to examine the policy and surrender it for any reason?

Ten days, measured from the date the insured receives the policy

A producer who lives in another state holds a resident license there, in good standing, for two lines of authority. Her home state grants nonresident licenses to South Carolina residents on the same basis, she has met every other condition of Sec. 38-43-70(A), and she is not denied under Sec. 38-43-130. What will South Carolina issue her?

A nonresident producer license with the same lines she holds at home

After notice and a hearing, the South Carolina director finds that an insurer failed to meet its obligations under the article enforced by Section 38-59-270, and orders it to cease and desist, correct its practices, and make any payments due with interest. Under that section, when may the director then impose a penalty?

Once thirty days pass and the insurer still has not complied with the order

A participating physician submits a dually assigned claim, and the Medicare carrier sends the resulting notice to the insured's Medicare Supplement issuer. How must the issuer treat the carrier's notice?

As the claim for benefits, in place of any claim form the issuer would otherwise require

Under South Carolina law, a failure to perform an act that Title 38 requires is treated as a violation committed, at least in part, at what location?

At the office of the director in Columbia

The South Carolina director finds that a licensed producer has been convicted of a crime involving moral turpitude and intends to suspend the producer's license on that ground alone. What does the statute require before the suspension takes effect?

Ten days' notice to the producer

A producer does not write or speak any of it himself, but he encourages a friend to hand out flyers falsely claiming that a rival insurer is nearly insolvent, hoping to hurt that insurer's agents. Under South Carolina law, which statement is correct?

The producer has violated the law, because encouraging the circulation of such a statement is itself prohibited.

Without just cause, an insurer's claims department once failed to acknowledge a claimant's letter with reasonable promptness. Its claim files show no similar failures. Under South Carolina's improper claim practices statute, which statement is correct?

It falls short, because the statute also requires frequency indicating a general business practice

An employee insured under his employer's group life policy in South Carolina wants to assign his rights under the coverage to a family trust, under an arrangement among himself, the employer as policyholder, and the insurer. Which statement is correct?

He may assign his rights, including the conversion right and the beneficiary designation

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Real questions with the answer, the reasoning and the source.

1.A licensed insurance agent sells an individual accident and health policy in South Carolina. The policy is not a trip or travel ticket policy. How long does the required notice give the insured to examine the policy and surrender it for any reason?
Answer: A. Ten days, measured from the date the insured receives the policy
Section 38-71-150 requires an individual or family accident and health policy, other than a trip or travel ticket policy, to carry a notice allowing ten days from the date the insured receives the policy to examine it and surrender it for any reason, with any advanced premium returned in full. The thirty-day period in the same section applies only when a direct response insurer, rather than a licensed agent, solicited the policy. The period runs from receipt of the policy, not from the application date or the effective date.
Source
S.C. Code Ann. Sec. 38-71-150
Choose an answer to see the explanation.
2.A producer who lives in another state holds a resident license there, in good standing, for two lines of authority. Her home state grants nonresident licenses to South Carolina residents on the same basis, she has met every other condition of Sec. 38-43-70(A), and she is not denied under Sec. 38-43-130. What will South Carolina issue her?
Answer: C. A nonresident producer license with the same lines she holds at home
Sec. 38-43-70(A) provides that a nonresident who is currently licensed as a resident and in good standing in her home state, has submitted the required request and application materials, and comes from a state that treats South Carolina residents the same way receives a nonresident producer license carrying the same lines of authority she holds in her home state. None of the conditions in the subsection is a South Carolina examination, and the subsection grants a nonresident license, not a single-line, temporary or resident license.
Source
S.C. Code Ann. Sec. 38-43-70(A)
Choose an answer to see the explanation.
3.After notice and a hearing, the South Carolina director finds that an insurer failed to meet its obligations under the article enforced by Section 38-59-270, and orders it to cease and desist, correct its practices, and make any payments due with interest. Under that section, when may the director then impose a penalty?
Answer: A. Once thirty days pass and the insurer still has not complied with the order
Section 38-59-270 makes the Department of Insurance the enforcer of the article. After notice and hearing, an insurer found to have failed its obligations is ordered to cease and desist, correct errant business practices, and make payments due with interest. A penalty under the administrative penalty section may then be imposed if the insurer has not complied within thirty days. A penalty at the moment of the order skips that compliance window, and seven calendar days is not the period this section sets. A policyholder lawsuit is not the trigger either: the section says the article does not create a private right of action to enforce its specific provisions.
Source
S.C. Code Ann. Sec. 38-59-270
Choose an answer to see the explanation.
4.A participating physician submits a dually assigned claim, and the Medicare carrier sends the resulting notice to the insured's Medicare Supplement issuer. How must the issuer treat the carrier's notice?
Answer: D. As the claim for benefits, in place of any claim form the issuer would otherwise require
Regulation 69-46, Section 13(A)(1) requires an issuer to treat a Medicare carrier's notice on dually assigned claims from participating physicians and suppliers as the claim for benefits, replacing any other claim form, and to decide payment from the information in that notice. Nothing in the subsection makes acceptance depend on a further form from the insured or the physician, or on a signature deadline.
Source
S.C. Code Ann. Regs. 69-46, Section 13(A)(1)
Choose an answer to see the explanation.
5.Under South Carolina law, a failure to perform an act that Title 38 requires is treated as a violation committed, at least in part, at what location?
Answer: D. At the office of the director in Columbia
Section 38-3-140 treats a failure to do any act Title 38 requires as a violation committed in part at the director's office in Columbia. The section names that location, not the licensee's home county, the insurer's principal place of business, or the insurer's state of domicile.
Source
S.C. Code Ann. Sec. 38-3-140
Choose an answer to see the explanation.
6.The South Carolina director finds that a licensed producer has been convicted of a crime involving moral turpitude and intends to suspend the producer's license on that ground alone. What does the statute require before the suspension takes effect?
Answer: D. Ten days' notice to the producer
Under South Carolina law the director or his designee may place a producer's license on probation, revoke it or suspend it after ten days' notice when the producer has been convicted of a crime involving moral turpitude, has broken the insurance title or a department regulation, or has willfully deceived or dealt unjustly with the state's citizens. Five or thirty days misstate that ten-day notice period. Immediate suspension is provided separately, for a license the director finds was obtained by fraud or misrepresentation, and that is not the ground in this scenario.
Source
S.C. Code Ann. Sec. 38-43-130(A)
Choose an answer to see the explanation.
7.A producer does not write or speak any of it himself, but he encourages a friend to hand out flyers falsely claiming that a rival insurer is nearly insolvent, hoping to hurt that insurer's agents. Under South Carolina law, which statement is correct?
Answer: C. The producer has violated the law, because encouraging the circulation of such a statement is itself prohibited.
Sec. 38-57-90 prohibits making or circulating, directly or indirectly, a false or maliciously derogatory statement about an insurer's financial condition that is calculated to injure a person in the business of insurance, and it also prohibits aiding, abetting, or encouraging that circulation. The producer's encouragement brings him within the section even though he made no statement himself. The section covers oral or written statements, pamphlets, and circulars, so no newspaper or broadcast is needed, and its subject is a statement about an insurer's financial condition.
Source
S.C. Code Ann. Sec. 38-57-90
Choose an answer to see the explanation.
8.Without just cause, an insurer's claims department once failed to acknowledge a claimant's letter with reasonable promptness. Its claim files show no similar failures. Under South Carolina's improper claim practices statute, which statement is correct?
Answer: B. It falls short, because the statute also requires frequency indicating a general business practice
South Carolina's improper claim practices statute lists specific acts, such as failing to acknowledge claim communications with reasonable promptness. A listed act counts as an improper claim practice only when two things are true: it was done without just cause, and it happened often enough to indicate a general business practice. A single lapse with no pattern meets the first condition but falls short of the second, so lack of just cause alone is not enough. The statute sets no stricter standard for acknowledgment failures, and it is not confined to third-party claims: it covers claims arising under the insurer's policies, including third-party claims.
Source
S.C. Code Ann. Sec. 38-59-20
Choose an answer to see the explanation.
9.An employee insured under his employer's group life policy in South Carolina wants to assign his rights under the coverage to a family trust, under an arrangement among himself, the employer as policyholder, and the insurer. Which statement is correct?
Answer: D. He may assign his rights, including the conversion right and the beneficiary designation
South Carolina allows a person insured under a group policy, by arrangement among the insured, the group policyholder and the insurer, to assign his rights and benefits. The statute expressly includes the right to have an individual policy issued on conversion and the right to name a beneficiary, so neither right is held back from the assignment. Once the assignment is made, the insurer is entitled to deal with the assignee as owner of the assigned rights under the terms of the assignment, not with the employee. The employer's ownership of the master policy does not prevent assignment; the statute permits it notwithstanding any other provision of law.
Source
S.C. Code Ann. Sec. 38-65-30(1)
Choose an answer to see the explanation.
10.South Carolina Code Section 38-65-90 protects life insurance taken out for the primary benefit of the insured's spouse, children, or dependents from the insured's creditors. Up to what aggregate amount of proceeds and cash surrender value on one individual's life does that section's protection extend?
Answer: D. $50,000
Section 38-65-90 frees life insurance proceeds and cash surrender value taken out for the primary benefit of the insured's spouse, children, or dependents from the claims of the insured's creditors, but only in an aggregate amount of not more than $50,000 on the life of one individual. The section names two exceptions: a policy obtained with intent to defraud creditors, and a creditor holding a valid assignment of the cash surrender value made on a separate form. $10,000, $25,000 and $100,000 are not the figure this section states.
Source
S.C. Code Ann. Sec. 38-65-90
Choose an answer to see the explanation.

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1.A licensed insurance agent sells an individual accident and health policy in South Carolina. The policy is not a trip or travel ticket policy. How long does the required notice give the insured to examine the policy and surrender it for any reason?

4.A participating physician submits a dually assigned claim, and the Medicare carrier sends the resulting notice to the insured's Medicare Supplement issuer. How must the issuer treat the carrier's notice?

5.Under South Carolina law, a failure to perform an act that Title 38 requires is treated as a violation committed, at least in part, at what location?

6.The South Carolina director finds that a licensed producer has been convicted of a crime involving moral turpitude and intends to suspend the producer's license on that ground alone. What does the statute require before the suspension takes effect?

7.A producer does not write or speak any of it himself, but he encourages a friend to hand out flyers falsely claiming that a rival insurer is nearly insolvent, hoping to hurt that insurer's agents. Under South Carolina law, which statement is correct?

8.Without just cause, an insurer's claims department once failed to acknowledge a claimant's letter with reasonable promptness. Its claim files show no similar failures. Under South Carolina's improper claim practices statute, which statement is correct?

9.An employee insured under his employer's group life policy in South Carolina wants to assign his rights under the coverage to a family trust, under an arrangement among himself, the employer as policyholder, and the insurer. Which statement is correct?

The other 500 questions are $29.