Chapter 8: South Carolina Laws and Rules Pertinent to Insurance Flashcards
(49 cards)
How often must the director examine each domestic insurance company?
Every 5 years
When a licensee’s address has changed, who must be notified of this change?
department of insurance
Which of the following is NOT a duty of the director?
establish rates for the insurers
Which of the following actions is REQUIRED by a producer who is replacing an existing life insurance policy?
Submit to the replacing insurer a list of the policies to be replaced
After a health insurance policy ahs been in force for ___ years, the policy is incontestable (except for fraud).
2
Which entity is responsible for regulating continuing education requirements in SC?
department of insurance
A license may be denied, suspended, or revoked if the licensee
is found guilty of misrepresentation
An example of false advertising would be
an insurer exaggerating its dividends in a magazine advertisement
Tia the producer is recommending to a prospect that an existing life insurance policy be replaced with a new one from her insurer. If this transaction moves forward, which of the following does NOT need to be provided to the prospect at or before the policy is delivered?
replacing insurer’s financial statements
Insurance companies that are organized in countries outside the United States are referred to as
Alien
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
misrepresentation
Merchandise with the insurer’s logo is allowed to be given for advertising purposes as long as the value does not exceed
$25. Anything given with the value over $25 is considered to be a form of inducement and is illegal
An insurance policy may NOT be cancelled by the insurer (except for fraud) after ___ years from policy issue.
2
Proof of loss on a health insurance claim must be submitted to an insurer within ___ days after the insured’s date of loss
90
All long-term care policies sold in SC are REQUIRED to pay the SAME daily benefit amount for “at home” care as compared to
the daily amount paid for nursing home care
A producer must notify the director within ______ days of a felony conviction
30
An insurer may exclude preexisting conditions on a Medicare supplement policy for _____ months
6
An eligible employee can be excluded from group health coverage for up to ____ months if he/she is considered a “late enrollee.”
18
Long-term care insurance policies sold in South Carolina are NOT required to cover
substance addiction
ABC insurance company fails to pay death proceeds after satisfactory proof of loss was submitted. ABC must then begin paying interest on the death proceeds after ____ days of receiving proof of loss.
30
On the test
South Carolina’s 10-day free-look period for life insurance policies begin at the
date of delivery
An individual accident and health insurance policy is REQUIRED to contain a(n)
payment of claims provision
If the cause of death appears to be accidental, an insurer may require a(n)
autopsy
Which type of insurance company allows their policyowners to elect a governing body?
Mutual
