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Insurance License Exam > SC Life Regulations > Flashcards

Flashcards in SC Life Regulations Deck (20)
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1

Where must the restrictions of liability for a life insurance policy be displayed?

On the face of the policy and in a separate form

2

What is the max interest rate insurers can charge for premiums on individual life insurance policies in arrears?

8%

3

Which of the following is true concerning life insurance policy proceeds?

Life insurance policy proceeds are exempt from the claims of creditors, unless a collateral assignment has been made.

4

How much time does someone have to return a life insurance policy that is a replacement for a full refund?

20 days

5

Insurers' expenses are referred to as:

Loading

6

What happens if the insured of a life insurance policy commits suicide within 2 years of purchasing the policy?

The premiums are returned

7

Which of the following terms can never be used in a life insurance illustration?

Vanishing Premium

8

When must a Buyer's Guide be given to an applicant for a life insurance policy that does not have an unconditional refund?

Before accepting the initial premium

9

Life insurance replacement applies to which of the following?

Whole life insurance

*Does not apply to Credit Life, or Group Life

10

Regarding payment of premiums for life insurance policies, which of the following must be included in a provision in the policy?

The amount of the premium
The time the premium is due
The manner payable for the premium

11

What happens if an individual life insurance policy has an incorrect age stated on the policy?

The benefits are paid according to the correct age.

12

Who is the only person that cannot be authorized to alter any of the terms or conditions of a life insurance policy?

The agent

13

When must an insurer deliver a notice of the principle features of a variable life insurance policy?

Before the policy is delivered

14

Insurable interest in life insurance policies is present in which of the following?

Marriage or blood relationship
Business Partner
Creditor-debtor relationship
Self

***All of the above

15

Insurers accept premiums at all the following rates, except?

Bi-monthly

16

What is the max liability for a person by the SC Life and Accident and Health Insurance Guaranty Association?

$300,000

17

A SERP is intended for whom?

Key employees of a company

18

In SC, how long must someone have been insured by their group life insurance policy, prior to termination, to convert to an individual policy?

5 years

19

After termination, when someone converts their group life insurance policy to an individual life insurance policy, the amount of the policy must be:

Less than or equal to the group amount

20

What happens if William dies during the grace period and he has not paid a premium due on a life insurance policy?

The insurer pays and the premium due is subtracted from the death benefit.