SOUTH CAROLINA INSURANCE EXAM QUESTIONS

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SOUTH CAROLINA INSURANCE EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: A medical provider that accepts Medicare Assignment must

Answer:

accept payment based upon a defined Medicare schedule as payment in full Question 2: The purpose of the Coordination of Benefits provision in group accident and health plans is to

Answer:

avoid overpayment of claims Question 3: All of the following are qualifications for establishing a health savings account

(HSA) EXCEPT

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Enrolled in a health plan with a prescription drug benefit Question 4: Which type of plan would be most appropriate for an individual on Medicare and is concerned that Medicare will NOT pay for charges exceeding the approved amount?

Answer:

Medicare supplement Plan F

Question 5: Which of these annuities require premium payments that vary from year to year?

Answer:

Flexible premium deferred annuity

Question 6: Which of the following does Medicare Part D cover?

Answer:

prescription drugs Question 7: A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT

Answer:

fare-paying passenger Question 8: Frank is shopping for a disability income policy. Which of the following would have the HIGHEST premium?

Answer:

14 day period / 10 year benefit period Question 9: Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application?

Answer:

good health statement Question 10: An endorsement found in an insurance plan which modifies the provisions of the policy is called a(n)

Answer:

rider Question 11: Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which type of life insurance policy is this?

Answer:

Universal life

Question 12: Which of approach predicts a persons earning potential and determines how much of that amount would be devoted to dependents?

Answer:

Human life value approach Question 13: What is the required action to be taken by a South Carolina licensee before operating under an assumed business name?

Answer:

Notify the Director Question 14: David submits a $500 claim for medical expenses. There is a past-due amount owed for insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This deduction came as a result of which provision?

Answer:

Unpaid provision Question 15: What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?

Answer:

participating life insurance policy

Question 16: Key person Disability Insurance pays benefits to the

Answer:

employer Question 17: Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of these statements is true?

Answer:

The face amount and premium will remain constant over the 10-year period Question 18: When are group disability benefits considered to be tax-free to the insured?

Answer:

When the recipient pays the premiums

Question 19: If an annuitant dies before the annuity start date

Answer:

the premiums paid plus interest will be given to the beneficiary Question 20: All of these are common exclusions to a life insurance policy EXCEPT

Answer:

accidental health

Question 21: Of the following dividend options, which of these is taxable?

Answer:

Accumulation of interest Question 22: The factor used most often when underwriting a disability income policy is

Answer:

annual earnings Question 23: Tyler purchased a disability policy with a waiver of premium rider on April

• He is disabled on May
• On June 1, he receives proof of permanent and total disability, and submits a claim. He

begins receiving benefits on June 15. When are his premiums waived?

Answer:

May 1

Question 24: What is the primary reason for buying an annuity?

Answer:

Provide future economic security Question 25: Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies?

Answer:

Payor benefit

Question 26: Which contract element is insurable interest a component of?

Answer:

Legal purpose