South Carolina Life Insurance Producer questions with 100% correct answers 2024

Producer Independent Insurance Agents also known as insurance sales agents that typically sell a variety of Insurance and financial products. resident producer An agent who holds an insurance license in the state in which they live Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:02 / 0:15 Full screen non-resident producer Agents who hold an insurance license in a different state than the one they live Broker agents that work on behalf of life insurance companies to help potential customers navigate the process of buying life insurance. Reinstatement the process of putting the insurance policy back after a lapse. is allowed up to three years after the policy has lapsed. reporting of actions a producer must report any bankruptcy, felony conviction, and the other administrative action that occurs in South Carolina or another jurisdiction to the insurance department within 30 days. change of address producer must report to the insurance commissioner within 30 days any changes to legal name or address. assumed names an insurance producer doing business under any name other than the producers legal name is required to notify the insurance commissioner. continuing education producers are required to have 24 hours of this training every two years. cease and desist order this order is given by a government administrative agency or the courts to stop any suspicious or illegal activity. notice of hearings the director make call and hold a ________ for any purpose deemed necessary. The notice must be given to a person cited at least 30 days prior to the designated date. penalties any person who performs an act without a license is guilty of a misdemeanor and upon conviction must be fine not more than $10,000 or in prison for two years or both. director's duties and powers the director must follow the general policies and broad objectives enacted by the general assembly regarding the operation of insurance industry in this state. C-section 38 - 3 - 110 and the code for more info. certificate of authority a license issued by the state to an insurance company that allows the company to conduct its business. insolvency a financial state that occurs if liabilities are greater than assets. the director will suspend the Certificate of Authority for any insurer that falls into this category or is delinquent in claims payment. rates life insurance cost usually paid as a premium for a set amount of time. this is regulated by the director of insurance. policy forms State insurance commissioners have the authority to approve or disapprove new contracts or certificates before they are sold to the public. Unfair Claims Settlement practices Failing to approve or deny coverage of a claim within a reasonable period after a proof-of-loss statement has been completed or attempting to reduce the size of the claim. inspection The director may examine books and records for any insurer, any pension fund, retirement system, or organization authorized in the state of SC every 5 years. appointment authorized insurers have the right to appoint any number of producers to take risk for transact any business of insurance in the state. Notice of appointments must be filed within 15 days. termination of appointment when a contract of a producer is canceled by the represented insurer, that insurer shall notify the department of the cancellation within the guidelines and time period listed in section 38 - 43 - 55. records maintenance all companies doing any kind of insurance business in this state shall make and keep a full and correct record of the business done by them for a minimum of five years. misappropriation of funds the use of money for a purpose other than that for which it was intended or legally required to be used blank forms unless otherwise stated, no producer may sign any blank application, contract, or policy of insurance sharing commissions an option for splitting income with another producer only when the other producer is licensed in the same line of business. representing an unauthorized insurer considered a misdemeanor, producers are personally liable for transacting business on behalf of an insurer that is not licensed to do business in the state of South Carolina. misrepresentation it is an illegal practice to do this for any facts about an insurance policy such as a policy, terms, benefits, value, cost, effective date, or existence of a contract of insurance false advertising it is illegal practice to do this with insurance products or services in any way this included circulating statements, letters, or statements in newspapers, magazines or other solicitation materials. defamation is illegal practice to make any public statement or advertisement that contains false and malicious information or unsubstantiated criticisms about an insurance company. boycott, coercion, and intimidation it is an illegal practice to commit or coordinate any act with the intent to restrain or monopolize the business of insurance. false financial statements it is illegal to publish any _________ regarding a person or an entity. unfair discrimination is an illegal practice to do this against a person in anyway on an insurance related matter. rebating it is illegal to offer a refund in premium or a special advantage of any kind to consumers as an inducement to purchase a contract of insurance. twisting the act of making a false written or oral statement made by a producer for the purpose of replacing an existing policy to the detriment of the insured. free insurance Not permissible as an incentive to purchase another product. prohibit inducements no person may make, issue, circulate any estimate, illustration, statement that misrepresents the terms of the policy issued or to be issued, the benefits or advantages promised there by, or the dividends or share of the surplus to be received. insurance fraud false claims made to an insurance company. fraud and false statements it is against federal law to lie, falsify, or conceal information whether orally or in writing from a federal official. Fair Credit Reporting Act Act that protects privacy of background information and ensures that information supplied is accurate. insurance fraud and reporting immunity SC allows reporting of, grants immunity for reporting suspected, prescribes penalties for and requires restitution for victims of insurance fraud. risk The chance of loss from an event that cannot be entirely controlled during the policy term. exposure an individual's susceptibility to various risk encountered in daily life. hazard condition or situation that creates or increases chance of loss. peril cause of loss. loss the injury or damage sustained by the insured which the insurer, in consideration of the premium, has undertaken to indemnify the insured. risk avoidance avoiding an act that would create a risk. risk retention accepting that some risks simply arise in the course of one's life and consciously assuming responsibility for that risk.