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Free South Carolina Casualty Insurance Producer Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the South Carolina Casualty Insurance Producer practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1When may an automobile insurer make collision and comprehensive coverage available under Section 38-77-280?

    1. A. When an insured or qualified applicant requests it, at approved rates and rules
    2. B. Only after the insured has an at-fault loss
    3. C. Only through the Guaranty Association
    4. D. Only when no liability coverage exists

    Answer: A

    Explanation: The insurer may elect to make the coverages available "to an insured or qualified applicant who requests the coverage" at rates and under rules approved by the director.

    Reference: Code of Laws - Title 38 - Chapter 77- - INSURANCE — Section 38-77-280(A)

  2. 2A policyholder leaves routine loss-prevention tasks undone out of indifference because insurance will absorb the loss. There is no scheme to profit from a claim. Which hazard category best fits this behavior?

    1. A. Moral hazard
    2. B. Morale hazard
    3. C. Physical hazard
    4. D. Legal hazard

    Answer: B

    Explanation: NAIC defines "Morale Hazard - negligence or disregard on the part of the insured which could lead to probable loss." A USDA review adds, "Morale hazards focus on policyholders being careless because of the presence of insurance." The facts describe indifference, without an intended gain; the other categories involve different causes of increased risk.

    Reference: NAIC Glossary of Insurance Terms — Morale Hazard

  3. 3Before quoting a renewal, a producer needs to confirm the listed insured, policy dates, premium and liability limit on the current policy. Which policy part provides that summary?

    1. A. Declarations page
    2. B. Insuring agreement
    3. C. General conditions
    4. D. Exclusions schedule

    Answer: A

    Explanation: The guide says the declarations page contains "the policy number, effective and expiration dates, premium payable, the amount and types of coverage". It is the place to confirm these listed facts; the other parts state coverage rules.

    Reference: California Department of Insurance Commercial Insurance Guide — Glossary, Declarations (DEC) Page

  4. 4A producer asks which official supervises and regulates the rates and service of every insurer operating in South Carolina. Who has that statutory duty?

    1. A. The Director of the Department of Insurance or the director's designee
    2. B. The Attorney General
    3. C. The State Treasurer
    4. D. The Administrative Law Court

    Answer: A

    Explanation: Section 38-3-110 states that the director or designee must "supervise and regulate the rates and service of every insurer in this State." Therefore the Department of Insurance director or designee is the responsible official.

    Reference: Code of Laws - Title 38 - Chapter 3- - INSURANCE — Section 38-3-110(1)

  5. 5An insurer mails a notice canceling a South Carolina automobile policy. How soon may the stated effective date occur?

    1. A. Not less than 5 days after mailing
    2. B. Not less than 10 days after mailing
    3. C. Not less than 15 days after mailing
    4. D. Not less than 30 days after mailing

    Answer: C

    Explanation: Section 38-77-120 requires the notice to state an effective date "not less than fifteen days after the date of the mailing or delivering."

    Reference: Code of Laws - Title 38 - Chapter 77- - INSURANCE — Section 38-77-120(a)(2)

  6. 6A contractor finished installing a railing last month. It fails today and injures a customer. Which CGL exposure best matches the claim?

    1. A. Premises liability from an ongoing site condition
    2. B. Products liability from goods sold to a customer
    3. C. Completed operations liability from finished work
    4. D. Personal injury liability from a published statement

    Answer: C

    Explanation: The guide states, "Completed operations covers your potential liability for bodily injury or property damage that arises out of your completed work." The installation was finished before the injury; it is not an operation in progress.

    Reference: California Department of Insurance Commercial Insurance Guide — Commercial General Liability, Coverage

  7. 7An insured has a covered $8,000 property loss and no deductible or applicable limit restriction. Under the principle of indemnity, what is the target payment?

    1. A. $6,000
    2. B. $8,000
    3. C. $10,000
    4. D. $12,000

    Answer: B

    Explanation: NAIC says the insured "should be restored to the approximate financial position he or she was in prior to the loss." With full coverage and no deductible, $8,000 replaces the $8,000 loss. $6,000 underpays; $10,000 or $12,000 would exceed the loss.

    Reference: NAIC Glossary of Insurance Terms — Indemnity, Principle of

  8. 8A producer must determine whether a liability policy's initial coverage grant applies to an accident before considering exclusions. Which contract provision supplies that grant?

    1. A. Declarations
    2. B. Insuring agreement
    3. C. Conditions
    4. D. Endorsements

    Answer: B

    Explanation: The guide defines the insuring agreement as "The portion of an insurance contract that describes what is covered." The coverage grant is assessed there before later exclusions or conditions are applied.

    Reference: California Department of Insurance Commercial Insurance Guide — Glossary, Insuring Agreement

  9. 9During a compliance discussion, a producer needs to identify which agency must ensure that South Carolina insurance laws are faithfully executed. Which agency has that responsibility?

    1. A. The Secretary of State's office
    2. B. The Department of Insurance, through its director or designee
    3. C. The Administrative Law Court
    4. D. The State Auditor's office

    Answer: B

    Explanation: Section 38-3-110 directs the insurance director or designee to "see that all laws of this State governing insurers or relating to the business of insurance are faithfully executed."

    Reference: Code of Laws - Title 38 - Chapter 3- - INSURANCE — Section 38-3-110(2)

  10. 10Within how many days after receiving an auto cancellation or nonrenewal notice may the insured request the director's review in writing?

    1. A. 5 days
    2. B. 15 days
    3. C. 20 days
    4. D. 45 days

    Answer: B

    Explanation: The notice must inform the insured of the right to request review "within fifteen days of the receipt of notice."

    Reference: Code of Laws - Title 38 - Chapter 77- - INSURANCE — Section 38-77-120(a)(4)

Topics in this practice bank

These topics describe the available practice for South Carolina Casualty Insurance Producer. Review the examination outline and its sources for scope and allocation details.

  • TYPES OF POLICIES, BONDS, AND RELATED TERMS
    • Commercial general liability
    • Commercial general liability — Exposures
    • Commercial general liability — Exposures — Premises and Operations
    • Commercial general liability — Exposures — Products and Completed Operations
    • Commercial general liability — Coverage
    • Commercial general liability — Coverage — Coverage A: Bodily Injury and Property Damage Liability (Occurrence, Claims made including Retroactive Date)
    • Commercial general liability — Coverage — Coverage B: Personal Injury and Advertising Injury
    • Commercial general liability — Coverage — Coverage C: Medical Payments
    • Commercial general liability — Coverage — Supplemental Payments
    • Commercial general liability — Coverage — Who is an insured
    • Commercial general liability — Coverage — First named insured
    • Commercial general liability — Coverage — Limits (Per occurrence, Annual Aggregate)
    • Commercial general liability — Coverage — Damage to Property of Others
    • Automotive: personal auto and business auto
    • Automotive: personal auto and business auto — Liability
    • Automotive: personal auto and business auto — Liability — Bodily Injury
    • Automotive: personal auto and business auto — Liability — Property Damage
    • Automotive: personal auto and business auto — Liability — Split Limits
    • Automotive: personal auto and business auto — Liability — Combined Single Limit
    • Automotive: personal auto and business auto — Medical Payments
    • Automotive: personal auto and business auto — Physical damage (collision; other than collision; specified perils)
    • Automotive: personal auto and business auto — Uninsured motorists
    • Automotive: personal auto and business auto — Underinsured motorists
    • Automotive: personal auto and business auto — Who is an insured
    • Automotive: personal auto and business auto — Types of Auto
    • Automotive: personal auto and business auto — Types of Auto — Owned
    • Automotive: personal auto and business auto — Types of Auto — Non-owned
    • Automotive: personal auto and business auto — Types of Auto — Hired
    • Automotive: personal auto and business auto — Types of Auto — Temporary Substitute
    • Automotive: personal auto and business auto — Types of Auto — Newly Acquired Autos
    • Automotive: personal auto and business auto — Types of Auto — Transportation Expense and Rental Reimbursement Expense
    • Automotive: personal auto and business auto — Auto Dealers Coverage Form, including Garagekeepers Insurance
    • Automotive: personal auto and business auto — Exclusions
    • Automotive: personal auto and business auto — Individual Insured and Drive Other Car (DOC)
    • Automotive: personal auto and business auto — Mobile equipment
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Standard policy concepts
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Standard policy concepts — Who is an employee/employer
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Standard policy concepts — Compensation
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Work-related vs. non-work-related
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Other states’ insurance
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Employers Liability
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Exclusive Remedy
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Premium Determination
    • Crime
    • Crime — Employee Dishonesty
    • Crime — Theft
    • Crime — Robbery
    • Crime — Burglary
    • Crime — Forgery and Alteration
    • Crime — Mysterious disappearance
    • Bonds
    • Bonds — Surety
    • Bonds — Fidelity
    • Professional liability
    • Professional liability — Errors and Omissions
    • Professional liability — Medical Malpractice
    • Professional liability — Directors and Officers (D&O)
    • Professional liability — Employment Practices Liability (EPLI)
    • Professional liability — Cyber liability and data breach, funds transfer
    • Professional liability — Liquor liability
    • Umbrella/Excess liability
    • Business Owners Policy (BOP)
  • INSURANCE TERMS AND RELATED CONCEPTS
    • Hazards
    • Hazards — Moral
    • Hazards — Morale
    • Hazards — Physical
    • Indemnity
    • Insurable interest
    • Loss Valuation
    • Loss Valuation — Actual cash value
    • Loss Valuation — Replacement cost
    • Loss Valuation — Market value
    • Loss Valuation — Stated/agreed value
    • Loss Valuation — Salvage value
    • Negligence
    • Liability
    • Occurrence
    • Binders
    • Warranties
    • Representations
    • Concealment
    • Deposit Premium/Audit
    • Certificate of Insurance
    • Law of Large Numbers
    • Pure vs. Speculative Risk
    • Endorsements
    • Damages
    • Damages — Compensatory
    • Damages — Compensatory — General
    • Damages — Compensatory — Special
    • Damages — Punitive
    • Compliance with provisions of Fair Credit Reporting Act
  • POLICY PROVISIONS
    • Declarations
    • Insuring agreement
    • Conditions
    • Exclusions and Limitations
    • Definition of the insured
    • Duties of the insured after a loss
    • Cancellation and nonrenewal provisions
    • Supplementary payments
    • Proof of loss
    • Notice of claim
    • Other insurance
    • Subrogation
    • Loss settlement provisions including consent to settle a loss
    • Terrorism Risk Insurance Act (TRIA)
  • SOUTH CAROLINA LAWS AND REGULATIONS PERTINENT TO ALL LINES
    • Insurance Department and Director
    • Insurance Department and Director — Powers and duties
    • Insurance Department and Director — Examination of books and records
    • Insurance Department and Director — Investigations/Notice of hearing
    • Insurance Department and Director — Penalties and fines
    • Insurance Department and Director — Cease and desist orders
    • General insurance definitions
    • General insurance definitions — Domestic, foreign and alien insurers
    • General insurance definitions — Admitted/Nonadmitted insurer
    • General insurance definitions — Sell, solicit, negotiate
    • Licensing
    • Licensing — Producer
    • Licensing — License fees and application
    • Licensing — License probation, revocation, suspension, or denial of reissuance
    • Licensing — Temporary License
    • Licensing — Nonresident License
    • Licensing — Agent appointment/termination of contract
    • Licensing — Continuing education
    • Licensing — Change of Address/name change
    • Licensing — Reinstatement/license expiration
    • Unfair and prohibited trade practices
    • Unfair and prohibited trade practices — Rebating
    • Unfair and prohibited trade practices — Defamation
    • Unfair and prohibited trade practices — Unfair Discrimination
    • Unfair and prohibited trade practices — Misrepresentation
    • Unfair and prohibited trade practices — False advertising
    • Unfair and prohibited trade practices — Boycott, coercion, and intimidation
    • Unfair and prohibited trade practices — Unfair claims settlement practices
    • Unfair and prohibited trade practices — Fraud
    • Unfair and prohibited trade practices — False Financial Statements
    • Unfair and prohibited trade practices — Prohibited inducements
    • Reporting and Disposition of Premiums
    • Reporting and Disposition of Premiums — Fiduciary capacity; misappropriation of funds
    • Reporting and Disposition of Premiums — Commissions and compensation/charges for extra services
    • Reporting and Disposition of Premiums — Reporting of Actions
    • Consumer information privacy regulation
  • SOUTH CAROLINA LAWS AND REGULATIONS PERTINENT TO CASUALTY INSURANCE
    • Cancellation and nonrenewal of policies
    • Regulation of Rates
    • South Carolina Property and Casualty Insurance Guaranty Association
    • Auto
    • Auto — Uninsured/Underinsured motorists coverage
    • Auto — South Carolina Motor Vehicle Financial Responsibility Act
    • Auto — South Carolina Assigned Risk Pool
    • Auto — Deductibles
    • South Carolina Workers’ Compensation Law
    • South Carolina Workers’ Compensation Law — Exclusive remedy
    • South Carolina Workers’ Compensation Law — Employment covered (required, voluntary)
    • South Carolina Workers’ Compensation Law — Covered injuries
    • South Carolina Workers’ Compensation Law — Occupational disease
    • South Carolina Workers’ Compensation Law — Benefits provided
    • South Carolina Workers’ Compensation Law — South Carolina Workers' Compensation Uninsured Employers' Fund

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