South Carolina Insurance Regulations | 62 questions and answers 2025 with accurate rationales

-be at least 18 years of age

-be of good moral character

-not have been convicted of a felony or crime

-pay the required licensing fee

-pass the state exam

to qualify for a license, applicant must

- take and pass state exam

-acquire and submit SLED criminal background check

-apply for license and pay required fees

the process for acquiring license from SC is easy, you must

within 90 days

SLED background check application must be received ___ days after it was produced

minimum score of 70%; test results document good up to 1 year

passing score and how long it is good for

-completed application

-SLED background check

-Exam Status Report

after passing state exam you will need to submit the following

must send copy of FINRA CRD screen to verify series 6 or 7 registration

in order to sell variable insurance contracts

8 hour long LTC parnership course and ongoing training of atleast four hours every 24 months

in order to sell LTC inrsurance

-pays the required licensing fee

-keeps it activities within the scope of the agencys purpose

-appoints a person to be responsible for compliance & laws

agency may also be licensed if

must be appointed by an authorized rep of the insurance company (insurer)

before a producer can act as an agent she must

NIPR

central repository for information regarding licensing

(National Insurance Producer Registry)

-indefinite term/renewed every 2 years (along with continuing educations requirements)

producer license is good for (how long)

30 days of moving

non resident must file change of address within

reciprocal agreement

person's home state grants (non resident)

good up to 80 days

temporary license

will not be issued for purposed of continuing ed

temporary license

once disposed of temporary license

must be terminated

insurance broker

an individual licensed by the director to represent citizens of this state in placing their insurance

insured (customer)

broker represents

insurer (company)

agent represents

30 days of the final disposition

reporting of actions

30 days of the initial prettrial hearing date

producer shall report to the insurance director any criminal--how many days before

30 days of the change

change of address- how long do you have to change?

-fine up to $2500 or $5000 if the act is willful

-license suspension/revocation

-both fine and license removed

failure to notify director of a change in name/address

24 hours

producers who are licensed to transact life and health insurance as well as property and casualty insurance must complete

-minimum of 8 hours in each license

-minimum of 3 hours in ethics

-remaining hours in any approved category

continuing education must be complete as follows:

6 months

if license lapses due to not completing cont. education, can reinstate license within how many months?

unable to comply with license renewal procedures due to active military service, disability

extenuating circumstance

30 days in advance of hearing

those who have a hearing due to disciplinary action must be notified

50,000 for each day of violation

100 per each day of violation

violation of cease and desist order

-impose fine up to $15,000

(penalties) If the violator is an INSURER, director can

-impose fine up to $2500

(penalities) If the violator is a PERSON, director can

-fined up to $2500

A person who is convicted of MISDEMEANOR offense will be:

-fined up to $10,000

-

A person who transacts insurance WITHOUT A LICENCSE will be:

after 10 days notice

director may place on probation, revoke, or suspend a producer's license after how many days of notice?

certificate of authority (given producer authority to sell insurance)

-insurer is duly qualified to transact business

-paid all taxes in state

-adequate reserves for the protection of policy holders

-adequate reinsurance arrangements

-have NOT been convicted of a crime

-operations will not be hazardous to the public

approved by director

an insurer cannot issue or sell an insurance policy unless it has been approved by who?

director has 30 days to notify insurer whether form has been approved

after policy form is submitted for approval, how many days does director have to notify insurer about approval?

NAIC

National Association of Insurance Commissioners

as often as necessary but at least once every 5 years

director can examine the books and records of an insurer how often?

$40

if Appointment is not renewed by this date fee is:

Sept 30 of the EVEN-numbered years

insurer is required torenew APPOINTMENT on a Biennial Basis on what date? odd or even months?

within 30 days of termination

When an insurer terminates a producer's appointment, insurer must notify the department

within 15 days of termination

if producer was terminated for a criminal act, insurer must notify director

at least every 5 years

producers must keep records of every insurance transaction for at least how many years?

fiduciary responsibility

to transfer money on behalf of an insured or applicant for insurance to the appropriate place as required by the agency agreement

blank forms

a producer cannot sign a blank application, contract, or insurance policy or encourage the applicant to do so

$200 for each offense

a producer who is convicted of signing blank forms will be fined how much?

misrepresentation

anyone who makes false or misleading statements about the terms, benefits, dividends paid previously, or advantages of an insurance policy or may make false or misleading statements about the financial condition of an insurer

false advertising

anyone who makes statements, publishes, disseminates, circulates, advertises, announces, or places before the public either directly or indirectly in a newspaper, magazine, or other wide manner of publication, such as radio station, or tv, representing with respect to the business of insurance or any person in the conduct of his insurance business which is untrue, deceptive, or misleading

defamation

anyone who publishes or circulates false, decpetive, or misleading statements about or a statement that is maliciously critical of or derogatory to the financial condition of an insurer, when the statements are designed to injure anyone in the insurance business

no more than $25

rebating

refreshments may also be provided, as long as the value is not more than $10/person

rebating

rebating

insurers cannot pay or offer to pay anything of value to induce someone to buy insurance

twisting

anyone who makes false or misleading statement or comparison about an insurance policy in order to induce someone to lapse, surrender, terminate, retain, or convert an insurance policy

civil penalty

-first offense $5000

-second offense $5000 or more but less than $10000

-third offense $10,000 or more but less than $15000

a court can order a person who commits insurance fraud to pay a (what kind of penalty?)

consumer information privacy regulation (GLB)

Gramm-Leach-Bliley Act

Fair Credit Reporting Act

important consumer protection law that allows insurers to use credit reports in determining whether an applicant is eligible for insurance

experian, transunion, and equifax

3 major credit reporting bureaus

consumer report

provides information about the consumers credit, character, habits collected by a reporting agency employment records

within 3 days of the date of request of the notice

investigative consumer report

It is illegal for an individual convicted of a crime involving dishonesty, breach of trust, or a violation of the Act to work or continue to work in the business of insurance affecting interstate commerce without receiving written consent from the director of insurance in SC

Fraud and False Statements (no match just know)

civil penalty not to exceed $50,000 for each violation

if upon proof of such conduct by a preponderance of evidence, the person is subject to (Fraud and False Statements)