Free General Insurance Concepts Practice Questions
South Carolina Property & Casualty exam — 53 practice questions.
Subtopics: Mutual insurer, Stock insurer, Domestic insurer, Foreign insurer, Alien insurer, Risk transfer, Admitted insurer, Nonadmitted insurer, Sell, Solicit, Negotiate, Producer license, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Law of large numbers, Principle of indemnity, Utmost good faith, Concealment, Warranty, Waiver and estoppel, Subrogation, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation, Risk, Marketing systems, Concealment and fraud, Indemnity
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Sample questions & answers
1. Under S.C. Code 38-9-20, before a mutual insurer is licensed, the director must require it to possess a minimum amount of:
Surplus
Section 38-9-20 requires a mutual insurer to possess a minimum surplus before licensing, while 38-9-10 requires a stock insurer to have both capital and surplus.
2. Before licensing a stock insurer, the South Carolina director requires it to possess:
Capital and surplus in minimum amounts
Section 38-9-10 requires a stock insurer to possess minimum capital, maintained at all times, and surplus before it is licensed; a mutual insurer must show surplus under 38-9-20.
3. An insurer incorporated under South Carolina law and doing business in South Carolina is, in South Carolina, a:
Domestic insurer
Section 38-1-20(20) defines a domestic insurer as one incorporated or organized under the laws of South Carolina.
4. From South Carolina's perspective, an insurer incorporated in another U.S. state is a:
Foreign insurer
Section 38-1-20(23) defines a foreign insurer as one organized under the laws of the United States or any U.S. jurisdiction other than South Carolina.
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Practice: General Insurance Concepts
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
