Free General Insurance Concepts Practice Questions
South Carolina Property exam — 86 practice questions.
Subtopics: Domestic insurer, Foreign insurer, Alien insurer, Admitted insurer, Nonadmitted insurer, Sell, Solicit, Negotiate, Producer license, Pure vs speculative risk, Hazard types, Moral hazard, Law of large numbers, Insurable interest property, Methods of handling risk, Risk avoidance, Stock insurer, Reciprocal insurer, Admitted vs non-admitted, Reinsurance, Elements of a contract, Express authority, Implied authority, Indemnity, Subrogation, Utmost good faith, Warranty, Concealment, Estoppel, Aleatory, Contract of adhesion, Unilateral contract, Conditional contract, Material misrepresentation, Fraud, Waiver, Mutual insurer, Lloyds association, Risk pooling, Risk retention, Risk transfer, Fundamental vs particular risk, Adverse selection, Peril definition, Morale hazard, Legal hazard, Binder, Apparent authority, Fiduciary responsibility, Self-insurance, Pro-rata cancellation, Insurable risk elements, Insurable risk - catastrophic, Large homogeneous group, Exposure, Peril vs hazard, Moral hazard example, Loss prevention vs reduction, Treaty reinsurance, Facultative reinsurance, Ceding company, Retrocession, Assessment insurers, Captive insurer, Government insurer, Mutual dividends, Independent agent, Exclusive agent, Broker, Managing general agent, Public adjuster, Producer E&O, Representation vs warranty, Absolute liability, Loss ratio, Combined ratio, Class rating, Judgment rating, Earned premium, Binder form, Contract characteristics, Hazards and perils, Insurer types
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Sample questions & answers
1. Under South Carolina law, an insurer incorporated or organized under the laws of South Carolina is a(n):
Domestic insurer
Section 38-1-20 defines a domestic insurer as one incorporated or organized under the laws of this State.
2. A North Carolina-incorporated insurer licensed to write business in South Carolina is, from South Carolina's viewpoint, a(n):
Foreign insurer
Section 38-1-20 defines a foreign insurer as one organized under the laws of the United States or any U.S. jurisdiction other than South Carolina.
3. An insurer organized under the laws of Bermuda that writes coverage on South Carolina risks is classified as a(n):
Alien insurer
Under 38-1-20, an alien insurer is one organized under the laws of a country other than the United States, its states, territories, or possessions.
4. In South Carolina, an "admitted insurer" is an insurer that:
Is licensed to do business in this State
Section 38-1-20 defines an admitted insurer as an insurer licensed to do business in this State; it may be domestic, foreign, or alien.
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.
