South Carolina Surplus Lines Practice Test

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• What is a defining characteristic of the General Agency System?
• What is one requirement for a customer service representative to not require a license?
• Who qualifies as an industrial insured?
• What is the maximum fine for a willful misdemeanor under insurance regulations?
• If a broker violates the Unfair Trade Practices Act, what is one potential consequence?
• Which principle governs the relationship between a producer and an insurance company?
• A risk may be insured by a non-admitted insurer under what condition?
• What illustrates the collaborative nature of Lloyd's syndicates?
• Implied Authority enables an agent to perform actions that are:
• How is a reciprocal inter-insurance exchange defined?
• What conditions must a policy fee meet to be charged by a broker?
• A Coverholder has the authority to:
• What relationship do wholesalers and retailers benefit from in the insurance market?
• Why might an insurer void a contract?
• In a situation of waiver, what must a party typically do?
• Which of the following best describes fraud in the insurance context?
• What is a common example of a moral hazard?
• What is a key function of an agency captive insurance company?
• Excess and surplus lines insurance may be written when which condition is met?
• What is a General Agent responsible for in the insurance industry?
• What must be submitted to the SC Department of Insurance after passing the state exam?
• What defines a group captive insurance company?
• What is an immediate consequence resulting from a covered peril known as?
• Why must clients use Lloyd's brokers to engage with Lloyd's syndicates?
• What must a company provide when applying to be an alien insurer?
• What is the main purpose of insurance rating organizations?
• What is one of the broad objectives must be followed by the insurance industry in South Carolina?
• Which types of insurance are traditionally associated with the Guaranty Association?
• What is a consequence of poor management decisions in an insurance company?
• Which term applies to the reduction of a potential financial loss?
• Which statement best describes rebating in insurance?
• What is adverse selection in the context of insurance?
• Is Lloyd's of London classified as an insurance company?
• What is a key indicator that may suggest continued operation of an insurer is hazardous?
• Before becoming a broker, one must first be licensed as what type of producer?
• What are the three types of Surplus Lines risks?
• Which of the following can be considered a "risk" in terms of insurance?
• What action can the Director take if a broker's license was obtained through fraud?
• Insurance contracts are typically which kind of contracts type?
• How is "sharing" defined in risk management?
• When do changes in Property and Casualty rates require prior approval?
• What does the method of retention entail in risk management?
• What is required of the broker for the unlicensed individual’s job responsibilities?
• What is expected from a wholesaler regarding the knowledge of products?
• Which marketing system is commonly used by property and casualty insurers?
• If an insurance broker sells a policy from an unlicensed insurer, who is personally liable for the coverage limits?
• Which of the following is a duty that a CSR can perform?
• What percentage of the alien surplus lines market does Lloyd's of London typically write each year?
• What must a person recovering under the Guaranty Association do regarding their rights?
• How are insurers categorized based on their operations?
• How is a representation defined in the context of an insurance application?
• What must a Catastrophe Savings Account be labeled as in order to qualify?
• Which of the following best defines material misrepresentation?
• Which of the following is NOT included in the definition of premium tax?
• What happens if a broker's license is not reinstated?
• Under the Dodd-Frank law, when can a broker place insurance with a nonadmitted insurer?
• What type of Captives includes Single Parent, Association, and Group?
• What defines an industrial insured?
• What document is necessary for submitting an application for an insurance license?
• Which of the following best describes direct loss?
• The rates and premiums charged for applicable insurance policies must include which of the following?
• What entity manages the Guaranty Association?
• What is the primary purpose of a Risk Retention Group (RRG)?
• In an insurance contract, what is being exchanged for consideration?
• Insurance contracts have unique characteristics, one of which is that they are:
• What term describes insurance providers who do not have state authorization for operations?
• What may the director impose for every violation of the state's insurance laws?
• What is an example of risk reduction?
• What fees may municipalities impose on brokers?
• What is the tax rate range imposed on excess contributions to a Catastrophe Savings Account in South Carolina?
• Why is financial strength important to the insurance-buying public?
• Must a broker maintain a company appointment?
• What does the term "person" include in the Guaranty Association context?
• Which of the following is NOT a component of a legal contract?
• What is the potential penalty for a misdemeanor covered by the insurance regulations?
• If an agent can accept premium payments after a policy has expired, what impression might it create?
• What happens if an insurer is nonadmitted in relation to taxes?
• How does Lloyd's brokers' accreditation process ensure quality?
• Who does an agent (or producer) primarily represent in an insurance agreement?
• Approximately how many foreign and domestic insurance companies has the SC Director of Insurance approved for use in South Carolina?
• When must a broker file a report detailing their business with the Department?
• What might occur if risk retention is not managed properly?
• Which condition is NOT necessary for a risk to be insurable?
• What legal framework binds insurers and their producers?
• What is a characteristic of Unauthorized (Nonadmitted) Insurers?
• What is the main goal of insurance?
• How many separate accounts does the Guaranty Association have?
• What is the broker's premium tax rate in South Carolina?
• What is one of the specialty areas of risk covered by Lloyd's underwriters?
• What is the primary responsibility of call center agents in direct response marketing?
• In order to be considered safe and solvent, what must insurers maintain?
• The insurance company’s obligation to provide a payment as specified in the contract is termed what?
• How long must all records of surplus lines business be kept?
• Which types of insurance coverages can a captive insurance company not provide?
• What is the primary responsibility of a managing agent at Lloyd's?
• Which factor do insurers commonly review to determine an entity's financial stability?
• A broker's premium tax of 4% must be remitted to the department:
• What type of risks can an industrial insured captive insurance company cover?
• What type of insurer is organized and owned by a corporation or firm to serve that firm's insurance needs?
• Exclusive agents in the insurance industry are known for which trait?
• Which of the following is NOT one of the types of members at Lloyd's?
• Which is an example of a situation that qualifies a person as an exempt commercial purchaser?
• What is the maximum contribution amount for a Catastrophe Savings Account for a taxpayer with a qualified deductible over $1,000?
• What does an exposure unit refer to in insurance terminology?
• What type of risk will insurance companies typically insure?
• When an insured submits a payment to an agent, who is it effectively submitted to?
• Which type of insurer is typically associated with providing coverage for large and complex risks?
• Which of the following is NOT a type of hazard?
• The broker's premium tax is ___%.
• What characteristic of an insurance contract requires the insured to accept terms without modification?
• What does the NAIC publish on a quarterly basis?
• What is one key differentiator between a Coverholder and a Lloyd's broker?
• Which statement is true regarding rent-a-captive insurance models?
• Reinsurance is best described as:
• What is the daily fine for violating a cease and desist order?
• Which of the following is NOT an element that makes a risk insurable?
• What term is used to describe individuals with limited liability at Lloyd's?
• Under what condition can the Director suspend an insurer's certificate of authority?
• What is true about a hazard in insurance?
• What is the main role of a producer in the insurance industry?
• What is the primary function of Lloyd's of London?
• An alien insurer is defined as which of the following?
• Why is it important to understand the definitions of risk, hazards, and perils in insurance?
• What type of authority can an insurance agent possess?
• Which type of risk is considered insurable?
• Each member of a reciprocal inter-insurance exchange is individually liable only for what?
• According to the standards, what can indicate management's failure of competence?
• What is a notable provider often used in the alien market that is not categorized as an insurance company?
• Excess and Surplus Lines Insurance refers to what?
• What must unlicensed individuals be provided when working under a licensed broker?
• What type of risks do surplus lines carriers typically address?
• Who may sell insurance from unauthorized insurers?
• What constitutes a covered claim?
• What main aspect does the Department review to determine insurer solvency?
• What distinguishes authorized insurers from unauthorized insurers?
• In contract law, the contract must be for what type of purpose to be enforceable?
• Which feature of an insurance contract indicates that only one party is legally bound to the agreement?
• What type of insurance organization involves individuals pooling and spreading risk?
• What sector experienced the highest percentage of Lloyd's US business in 2013?
• What are statements made on an application for insurance known as?
• Which term best describes actions taken to prevent loss, such as installing security systems?
• What is true about excess and surplus lines insurers in most states?
• What does the acronym STARR stand for in risk management?
• Which situation could threaten an insurer's solvency?
• Which statement is true regarding excess and surplus lines insurance?
• Who is responsible for managing a reciprocal inter-insurance exchange?
• How long in advance must a person be notified of a hearing?
• What is another term for a cause of loss in insurance?
• How does a waiver and estoppel situation typically arise?
• What is the trust fund requirement for an alien insurer doing business in South Carolina?
• Which of the following is NOT a basic element for creating a contract?
• What is an example of an indirect loss?
• What is a key requirement for the agent when presenting a proposed policy?
• How is an insurance broker defined in South Carolina?
• Which of the following does NOT immediately benefit from a Catastrophe Savings Account?
• What must brokers do annually in South Carolina?
• What is the role of the Director in disciplinary actions?
• What type of liability do individual members (Names) have in Lloyd's?
• What does it mean that biennial license fees are retaliatory?
• When can a broker be held liable for a policy sold from an unlicensed insurer?
• What does the insurer do after reviewing the application for insurance coverage?
• What is a key advantage for Independent Agents over Exclusive Agents?
• For what purpose can excess and surplus lines insurance be written?
• What is the fee to apply for a broker's license?
• Social insurance programs are funded through what means?
• What happens after the insurer issues a policy?
• A South Carolina risk can only be insured by an alien insurer if it:
• What principle indicates that a person has given up a known or legal right?
• What types of records must brokers in South Carolina maintain?
• How can a non-admitted insurer be classified?
• Which of the following activities is NOT permitted for an unlicensed individual?
• What is the maximum duration for which a license can be suspended by the Director?
• How does the county treasurer distribute the broker's premium tax collected on property insurance?
• Purchasing Groups are characterized by which of the following traits?
• What is NOT one of the general criteria for writing through a surplus lines carrier?
• What is the purpose of reinsurance?
• Which party is excluded from being a claimant according to the Guaranty Association definitions?
• What term describes the failure to disclose information that could influence an insurer's decision?
• What role does the Director play in the licensing process of insurance brokers?
• Which characteristic defines a unilateral contract?
• If a claimant holds a valid claim with multiple insurers, what guideline must they follow for initial recovery actions?
• What type of account is a Catastrophe Savings Account?
• Which service can an insured use to assess the financial strength of an insurance company?
• In an insolvency situation, what is the last resort action that the Guaranty Association may take?
• What comprises the broker's premium tax rate in South Carolina?
• What is the primary purpose of a Captive Insurance Company?
• Which of the following describes an advantage of the call center agent system?
• Which of the following actions are unlicensed individuals NOT permitted to perform?
• How can a captive insurance company be best described?
• How is the amount payable on a covered claim determined in relation to other coverages?
• During an insurer insolvency, what are insurers and their agents prohibited from doing?
• What are the consequences if a member insurer fails to pay an assessment on time?
• What is the definition of an admitted insurer?
• Which of the following is true about risk prevention measures?
• If you fail to pay your fee every how many years will your license be canceled?
• What is the status of insurance sold through a non-admitted insurer?
• What is considered a taxpayer's legal residence?
• Which is a requirement for a broker handling surplus lines business?
• What potential issue could arise if transactions among affiliates do not provide sufficient value?
• How many days do Property and Casualty rates have to be filed before they can be used?
• What type of insurance products do wholesale insurance brokers typically provide?
• Up to how much premium tax can brokers face annually?
• All insurance dealings at Lloyd's are conducted through which entity?
• Who must the director or designee report criminal violations of insurance laws to?
• Which factor is NOT considered when assessing an insurer's ability to operate safely?
• Which types of insurance are excluded from the Guaranty Association's coverage?
• What defines a named peril in an insurance policy?
• Which type of insurer might offer coverage when traditional options are unavailable?
• Which type of insurance can Risk Retention Groups provide coverage for?
• What must happen before an insured can recover a claim from the association?
• Who assesses the solvency of insurers in South Carolina?
• Which structure is integral to how insurance is underwritten at Lloyd's?
• How may the penalties from violations affect administrative proceedings?
• For which types of liability insurance are purchasing groups allowed to buy?
• What happens if an insurance company fails to meet the obligation of sending a proof of loss form?
• What offense is committed by a person who transacts insurance without a license?
• What must every insurer transacting business in South Carolina deposit with the director?
• What happens if a policy form is not approved or disapproved within the review period?
• What is required to reinstate a broker's license?
• Agents in a Managerial Agency System are typically compensated how?
• What restriction applies to individuals with a net worth greater than twenty-five million dollars regarding claims against the association?
• In the context of agency, who is responsible for the acts of an agent within their authority?
• Which of the following is considered a failure of management in an insurer?
• What is the primary aim of risk prevention measures?
• What documentation is required from an insurer before issuing a license?
• If an insurer has difficulty covering claims, what may the Department allow them to do?
• What is the maximum extension period for the Director to notify the insurer after submitting a policy form?
• What does a broker's license entitle the holder to do in South Carolina?
• Which of the following is NOT a type of hazard?
• What does South Carolina Insurance Law permit a producer to do regarding a broker's license?
• What can the department do to help avoid an insurer insolvency?
• A Foreign Insurer is defined as what?
• Which of the following penalties may occur for transacting insurance without a license?
• In South Carolina, what type of losses does the Catastrophe Savings Account not cover?
• What is the role of the state licensed broker in relation to surplus lines coverage?
• As of 2013, what percentage of Lloyd's global premium originated from the United States?
• Which term refers to the obligation to pay for claims after a covered loss?
• Which type of insurance is NOT an account under the Guaranty Association?
• What does the acronym STARR represent in risk handling methods?
• What are members of a reciprocal inter-insurance exchange sometimes informally referred to as?
• How does the applicant present their offer in an insurance contract?
• Which initial step do alien insurers take to accept surplus lines insurance?
• Which power does the director NOT have under the Guaranty Association?
• What does the term peril refer to in insurance?
• What happens if an agent performs acts outside their authority?
• What must a licensed broker submit to obtain approval for nonadmitted insurers as eligible surplus lines insurers?
• What are physical hazards primarily associated with?
• What is the primary purpose of a risk retention group?
• What is a 'proof of loss' form used for?
• Which term defines the process of transferring risk through an insurance policy?
• What happens if a Lloyd's syndicate fails?
• What distinguishes a direct writer from an exclusive agent?
• What must be true before an insurer can sell an insurance policy?
• To qualify for surplus lines, the purpose of placement must not be to obtain what?
• Notice to the licensed broker considered as notice to the insured applies in which scenario?
• What is the primary function performed by coverholders in the Lloyd's market?
• What is the primary concern of regulators when examining insurers?
• What does a binder provide in insurance?
• Excess and surplus lines brokers must be what?
• What role do Lloyd's brokers typically play in the insurance process?
• Alien insurers account for approximately what percentage of the U.S. surplus lines market annually?
• According to the NRRA, what type of insurance can a state not prohibit a surplus lines broker from placing?
• Which of the following is not included in the definition of a covered claim?
• What must surplus lines brokers provide to policyholders?
• What service do MGAs provide in relation to underwriting risks?
• For an alien insurer to cover a risk in South Carolina, it must meet which of the following requirements?
• How should an amount payable on a covered claim be adjusted when there is recovery from another insurance guaranty association?
• When a claim may be recovered under multiple insurance guaranty associations, what is the initial requirement?
• How does a managing general agent (MGA) operate in relation to the carrier?
• Which of the following best describes a conditional contract?
• Risk retention is best described as?
• What type of market is Lloyd's considered?
• What type of claims does the Guaranty Association primarily address?
• Which of the following is NOT a requirement for Lloyd's brokers seeking accreditation?
• Which of the following is NOT a characteristic of insurance contracts?
• What is the main purpose of captive insurance?
• How does an insurer use predictive modeling?
• Why was the National Flood Insurance Program (NFIP) created?
• A Catastrophe Savings Account is not subject to which of the following?
• Consideration in a contract is best described as?
• What distinguishes an Independent Agent from an Exclusive Agent?
• Which financial institutions can be used for deposits as required by the director?
• How is the liability of a person insured by an insolvent insurer's policy affected by the Guaranty Association obligations?
• Who is ultimately responsible for ensuring compliance with insurance law in a broker's office?
• How often must every insurer licensed in the state submit to an examination of their books and records?
• What is the limitation of a pure captive insurance company?
• Which one of the following is NOT an element of insurability?
• How do regulators generally hope to prevent insurer insolvencies?
• Under what circumstances can a consumer legally purchase insurance from a Nonadmitted Insurer?
• What defines a Single Parent Captive insurance company?
• What is a key requirement for an insurance broker in placing insurance according to the standards set?
• What is the meaning of waiver in an insurance contract?
• What is meant by “Implied Authority” in agency relationships?
• What does the principle of utmost good faith in insurance contracts require?
• Which entity is primarily responsible for accrediting brokers at Lloyd's?
• What criteria must regulated aliens fulfill according to the IID?
• What does the Guaranty Association pay if an insurer becomes insolvent?
• What is an advantage of using a MGA for surplus lines carriers?
• Who are members of the Guaranty Association?
• What is the maximum fine for a broker who fails to notify about a name or address change if the act is willful?
• Which of the following is NOT a federal government insurance program?
• Individuals or entities that provide capital to run Lloyd's associations are referred to as what?
• What defines moral hazards?
• What does 'premium tax' encompass in relation to surplus lines insurance?
• Which statement best describes morale hazards?
• How is an Authorized (Admitted) Insurer defined?
• Which of the following describes the risk-sharing method of pooling?
• What does "Express Authority" refer to?
• What does a warranty entail in an insurance contract?
• Returning premiums or commissions to a customer outside the contract terms is known as what?
• In which two states does Lloyd's operate as an authorized carrier in the U.S.?
• In the context of insurance, an agent/producer can also be referred to as what?
• Which of the following defines the role of the Municipal Association of South Carolina?
• The coverage placed by brokers is typically limited to insurance that is what?
• What type of coverage is typically not available directly from private insurance carriers?
• In terms of immunity, who cannot be held liable for acts in performance of duties under this chapter?
• What is the annual requirement for the board of directors regarding financial reports to the department?
• Within how many days must an insurance company send a proof of loss form to the claimant?
• What doctrine may courts apply when interpreting insurance policies to meet expectations?
• In property and casualty insurance, who typically holds the personal contract?
• What can courts require if a contract is enforceable?
• What can be considered a form of independently procured insurance?
• Which type of insurance is NOT covered by the Guaranty Association?
• How is a qualified risk manager defined?
• What does risk reduction refer to in the context of insurance?
• What is critical for consumers when selecting an insurance company?
• What types of coverages can licensed SC brokers find for their customers?
• What is a risk retention group (RRG)?
• Which of the following is NOT a requirement for alien insurers to be classified as regulated?
• How many days does the Director have to notify the insurer about a policy form's approval status?
• What regulations must insurers follow regarding rates?
• What is required of a person with a claim resulting from the same loss as a covered claim?
• What is the primary role of a Lloyd's broker?
• What is one of the potential penalties imposed after a hearing finds an act unfair or deceptive?
• Who does a wholesale insurance producer/broker primarily serve?
• Which type of insurance service primarily exists to cater to specific corporate needs?
• How can risks be handled according to the provided concepts?
• In the context of Lloyd's, what is a "binding authority"?
• How are premium taxes imposed on insurers in relation to risks located in South Carolina?
• How long must a person wait to reapply for a broker's license after revocation?
• What is the government market also referred to as?
• If an agent has knowledge in relation to an insurance matter, whose knowledge is it presumed to be?
• What actions may the Guaranty Association take if a company becomes insolvent?
• Where did Lloyd's originate?
• What is the maximum administrative penalty for a violation of insurance laws if the violator is an insurer?
• What responsibility may some MGAs hold that differs from typical surplus lines brokers?
• What happens if a claim is within the coverage of both an insolvent and a solvent insurer?
• What classification do insurers who provide coverage only within a single state belong to?
• When is an insurance contract considered to be executed?
• What role does an agent play in the insurance industry?
• What must a policy or certificate not contain to be approved?
• How is independently procured insurance defined?
• What type of loss occurs as a result of a covered peril but is not directly caused by it?
• What type of insurance falls into the "All other applicable types of insurance" category in the Guaranty Association?
• What must occur before placing an insurance risk with a non-admitted insurer?
• Members of a reciprocal inter-insurance exchange are liable to indemnify others but how are they different from partners of a law firm?
• Which of the following is an example of "Implied Authority"?
• Captive insurers are primarily organized to serve what purpose?
• What is a unique niche covered by Lloyd's?
• What is required for a conditional contract to remain enforceable?
• What is the maximum aggregate payout from the association for claims against an insolvent insurer?
• Which of the following best describes a unilateral insurance contract?
• How many types of hazards are mentioned in typical insurance studies?
• What is considered concealment in insurance practices?
• Which organization publishes a listing of acceptable excess and surplus lines insurers that many states adopt?
• What is a key requirement for an insurer to operate within a particular state?
• With contracts of insurance, both parties typically extend what?
• An eligible surplus line insurer must have what added to the face of a policy issued in South Carolina?
• What role does a wholesale broker play in regards to quotes?
• For how long is a broker license issued in South Carolina?
• What must the Guaranty Association submit to the department?
• Which financial statement must regulated alien insurers file to be listed on the NAIC?
• Writers of insurance policies are commonly referred to as what?
• For what reason can insurance only be placed with a non-admitted insurer?
• A Surplus Lines Broker who also has binding authority is called a ________________________.
• How do physical hazards increase the likelihood of loss?
• What must brokers doing any insurance business in South Carolina maintain?
• What is required for a company to remain on the Department's list of Alien Eligible Surplus Lines Insurers?
• Which act was part of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
• The most common type of Captive insurer is _______________________.
• What are surplus lines intermediaries responsible for?
• Which element ensures that parties have the legal capacity to enter into a contract?
• Which of the following is a critical expectation in the relationship between a retailer and wholesaler?
• What is the maximum amount the Guaranty Association pays for covered claims, excluding workers compensation?
• What is the definition of an Alien Insurer?
• What type of legal agreements do property and casualty insurance policies resemble?
• Who will the Guaranty Association help pay after an insolvency occurs?
• What is one of the purposes of the Guaranty Association?
• If a risk cannot be placed with an admitted insurer, what can the DOI grant permission for?
• What significant difference exists between wholesale brokers and Managing General Agents (MGAs)?
• What defines a Direct Writer in the insurance industry?
• Which statement correctly describes the relationship between risk, hazard, and peril?
• What is a key feature of moral hazards in insurance?
• In evaluating an insurer's future financial strength, which factor is NOT typically examined?
• Which of the following is NOT a potential action following a hearing?
• What purpose does "Consideration" serve in a legal contract?
• What is the requirement when a licensee changes their address or name?
• What is typically the first step in forming a legal contract?
• What types of insurance transactions are typically allowed for non-admitted insurers?
• What amounts are excluded when computing total premiums for surplus lines?
• Which of the following is NOT a cause of insurer insolvency?
• What should an agent do to act in the best interests of the applicant or insured?
• What is the liability insurance company owned by its members and created to cover the members' liability risks?
• What is a purchasing group?
• Which financial arrangement must managing agents disclose under the Lloyd's Act of 1982?
• What is the purpose of the notice sent before the hearing?
• What type of duties can unlicensed individuals perform under the supervision of a licensed broker?
• Which activity is allowed for a CSR operating under a licensed broker?
• What must each party to a contract do in relation to the offer?
• What may happen to a broker who does not comply with laws regarding policies issued by non-licensed insurers?
• What is the role of a risk retention group?
• What is one requirement for a nonresident to be licensed as an insurance broker in South Carolina?
• What structure characterizes a reciprocal inter-insurance exchange?
• What distinguishes aleatory contracts from other types of contracts?
• What is the purpose of the Comptroller General drawing a warrant on the State Treasurer?
• To maintain your broker's license, what must you also remain?
• Which of the following best describes the Law of Large Numbers in insurance?
• In the producer-agent relationship, who acts as the principal?
• What results when an offer to enter into a contract is made and accepted?
• What aspect of insurer management can lead to adverse financial conditions?
• For how many years must brokers keep their records?
• What is defined as an unwelcomed and unplanned reduction in value?
• For which type of purchaser is a "diligent search" not required?
• How is an "insolvent insurer" defined?
• An insurer not licensed in South Carolina is classified as what type of insurer?
• Who receives a duplicate accounting of the premium tax collected by the broker?
• Which of the following must be filed to become a nonresident broker?
• Who are the two parties involved in an "Agency Relationship"?
• How is the maximum assessment determined for a member insurer after insolvency?
• What is required after diligent efforts to secure insurance through authorized carriers fail?
• Who manages agents in the Managerial Agency System?
• Which risk characteristic must an insurance loss exhibit to be considered insurable?
• What must an individual do to maintain a Surplus Lines Broker License regarding fee payments?
• What is the broader category under which Risk Retention Groups (RRG) fall?
• What happens if the insured profits from a loss in an insurance contract?
• What is a key characteristic of contracts of adhesion?
• What is the fine limit for a broker found in violation of the Unfair Trade Practices Act?
• What is required for an insurer to sell insurance covered by the Guaranty Association?
• What is required before utilizing the surplus line market for an admitted carrier?
• In South Carolina, who is defined as an 'insurance broker'?
• What does "Apparent Authority" signify?
• Which of the following is NOT one of the five Marketing Distribution Systems?
• Who is required to have an active producer license to keep their broker's license?
• What type of market do wholesale brokers typically utilize?
• What role does an underwriter play in an insurance company?
• When must a biennial broker license fee of $200 be paid?
• What is the timeframe for remitting surplus lines premium tax to the department for insurers not licensed in South Carolina?
• The applicant's premium payment and application serve as what in the contract?
• What must be established in South Carolina before an alien insurer can insure a risk?
• What action must be taken in the event of insurer insolvency?
• Which characteristic defines Independent Agents?
• An insurer headquartered outside of the United States is referred to as what?
• How long is the Exam Status Report valid for after passing the state exam?
• What is one reason the Director might revoke an insurer's certificate of authority?
• What do members of a risk retention group share?
• What are the components of the 'Agreement' in a contract?
• What defines a claimant in the context of the Guaranty Association?
• What year was the Society of Lloyd's incorporated?
• What best defines a member insurer?
• What type of contract is characterized by one party's ability to enforce promises without obligations on the other party?
• Which of the following individuals is not required to have an insurance broker's license?
• What does a Catastrophe Savings Account cover?
• Which authority do most surplus lines brokers lack?
• What must a producer have before selling or negotiating insurance products with non-admitted insurers?
• Which of the following organizations is known for rating insurance companies?
• Under what condition may recovery from the association be capped at ten million dollars?
• What is a rent-a-captive insurance company designed to do?
• How many coverholders were operating in South Carolina as of May 2014?
• What created the South Carolina Property and Casualty Insurance Guaranty Association?
• When determining the limits of coverage required for policies, what is needed from the declarations page of the insolvent insurer's policy?
• Which act authorized the formation of risk retention groups?
• Which type of agent can renew a policy with any company they represent?
• According to the Law of Large Numbers, what happens as the sample size increases?
• How many accounts are there at the Guaranty Association?
• Which of the following is not a form of risk management?
• What is required for members of a risk retention group?
• What type of insured uses their own employee purchaser for policies with annual premiums of six digits or more?
• What role does consideration play in a contract?
• What is a responsibility of a licensed broker concerning unlicensed individuals in the office?
• What is NOT a type of captive insurance?
• What is defined as the deductible for a homeowner's policy for a taxpayer's legal residence?
• What does insurable risk not cover?
• Which type of insurance agent can serve as both employees and independent contractors?
• What is typically not a requirement for Exempt Commercial Purchasers?
• What is the significance of the broker's home state's certification letter?
• What must the Guaranty Association do if it needs to notify insureds of insolvency?
• What primary aspects do rating organizations review to assess an insurer's financial strength?
• Under what condition must a broker's license be cancelled?
• Which of the following is true about Open Market Correspondents?
• An insurance company that has not applied or was denied a Certificate of Authority in a state is called what?
• What does 'risk' refer to in insurance terms?
• What is the role of an underwriter in the insurance application process?
• Which of the following actions would NOT align with an agent's duty to the insured?
• What is an example of risk avoidance?
• What is considered a false and misleading statement in insurance?
• What is the penalty for a person who performs an act without a license?
• Who has the authority to require brokers to submit additional documents for an insurer's status?
• What was the primary purpose of creating Risk Retention Groups (RRGs) under the Product Liability Risk Retention Act of 1981?
• Who is entitled to a hearing if charged with an unfair method of competition?
• What organization does the term 'municipal agent' refer to in South Carolina?
• Can an offer in a contract be made verbally or in writing?
• An insurer's issuance of a policy that differs from the application is classified as what?
• What is the primary aim of indemnity in an insurance contract?
• What must the director ensure before granting a certificate of authority to a domestic insurer?
• In the event an unauthorized insurer fails to pay a claim, to whom is the person aiding in the procurement of the insurance contract liable?
• What must insurance companies do to conduct business in a state?
• A Catastrophe Savings Account must be established for which purpose?
• What role does the government play in providing insurance?
• What is a key difference between service companies and coverholders?
• What is one requirement to become a nonresident broker?
• A promise can also be considered as what in the context of insurance contracts?
• What is the minimum amount for the Trust Fund Minimum Amount according to surplus lines regulations?
• What is the company's responsibility when an agent works within the conditions of their contract?
• To qualify as a regulated alien insurer, what must insurers file?
• Which method is NOT part of the five methods for handling risk?
• What must the directors and officers of an insurer not have been convicted of?
• Who typically provides insurance agents with ownership and control of policies?
• What defines a Domestic Insurer?
• What encompasses expenses paid due to a declared major disaster?
• To place business with an unauthorized insurer, what is required?
• Unauthorized insurers are commonly referred to as what?
• Under what circumstance may a broker share a commission?
• What is the characteristic of open peril in insurance?
• What does "indirect loss" typically include?
• When must brokers remit premium taxes?
• What action does the SC DOI take when notified of a company's removal from the IID List?
• What must an insurance broker do when dealing with an insured party?
• Who oversees the compliance and approval of alien insurers in the United States?
• With whom may an insurance broker place insurance?
• Why is it important that contracts in insurance be clear and enforceable?
• What must a broker ensure when placing insurance with a nonadmitted insurer?
• Which of the following statements is true regarding the maintenance of an insurer’s status as an eligible surplus lines insurer?
• What are the two main categories of insurers within the specialty lines market?
• How are Lloyd's syndicates structured?
• Insurers that utilize more than one marketing system are referred to as what?
• Which criteria qualifies a person as an exempt commercial purchaser?
• Applicants for insurance policy contracts must fulfill requirements for what?
• What does a certificate of authority allow qualified insurers to do?
• What must Lloyd's brokers do regarding representation?
• When should the director notify the association of an insolvent insurer?
• What is the definition of distressed risks?
• Who is responsible for determining how broker premium taxes are distributed?
• What characteristic does a Nonadmitted Insurer typically provide?
• Why do retail agents often use wholesale brokers?
• What is a primary reason that insurers can become insolvent?
• If a claim has been settled against an insured under a policy from an insolvent insurer, what must a person do regarding other policies from solvent insurers?
• What does estoppel prevent a party from doing?
• What type of contract is defined as being drafted by one party and offered on a "take-it-or-leave-it" basis?
• What is the definition of a hazard in the context of insurance?
• If a taxpayer contributes beyond the limit, what must they do with the excess amount?
• How does a hazard differ from a peril?
• To be considered legally competent, a person must meet which of the following criteria?
• What is one condition of maintaining a Surplus Lines Brokers License?
• Who is responsible for reviewing the premium rates set by insurers?
• Which characteristic of an insurance contract indicates that unequal values are exchanged?
• What distinguishes direct response marketing from traditional marketing systems?
• What is NOT a requirement for a surplus lines broker regarding due diligence for an exempt commercial purchaser?
• What is the definition of misrepresentation in the context of insurance contracts?
• What must a qualified risk manager possess?
• Captives are mostly utilized for which purpose?
• What is a central duty an agent owes to an insured or applicant for insurance?
• What is essential for an insurance broker to do when submitting an application for insurance?
• What method involves forming a group to share losses among its members?
• What makes a contract enforceable?
• Which activity is specifically associated with the duties of an insurance broker?
• What could be a consequence of material misrepresentation?
• What must brokers do on any policy from an eligible surplus lines insurer?
• When individuals purchase an insurance policy, what do they do with their financial liability?
• Who provides the capital for the Lloyd's market?
• What action must a broker take if the director disapproves a placement of insurance?
• What must a non-admitted insurer obtain to conduct business in South Carolina?
• What are the two types of risks recognized in insurance?
• What does the term “guaranty fund protection” refer to in insurance?
• When may a broker receive commissions from an out-of-state agent?
• How are ambiguities in a contract of adhesion typically resolved in court?
• What is the NAIC IID List used for in relation to alien insurers?
• When an individual purchases insurance, which method of handling risk is being utilized?
• What aspect does a moral hazard involve in insurance?
• Which individual must obtain a broker's license if performing certain duties outlined in the South Carolina Code?
• What are the three types of authority in the "Agency Relationship"?
• What is expected of an insurance broker during the placement of insurance?
• Who supervises a broker's office employee in their duties?
• What happens if a policy fee is charged at a rate exceeding what is considered reasonable?
• What happens if a licensee fails to comply with an imposed cease and desist order?
• What does surplus lines insurance refer to?
• Which of the following is NOT a method of handling risk?
• What is required if a broker finds coverage through an insurer not already on the approved list?
• Which statement about excess and surplus lines insurance is false?
• What defines a Lloyd's association in the context of insurance?
• If proof of loss forms are not provided by an insurance company within twenty days, what is the status of the claimant?
• Which level of government primarily regulates insurance?
• Which of the following activities is a CSR NOT allowed to do in South Carolina?
• What type of insurers are considered “domestic”?
• The purpose of writing insurance through an excess or surplus lines insurer cannot be to obtain what?
• To conduct business with a Lloyd's syndicate, one must go through a:
• What characterizes a surplus lines insurer?
• What does an association captive insurance company primarily benefit?
• Which of the following is excluded from covered claims?
• Which term refers to the person who acts on behalf of another in a contractual arrangement?
• Which category describes insurance contracts that are reliant on uncertain events?
• In which scenario is a risk retention group primarily enacted?
• Which action would qualify as intentional concealment?
• If an unauthorized insurer fails to pay a claim, what may occur?
• What is a key feature of Independent Agents in the General Agency System?
• Who is in charge of the Guaranty Association?
• Where can South Carolina's list of eligible surplus lines insurers be accessed?
• What could be the consequence of being convicted of a misdemeanor offense under these laws?
• What do regulators aim to protect in the insurance industry?
• What certificate does the Director issue to qualified insurers?
• Which of the following is NOT a characteristic of the Exclusive Agency System?
• What information must the director provide to the Guaranty Association?
• What does a special purpose captive insurance company insure?
• What must be signed by a licensed broker within the CSR's office location for licensing exemption?
• What is one of the requirements for a company to be licensed in the state?
• An insurance company organized and owned by a corporation to service its needs is called a __________________.
• What is the penalty for a licensed insurance producer who submits a fraudulent application for insurance?
• Which of the following is a responsibility of a surplus lines intermediary?
• What may happen to an insurer that is determined to be at high risk of insolvency?
• What can happen to a broker if they violate insurance laws after a hearing?
• What makes an insurance contract different from other types of contracts?
• How can a risk retention group reinsure another risk retention group's liability?
• What happens to a member insurer's obligations upon the termination of its license?
• How do syndicates compete for business?