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South Carolina Life Insurance Producer — Information & Free Practice

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South Carolina Life Insurance Producer

Provider
Pearson VUE
Format
Computer-based written examination
Exam questions
75 scored questions and 10 pretest questions (85 total)
Time limit
120 minutes
Passing score
Scaled score of 70
Exam fee
$59
Examination outline
  • General — I. TYPES OF POLICIES…………………………………15
    • A. Traditional whole life products
    • A. Traditional whole life products / 1. Ordinary whole life
    • A. Traditional whole life products / 2. Limited-pay and single-premium life
    • B. Interest/market sensitive/adjustable life products
    • B. Interest/market sensitive/adjustable life products / 1. Universal life
    • B. Interest/market sensitive/adjustable life products / 2. Variable whole life
    • B. Interest/market sensitive/adjustable life products / 3. Variable universal life
    • B. Interest/market sensitive/adjustable life products / 4. Interest-sensitive whole life
    • B. Interest/market sensitive/adjustable life products / 5. Indexed life
    • C. Term life
    • C. Term life / 1. Types
    • C. Term life / 1. Types / a. Level
    • C. Term life / 1. Types / b. Decreasing
    • C. Term life / 1. Types / c. Return of premium
    • C. Term life / 1. Types / d. Annually renewable
    • C. Term life / 2. Special features
    • C. Term life / 2. Special features / a. Renewable
    • C. Term life / 2. Special features / b. Convertible
    • D. Annuities
    • D. Annuities / 1. Single, level, and flexible premium
    • D. Annuities / 2. Immediate and deferred
    • D. Annuities / 3. Fixed and variable
    • D. Annuities / 4. Indexed
    • D. Annuities / 5. Accumulation and Annuity Periods
    • D. Annuities / 6. Payout options
    • E. Combination plans and variations
    • E. Combination plans and variations / 1. Joint life (first to die)
    • E. Combination plans and variations / 2. Survivorship life (second to die)
  • General — II. POLICY RIDERS, PROVISIONS, OPTIONS, AND EXCLUSIONS………………………………………… 15
    • A. Policy riders
    • A. Policy riders / 1. Waiver of premium and waiver of monthly deduction
    • A. Policy riders / 2. Guaranteed insurability
    • A. Policy riders / 3. Payor benefit
    • A. Policy riders / 4. Accidental death and/or accidental death and dismemberment
    • A. Policy riders / 5. Term riders
    • A. Policy riders / 6. Other insureds
    • A. Policy riders / 7. Long term care
    • A. Policy riders / 8. Return of premium
    • A. Policy riders / 9. Disability
    • A. Policy riders / 10. Cost of Living
    • B. Policy provisions and options
    • B. Policy provisions and options / 1. Entire contract
    • B. Policy provisions and options / 2. Insuring clause
    • B. Policy provisions and options / 3. Free look
    • B. Policy provisions and options / 4. Consideration
    • B. Policy provisions and options / 5. Owner’s rights
    • B. Policy provisions and options / 6. Beneficiary designations
    • B. Policy provisions and options / 6. Beneficiary designations / a. Primary and contingent
    • B. Policy provisions and options / 6. Beneficiary designations / b. Revocable and irrevocable
    • B. Policy provisions and options / 6. Beneficiary designations / c. Common disaster
    • B. Policy provisions and options / 6. Beneficiary designations / d. Minor beneficiaries
    • B. Policy provisions and options / 6. Beneficiary designations / e. Designation by class
    • B. Policy provisions and options / 7. Premium Payment
    • B. Policy provisions and options / 7. Premium Payment / a. Modes
    • B. Policy provisions and options / 7. Premium Payment / b. Grace period
    • B. Policy provisions and options / 7. Premium Payment / c. Automatic premium loan
    • B. Policy provisions and options / 7. Premium Payment / d. Level or flexible
    • B. Policy provisions and options / 8. Reinstatement
    • B. Policy provisions and options / 9. Policy loans, withdrawals, partial surrenders
    • B. Policy provisions and options / 10. Nonforfeiture options
    • B. Policy provisions and options / 11. Dividends and dividend options (e.g. participating, non-participating)
    • B. Policy provisions and options / 12. Incontestability
    • B. Policy provisions and options / 13. Assignments
    • B. Policy provisions and options / 14. Suicide
    • B. Policy provisions and options / 15. Misstatement of age and gender
    • B. Policy provisions and options / 16. Settlement options
    • B. Policy provisions and options / 17. Accelerated death benefits
    • C. Policy exclusions
    • C. Policy exclusions / 1. War
    • C. Policy exclusions / 2. Aviation
    • C. Policy exclusions / 3. Dangerous occupation
  • General — III. COMPLETING THE APPLICATION, UNDERWRITING, AND DELIVERING THE POLICY……………………. 12
    • A. Completing the application
    • A. Completing the application / 1. Required signatures
    • A. Completing the application / 2. Changes in the application
    • A. Completing the application / 3. Consequences of incomplete applications
    • A. Completing the application / 4. Warranties and representations
    • A. Completing the application / 5. Collecting the initial premium and issuing the receipt
    • A. Completing the application / 6. Replacement
    • A. Completing the application / 7. Disclosures at point of sale (i.e. HIPAA, HIV consent)
    • A. Completing the application / 8. USA PATRIOT Act/anti-money laundering
    • A. Completing the application / 9. Gramm-Leach-Bliley Act (GLBA) Privacy
    • B. Underwriting
    • B. Underwriting / 1. Insurable interest
    • B. Underwriting / 2. Medical information and consumer reports
    • B. Underwriting / 3. Fair Credit Reporting Act
    • B. Underwriting / 4. Risk classification
    • B. Underwriting / 5. Stranger/Investor owned life insurance (STOLI, IOLI)
    • C. Delivering the policy
    • C. Delivering the policy / 1. When coverage begins
    • C. Delivering the policy / 2. Explaining the policy and its provisions, riders, exclusions, and ratings to the client
    • D. Contract Law
    • D. Contract Law / 1. Elements of a contract
    • D. Contract Law / 1. Elements of a contract / a. Consideration
    • D. Contract Law / 1. Elements of a contract / b. Offer and Acceptance
    • D. Contract Law / 1. Elements of a contract / c. Competent Parties
    • D. Contract Law / 1. Elements of a contract / d. Legal purpose
    • D. Contract Law / 2. Unique aspects of the insurance contract
    • D. Contract Law / 2. Unique aspects of the insurance contract / a. Conditional
    • D. Contract Law / 2. Unique aspects of the insurance contract / b. Unilateral
    • D. Contract Law / 2. Unique aspects of the insurance contract / c. Adhesion
    • D. Contract Law / 2. Unique aspects of the insurance contract / d. Aleatory
  • General — IV. RETIREMENT AND OTHER INSURANCE CONCEPTS 8
    • A. Third-party ownership
    • B. Life Settlements
    • C. Group life insurance
    • C. Group life insurance / 1. Conversion privilege
    • C. Group life insurance / 2. Contributory vs. noncontributory
    • D. Retirement plans
    • D. Retirement plans / 1. Qualified plans
    • D. Retirement plans / 2. Nonqualified plans
    • E. Life insurance needs analysis/suitability
    • E. Life insurance needs analysis/suitability / 1. Personal insurance needs
    • E. Life insurance needs analysis/suitability / 2. Business insurance needs
    • E. Life insurance needs analysis/suitability / 2. Business insurance needs / a. Key person
    • E. Life insurance needs analysis/suitability / 2. Business insurance needs / b. Buy sell
    • F. Social Security benefits
    • G. Tax treatment of insurance premiums, proceeds, dividends
    • G. Tax treatment of insurance premiums, proceeds, dividends / 1. Individual life
    • G. Tax treatment of insurance premiums, proceeds, dividends / 2. Group life
    • G. Tax treatment of insurance premiums, proceeds, dividends / 3. Modified Endowment Contracts (MECs)
  • State — I. SOUTH CAROLINA LAWS AND REGULATIONS PERTINENT TO ALL LINES…………….18
    • A. Insurance Department and Director
    • A. Insurance Department and Director / 1. Powers and duties Ref: 38-3-60, 110
    • A. Insurance Department and Director / 2. Examination of books and records Ref: 38-13-10–30; 38-43-250
    • A. Insurance Department and Director / 3. Investigations/Notice of hearing Ref: 38-3-170; 38-57-200
    • A. Insurance Department and Director / 4. Penalties and fines Ref: 38-2-10–30, 38-43-130
    • A. Insurance Department and Director / 5. Cease and desist orders Ref: 38-59-30, 270
    • B. General insurance definitions
    • B. General insurance definitions / 1. Domestic, foreign and alien insurers Ref: 38-1-20
    • B. General insurance definitions / 2. Admitted/Nonadmitted insurer Ref: 38-1-20; 38-5-80
    • B. General insurance definitions / 3. Sell, solicit, negotiate Ref: 38-1-20; 38-43-10
    • C. Licensing
    • C. Licensing / 1. Producer Ref: 38-43-10, 20, 30, 60
    • C. Licensing / 2. License fees and application Ref: 38-43-80, 100, 101
    • C. Licensing / 3. License probation, revocation, suspension, or denial of reissuance Ref: 38-43-130, 230
    • C. Licensing / 4. Temporary License Ref 38-43-102
    • C. Licensing / 5. Nonresident License Ref: 38-43-70
    • C. Licensing / 6. Agent appointment/termination of contract Ref: 38-43-40, 50, 55
    • C. Licensing / 7. Continuing education Ref: 38-43-106; Reg 69-50
    • C. Licensing / 8. Change of Address/name change Ref: 38-43-107; 38-43-10(C)
    • C. Licensing / 9. Reinstatement/license expiration Ref: 38-43-110(B)
    • D. Unfair and prohibited trade practices
    • D. Unfair and prohibited trade practices / 1. Rebating Ref: 38-57-130
    • D. Unfair and prohibited trade practices / 2. Defamation Ref: 38-57-90
    • D. Unfair and prohibited trade practices / 3. Unfair Discrimination Ref: 38-55-50; 38-57-120
    • D. Unfair and prohibited trade practices / 4. Misrepresentation Ref: 38-57-40
    • D. Unfair and prohibited trade practices / 5. False advertising Ref: 38-57-40, 50
    • D. Unfair and prohibited trade practices / 6. Boycott, coercion, and intimidation Ref: 38-57-100, 110
    • D. Unfair and prohibited trade practices / 7. Unfair claims settlement practices Ref: 38-59-10, 20
    • D. Unfair and prohibited trade practices / 8. Fraud Ref: 38-43-245
    • D. Unfair and prohibited trade practices / 9. False Financial Statements Ref: 38-57-80
    • D. Unfair and prohibited trade practices / 10. Prohibited inducements Ref: 38-57-130, 150
    • E. Reporting and Disposition of Premiums
    • E. Reporting and Disposition of Premiums / 1. Fiduciary capacity; misappropriation of funds Ref: 38-43-130, 240, 420
    • E. Reporting and Disposition of Premiums / 2. Commissions and compensation/charges for extra services Ref: 38-43-200
    • E. Reporting and Disposition of Premiums / 3. Reporting of Actions Ref 38-43-247
    • F. Life and Accident and Health Insurance Guaranty Association Ref: 38-29-20, 30, 40, 50, 80, 130. 200
    • G. Consumer information privacy regulation Ref: Reg 69-58 Sec 1–16
  • State — II. SOUTH CAROLINA LAWS AND REGULATIONS PERTINENT TO LIFE INSURANCE ……7
    • A. Replacement/Conversion of Life insurance Ref: Reg 69-12.1, 38-65-210(8–10)
    • B. Group/Individual Life policy provisions and riders Ref: 38-63-40, 220; 38-65-90, 210; 38-63-220(b)
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