17 Free South Carolina Life & Health Practice Questions: South Carolina Life and Accident and Health Insurance Laws (2026)

Answer: D

Under Regulation 69-12.1, the replacing insurer (not the producer) must notify the existing insurer that a replacement is happening. The producer's duties include asking about existing coverage, providing the Notice Regarding Replacement, and giving copies of sales proposals. Options A, B, and C describe actions not required by the regulation: there is no specific 5-business-day timeline for producer notification, no need for existing insurer consent, and the producer does not provide the Notice to the existing insurer.

Answer: D

D is correct. South Carolina's long-term care regulation follows the NAIC model: insurers must offer inflation protection to every applicant, who may reject it in writing. A is wrong because a nonforfeiture benefit must be offered but is not a required return-of-premium feature. B is wrong because the regulation does not fix a 30-day waiver-of-premium trigger. C is wrong because long-term care premiums are not guaranteed never to increase; rate increases are regulated, not prohibited.

Answer: D

Sections 38-65-210(8)-(10) mandate that group life insurance policies include a conversion privilege, allowing insureds to convert to an individual policy without evidence of insurability when group coverage ends. Options A, B, and C describe optional riders or features not required by South Carolina law for group life policies. The conversion privilege is a standard provision designed to protect individuals losing group coverage.

Answer: D

Under Regulation 69-46, guaranteed issue rights for Medicare supplement policies are triggered when an individual loses certain types of health coverage (e.g., employer group health plan) that is considered creditable coverage. During guaranteed issue, insurers cannot deny coverage or impose pre-existing condition waiting periods, and they cannot charge higher premiums based on health status. Option A is incorrect because guaranteed issue applies in multiple situations beyond initial enrollment. Options B and C describe practices prohibited during guaranteed issue.

Answer: D

An accelerated death benefit rider allows the insured to access a portion of the death benefit while still living if diagnosed with a terminal illness (or sometimes specified chronic/critical illnesses). The accidental death benefit rider pays extra if death results from an accident, the waiver of premium rider waives premiums if the insured becomes disabled, and the child term rider provides coverage for children. Only the accelerated death benefit matches the description.

Answer: D

Under Section 38-63-220, an individual life insurance policy in South Carolina becomes incontestable after it has been in force during the lifetime of the insured for two years from its date of issue. This prevents the insurer from denying a claim based on misrepresentations in the application after this period. Options A, B, and C incorrect: it is not one year, not based on premium payment duration, and not tied to age or anniversary dates.

Answer: D

Under Regulation 69-12.1, if an applicant has existing insurance, the producer must provide the Notice Regarding Replacement, which must be signed by both the producer and applicant. While a policy illustration and buyer's guide may be provided in other contexts, and a certificate of insurance represents proof of coverage, the specific document required when replacement is involved is the Notice Regarding Replacement.

Answer: D

D is correct. Plan A carries only the core benefits that every standardized Medicare supplement plan must include: Part A hospital coinsurance plus coverage for an additional 365 days after Medicare benefits end, Part B coinsurance or copayment, the first three pints of blood each year and Part A hospice coinsurance. A is wrong because the Part A deductible is first covered in Plan B. B is wrong because Part B excess charges are covered only in Plans F and G. C is wrong because foreign travel emergency coverage is not a Plan A benefit.

Answer: A

Under South Carolina Regulation 69-12.1, when a life insurance replacement is involved, the producer must provide the applicant with a Notice Regarding Replacement that must be signed by both the producer and the applicant. This ensures the applicant acknowledges understanding the implications of replacing their existing policy. Option B is incorrect because the producer's signature is also required. Option C misstates the responsibility; notifying the existing insurer is the replacing insurer's duty, not the producer's. Option D is incorrect because Regulation 69-12.1 applies to individual life insurance replacements, and the scenario specifies an individual policy.

Answer: A

A is correct. South Carolina's Medicare supplement regulation adopts the NAIC standardized plans, and every plan (A through N) must include the core benefits: Part A hospital coinsurance with an additional 365 days of coverage, Part B coinsurance or copayment, the first three pints of blood each year and Part A hospice coinsurance. B is wrong because foreign travel emergency coverage appears only in Plans C, D, F, G, M and N. C is wrong because Part B excess charges are covered only in Plans F and G. D is wrong because skilled nursing facility coinsurance starts with Plan C and is not in Plan A or B.

Answer: A

During the Medicare supplement initial open enrollment period (which begins when a person is both 65 or older and enrolled in Medicare Part B), South Carolina Regulation 69-46 guarantees the right to purchase any Medicare supplement plan (B through N) offered by insurers in the state, without medical underwriting or denial based on pre-existing conditions. This is a key consumer protection. Option B is incorrect because pre-existing condition exclusions do not apply during open enrollment. Option C is false; the open enrollment period starts at Part B enrollment, not after a waiting period. Option D is incorrect; applicants are not limited to Plan A and may choose any standardized plan.

Answer: D

South Carolina Code Section 38-63-220 requires that individual life insurance policies include a grace period of at least thirty-one days. This allows the policy to remain in force if a premium payment is late. Options A, B, and C are incorrect: 20 and 30 days are below the minimum, and 60 days exceeds the requirement though some policies may offer longer periods voluntarily.

Answer: A

Under South Carolina Code Section 38-71 et seq., individual accident and health insurance policies must include renewability provisions that are either guaranteed renewable or non-cancelable. This means the insurer cannot cancel or refuse to renew the policy except for non-payment of premiums or, in the case of non-cancelable policies, for any reason including non-payment. Option B is incorrect because not all policies must be both non-cancelable and guaranteed renewable; they must be one or the other. Option C is incorrect because insurers cannot cancel a policy solely because a claim was filed; that would be an unfair claims practice. Option D is incorrect because renewability standards are explicitly regulated by state law under Section 38-71 et seq.

Answer: A

South Carolina Regulation 69-44 requires that insurers offering long-term care insurance must offer inflation protection as an optional benefit. If the applicant rejects this benefit, the insurer must obtain a signed rejection form from the applicant and retain it in the policy records. This ensures proper documentation of the offer and rejection. Option B is incorrect because inflation protection is not automatically included; it must be offered as an option. Option C is incorrect because there is no age restriction on the offer of inflation protection; it must be offered to all applicants. Option D is incorrect because charging for a benefit without the applicant's knowledge and consent is prohibited and constitutes an unfair trade practice.

Answer: A

Regulation 69-44 requires that inflation protection be offered to the applicant for long-term care insurance. If the applicant rejects it, they must sign a rejection form acknowledging the decision. The insurer cannot deny the application solely for rejecting inflation protection, is not required to report rejections to the SCDOI, and cannot substitute a different inflation option without the applicant's consent.

Answer: D

Under South Carolina Regulation 69-44, insurers must offer inflation protection as a benefit in long-term care insurance policies and must disclose that the applicant has the option to reject it. The regulation does not require automatic inclusion, nor does it make inflation protection a prerequisite for eligibility. The offer must be made regardless of the applicant's age, so age-based restrictions are not permitted. This requirement ensures applicants are informed about this important benefit while preserving their right to decline it based on cost or other considerations.

Answer: A

Regulation 69-46 prohibits medical underwriting during the Medicare supplement open enrollment period or guaranteed issue periods. Options B, C, and D are incorrect: offering a policy covering only the Part A deductible is not prohibited (though it may not meet minimum standards), using the term 'Medicare supplement' is required and permitted, and gender-based premiums are allowed under state regulation (unlike federal rules that prohibit gender rating).