South Carolina Personal Lines Insurance License Exam — All Questions

What minimum auto liability limits must a South Carolina personal auto policy carry?

• a.$15,000 per person / $30,000 per accident bodily injury and $10,000 property damage
• b.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage✓
• c.$20,000 per person / $40,000 per accident bodily injury and $15,000 property damage
• d.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage

South Carolina requires minimum auto liability limits of 25/50/25 — $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage. These are minimums; producers should offer higher limits. Source: South Carolina Code Section 38-77-140.

How does South Carolina treat uninsured motorist (UM) coverage on a personal auto policy?

• a.UM is prohibited in South Carolina
• b.UM is available only to commercial fleets
• c.UM is mandatory — every auto policy must include it at limits no less than the state liability minimums✓
• d.UM automatically replaces liability coverage

Under South Carolina Code Section 38-77-150, no auto policy may be issued unless it includes uninsured motorist coverage at limits at least equal to the 25/50/25 liability minimums, plus at least $25,000 uninsured-motorist property damage (a small deductible may apply). UM protects the insured against uninsured at-fault drivers. Source: South Carolina Code Section 38-77-150.

How does South Carolina generally handle liability for auto accidents?

• a.It is a pure no-fault state; each driver's own insurer pays regardless of fault
• b.It bars all lawsuits between drivers and routes claims through a state fund
• c.It is a traditional at-fault (tort) state; the at-fault driver is responsible for the other party's injuries and damage✓
• d.It requires mandatory PIP on every policy in place of liability coverage

South Carolina is a traditional at-fault (tort) state: the driver who causes a crash is responsible for the other party's injuries and property damage, which is why liability and mandatory UM limits matter. South Carolina does not use a no-fault/PIP system. Confirm current rules with the South Carolina Department of Insurance (https://doi.sc.gov).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in South Carolina?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the South Carolina Department of Insurance✓

South Carolina restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify current South Carolina notice periods with the South Carolina Department of Insurance.

Which best describes the body that writes and enforces South Carolina's insurance regulations affecting personal lines policies?

• a.The South Carolina Department of Insurance, a state agency led by a Director✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county clerk's office where the policy is issued

Insurance in South Carolina is regulated at the state level by the South Carolina Department of Insurance. There is no federal department of insurance; each state supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: South Carolina Department of Insurance (https://doi.sc.gov).