South Carolina Property & Casualty Insurance License Exam — All Questions
2 questions
Which agency regulates insurance and licenses resident property and casualty producers in South Carolina?
- a.The South Carolina Secretary of State
- b.The South Carolina Department of Motor Vehicles
- c.The South Carolina Department of Insurance✓
- d.The South Carolina Public Service Commission
South Carolina regulates insurance through the South Carolina Department of Insurance (SCDOI), led by the Director of Insurance (confirmed at doi.sc.gov). The department licenses producers, reviews forms and rates, and enforces the insurance laws. On the exam, remember it is the Department of Insurance, not the Secretary of State or DMV, that licenses producers.
A South Carolina producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under South Carolina law this is:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under South Carolina's unfair trade practices law and can bring fines and license action by the South Carolina Department of Insurance.