10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The SCLH exam has 140 questions and runs 2 hours 30 minutes.
These 10 free SCLH questions are organized by exam domain, so you can see how each part of the South Carolina Life & Health Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
A 42-year-old client wants permanent life insurance with flexible premium payments and cash value allocated among separate-account equity and bond subaccounts. She accepts investment risk and understands that poor performance combined with inadequate funding could cause the policy to lapse. Which product best fits these objectives?
Correct answer: C - Variable universal life insurance
At retirement, an annuity owner wants payments to continue for her lifetime. If she dies during the first 10 years, her beneficiary must receive the remaining scheduled payments through the end of that 10-year period; if she lives longer, her own payments must continue. The appropriate payout option is:
Correct answer: A - Life with a 10-year period certain
The owner of a whole life policy named an adult child as irrevocable beneficiary. Several years later, the owner requests a policy loan, which could reduce the proceeds payable at death. Under the usual rights of an irrevocable beneficiary, the owner should:
Correct answer: D - Obtain the irrevocable beneficiary's written consent before the loan
A whole life policyowner can no longer afford premiums but wants lifetime death protection with no further payments. The owner accepts a lower face amount. Which election accomplishes this objective?
Correct answer: B - Reduced paid-up insurance
An applicant has signed a life insurance application. Before submitting it, the producer notices that the question asking about cardiac testing during the past five years was left blank. What should the producer do next?
Correct answer: B - Contact the applicant, record the answer, and obtain any required initials or signature
A customer applying for a large cash-value life policy resists providing identification, arranges an unexplained premium payment from an unrelated third party, and asks how quickly the policy can be surrendered. The proper response is to:
Correct answer: C - Document the red flags and report them through the insurer's AML process without tipping off the customer
A 52-year-old owns a Modified Endowment Contract with a $70,000 tax basis and a $95,000 cash value. The owner takes a $20,000 policy loan, and no exception to the additional tax applies. What is the federal income-tax treatment of the loan?
Correct answer: A - The entire $20,000 is taxable income and is generally subject to a 10% additional tax
An HMO member visiting another state suddenly develops facial droop and cannot speak clearly. The nearest emergency department is outside the HMO network. Which statement best addresses both the emergency and the plan design?
Correct answer: D - Seek immediate emergency care; routine HMO network and referral limits generally do not bar emergency services
A 58-year-old HSA owner enrolls in Medicare Part A while remaining employed and covered by an employer's HSA-qualified high-deductible health plan. What may the individual do after Medicare coverage begins?
Correct answer: D - Keep and use the HSA, but make no contributions for Medicare-covered months
An insured under a tax-qualified long-term-care policy can still perform all six activities of daily living. Advanced dementia, however, causes repeated wandering into traffic unless another person provides substantial supervision, and a licensed practitioner certifies severe cognitive impairment. How should the benefit trigger be evaluated?
Correct answer: A - Yes. Severe cognitive impairment requiring substantial supervision is an independent trigger
The SCLH exam also covers these domains. Drill them in the full free practice test:
The full bank has 1,020 more SCLH questions with explanations.
Continue in the free practice test →
View plans