South Carolina Property & Casualty Insurance Practice Exam Free - 2026

• A. The South Carolina Property and Casualty Insurance Guaranty Association
• B. The South Carolina Associated Auto Insurers Plan
• C. The South Carolina Small Employer Insurer Reinsurance Program
• D. The South Carolina Wind and Hail Underwriting Association

Correct answer: D. The South Carolina Wind and Hail Underwriting Association

Explanation: The South Carolina Wind and Hail Underwriting Association functions as a residual market mechanism to provide wind and hail insurance for residential and commercial property to applicants in the coastal area who are unable to procure it; all insurers writing property insurance in the state are members. The Guaranty Association (A) pays claims of insolvent insurers, the auto plan (B) is for auto risks, and (C) is a health reinsurance program. See S.C. Code Ann. § 38-75-330.

• A. It pays covered claims in excess of $250 and less than $300,000, so the homeowner is limited to that cap and the $200 claim is not payable
• B. It pays both claims in full
• C. It pays claims up to $500,000 with a $100 deductible
• D. It pays only unearned premium claims, not loss claims

Correct answer: A. It pays covered claims in excess of $250 and less than $300,000, so the homeowner is limited to that cap and the $200 claim is not payable

Explanation: The Association's obligation includes only the amount of each covered claim that is in excess of two hundred fifty dollars and is less than three hundred thousand dollars, except that covered workers' compensation claims are paid in full. The $200 claim does not exceed the $250 threshold, and the homeowner's recovery is capped under $300,000. (B), (C), and (D) misstate the limits and scope. See S.C. Code Ann. § 38-31-60(a).

• A. Yes, because payroll exceeds $3,000
• B. Yes, because all employers with one or more employees are covered
• C. No, because employers with fewer than four regularly employed employees are exempt (the $3,000 payroll test is an alternative exemption)
• D. No, because landscaping is treated as agricultural employment

Correct answer: C. No, because employers with fewer than four regularly employed employees are exempt (the $3,000 payroll test is an alternative exemption)

Explanation: The Workers' Compensation Law does not apply to any person who has regularly employed fewer than four employees in the same business within the state, or who had a total annual payroll during the previous calendar year of less than three thousand dollars regardless of the number employed. With three employees the employer is exempt even though payroll exceeds $3,000 (A). There is no one-employee rule (B), and agricultural status is not the reason here (D). See S.C. Code Ann. § 42-1-360(2).

• A. He may sue if the employer was grossly negligent
• B. He may sue for pain and suffering only
• C. He may sue only after the Workers' Compensation Commission approves
• D. Workers' compensation is his exclusive remedy; the rights and remedies under the Act exclude all other rights and remedies against his employer

Correct answer: D. Workers' compensation is his exclusive remedy; the rights and remedies under the Act exclude all other rights and remedies against his employer

Explanation: When employer and employee have accepted the provisions of the Workers' Compensation Law, the rights and remedies granted by the Act exclude all other rights and remedies of the employee (and his representatives or dependents) against the employer at common law or otherwise on account of the injury. Gross negligence (A), pain and suffering (B), and Commission approval (C) do not create exceptions in the exclusive-remedy statute. See S.C. Code Ann. § 42-1-540.

• A. Injuries to the insured and passengers regardless of who is at fault
• B. Damage to the insured's own vehicle from a collision
• C. Injuries to others for which the insured is legally liable
• D. Injuries to the insured caused by a driver who has no insurance

Correct answer: C. Injuries to others for which the insured is legally liable

Explanation: Bodily injury liability coverage can pay for covered injuries to others when the insured is legally responsible, subject to the policy limit and conditions.

• A. The insured's car is stolen
• B. The insured needs roadside assistance
• C. The insured wants a lower deductible
• D. The insured damages another person's vehicle in a covered accident

Correct answer: D. The insured damages another person's vehicle in a covered accident

Explanation: Property damage liability may pay for covered damage the insured legally causes to another person's property, such as another vehicle, fence, or building.

• A. Damage to the covered auto from impact with another vehicle or object
• B. Damage to another person's vehicle that the insured strikes
• C. Damage to the covered auto from hail, flood, or contact with animals
• D. Bodily injury to the insured's passengers regardless of fault

Correct answer: A. Damage to the covered auto from impact with another vehicle or object

Explanation: Collision coverage generally applies to physical damage to a covered auto caused by collision or overturn, subject to policy terms and deductible.

• A. Damage from colliding with another vehicle or a fixed object
• B. Damage from theft, fire, vandalism, or falling objects
• C. Damage from the vehicle overturning on a slippery road
• D. Damage the insured causes to another person's property

Correct answer: B. Damage from theft, fire, vandalism, or falling objects

Explanation: Comprehensive, often called other-than-collision coverage, commonly applies to covered losses such as theft, fire, vandalism, falling objects, and certain weather events.

• A. The insured's own liability limits are exhausted by a large claim
• B. An at-fault driver has liability limits lower than the insured's damages
• C. An at-fault driver has no applicable liability insurance
• D. The insured is at fault in an accident and has let coverage lapse

Correct answer: C. An at-fault driver has no applicable liability insurance

Explanation: Uninsured motorist coverage may protect insureds when they are injured by a driver who does not have applicable liability insurance, subject to policy and state requirements.

• A. The at-fault driver has no liability insurance and cannot be identified after a hit and run
• B. The insured's own liability limits are lower than the damages the insured caused another party
• C. The at-fault driver's insurer denies the claim because the policy was cancelled for nonpayment
• D. The at-fault driver has some liability insurance, but not enough to cover the insured's damages

Correct answer: D. The at-fault driver has some liability insurance, but not enough to cover the insured's damages

Explanation: Underinsured motorist coverage is designed for situations where the responsible driver has liability insurance but the limits are insufficient for the covered loss.

• A. Covered medical expenses for insured persons after an auto accident, regardless of fault
• B. The insured's legal defense costs only
• C. Lost business income after a fire
• D. Damage to the other driver's car only

Correct answer: A. Covered medical expenses for insured persons after an auto accident, regardless of fault

Explanation: Medical payments coverage generally pays covered medical expenses for insured persons after an auto accident, regardless of fault, subject to limits and policy terms.

• A. $100,000 bodily injury per accident, $300,000 bodily injury per person, $50,000 property damage
• B. $100,000 bodily injury per person, $300,000 bodily injury per accident, $50,000 property damage
• C. $100,000 property damage per accident, $300,000 bodily injury per accident, $50,000 medical payments
• D. $100,000 bodily injury per person, $300,000 property damage per accident, $50,000 aggregate per policy

Correct answer: B. $100,000 bodily injury per person, $300,000 bodily injury per accident, $50,000 property damage

Explanation: A split limit usually lists bodily injury per person, bodily injury per accident, and property damage per accident in that order.