South Carolina Life and Health Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Study for the South Carolina Life and Health Exam. Engage with flashcards and multiple choice questions; each question is outlined with hints and explanations. Prepare for your certification journey!

Practice this question and more.

What is the maximum length of time that an insurer can defer payment of a cash surrender value of an annuity in South Carolina?

3 months
6 months
1 year
12 months

The correct answer is: 6 months

In South Carolina, the maximum period that an insurer can defer the payment of a cash surrender value for an annuity is indeed six months. This regulation is in place to protect policyholders, ensuring that they can access their funds in a reasonable timeframe. This six-month deferral period allows insurers to manage their liquidity effectively while still providing policyholders with a reasonable expectation of prompt access to their funds in the event they choose to surrender their annuity. Understanding this regulation is crucial for both consumers and professionals in the insurance field, as it highlights the balance between the insurer's operational needs and the rights of the policyholders. This limit encourages insurers to maintain sufficient liquidity to honor cash surrender requests, thereby promoting fairness and transparency in the industry.