Delaware Licensing Exam
The Insurance Commissioner is empowered to:
A. Enforce state laws relating to insurance
B. Pass state laws relating to insurance
C. Write policy forms for mandatory insurance coverages
D. Set rates for mandatory insurance coverage - ANS-A. Enforce state laws relating to
insurance
An insurance company that generally fails to affirm or deny coverage of claims within a
reasonable period of time after receiving proof of loss may be found guilty of:
A. A breach of fiduciary responsibility
B. An improper claims practice
C. Defamation
D. Misrepresentation - ANS-B. An improper claims practice
Upon determining that a producer has violated the insurance law, the Insurance
Commissioner is required to take which of the following actions?
A. Place the licensee on probation immediately
B. Publish notice of the violation
C. Hold a hearing on the infraction
D. Submit the infraction to the department of insurance for review - ANS-C. Hold a
hearing on the infraction
The Insurance Commissioner may suspend, revoke, or deny a producer's license for all
of the following reasons except:
A. untrue statements on the license application
B. Conviction of a misdemeanor
C. Incompetency
D. Converting Funds - ANS-B. Conviction of a misdemeanor
Under the Automobile Insurance Plan (AIP), all of the following coverage are available
to the eligible owner of a private passenger vehicle except:
, A. Rental Reimbursement
B. PIP
C. Underinsured Motorist
D. BI - ANS-A. Rental Reimbursement
After paying a claim, an insurance company may have the right to pursue legal action
against the negligent party. This right is called:
A. Assignment
B. Other insurance
C. Subrogation
D. Action against the company - ANS-C. Subrogation
Jordan drives Larry's car. Both Jordan and Larry have a PAP. Which of the following
statements is correct concerning coverage if Jordan causes an accident?
A. Jordan's policy only will pay for any damage
B. Larry's policy only will pay for any damage
C. Larry's policy is primary and Jordan's is excess
D. Jordan's policy is primary and Larry's policy is excess - ANS-C. Larry's policy is
primary and Jordan's is excess
What is the most important provision on every policy?
A. Subrogation
B. Declaration
C. Endorsement
D. Any other provision - ANS-B. Declaration
The Insurance Commissioner in Delaware is:
A. An elected official
B. Appointed by the Governor
C. Appointed by the legislature with the approval of the governor
D. Nominated by the national associate of insurance commissioners - ANS-A. An
elected official
The liability limits of an insurance policy are applied to:
A. each vehicle
The Insurance Commissioner is empowered to:
A. Enforce state laws relating to insurance
B. Pass state laws relating to insurance
C. Write policy forms for mandatory insurance coverages
D. Set rates for mandatory insurance coverage - ANS-A. Enforce state laws relating to
insurance
An insurance company that generally fails to affirm or deny coverage of claims within a
reasonable period of time after receiving proof of loss may be found guilty of:
A. A breach of fiduciary responsibility
B. An improper claims practice
C. Defamation
D. Misrepresentation - ANS-B. An improper claims practice
Upon determining that a producer has violated the insurance law, the Insurance
Commissioner is required to take which of the following actions?
A. Place the licensee on probation immediately
B. Publish notice of the violation
C. Hold a hearing on the infraction
D. Submit the infraction to the department of insurance for review - ANS-C. Hold a
hearing on the infraction
The Insurance Commissioner may suspend, revoke, or deny a producer's license for all
of the following reasons except:
A. untrue statements on the license application
B. Conviction of a misdemeanor
C. Incompetency
D. Converting Funds - ANS-B. Conviction of a misdemeanor
Under the Automobile Insurance Plan (AIP), all of the following coverage are available
to the eligible owner of a private passenger vehicle except:
, A. Rental Reimbursement
B. PIP
C. Underinsured Motorist
D. BI - ANS-A. Rental Reimbursement
After paying a claim, an insurance company may have the right to pursue legal action
against the negligent party. This right is called:
A. Assignment
B. Other insurance
C. Subrogation
D. Action against the company - ANS-C. Subrogation
Jordan drives Larry's car. Both Jordan and Larry have a PAP. Which of the following
statements is correct concerning coverage if Jordan causes an accident?
A. Jordan's policy only will pay for any damage
B. Larry's policy only will pay for any damage
C. Larry's policy is primary and Jordan's is excess
D. Jordan's policy is primary and Larry's policy is excess - ANS-C. Larry's policy is
primary and Jordan's is excess
What is the most important provision on every policy?
A. Subrogation
B. Declaration
C. Endorsement
D. Any other provision - ANS-B. Declaration
The Insurance Commissioner in Delaware is:
A. An elected official
B. Appointed by the Governor
C. Appointed by the legislature with the approval of the governor
D. Nominated by the national associate of insurance commissioners - ANS-A. An
elected official
The liability limits of an insurance policy are applied to:
A. each vehicle
