Delaware Licensing Exam - #2 UPDATED
ACTUAL Questions and CORRECT
Answers
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 - CORRECT ANSWER - 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 - CORRECT ANSWER - 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 - CORRECT ANSWER -
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 - CORRECT ANSWER - 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 - CORRECT ANSWER - 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 - CORRECT ANSWER - 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
ACTUAL Questions and CORRECT
Answers
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 - CORRECT ANSWER - 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 - CORRECT ANSWER - 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 - CORRECT ANSWER -
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 - CORRECT ANSWER - 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 - CORRECT ANSWER - 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 - CORRECT ANSWER - 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
