DELAWARE LIFE INSURANCE EXAM 2025 WITH 160 QUESTIONS AND
ANSWERS
1. What is a policy loan in the context of insurance?
A loan against the cash value of the policy assigned as security.
A type of insurance policy that covers natural disasters.
A payment made to beneficiaries upon the policyholder's death.
A fee charged by the insurer for policy administration.
2. Interpret the significance of the Law of Large Numbers in the context of
insurance risk assessment.
The Law of Large Numbers indicates that insurance is risk-free.
The Law of Large Numbers has no relevance to insurance
practices.
The Law of Large Numbers helps insurers predict losses more
accurately as the number of similar exposure units increases.
The Law of Large Numbers suggests that smaller insurance
companies are more reliable.
3. Describe the relationship between a broker and the insured in the
context of insurance transactions.
A broker acts on behalf of the insured to help them find and
negotiate insurance coverage.
A broker provides financial advice unrelated to insurance.
A broker is responsible for settling claims on behalf of the insurer.
A broker works for the insurance company to sell policies.
,4. If a potential insurance buyer is confused about the terms and conditions
of various policies, how might a Buyer's Guide assist them?
, By offering legal advice on insurance contracts.
By providing a list of insurance agents to contact.
By clarifying insurance concepts and providing comparisons of
different policies.
By directly selling insurance policies to the buyer.
5. Describe the role of an insurance agency in the insurance industry.
An insurance agency only provides legal advice on insurance
matters.
An insurance agency manages claims for insurance companies.
An insurance agency acts as an intermediary between clients
and insurance companies, facilitating the sale of insurance
policies.
An insurance agency is responsible for underwriting insurance
policies.
6. What is the primary purpose of a Rate Service Organization?
To sell insurance policies directly to consumers.
To provide insurance coverage to individuals.
To manage claims for insurance policies.
To develop rates for insurers and file them with the insurance
department.
7. What is the maximum age until which permanent life insurance policies
remain in effect, provided premiums are paid?
85
90
100
, 75
8. What is the term used to describe the first page of an insurance policy?
Declaration
Rider
Face
Endorsement
9. Describe the process and purpose of liquidation in the context of
insurance.
Liquidation is a method for increasing the value of existing assets.
Liquidation involves selling assets to generate funds, often used
to meet financial obligations.
Liquidation refers to the assessment of insurance claims for
settlement.
Liquidation is the process of acquiring new assets for investment
purposes.
10. What is the definition of commingling in the context of fiduciary
responsibilities?
A financial strategy for maximizing investment returns.
A practice in which a person in a fiduciary capacity illegally
mixes his/her personal funds with funds he/she is holding in
trust.
A legal method of managing trust funds separately from personal
funds.
A type of insurance policy that protects against fiduciary
misconduct.
ANSWERS
1. What is a policy loan in the context of insurance?
A loan against the cash value of the policy assigned as security.
A type of insurance policy that covers natural disasters.
A payment made to beneficiaries upon the policyholder's death.
A fee charged by the insurer for policy administration.
2. Interpret the significance of the Law of Large Numbers in the context of
insurance risk assessment.
The Law of Large Numbers indicates that insurance is risk-free.
The Law of Large Numbers has no relevance to insurance
practices.
The Law of Large Numbers helps insurers predict losses more
accurately as the number of similar exposure units increases.
The Law of Large Numbers suggests that smaller insurance
companies are more reliable.
3. Describe the relationship between a broker and the insured in the
context of insurance transactions.
A broker acts on behalf of the insured to help them find and
negotiate insurance coverage.
A broker provides financial advice unrelated to insurance.
A broker is responsible for settling claims on behalf of the insurer.
A broker works for the insurance company to sell policies.
,4. If a potential insurance buyer is confused about the terms and conditions
of various policies, how might a Buyer's Guide assist them?
, By offering legal advice on insurance contracts.
By providing a list of insurance agents to contact.
By clarifying insurance concepts and providing comparisons of
different policies.
By directly selling insurance policies to the buyer.
5. Describe the role of an insurance agency in the insurance industry.
An insurance agency only provides legal advice on insurance
matters.
An insurance agency manages claims for insurance companies.
An insurance agency acts as an intermediary between clients
and insurance companies, facilitating the sale of insurance
policies.
An insurance agency is responsible for underwriting insurance
policies.
6. What is the primary purpose of a Rate Service Organization?
To sell insurance policies directly to consumers.
To provide insurance coverage to individuals.
To manage claims for insurance policies.
To develop rates for insurers and file them with the insurance
department.
7. What is the maximum age until which permanent life insurance policies
remain in effect, provided premiums are paid?
85
90
100
, 75
8. What is the term used to describe the first page of an insurance policy?
Declaration
Rider
Face
Endorsement
9. Describe the process and purpose of liquidation in the context of
insurance.
Liquidation is a method for increasing the value of existing assets.
Liquidation involves selling assets to generate funds, often used
to meet financial obligations.
Liquidation refers to the assessment of insurance claims for
settlement.
Liquidation is the process of acquiring new assets for investment
purposes.
10. What is the definition of commingling in the context of fiduciary
responsibilities?
A financial strategy for maximizing investment returns.
A practice in which a person in a fiduciary capacity illegally
mixes his/her personal funds with funds he/she is holding in
trust.
A legal method of managing trust funds separately from personal
funds.
A type of insurance policy that protects against fiduciary
misconduct.
