DELAWARE LIFE PRODUCER EXAM
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
A(n) _ may also perform the duties of a consultant. - ANS producer
What is an example of a producer's implied authority? - ANS Collecting premiums
The Commissioner may suspend or revoke a producer's license for - ANS keeping premiums
owed to the insurer
An insurer is charged _ for submitting an application for a certificate of authority in Delaware. -
ANS $700
In Delaware, an insurer is prohibited from - ANS making a political contribution to any
candidate for the office of the Commissioner.
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's
injuries caused by a third party? - ANS Subrogation
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,The clause is an Accident and Health policy which defines the benefit amounts the insurer will
pay is called the - ANS Insuring clause... it states the amount of benefits to be paid in an
Accident and Health policy
Which of the following is NOT an example of a producer's breach of fiduciary duty? -
ANS allowing premiums to be submitted electronically
Which health policy clause stipulates that an insurance company must attach a copy of the
application to the policy to ensure that it is part of the contract? - ANS Entire Contract
What percentage of employees must participate in a noncontributory group life insurance plan?
- ANS 100%
A licensee's business records must be maintained and made available for inspection by the
Commissioner for a period of - ANS 3 years
When an existing life insurance policy is being reissued with a reduction in cash value, the
producer must sign the - ANS Notice Regarding Replacement of Life Insurance or Annuity
Which of the following statements about Credit Life insurance is true? - ANS A debtor may
use existing coverage already in force
Long-Term Care insurance provides custodial coverage in the event an insured cannot -
ANS perform activities of daily living
A producer must report a change in address to the Commissioner within - ANS 30 days
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,E&O (Errors and Omissions) insurance protects a(n) - ANS producer against disgruntled
clients
To maintain continued coverage for a newborn under an accident and sickness policy, the policy
owner must provide notification of birth and payment of premium to the insurance company
within a MAXIMUM of how many days after birth? - ANS Thirty-one
Market Conduct examinations include all of these areas EXCEPT - ANS producer contracts... it
does include underwriting, marketing tactics, and advertising
What is the basics of a producer's fiduciary responsibility? - ANS Collecting premiums and
paying them to the insurance company
What action by a producer can be considered rebating? - ANS Splitting commissions with a
policyholder who has purchased additional coverage
What is required for HIV testing of an applicant? - ANS The applicant's written consent
Ethics does NOT cover - ANS license fees... it does cover good moral standing, suitability, and
client's needs.
The Commissioner must give _ days written notice prior to holding a hearing regarding a
producer's violation of an unfair trade practice. - ANS 20 days
When an insurance company sends a policy to the insured with an attached application, the
element that makes the application part of the contract between the insured and the insurer is
called the - ANS Entire Contract provision
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Benefits from a Credit Life or Disability policy are paid to the - ANS Creditor
What statement regarding the Misstatement of Age provision is considered to be true? -
ANS Coverage will be adjusted to reflect the insured's true age if a misstatement of age is
discovered
What is the authority given to a producer to transact business on behalf of the insurer? -
ANS Appointment
What is the term that describes the act of replacing existing life insurance with a new life
insurance policy based upon incomplete or incorrect representations? - ANS Twisting
The Replacement of Life Insurance and Annuities regulation is designed to protect the interest
of the - ANS policyowner
What is designed to pay for 100% of Medicare's "express charges"? - ANS Medicare
Supplement
A verbal or written statement which misleads a policy's features, benefits, or coverage is
considered - ANS misrepresentation
What is the maximum contest-ability period for most health insurance policies? - ANS 2 years
A producer receives the initial premium from an applicant and deposits the money into a
personal bank account for 2 weeks. This illegal action is called - ANS commingling (combining
collected insurance premiums with personal funds)
What is considered an Optional Health Provision? - ANS Illegal occupation
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
A(n) _ may also perform the duties of a consultant. - ANS producer
What is an example of a producer's implied authority? - ANS Collecting premiums
The Commissioner may suspend or revoke a producer's license for - ANS keeping premiums
owed to the insurer
An insurer is charged _ for submitting an application for a certificate of authority in Delaware. -
ANS $700
In Delaware, an insurer is prohibited from - ANS making a political contribution to any
candidate for the office of the Commissioner.
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's
injuries caused by a third party? - ANS Subrogation
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,The clause is an Accident and Health policy which defines the benefit amounts the insurer will
pay is called the - ANS Insuring clause... it states the amount of benefits to be paid in an
Accident and Health policy
Which of the following is NOT an example of a producer's breach of fiduciary duty? -
ANS allowing premiums to be submitted electronically
Which health policy clause stipulates that an insurance company must attach a copy of the
application to the policy to ensure that it is part of the contract? - ANS Entire Contract
What percentage of employees must participate in a noncontributory group life insurance plan?
- ANS 100%
A licensee's business records must be maintained and made available for inspection by the
Commissioner for a period of - ANS 3 years
When an existing life insurance policy is being reissued with a reduction in cash value, the
producer must sign the - ANS Notice Regarding Replacement of Life Insurance or Annuity
Which of the following statements about Credit Life insurance is true? - ANS A debtor may
use existing coverage already in force
Long-Term Care insurance provides custodial coverage in the event an insured cannot -
ANS perform activities of daily living
A producer must report a change in address to the Commissioner within - ANS 30 days
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,E&O (Errors and Omissions) insurance protects a(n) - ANS producer against disgruntled
clients
To maintain continued coverage for a newborn under an accident and sickness policy, the policy
owner must provide notification of birth and payment of premium to the insurance company
within a MAXIMUM of how many days after birth? - ANS Thirty-one
Market Conduct examinations include all of these areas EXCEPT - ANS producer contracts... it
does include underwriting, marketing tactics, and advertising
What is the basics of a producer's fiduciary responsibility? - ANS Collecting premiums and
paying them to the insurance company
What action by a producer can be considered rebating? - ANS Splitting commissions with a
policyholder who has purchased additional coverage
What is required for HIV testing of an applicant? - ANS The applicant's written consent
Ethics does NOT cover - ANS license fees... it does cover good moral standing, suitability, and
client's needs.
The Commissioner must give _ days written notice prior to holding a hearing regarding a
producer's violation of an unfair trade practice. - ANS 20 days
When an insurance company sends a policy to the insured with an attached application, the
element that makes the application part of the contract between the insured and the insurer is
called the - ANS Entire Contract provision
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Benefits from a Credit Life or Disability policy are paid to the - ANS Creditor
What statement regarding the Misstatement of Age provision is considered to be true? -
ANS Coverage will be adjusted to reflect the insured's true age if a misstatement of age is
discovered
What is the authority given to a producer to transact business on behalf of the insurer? -
ANS Appointment
What is the term that describes the act of replacing existing life insurance with a new life
insurance policy based upon incomplete or incorrect representations? - ANS Twisting
The Replacement of Life Insurance and Annuities regulation is designed to protect the interest
of the - ANS policyowner
What is designed to pay for 100% of Medicare's "express charges"? - ANS Medicare
Supplement
A verbal or written statement which misleads a policy's features, benefits, or coverage is
considered - ANS misrepresentation
What is the maximum contest-ability period for most health insurance policies? - ANS 2 years
A producer receives the initial premium from an applicant and deposits the money into a
personal bank account for 2 weeks. This illegal action is called - ANS commingling (combining
collected insurance premiums with personal funds)
What is considered an Optional Health Provision? - ANS Illegal occupation
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
