Delaware Life Producer Exam
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
The clause is an Accident and Health policy which defines the benefit amounts the
insurer will pay is called the - ANS-Insuring clause
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
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
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
In Delaware, which of the following is considered an Unfair Trade Practice? -
ANS-Coercion
A debtor with Credit Life insurance who has paid off the debt earlier than scheduled will
- ANS-receive a refund of unused premiums s
Someone in a position of financial trust is called a - ANS-fiduciary
With regards to credit life insurance, the amount of credit life insurance purchased shall
not exceed the - ANS-initial indebtedness
The violation of a cease and desist order may result in all of the following EXCEPT -
ANS-community service... it may result in revocation of license, suspension of license,
and/or $11,500 penalty
Which of the following actions by a producer would NOT result in a license suspension
or revocation? - ANS-bankruptcy filing... actions that could validate for refusal to renew
a license include misappropriating premiums, incompetence, and untrustworthiness.
A producer whose license has been revoked twice may apply for reinstatement -
ANS-never again under Delaware law
In Delaware, what is a prohibited act? - ANS-A producer collecting fees in excess of the
required premium
Rebating is - ANS-not allowed on any level
The Commissioner must examine each domestic insurance company AT LEAST every -
ANS-five years
A producer that uses an unlicensed office staff to solicit and transact insurance could
face - ANS-license suspension
A producer MUST do which of the following during a sales presentation for a
participating life insurance policy? - ANS-Include a statement that dividends are not
guaranteed
Group health insurance has a required grace period of - ANS-31 days
A(n) _ sells, solicits, or negotiates insurance on behalf of insurance companies for
compensation. - ANS-producer
