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