Delaware Life Producer Exam

An insurer is charged _ for submitting an application for a certificate of authority in Delaware.

$700

What percentage of employees must participate in a noncontributory group life insurance plan?

100%

What is the maximum contest-ability period for most health insurance policies?

2 years

The Commissioner must give _ days written notice prior to holding a hearing regarding a producer's violation of an unfair trade practice.

20 days

A licensee's business records must be maintained and made available for inspection by the Commissioner for a period of

3 years

A producer must report a change in address to the Commissioner within

30 days

Group health insurance has a required grace period of

31 days

Which of the following statements about Credit Life insurance is true?

A debtor may use existing coverage already in force

In Delaware, what is a prohibited act?

A producer collecting fees in excess of the required premium

What is the authority given to a producer to transact business on behalf of the insurer?

Appointment

In Delaware, which of the following is considered an Unfair Trade Practice?

Coercion

What is an example of a producer's implied authority?

Collecting premiums

What is the basics of a producer's fiduciary responsibility?

Collecting premiums and paying them to the insurance company

What statement regarding the Misstatement of Age provision is considered to be true?

Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered

Benefits from a Credit Life or Disability policy are paid to the

Creditor

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?

Entire Contract

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

Entire Contract provision

What is considered an Optional Health Provision?

Illegal occupation

A producer MUST do which of the following during a sales presentation for a participating life insurance policy?

Include a statement that dividends are not guaranteed

The clause is an Accident and Health policy which defines the benefit amounts the insurer will pay is called the

Insuring clause

What is designed to pay for 100% of Medicare's "express charges"?

Medicare Supplement

When an existing life insurance policy is being reissued with a reduction in cash value, the producer must sign the

Notice Regarding Replacement of Life Insurance or Annuity

What action by a producer can be considered rebating?

Splitting commissions with a policyholder who has purchased additional coverage

Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?

Subrogation

What is required for HIV testing of an applicant?

The applicant's written consent

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?

Thirty-one

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?

Twisting

Which of the following is NOT an example of a producer's breach of fiduciary duty?

allowing premiums to be submitted electronically

Which of the following actions by a producer would NOT result in a license suspension or revocation?

bankruptcy filing... actions that could validate for refusal to renew a license include misappropriating premiums, incompetence, and untrustworthiness.

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

commingling (combining collected insurance premiums with personal funds)

The violation of a cease and desist order may result in all of the following EXCEPT

community service... it may result in revocation of license, suspension of license, and/or $11,500 penalty

Someone in a position of financial trust is called a

fiduciary

The Commissioner must examine each domestic insurance company AT LEAST every

five years

With regards to credit life insurance, the amount of credit life insurance purchased shall not exceed the

initial indebtedness

The Commissioner may suspend or revoke a producer's license for

keeping premiums owed to the insurer

Ethics does NOT cover

license fees... it does cover good moral standing, suitability, and client's needs.

A producer that uses an unlicensed office staff to solicit and transact insurance could face

license suspension

In Delaware, an insurer is prohibited from

making a political contribution to any candidate for the office of the Commissioner.

A verbal or written statement which misleads a policy's features, benefits, or coverage is considered

misrepresentation

A producer whose license has been revoked twice may apply for reinstatement

never again under Delaware law

Rebating is

not allowed on any level

Long-Term Care insurance provides custodial coverage in the event an insured cannot

perform activities of daily living

The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of the

policyowner

A(n) _ may also perform the duties of a consultant.

producer

A(n) _ sells, solicits, or negotiates insurance on behalf of insurance companies for compensation.

producer

E&O (Errors and Omissions) insurance protects a(n)

producer against disgruntled clients

Market Conduct examinations include all of these areas EXCEPT

producer contracts... it does include underwriting, marketing tactics, and advertising

A debtor with Credit Life insurance who has paid off the debt earlier than scheduled will

receive a refund of unused premiums s