Free DE Life Producer Practice Questions

Sample Practice Questions

Try these 10 sample questions from the DE Life Producer practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A client wants lifelong protection with a fixed annual premium that continues throughout life and a fixed death benefit. Which policy best matches?

   1. A. Ordinary whole life
   2. B. Limited-pay whole life
   3. C. Single-premium whole life
   4. D. Flexible-premium universal life

   Answer: A

   Explanation: "set annual premium that never changes" Ordinary whole life is the level-premium, level-benefit policy for a lifetime of annual payments. Limited-pay and single-premium whole life finish payments earlier; universal life permits flexible premiums.

   Reference: Delaware Department of Insurance, Life Insurance Guide — Life Guide, Types of Life Insurance: Ordinary or straight

2. 2After the stated waiting period, an insured meets the disability condition of a life policy's waiver-of-premium rider. How is the next premium handled?

   1. A. The insurer waives it under the disability rider
   2. B. A policy loan advances it from available cash value
   3. C. An existing policy dividend is applied to reduce it
   4. D. The owner continues it through the policy grace period

   Answer: A

   Explanation: "you can stop paying your life insurance premium if you develop a covered illness or disability named in the rider." Waiver depends on the rider's covered disability conditions; it is distinct from borrowing, a nonforfeiture election, or shifting the payment obligation.

   Reference: NAIC, Life Insurance Consumer Guide — Life Insurance Consumer Guide, Waiver of Premium Rider

3. 3A Delaware producer wants to change a substantive answer on an applicant's already signed life application. Whose written consent is needed for that alteration?

   1. A. The applicant's written consent
   2. B. The producer's written consent
   3. C. The insurer's written consent
   4. D. The beneficiary's written consent

   Answer: A

   Explanation: "without his or her written consent" A substantive change to the signed application requires the applicant's written consent; acceptance by another party does not supply that consent.

   Reference: Delaware Code, Title 18 — 18 Del. C. §2709

4. 4A corporation owns a revocable-beneficiary life policy on its executive. Subject to the policy's terms, who may direct a change of beneficiary?

   1. A. The corporation in its capacity as policyowner
   2. B. The executive solely because that life is insured
   3. C. The named beneficiary solely because proceeds are payable
   4. D. The producer solely because the policy was sold through the agency

   Answer: A

   Explanation: "This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation." Policy ownership may rest with a corporation rather than the insured; ownership determines ordinary contractual control.

   Reference: New York DFS, Life Insurance — Life Insurance, Policyowner

5. 5A Delaware resident plans to solicit life policies for compensation. What licensing rule applies before the first solicitation?

   1. A. The person must hold the appropriate producer license
   2. B. The person may solicit after filing an appointment only
   3. C. The person may solicit after registering a trade name
   4. D. The person may solicit after completing continuing education

   Answer: A

   Explanation: Section 1703 states, "A person shall not transact insurance in this State for any class or classes of insurance unless the person is licensed." Solicitation is part of transacting insurance.

   Reference: Delaware Code Online — §§ 1703

6. 6A Delaware agricultural credit transaction lasts eighteen months. On a level-term plan, what amount may its credit life insurance cover under the statutory exception?

   1. A. The loan commitment
   2. B. The actual unpaid indebtedness only
   3. C. The periodic scheduled installment only
   4. D. The original gross debt divided by the number of installments

   Answer: A

   Explanation: Section 3704(a)(3) permits insurance on agricultural credit transactions not exceeding two years to be written "up to the amount of the loan commitment on a nondecreasing or level term plan."

   Reference: Delaware Code Online — § 3704(a)(3)

7. 7A producer is explaining a Delaware employee group life policy to an employer. Which beneficiary limitation must the producer identify?

   1. A. Benefits must be for persons other than the employer
   2. B. Benefits must be solely for the employer
   3. C. Benefits must be solely for an employee organization
   4. D. Benefits must be solely for trustees of an employee fund

   Answer: A

   Explanation: Section 3102 permits an employer policy to insure employees "for the benefit of persons other than the employer."

   Reference: Delaware Code Online — § 3102

8. 8A newly licensed producer claims the license itself authorizes commitments on behalf of every carrier. How does Delaware law treat that claim?

   1. A. The license creates actual authority only
   2. B. The license creates apparent authority only
   3. C. The license creates inherent authority only
   4. D. The license itself creates none of those carrier authorities

   Answer: D

   Explanation: Section 1702(10) says, "The license itself does not create any authority, actual, apparent or inherent, in the holder to represent or commit an insurance carrier."

   Reference: Delaware Code Online — § 1702(10)

9. 9A client wants lifelong protection but will pay scheduled annual premiums for 20 years, then owe no more scheduled premiums. Which arrangement fits?

   1. A. Ordinary whole life
   2. B. Twenty-pay whole life
   3. C. Single-premium whole life
   4. D. Flexible-premium adjustable life

   Answer: B

   Explanation: "lifetime protection but requires only a limited number of premium payments" Limited-pay whole life keeps lifetime protection while ending scheduled premiums after a specified number of payments. Ordinary, single-premium, and flexible-premium arrangements answer different funding needs.

   Reference: New York DFS, Life Insurance — Life Insurance, Limited Payment Whole Life

10. 10A policyholder wants the option to buy more life coverage at specified future dates even if health has worsened. Which rider addresses that need?

    1. A. Cost-of-living rider increasing coverage only with inflation indexes
    2. B. Guaranteed insurability rider allowing increases without a new exam
    3. C. Accidental death rider adding benefits only after a covered accident
    4. D. Waiver-of-premium rider suspending premiums during covered disability

    Answer: B

    Explanation: "A guaranteed insurability rider lets you increase your death benefit at certain times in the future without a medical exam." Guaranteed insurability preserves the right to increase the death benefit at designated times without new medical examination.

    Reference: NAIC, Life Insurance Consumer Guide — Life Insurance Consumer Guide, Guaranteed Insurability Rider