OpenExamsFREE PRACTICE — ANY EXAM

Free DE Personal Lines Producer Practice Questions

144 free questions · Answer explanations · No signup required

View examination details, outline and sources

Loading selected examination banks…

Sample Practice Questions

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

  1. 1A homeowner wants the dwelling insured against causes of direct physical loss unless the policy expressly excludes them. Which homeowners form matches that peril treatment?

    1. A. HO-2 broad form
    2. B. HO-3 special form
    3. C. HO-4 renters form
    4. D. HO-8 modified form

    Answer: B

    Explanation: "HO-3 (Special Form) – Covers all perils except those explicitly excluded" identifies the special form. The other forms have different insured interests or peril treatment.

    Reference: NAIC Homeowners Policy Forms — Homeowners Policy Forms, HO-3

  2. 2A driver negligently damages a neighbor's fence with the insured car. Which personal-auto liability coverage addresses the neighbor's fence damage?

    1. A. Bodily injury liability
    2. B. Property damage liability
    3. C. Medical payments coverage
    4. D. Collision physical damage

    Answer: B

    Explanation: "Property Damage Liability: This coverage pays for damages you cause to someone else’s car or to objects" applies to the neighbor’s fence. Bodily-injury and medical-payments cover injuries; collision concerns damage to the insured car.

    Reference: NAIC Consumer's Guide to Auto Insurance — Consumer’s Guide to Auto Insurance, Coverages in an Auto Policy, p. 1

  3. 3A homeowner would personally bear the cost if a house were damaged. Which insurance concept describes that financial relationship to the house?

    1. A. Insurable interest in the property
    2. B. Subrogation against another party
    3. C. Coinsurance on the property
    4. D. Indemnity after the property loss

    Answer: A

    Explanation: "Insurable Interest - A right or relationship in regard to the subject matter of the insured contract such that the insured can suffer a financial loss" applies because the homeowner bears the house damage financially.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Insurable Interest

  4. 4A producer must confirm a homeowners policy's effective date, insured address, coverage limit, and premium. Which policy part ordinarily lists those contract-specific facts?

    1. A. Declarations page
    2. B. Insuring agreement
    3. C. Exclusions section
    4. D. General conditions

    Answer: A

    Explanation: "The declaration/information page identifies the policy number, the effective dates, the address of the insured property" and other policy-specific facts, including limits and premium. That is the place to confirm this contract’s particulars.

    Reference: NAIC Understanding Your Homeowners or Renter's Policy — The Policy, declaration/information page

  5. 5A Delaware producer applicant wants authority limited to personal lines. Which description matches that line of authority?

    1. A. Property and casualty coverage sold to individuals and families for noncommercial purposes
    2. B. Property coverage sold to businesses for commercial purposes
    3. C. Casualty coverage sold only to corporations
    4. D. Marine coverage sold for commercial transportation risks

    Answer: A

    Explanation: Section 1707(a)(6) defines the line as "Personal lines property and casualty insurance coverage sold to individuals and families for noncommercial purposes." The applicant's requested authority matches that description.

    Reference: Delaware Code Online — 18 Del. C. § 1707(a)(6)

  6. 6What is the principal purpose of Delaware's FAIR Plan mechanism?

    1. A. To provide basic property insurance when it cannot be obtained through the normal market
    2. B. To guarantee automobile liability insurance to every driver
    3. C. To replace federal flood insurance
    4. D. To insure only commercial inland marine risks

    Answer: A

    Explanation: Section 4104 states that a purpose is "To make basic property insurance available for qualified property." This is the principal role of the FAIR Plan mechanism.

    Reference: Delcode Title18 — 18 Del. C. §§ 4104, 4106, and 4109

  7. 7What are Delaware's minimum personal injury protection limits for one accident?

    1. A. $10,000 per person and $20,000 for all persons
    2. B. $15,000 per person and $30,000 for all persons
    3. C. $25,000 per person and $50,000 for all persons
    4. D. $30,000 per person and $60,000 for all persons

    Answer: B

    Explanation: Section 2118 sets "$15,000 for any 1 person and $30,000 for all persons injured in any 1 accident."

    Reference: Delcode Title 21 — 21 Del. C. § 2118(a)(2)b

  8. 8A newly licensed Delaware producer claims the license itself creates authority to bind an insurer. What is correct?

    1. A. The license creates apparent authority only
    2. B. The license itself creates no authority to represent or commit an insurer
    3. C. The license creates authority for every admitted insurer
    4. D. The license creates binding authority for 30 days

    Answer: B

    Explanation: Section 1702 provides that "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 — 18 Del. C. § 1702(10)

  9. 9A homeowner wants open-perils coverage for both the house and personal belongings. Which homeowners form best fits this request?

    1. A. HO-2 broad form
    2. B. HO-3 special form
    3. C. HO-5 comprehensive form
    4. D. HO-8 modified form

    Answer: C

    Explanation: "While HO-3 only offers open-peril coverage on the home’s structure, HO-5 features open-peril coverage for personal belongings, as well as the structure of the home." The requested open-perils protection for both categories points to HO-5.

    Reference: NAIC Homeowners Policy Forms — Homeowners Policy Forms, HO-5

  10. 10An at-fault driver has auto liability insurance, but its bodily-injury limit is too small to fully pay an insured's covered loss. Which coverage addresses that shortfall?

    1. A. Uninsured motorist coverage
    2. B. Underinsured motorist coverage
    3. C. Collision physical damage
    4. D. Medical payments coverage

    Answer: B

    Explanation: "Underinsured motorist coverage pays when an at-fault driver doesn’t have enough" insurance to fully pay the loss. The driver has some liability insurance, so this is the underinsured situation.

    Reference: NAIC Consumer's Guide to Auto Insurance — Consumer’s Guide to Auto Insurance, Coverages in an Auto Policy, p. 1

Topics in this practice bank

These topics describe the available practice for DE Personal Lines Producer. Review the examination outline and its sources for scope and allocation details.

  • General knowledge — I. TYPES OF PROPERTY POLICIES
    • A. Homeowners
    • A. Homeowners / 1. HO-2
    • A. Homeowners / 2. HO-3
    • A. Homeowners / 3. HO-4
    • A. Homeowners / 4. HO-5
    • A. Homeowners / 5. HO-6
    • A. Homeowners / 6. HO-8
    • B. Dwelling policies
    • B. Dwelling policies / 1. DP-1
    • B. Dwelling policies / 2. DP-2
    • B. Dwelling policies / 3. DP-3
    • C. Inland marine
    • C. Inland marine / 1. Personal Articles floaters
    • D. National Flood Insurance Program
    • E. Others
    • E. Others / 1. Earthquake
    • E. Others / 2. Mobile Homes
    • E. Others / 3. Watercraft
    • E. Others / 4. Windstorm
  • General knowledge — II. TYPES OF CASUALTY POLICIES
    • A. Automobile: personal auto
    • A. Automobile: personal auto / 1. Liability
    • A. Automobile: personal auto / 1. Liability / a. Bodily Injury
    • A. Automobile: personal auto / 1. Liability / b. Property Damage
    • A. Automobile: personal auto / 1. Liability / c. Split Limits
    • A. Automobile: personal auto / 1. Liability / d. Combined Single Limit
    • A. Automobile: personal auto / 2. Medical Payments
    • A. Automobile: personal auto / 3. Physical Damage (collision; other than collision; specified perils)
    • A. Automobile: personal auto / 4. Uninsured motorists
    • A. Automobile: personal auto / 5. Underinsured motorists
    • A. Automobile: personal auto / 6. Who is an insured
    • A. Automobile: personal auto / 7. Types of Auto
    • A. Automobile: personal auto / 7. Types of Auto / a. Owned
    • A. Automobile: personal auto / 7. Types of Auto / b. Non-owned
    • A. Automobile: personal auto / 7. Types of Auto / c. Hired
    • A. Automobile: personal auto / 7. Types of Auto / d. Temporary Substitute
    • A. Automobile: personal auto / 7. Types of Auto / e. Newly Acquired Autos
    • A. Automobile: personal auto / 7. Types of Auto / f. Transportation Expense and Rental Reimbursement Expense
    • A. Automobile: personal auto / 8. Exclusions
    • B. Umbrella/Excess liability
  • General knowledge — III. PROPERTY AND CASUALTY INSURANCE TERMS AND RELATED CONCEPTS
    • A. Insurance
    • A. Insurance / 1. Law of Large Numbers
    • B. Insurable interest
    • C. Risk
    • C. Risk / 1. Pure vs. Speculative Risk
    • D. Hazard
    • D. Hazard / 1. Moral
    • D. Hazard / 2. Morale
    • D. Hazard / 3. Physical
    • E. Peril
    • F. Loss
    • F. Loss / 1. Direct
    • F. Loss / 2. Indirect
    • G. Loss Valuation
    • G. Loss Valuation / 1. Actual cash value
    • G. Loss Valuation / 2. Replacement cost
    • G. Loss Valuation / 3. Market value
    • G. Loss Valuation / 4. Stated value
    • G. Loss Valuation / 5. Salvage value
    • H. Proximate cause
    • I. Deductible
    • J. Indemnity
    • K. Limits of liability
    • L. Coinsurance/Insurance to value
    • M. Occurrence
    • N. Cancellation
    • O. Nonrenewal
    • P. Vacancy and unoccupancy
    • Q. Liability
    • Q. Liability / 1. Absolute
    • Q. Liability / 2. Strict
    • Q. Liability / 3. Vicarious
    • R. Negligence
    • S. Binder
    • T. Endorsements
    • U. Blanket vs. Specific
    • V. Burglary, Robbery, Theft, and Mysterious Disappearance
    • W. Warranties
    • X. Representations
    • Y. Concealment
    • Z. Deposit Premium/Audit
    • AA. Certificate of Insurance
    • BB. Damages
    • BB. Damages / 1. Compensatory
    • BB. Damages / 1. Compensatory / a. General
    • BB. Damages / 1. Compensatory / b. Special
    • BB. Damages / 2. Punitive
    • CC. Compliance with Provisions of Fair Credit Reporting Act
  • General knowledge — IV. PROPERTY AND CASUALTY POLICY PROVISIONS AND CONTRACT LAW
    • A. Declarations
    • B. Insuring agreement
    • C. Conditions
    • D. Exclusions
    • E. Definition of the insured
    • F. Duties of the insured after a loss
    • G. Obligations of the insurance company
    • H. Mortgagee rights
    • I. Proof of loss
    • J. Notice of claim
    • K. Appraisal
    • L. Other Insurance Provision
    • M. Subrogation
    • N. Elements of a contract
    • O. Sources of underwriting information
    • P. Fair Credit Reporting Act
    • Q. Privacy Protection (Gramm Leach Bliley)
    • R. Policy Application
    • S. Terrorism Risk Insurance Act (TRIA)
    • T. Cancellation and nonrenewal provisions
    • U. Supplementary payments
    • V. Loss settlement provisions including consent to settle a loss
    • W. Territory
  • State specific — I. DELAWARE STATUTES, REGULATIONS, AND BULLETINS PERTINENT TO LIFE, ACCIDENT AND HEALTH, PROPERTY, CASUALTY AND PERSONAL LINES INSURANCE
    • A. License Regulations
    • A. License Regulations / 1. Persons required to be licensed and responsibilities
    • A. License Regulations / 1. Persons required to be licensed and responsibilities / a. Producer/Agent
    • A. License Regulations / 1. Persons required to be licensed and responsibilities / b. Limited Lines producer
    • A. License Regulations / 1. Persons required to be licensed and responsibilities / c. Producer/Consultant
    • A. License Regulations / 2. License requirements
    • A. License Regulations / 2. License requirements / a. Fees and application
    • A. License Regulations / 2. License requirements / b. Prerequisites
    • A. License Regulations / 2. License requirements / c. Special qualifications
    • A. License Regulations / 2. License requirements / d. Written examinations and exemptions
    • A. License Regulations / 2. License requirements / e. Exemptions from licensing
    • A. License Regulations / 2. License requirements / f. Insurer’s appointment
    • A. License Regulations / 3. Authority
    • A. License Regulations / 3. Authority / a. Definitions
    • A. License Regulations / 3. Authority / b. License requirements
    • A. License Regulations / 3. Authority / c. Lines of authority
    • A. License Regulations / 3. Authority / d. Termination of appointment
    • A. License Regulations / 4. Notice of address change
    • A. License Regulations / 5. Continuing education
    • B. Marketing Practices
    • B. Marketing Practices / 1. Duties of licensed personnel
    • B. Marketing Practices / 2. Record keeping
    • B. Marketing Practices / 3. Compensation of licensees
    • B. Marketing Practices / 4. Termination, suspension, fines
    • C. Insurance Commissioner
    • C. Insurance Commissioner / 1. Election and term
    • C. Insurance Commissioner / 2. General powers and duties
    • C. Insurance Commissioner / 3. Examination of insurers and producers
    • C. Insurance Commissioner / 4. Hearings
    • C. Insurance Commissioner / 5. Cease and desist orders and penalties
    • C. Insurance Commissioner / 6. General penalties
  • State specific — II. DELAWARE STATUTES, RULES, REGULATIONS, AND BULLETINS PERTINENT TO PROPERTY INSURANCE ONLY
    • A. Delaware FAIR Plan
    • A. Delaware FAIR Plan / 1. Purpose and definitions
    • A. Delaware FAIR Plan / 2. Eligibility
    • A. Delaware FAIR Plan / 3. Coverage available
    • A. Delaware FAIR Plan / 4. Limits of coverage
    • A. Delaware FAIR Plan / 5. Effective date of coverage
    • A. Delaware FAIR Plan / 6. Binding authority of producers
    • B. Declinations, renewal, and cancellation of Property insurance contracts
    • B. Declinations, renewal, and cancellation of Property insurance contracts / 1. Definitions
    • B. Declinations, renewal, and cancellation of Property insurance contracts / 2. Notification and reasons for declination, non-renewal, and termination
    • B. Declinations, renewal, and cancellation of Property insurance contracts / 3. Permissible cancellations
    • B. Declinations, renewal, and cancellation of Property insurance contracts / 4. Prohibited practices
    • B. Declinations, renewal, and cancellation of Property insurance contracts / 5. Enforcement
    • B. Declinations, renewal, and cancellation of Property insurance contracts / 6. Disclosures
    • C. National Flood Insurance Program
    • C. National Flood Insurance Program / 1. Definitions
    • C. National Flood Insurance Program / 2. Policies and Products Available
    • C. National Flood Insurance Program / 3. Who needs flood insurance
    • C. National Flood Insurance Program / 4. Flood Maps and Zone Determinations
    • C. National Flood Insurance Program / 5. General Rules
    • C. National Flood Insurance Program / 6. Claims Handling Process
    • C. National Flood Insurance Program / 7. Write Your Own Company
  • State specific — III. DELAWARE STATUTES, RULES, REGULATIONS, AND BULLETINS PERTINENT TO CASUALTY INSURANCE ONLY
    • A. Delaware Motorist Protection Act
    • A. Delaware Motorist Protection Act / 1. Required coverage and limits
    • A. Delaware Motorist Protection Act / 2. Arbitration
    • A. Delaware Motorist Protection Act / 3. Insurance ID card
    • A. Delaware Motorist Protection Act / 4. Fines
    • A. Delaware Motorist Protection Act / 5. Form A
    • B. Uninsured and Underinsured Motorists Coverage
    • B. Uninsured and Underinsured Motorists Coverage / 1. Required coverage
    • B. Uninsured and Underinsured Motorists Coverage / 2. Option for additional coverage
    • C. Cancellation and nonrenewal of auto insurance
    • C. Cancellation and nonrenewal of auto insurance / 1. Reasons for
    • C. Cancellation and nonrenewal of auto insurance / 2. Notice
    • C. Cancellation and nonrenewal of auto insurance / 3. Hearing
    • C. Cancellation and nonrenewal of auto insurance / 4. Exclusion of designated person
    • C. Cancellation and nonrenewal of auto insurance / 5. Request for driving records
    • D. Delaware Automobile Insurance Plan
    • D. Delaware Automobile Insurance Plan / 1. Producer and insurer responsibilities
    • D. Delaware Automobile Insurance Plan / 2. Eligibility
    • D. Delaware Automobile Insurance Plan / 3. Coverage and options
    • D. Delaware Automobile Insurance Plan / 4. Designation of carrier
    • D. Delaware Automobile Insurance Plan / 5. Binding authority
    • D. Delaware Automobile Insurance Plan / 6. Collection of placement fee
    • E. Defensive driving course credit
    • F. Private passenger automobile insurance rating information
  • State specific — IV. INSURANCE ETHICS
    • A. Definitions
    • A. Definitions / 1. Market Conduct
    • A. Definitions / 2. Authority
    • A. Definitions / 2. Authority / a. Express
    • A. Definitions / 2. Authority / b. Implied
    • A. Definitions / 2. Authority / c. Apparent
    • A. Definitions / 3. Agency versus individual licensee
    • A. Definitions / 4. Suitability
    • A. Definitions / 5. Ethical behavior and good moral standards
    • B. Market Conduct examination
    • C. Binding coverage
    • D. Disclosure letters and forms
    • E. Errors and Omissions insurance
    • F. Unfair practices
    • F. Unfair practices / 1. Twisting
    • F. Unfair practices / 2. Churning
    • F. Unfair practices / 3. Commingling
    • F. Unfair practices / 4. Misrepresentation
    • F. Unfair practices / 5. Defamation
    • F. Unfair practices / 6. Coercion and intimidation
    • F. Unfair practices / 7. Unfair discrimination
    • F. Unfair practices / 8. Rebating
    • F. Unfair practices / 9. Unfair claims settlement practices
    • F. Unfair practices / 10. Coercion of debtors
    • F. Unfair practices / 11. Publicized Founded Complaints
    • G. Insurance fraud and Fraud Prevention Bureau
    • H. Advertisement procedures
    • I. Privacy
    • J. Conflict of issues and producer’s responsibilities

How to use these free practice questions

Choose an answer, check the explanation, and review your progress by chapter. Practice questions and explanations are free to access without signing up.

These are independent study questions, not actual examination items. For examination requirements and official information, view DE Personal Lines Producer details.