Delaware Life Insurance Exam: How Difficult?

The Delaware Life Insurance Examination is a challenging exam that requires candidates to demonstrate a good understanding of insurance principles and state-specific regulations. The exam consists of 90 scored questions and 11 pre-test questions, with a time limit of 135 minutes and a passing score of 70%. While the exam is not easy, it is achievable with dedicated study and a clear understanding of the insurance industry's ethical and regulatory aspects. Candidates are advised to complete a pre-license course and thoroughly prepare for the exam, as it covers a wide range of topics, including types of policies, policy provisions, underwriting, and insurance concepts and terms. The level of difficulty will depend on the candidate's current knowledge, work experience, and preparation.

Exam structure

The Delaware Life Insurance Examination consists of 101 total questions, 90 of which are scored, and 11 are pretest questions. The exam has a time limit of 135 minutes and a passing score of 70%.

The exam is divided into two sections: general and state-specific knowledge. The general section deals with basic life insurance product knowledge, while the state-specific section covers insurance concepts and terms, rules, regulations, and practices specific to Delaware.

The general knowledge section covers the following topics:

• Types of Policies
• Traditional Whole Life Products
• Interest/Market-Sensitive/Adjustable Life Products
• Term Life
• Annuities
• Combination Plans and Variations
• Policy Riders, Provisions, Options, and Exclusions
• Policy Riders
• Policy Provisions and Options
• Policy Exclusions
• Completing the Application, Underwriting, and Delivering the Policy
• Completing the Application
• Underwriting
• Delivering the Policy
• Contract Law
• Retirement and Other Insurance Concepts
• Third-Party Ownership
• Viatical Settlements
• Life Settlements
• Group Life Insurance
• Retirement Plans
• Life Insurance Needs Analysis/Suitability
• Social Security Benefits
• Tax Treatment of Insurance Premiums, Proceeds, and Dividends

The state-specific section covers the following topics:

• Delaware Statutes, Regulations, and Bulletins Pertinent to Life, Accident and Health, Property and Casualty Insurance
• License Regulation
• Marketing Practices
• Insurance Commissioner
• Delaware Statutes, Rules, Regulations, and Bulletins Common to Both Life and Health Insurance
• Credit Life and Health
• Life and Health Guaranty Association Act
• Delaware Statutes, Rules, Regulations, and Bulletins Pertinent to Life Insurance Only
• Life insurance standard provisions
• Annuity and endowment contracts standard provisions
• Standard Nonforfeiture Law
• Prohibited policies
• Policy replacement
• Life insurance solicitation
• Group life insurance
• Insurance Ethics
• Definitions
• Market Conduct examination
• Binding coverage
• Disclosure letters and forms
• Errors and Omissions insurance
• Unfair practices
• Insurance fraud and Fraud Prevention Bureau
• Advertisement procedures
• Privacy
• Conflict of issues and producer’s responsibilities

Preparation tips

The Delaware Life Insurance Examination is a challenging exam that requires a good understanding of insurance principles and state-specific regulations. Here are some preparation tips to help you get ready for the exam:

• Complete a pre-license course: While not mandatory in Delaware, a pre-license course can be highly beneficial in helping you get familiar with the extensive content covered in the exam. ExamFX and Kaplan are two popular options for pre-license courses, offering comprehensive study packages and practice exams.
• Study effectively: Allocate sufficient time to study, as the exam covers a wide range of topics. It is recommended to set aside around one to two weeks for preparation, allowing you to go through the material at least twice.
• Manage test anxiety: Establish a consistent pre-test routine by acclimating yourself to exam conditions through practice exams. Get plenty of sleep in the week leading up to the exam, as lack of sleep can increase anxiety and self-doubt.
• Familiarize yourself with the exam format: The Delaware Life Insurance Examination consists of 101 total questions (90 scored and 11 pretest) and has a time limit of 135 minutes. Knowing the exam format beforehand can help you feel more confident and prepared.
• Review the content outlines: The Delaware Insurance Licensing Candidate Handbook provides specific content information for the exam. Make sure to pay attention to both the general knowledge content and the state-specific content outlined in the handbook.
• Practice with sample questions: Familiarize yourself with the types of questions that will be asked on the exam. The Life General Knowledge Content Outline covers topics such as types of policies, policy riders, provisions, completing the application, and retirement and insurance concepts. The Life Delaware Specific Content Outline focuses on Delaware-specific statutes, regulations, and bulletins related to insurance.
• Take a practice exam: Assess your readiness by taking a practice exam or using an exam prep course that includes practice questions. This will help you identify areas that need further review and allow you to become comfortable with the exam format.
• Create a study calendar: Develop a study plan that fits your schedule and stick to it. ExamFX offers a Virtual Study Calendar to help you create a personalized study plan.
• Choose a reputable exam prep provider: Select a reputable exam prep provider, such as ExamFX or Kaplan, to ensure you have access to high-quality study materials and resources.
• Understand the scoring system: It's important to know how your exam will be scored. In Delaware, you need to achieve a passing score of 70% or higher to pass the life insurance exam.

Registration process

To register for the Delaware Life Insurance Exam, you must be a resident of the state of Delaware and be at least 18 years of age.

The registration process for the Delaware Life Insurance Exam is outlined below:

Step 1: Complete a prelicensing course (optional)

Although it is not a requirement in Delaware, it is highly recommended that you complete a prelicensing course to help prepare for the exam. ExamFX and Kaplan are two providers of prelicensing courses. These courses can help you become familiar with the material that will be covered on the exam.

Step 2: Schedule your exam

You can schedule your exam online with PearsonVUE, the state's testing provider, or by calling (800) 274-0455. There is a fee for the examination, which must be paid at the time of reservation. This fee will not be accepted at the test centre. If you need to reschedule or cancel your exam, you must do so at least 48 hours in advance or you will forfeit your examination fee.

Step 3: Take the exam

On the day of your exam, you must bring two valid forms of government-issued identification, one of which must include a photograph and signature. After completing the exam, you will receive a score report marked "pass" or "fail". If you pass, the score report will include information on how to apply for your license. If you fail, you will receive a diagnostic score report. The exam consists of two portions: content and statutes and regulations. If you fail one portion, you must retake only that portion within one year of passing the first portion. If you do not pass both portions within one year, you must retake the entire exam.

Step 4: Apply for your license

Within 90 days of your application, you must submit a criminal history report. You can apply for your license with the NIPR (National Insurance Producer Registry). The NIPR Gateway electronically links state insurance departments with the entities they regulate. The website address to submit an application is www.nipr.com.

Step 5: Maintain your license

To maintain your license, you must be aware of the continuing education requirements. Most insurance licenses must be maintained by completing a certain number of credit hours of continuing education each licensing period.

Exam content

The Delaware Life Insurance Examination consists of 101 total questions, 90 of which are scored and 11 of which are pretest questions. Candidates are given 135 minutes to complete the exam and need to achieve a passing score of 70% or higher.

The exam is divided into two sections: general knowledge and state-specific knowledge. The general section deals with basic life insurance product knowledge, while the state-specific section covers insurance concepts, terms, rules, regulations, and practices specific to Delaware.

General Knowledge Content Outline:

• Types of Policies: Traditional Whole Life Products, Interest/Market-Sensitive/Adjustable Life Products, Term Life, Annuities, and Combination Plans and Variations.
• Policy Riders, Provisions, Options, and Exclusions: Policy Riders, Policy Provisions and Options, and Policy Exclusions.
• Completing the Application, Underwriting, and Delivering the Policy: Completing the Application, Underwriting, Delivering the Policy, and Contract Law.
• Retirement and Other Insurance Concepts: Third-Party Ownership, Group Life Insurance, Retirement Plans, Life Insurance Needs Analysis/Suitability, Social Security Benefits, and Tax Treatment of Insurance Premiums, Proceeds, and Dividends.

Delaware-Specific Content Outline:

• Delaware Statutes, Regulations, and Bulletins Pertinent to Life, Accident and Health, Property and Casualty Insurance: License Regulation, Marketing Practices, and Insurance Commissioner.
• Delaware Statutes, Rules, Regulations, and Bulletins Common to Both Life and Health Insurance: Credit Life and Health, and Life and Health Guaranty Association Act.
• Delaware Statutes, Rules, Regulations, and Bulletins Pertinent to Life Insurance Only: Life Insurance Standard Provisions, Annuity and Endowment Contracts Standard Provisions, Standard Nonforfeiture Law, Prohibited Policies, Policy Replacement, Life Insurance Solicitation, and Group Life Insurance.
• Insurance Ethics: Definitions, Market Conduct Examination, Binding Coverage, Disclosure Letters and Forms, Errors and Omissions Insurance, Unfair Practices, Insurance Fraud and Fraud Prevention Bureau, Advertisement Procedures, Privacy, and Conflict of Issues and Producer's Responsibilities.

Post-exam steps

Step 1: Get a fingerprint-based background check

Schedule an appointment for fingerprinting with the Delaware State Police by calling them at (302) 739-2528. The fee for fingerprinting services is $75, which covers the cost of your state criminal background report and fingerprint card submission to the FBI. After completing your fingerprinting and criminal history background check, you must fax the reports to the DDOI at (302) 736-7906.

Step 2: Complete a Delaware Life Insurance License Application

Once you pass the life insurance exam and receive a passing score report, as well as complete the background check, you can apply for your Delaware life insurance license. The application fee is $100, and you must apply online via the National Insurance Producer Registry (NIPR). The NIPR will also charge Delaware applicants a $5.60 transaction fee, for a total of $105.60.

The DDOI will issue a life insurance license to individuals who are at least 18 years old and have passed the proper licensing exam. The DDOI only accepts electronic license and renewal applications through the NIPR.

To apply for a life insurance license in Delaware, make sure you comply with the insurance licensing requirements as defined under the Delaware Insurance Code and the Delaware Administrative Code. Send any questions or supporting documents to [email protected].

Step 3: Watch for your application results

After you complete the previous steps, the DDOI will review your application and background check. It reviews filings in the order they are received, and this process usually takes two weeks from the date you mail your application. Once issued by the DDOI, you can print your license from the NIPR website. There’s no charge to create an account or print a license. You can search for and manage your license by visiting the National Association of Insurance Commissioners (NAIC) State Based Systems (SBS) Delaware Lookup tool.

Steps after securing your Delaware Life Insurance License

Once you complete the above steps and have obtained your Delaware life insurance license, there are a few additional steps to follow to maintain your license and excel as an insurance agent:

• Obtain all relevant securities licenses: If you plan on selling advanced life insurance products, you will likely need to pass the Securities Industry Essentials (SIE) exam and obtain the relevant securities licenses (e.g., Series 6, 7, and 63).
• Choose a means of selling: Decide whether you prefer working as a captive agent employed by a single company or running your own business as an independent agent.
• Develop your marketing approach: Adopt a marketing strategy that suits your business goals and stick to a specific niche.
• Keep your license valid: In Delaware, you must complete 24 hours of continuing education (CE) every two years to renew your license. Of those 24 hours, three must focus on ethics and consumer protection. For every hour of CE you fail to complete on time, you will need to pay a $200 CE late fee. You will not be able to renew your license until you have completed your CE hours and paid any outstanding fines. Remember that your license will need to be renewed between December 1 and the last day of February, and the renewal fee is $100.

Frequently asked questions