Delaware Personal Lines Insurance License Exam — All Questions

Which coverage does Delaware require on a personal auto policy that pays the insured's own medical and related expenses regardless of who caused the crash?

• a.Only bodily injury liability coverage
• b.Personal injury protection (PIP), which Delaware mandates on personal auto policies✓
• c.Collision coverage
• d.Comprehensive coverage

Delaware requires personal injury protection (PIP) on personal auto policies. PIP pays the insured's medical and certain other expenses no matter who was at fault, with a commonly cited minimum of $15,000 per person and $30,000 per accident. Verify the current PIP minimums with the Delaware Department of Insurance (https://insurance.delaware.gov/).

Even though Delaware requires PIP, how does it determine who ultimately pays for the other party's injuries and damage?

• a.Delaware is a pure no-fault state, so lawsuits between drivers are barred
• b.A state fund pays all claims regardless of fault
• c.Delaware remains an at-fault (tort) state; the driver who caused the crash is liable, and PIP sits on top of that liability system✓
• d.Fault is never considered in Delaware

Delaware is often confused for a no-fault state because it mandates PIP, but it is not a true no-fault state — it remains an at-fault (tort) system. PIP pays the insured's own expenses first regardless of fault, then liability is still determined and the at-fault driver's coverage responds for the other party. Confirm current rules with the Delaware Department of Insurance.

What must a Delaware personal auto policy carry, in addition to required PIP, to satisfy the state's financial-responsibility law?

• a.Nothing else is required beyond PIP
• b.Only collision coverage
• c.Only comprehensive coverage
• d.Minimum bodily injury and property damage liability limits set by state law✓

Beyond mandatory PIP, Delaware drivers must carry minimum bodily injury and property damage liability limits set by state law. Because the exact split can change, do not memorize a single figure — confirm the current minimum liability limits with the Delaware Department of Insurance (https://insurance.delaware.gov/) before advising a client.

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Delaware?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Delaware Department of Insurance✓

Delaware restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current Delaware notice periods with the Delaware Department of Insurance.

Which best describes the body that writes and enforces Delaware's insurance regulations affecting personal lines policies?

• a.The Delaware Department of Insurance, a state agency led by an elected Insurance Commissioner✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county recorder's office where the policy is issued

Insurance in Delaware is regulated at the state level by the Delaware Department of Insurance. There is no federal department of insurance; each state supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: Delaware Department of Insurance (https://insurance.delaware.gov/).