1.2 Delaware Producer Licensing Requirements

Delaware regulates insurance producers to ensure qualified professionals serve consumers. The licensing process involves passing an exam, background checks, and ongoing compliance requirements.

Eligibility Requirements

To obtain a Delaware P&C producer license, applicants must meet these requirements:

Age and Residency

• Minimum Age: At least 18 years old
• Residency:
  • Delaware residents: Apply for resident license
  • Non-residents: Must hold active license in home state

Competency Requirements

• Examination: Pass Property & Casualty exam with 70% or higher
• No Pre-License Education: Delaware does NOT require pre-licensing courses
• Good Character: No disqualifying criminal convictions or regulatory actions

Background Check

• State Criminal History: Delaware state criminal background report
• FBI Check: Federal criminal history report from FBI
• Recency: Both reports must be dated within 90 days of application
• Fingerprinting: Electronic fingerprinting through approved vendor

Examination Requirements

Property & Casualty Exam

Exam Content Breakdown

National Content (110 questions):

• General insurance principles and concepts
• Property insurance policies and coverages
• Casualty insurance policies and coverages
• Commercial lines and risk management
• Policy provisions and endorsements

Delaware Content (40 questions):

• Delaware insurance laws and regulations
• Delaware Department of Insurance
• Delaware auto insurance requirements (25/50/10 + UM/UIM)
• Delaware producer responsibilities
• Delaware consumer protections

Exam Scheduling and Administration

In-Person Testing:

• Schedule through Pearson VUE website
• Test at Pearson VUE testing center in Delaware
• Arrive 30 minutes before scheduled time
• Bring valid government-issued photo ID

Online Proctored Testing:

• Take exam from home with webcam monitoring
• System requirements: computer, webcam, internet
• Arrive online on time for check-in process
• Quiet, private testing environment required

Exam Tip: Bring TWO forms of ID to the testing center (primary photo ID + secondary ID with signature). No study materials, calculators, or electronics allowed—Pearson VUE provides basic calculator and scratch paper.

Retaking the Exam

If you don't pass:

• Waiting Period: Check Pearson VUE for retake eligibility
• Additional Fee: Pay $49 exam fee for each retake
• Study Weak Areas: Review score report to identify knowledge gaps
• No Limit: No limit on number of exam attempts

License Application Process

Step-by-Step Application

Step 1: Pass the Exam

• Complete P&C exam with 70% or higher
• Receive passing score report from Pearson VUE
• Score valid for 12 months for license application

Step 2: Complete Background Check

• Schedule fingerprinting appointment
• Obtain Delaware state criminal history report
• Obtain FBI criminal history report
• Ensure both reports dated within 90 days

Step 3: Submit Application

• Apply through National Insurance Producer Registry (NIPR) OR
• Apply directly through Delaware DOI
• Complete all application sections accurately
• Disclose any criminal history or regulatory actions

Step 4: Pay Fees

• License Application Fee: $165
• Background Check Fee: $60 (typically paid at fingerprinting)
• Pay electronically through application portal

Step 5: Await Approval

• Delaware DOI reviews application
• Processing time: typically 2-4 weeks
• Check application status online
• Address any deficiency notices promptly

Step 6: Receive License

• License issued electronically
• Print license from DOI portal
• Verify information accuracy
• Begin selling P&C insurance in Delaware

License Types

Resident Producer License

For Delaware residents:

• Primary license held in Delaware
• Allows selling P&C insurance in Delaware
• Must maintain Delaware residency
• Renews biennially in Delaware

Non-Resident Producer License

For producers licensed in other states:

• Must hold active resident license in home state
• Apply for Delaware non-resident license
• Reciprocal licensing agreements apply
• No exam required if home state has reciprocity with Delaware

Non-Resident Requirements:

• Active resident license in home state
• Good standing in home state
• Pay Delaware non-resident license fee
• Renew biennially by February 28

Appointments

Producer Appointments

To sell insurance for a specific company, producers must be appointed:

Appointment Process:

1. Company Initiates: Insurance company appoints producer
2. Notification: Company notifies Delaware DOI of appointment
3. Fee: Company pays appointment fee (typically $50-$100)
4. Effective Date: Appointment effective upon DOI approval
5. Multiple Appointments: Producers may be appointed by multiple companies

Appointment Requirements:

• Active Delaware producer license
• Company authorization
• Compliance with company contracting requirements
• Ongoing supervision by appointing company

Termination of Appointment:

• Company may terminate appointment at any time
• Must notify DOI within 30 days
• Must state reason if for cause (fraud, misconduct, etc.)
• Producer notified of termination

Exam Tip: Producers must be BOTH licensed (by Delaware DOI) AND appointed (by insurance company) to sell insurance. A license alone does not authorize selling a specific company's policies.

Renewal Requirements

Biennial Renewal

Delaware producer licenses renew every 2 years:

Continuing Education Requirements

Before renewing, producers must complete:

• Total Hours: 24 hours of approved CE
• Ethics: 3 hours must be in ethics
• General Content: 21 hours in general or specialized topics
• Reporting Period: 2-year period ending February 28
• Approved Providers: Only Delaware-approved CE providers count

Special CE Requirements:

1. Flood Insurance CE (for homeowners/personal lines producers)

   • Requirement: 2 hours in flood insurance and National Flood Insurance Program
   • Purpose: Educate producers on flood risks and coverage
   • Part of 24 hours: Counts toward general CE requirement

2. Long-Term Care CE (if selling LTC insurance)

   • Requirement: 8 hours of LTC-specific training initially, then ongoing CE
   • Applies to: Producers selling long-term care policies

CE Exemptions and Credits

25-Year Exemption:

• Producers licensed continuously for 25 years or more receive automatic credit of 12 hours
• Must still complete 12 hours CE (including 3 in ethics) before renewal
• Applies each biennial period after reaching 25 years

Professional Designation Credit:

• Certain professional designations (CLU, CPCU, ChFC) receive 12-hour credit
• Must still complete 12 hours CE (including 3 in ethics)
• Submit proof of designation to Delaware DOI

License Maintenance

Reporting Requirements

Producers must report to Delaware DOI within 30 days:

Required Disclosures:

• Criminal convictions
• Administrative actions by other states or regulators
• Change of legal name
• Change of address
• Bankruptcy or insolvency

Failure to Report:

• May result in license suspension or revocation
• Civil penalties may apply
• Disciplinary action by Delaware DOI

Record Keeping

Producers must maintain records:

• Transaction Records: All insurance transactions for at least 5 years
• Client Files: Policy applications, communications, and documents
• Commission Records: Premium and commission records
• Compliance Documents: CE certificates, licenses, appointments
• Availability: Records must be available for DOI examination

Exam Tip: Delaware requires producers to maintain insurance transaction records for at least 5 years. These records must be available if the DOI conducts an examination or investigation.