Under Delaware Regulation 2401, when may an MLO employee or exclusive agent use the surety bond of an employer or principal licensed under Delaware Chapters 21 or 22?
Correct Answer
C) When the employer/principal bond meets the Delaware MLO bond amount and requirements and the employer or principal consents
Delaware permits employees or exclusive agents of qualifying licensees to use the employer or principal surety bond if it meets the required amount and requirements and the employer or principal consents.
Why This Is the Correct Answer
Delaware permits employees or exclusive agents of qualifying licensees to use the employer or principal surety bond if it meets the required amount and requirements and the employer or principal consents.
Why the Other Options Are Wrong
Option A: Whenever the MLO prefers not to file any bond coverage
The alternative bond route still requires compliant coverage; it is not a no-bond option.
Option B: Only when the employer is outside Delaware
The rule is not limited to employers outside Delaware.
Option D: Never; employer or principal bond coverage is always prohibited
Delaware Regulation 2401 expressly allows the employer/principal bond route when its conditions are met.
Memory Technique
DE-C013 -> Delaware-surety-bond
Exam Tip
Employer bond use is conditional, not automatic.
Common Mistakes to Avoid
- -Importing another state requirement into Delaware
- -Confusing NMLS baseline requirements with Delaware-specific rules
- -Treating operational assumptions as legal authority
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