Nebraska Life and Health License Exam
Questions and answers | NEWEST
Before delivering a health insurance policy to a client, the producer alters the insuring
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clause in a way that he believes will benefit the insurance company. Which of the following
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statements is true about this alteration? - It is prohibited by the entire contract provision
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Which organization offers health insurance to Nebraska residents who are denied health
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insurance and unable to obtain coverage from private companies due to pre-existing
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medical conditions? - Nebraska Comprehensive Health Insurance Pool
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Newborn children are automatically covered under an insured's individual health
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insurance policy for how long? - from birth to 31 days
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As beneficiary of her husband's life insurance, Beth chooses to receive payments for life.
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However, she is guaranteed that the payments will be made for ten years. Beth has
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chosen which of the following? - life income with period certain
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Which method of determining the benefit amount is most common in individual disability
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income policies? - flat amount
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Which statement describes the "pool of money" approach to benefits under a long-term
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care insurance policy? - Benefits are defined as a total sum of money from which money
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can be drawn in any amount for as long as the money lasts.
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Which statement best describes the restrictions an insurer must operate under when using
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information from the MIB? - Insurers cannot rate or decline a life insurance applicant
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based solely on MIB information.
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Which of the following must HMO members use to receive covered care? - HMO's
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network of providers and caregivers
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Which statement is correct about a buy-up option in a disability income insurance policy for
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professionals? - It lets the insured buy more coverage in the future without evidence of
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insurability.
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Bill believes he has a cause of action against his health insurer for its refusal to pay
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benefits on a claim. He filed written proof of loss on April 1. Not having received a response
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by May 1, he decides to take legal action. What will his attorney probably do? - advise him
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to wait
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For tax purposes, a self-employed person includes all of the following, EXCEPT: - an
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incorporated business owner
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, The Director of Insurance can examine the business transactions, accounts, and records
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of insurers as often as necessary, but must do so at least once in how many years? - five
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An insured has a comprehensive major medical insurance policy with a $1,000 deductible
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and 80/20 coinsurance. She incurs a bill of $11,000. What will she pay in total? - $3,000
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Adam owns an individual long-term care policy that was issued in Nebraska. Which of the
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following conditions must the policy cover? - Alzheimer's disease
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Tax law considers any limited payment life insurance policy that is paid-up in seven years
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or less to be which of the following? - a modified endowment contract
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Eric fails to pay the annual premium on his major medical insurance policy. The grace
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period provision allows him to pay the premium within how many days after the due date? -
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31
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When can the owner of a deferred annuity select a settlement option? - any time prior to
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annuitization
ii
When completing an application for life insurance, Andrew states that he is 39 years old,
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though he is actually 45. When the insurer discovers this, what will it probably do? -
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adjusted the benefits
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When underwriting a group life insurance policy, which of the following does the
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underwriter look at? - the group as a whole
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Alana let her life insurance policy lapse two years ago and now wants to reinstate the
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policy. Which action is she NOT required to take to reinstate the policy? - pay the next
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year's premium in advance
ii ii ii ii
A long-term care insurance policy issued in Nebraska cannot exclude coverage or limit
ii ii ii ii ii ii ii ii ii ii ii ii ii
benefits for which of the following? - Alzheimer's disease
ii ii ii ii ii ii ii ii ii ii ii
What happens if the provisions of an insurer's health insurance policies contradict state
ii ii ii ii ii ii ii ii ii ii ii ii ii
law? - The provisions are changed automatically to comply with the law.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Whether a variable annuity's monthly income rises, falls, or stays level depends largely on
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
which of the following? - the assumed interest rate (AIR) selected by the contract owner
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Producers and insurers selling Medicare supplement insurance policies are prohibited
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from engaging in all of the following acts EXCEPT: - replacement
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Jessica, age 48, owns a traditional IRA that she funded with tax-deducted contributions
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and which is now worth $300,000. Which of the following correctly describes the tax
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consequences of converting her IRA to a Roth IRA? - She would have to pay income
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taxes on the entire $300,000.
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Questions and answers | NEWEST
Before delivering a health insurance policy to a client, the producer alters the insuring
ii ii ii ii ii ii ii ii ii ii ii ii ii
clause in a way that he believes will benefit the insurance company. Which of the following
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
statements is true about this alteration? - It is prohibited by the entire contract provision
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Which organization offers health insurance to Nebraska residents who are denied health
ii ii ii ii ii ii ii ii ii ii ii ii
insurance and unable to obtain coverage from private companies due to pre-existing
ii ii ii ii ii ii ii ii ii ii ii ii
medical conditions? - Nebraska Comprehensive Health Insurance Pool
ii ii ii ii ii ii ii ii ii ii
Newborn children are automatically covered under an insured's individual health
ii ii ii ii ii ii ii ii ii ii
insurance policy for how long? - from birth to 31 days
ii ii ii ii ii ii ii ii ii ii ii ii ii
As beneficiary of her husband's life insurance, Beth chooses to receive payments for life.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
However, she is guaranteed that the payments will be made for ten years. Beth has
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
chosen which of the following? - life income with period certain
ii ii ii ii ii ii ii ii ii ii ii ii ii
Which method of determining the benefit amount is most common in individual disability
ii ii ii ii ii ii ii ii ii ii ii ii ii
income policies? - flat amount
ii ii ii ii ii ii ii
Which statement describes the "pool of money" approach to benefits under a long-term
ii ii ii ii ii ii ii ii ii ii ii ii ii
care insurance policy? - Benefits are defined as a total sum of money from which money
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
can be drawn in any amount for as long as the money lasts.
ii ii ii ii ii ii ii ii ii ii ii ii ii
Which statement best describes the restrictions an insurer must operate under when using
ii ii ii ii ii ii ii ii ii ii ii ii ii
information from the MIB? - Insurers cannot rate or decline a life insurance applicant
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
based solely on MIB information.
ii ii ii ii ii
Which of the following must HMO members use to receive covered care? - HMO's
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
network of providers and caregivers
ii ii ii ii ii
Which statement is correct about a buy-up option in a disability income insurance policy for
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
professionals? - It lets the insured buy more coverage in the future without evidence of
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
insurability.
ii
Bill believes he has a cause of action against his health insurer for its refusal to pay
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
benefits on a claim. He filed written proof of loss on April 1. Not having received a response
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
by May 1, he decides to take legal action. What will his attorney probably do? - advise him
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
to wait
ii ii
For tax purposes, a self-employed person includes all of the following, EXCEPT: - an
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
incorporated business owner
ii ii ii
, The Director of Insurance can examine the business transactions, accounts, and records
ii ii ii ii ii ii ii ii ii ii ii ii
of insurers as often as necessary, but must do so at least once in how many years? - five
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
An insured has a comprehensive major medical insurance policy with a $1,000 deductible
ii ii ii ii ii ii ii ii ii ii ii ii ii
and 80/20 coinsurance. She incurs a bill of $11,000. What will she pay in total? - $3,000
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Adam owns an individual long-term care policy that was issued in Nebraska. Which of the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
following conditions must the policy cover? - Alzheimer's disease
ii ii ii ii ii ii ii ii ii ii ii
Tax law considers any limited payment life insurance policy that is paid-up in seven years
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
or less to be which of the following? - a modified endowment contract
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Eric fails to pay the annual premium on his major medical insurance policy. The grace
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
period provision allows him to pay the premium within how many days after the due date? -
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
31
ii ii
When can the owner of a deferred annuity select a settlement option? - any time prior to
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
annuitization
ii
When completing an application for life insurance, Andrew states that he is 39 years old,
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
though he is actually 45. When the insurer discovers this, what will it probably do? -
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
adjusted the benefits
ii ii ii
When underwriting a group life insurance policy, which of the following does the
ii ii ii ii ii ii ii ii ii ii ii ii ii
underwriter look at? - the group as a whole
ii ii ii ii ii ii ii ii ii ii ii
Alana let her life insurance policy lapse two years ago and now wants to reinstate the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
policy. Which action is she NOT required to take to reinstate the policy? - pay the next
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
year's premium in advance
ii ii ii ii
A long-term care insurance policy issued in Nebraska cannot exclude coverage or limit
ii ii ii ii ii ii ii ii ii ii ii ii ii
benefits for which of the following? - Alzheimer's disease
ii ii ii ii ii ii ii ii ii ii ii
What happens if the provisions of an insurer's health insurance policies contradict state
ii ii ii ii ii ii ii ii ii ii ii ii ii
law? - The provisions are changed automatically to comply with the law.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Whether a variable annuity's monthly income rises, falls, or stays level depends largely on
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
which of the following? - the assumed interest rate (AIR) selected by the contract owner
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Producers and insurers selling Medicare supplement insurance policies are prohibited
ii ii ii ii ii ii ii ii ii ii
from engaging in all of the following acts EXCEPT: - replacement
ii ii ii ii ii ii ii ii ii ii ii ii ii
Jessica, age 48, owns a traditional IRA that she funded with tax-deducted contributions
ii ii ii ii ii ii ii ii ii ii ii ii ii
and which is now worth $300,000. Which of the following correctly describes the tax
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
consequences of converting her IRA to a Roth IRA? - She would have to pay income
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
taxes on the entire $300,000.
ii ii ii ii ii
