Nebraska Life and Health License Exam
ACCURATE TESTED VERSIONS OF THE
EXAM FROM 2025 TO 2025 | ACCURATE
AND VERIFIED ANSWERS | NEXT GEN
FORMAT | GUARANTEED PASS
1. Which organization offers health insurance to Nebraska residents who are denied
health insurance and unable to obtain coverage from private companies due to pre-
existing medical conditions?
o A) Nebraska Health Insurance Exchange
o B) Nebraska Comprehensive Health Insurance Pool
o C) Nebraska Health Care Assistance Program
o D) Nebraska Insurance Solutions
o Correct answer: B) Nebraska Comprehensive Health Insurance Pool
Rationale: The Nebraska Comprehensive Health Insurance Pool (NCHIP) provides
coverage for residents with pre-existing conditions who are unable to obtain
health insurance from private insurers.
2. Newborn children are automatically covered under an insured's individual health
insurance policy for how long?
o A) From birth to 15 days
o B) From birth to 31 days
o C) From birth to 90 days
o D) From birth to 60 days
o Correct answer: B) From birth to 31 days
Rationale: Newborns are typically covered for the first 31 days under their
parent's individual health insurance policy.
,3. As beneficiary of her husband's life insurance, Beth chooses to receive payments for
life. However, she is guaranteed that the payments will be made for ten years. Beth
has chosen which of the following?
o A) Life income with period certain
o B) Straight life income
o C) Fixed-period option
o D) Joint and survivor annuity
o Correct answer: A) Life income with period certain
Rationale: This option guarantees payments for life, but if the beneficiary dies
within the first 10 years, the remaining payments are made to the beneficiary's
estate or another person.
4. Which method of determining the benefit amount is most common in individual
disability income policies?
o A) Flat amount
o B) Percentage of income
o C) Income replacement
o D) Needs-based calculation
o Correct answer: A) Flat amount
Rationale: Individual disability income policies typically use a flat amount to
determine the benefit, offering a set payment regardless of the insured’s income.
5. Which statement describes the "pool of money" approach to benefits under a long-
term care insurance policy?
o A) Benefits are paid based on a daily rate until the policy limit is reached.
o B) Benefits are defined as a total sum of money from which money can be drawn
in any amount for as long as the money lasts.
o C) Benefits are paid in lump sum for the first year of care.
o D) Benefits are distributed on a monthly basis regardless of care costs.
o Correct answer: B) Benefits are defined as a total sum of money from which
money can be drawn in any amount for as long as the money lasts.
, Rationale: The "pool of money" approach gives the insured a set total amount,
which they can use as needed until the pool is exhausted.
6. Which statement best describes the restrictions an insurer must operate under when
using information from the MIB?
o A) Insurers can rate or decline based solely on MIB information.
o B) Insurers must consider MIB information in combination with other sources.
o C) Insurers can only use MIB information for underwriting life insurance.
o D) Insurers cannot rate or decline a life insurance applicant based solely on MIB
information.
o Correct answer: D) Insurers cannot rate or decline a life insurance applicant
based solely on MIB information.
Rationale: The MIB is used to supplement other underwriting tools, but insurers
cannot base their decisions entirely on MIB data.
7. Which of the following must HMO members use to receive covered care?
o A) Any provider within the network
o B) HMO's network of providers and caregivers
o C) Any healthcare provider within the state
o D) Any healthcare provider with contractual agreements with the HMO
o Correct answer: B) HMO's network of providers and caregivers
Rationale: HMO members must use the network of providers specified by the
HMO to receive covered care.
8. Which statement is correct about a buy-up option in a disability income insurance
policy for professionals?
o A) It allows the insured to increase coverage without further evidence of
insurability.
o B) It provides a lump sum payment for increased coverage.
o C) It allows the insurer to adjust coverage annually.
o D) It lets the insured extend coverage until retirement.
, o Correct answer: A) It allows the insured to increase coverage without further
evidence of insurability.
Rationale: The buy-up option provides the insured with the ability to increase
coverage in the future without needing to provide additional health information.
9. Bill believes he has a cause of action against his health insurer for its refusal to pay
benefits on a claim. He filed written proof of loss on April 1. Not having received a
response by May 1, he decides to take legal action. What will his attorney probably
do?
o A) Advise him to wait
o B) File an immediate lawsuit
o C) Advise him to contact the insurer again
o D) File a complaint with the Department of Insurance
o Correct answer: A) Advise him to wait
Rationale: Health insurers often have specific timelines to respond to claims, and
it is typically advisable to wait until the full claims process has elapsed before
taking legal action.
10. For tax purposes, a self-employed person includes all of the following, EXCEPT:
• A) A sole proprietor
• B) A limited liability company (LLC) member
• C) A self-employed independent contractor
• D) An incorporated business owner
• Correct answer: D) An incorporated business owner
Rationale: An incorporated business owner is considered a separate entity for tax
purposes and is typically treated differently than other forms of self-employment.
11. The Director of Insurance can examine the business transactions, accounts, and
records of insurers as often as necessary, but must do so at least once in how many
years?
• A) Three
• B) Five
• C) Seven
ACCURATE TESTED VERSIONS OF THE
EXAM FROM 2025 TO 2025 | ACCURATE
AND VERIFIED ANSWERS | NEXT GEN
FORMAT | GUARANTEED PASS
1. Which organization offers health insurance to Nebraska residents who are denied
health insurance and unable to obtain coverage from private companies due to pre-
existing medical conditions?
o A) Nebraska Health Insurance Exchange
o B) Nebraska Comprehensive Health Insurance Pool
o C) Nebraska Health Care Assistance Program
o D) Nebraska Insurance Solutions
o Correct answer: B) Nebraska Comprehensive Health Insurance Pool
Rationale: The Nebraska Comprehensive Health Insurance Pool (NCHIP) provides
coverage for residents with pre-existing conditions who are unable to obtain
health insurance from private insurers.
2. Newborn children are automatically covered under an insured's individual health
insurance policy for how long?
o A) From birth to 15 days
o B) From birth to 31 days
o C) From birth to 90 days
o D) From birth to 60 days
o Correct answer: B) From birth to 31 days
Rationale: Newborns are typically covered for the first 31 days under their
parent's individual health insurance policy.
,3. As beneficiary of her husband's life insurance, Beth chooses to receive payments for
life. However, she is guaranteed that the payments will be made for ten years. Beth
has chosen which of the following?
o A) Life income with period certain
o B) Straight life income
o C) Fixed-period option
o D) Joint and survivor annuity
o Correct answer: A) Life income with period certain
Rationale: This option guarantees payments for life, but if the beneficiary dies
within the first 10 years, the remaining payments are made to the beneficiary's
estate or another person.
4. Which method of determining the benefit amount is most common in individual
disability income policies?
o A) Flat amount
o B) Percentage of income
o C) Income replacement
o D) Needs-based calculation
o Correct answer: A) Flat amount
Rationale: Individual disability income policies typically use a flat amount to
determine the benefit, offering a set payment regardless of the insured’s income.
5. Which statement describes the "pool of money" approach to benefits under a long-
term care insurance policy?
o A) Benefits are paid based on a daily rate until the policy limit is reached.
o B) Benefits are defined as a total sum of money from which money can be drawn
in any amount for as long as the money lasts.
o C) Benefits are paid in lump sum for the first year of care.
o D) Benefits are distributed on a monthly basis regardless of care costs.
o Correct answer: B) Benefits are defined as a total sum of money from which
money can be drawn in any amount for as long as the money lasts.
, Rationale: The "pool of money" approach gives the insured a set total amount,
which they can use as needed until the pool is exhausted.
6. Which statement best describes the restrictions an insurer must operate under when
using information from the MIB?
o A) Insurers can rate or decline based solely on MIB information.
o B) Insurers must consider MIB information in combination with other sources.
o C) Insurers can only use MIB information for underwriting life insurance.
o D) Insurers cannot rate or decline a life insurance applicant based solely on MIB
information.
o Correct answer: D) Insurers cannot rate or decline a life insurance applicant
based solely on MIB information.
Rationale: The MIB is used to supplement other underwriting tools, but insurers
cannot base their decisions entirely on MIB data.
7. Which of the following must HMO members use to receive covered care?
o A) Any provider within the network
o B) HMO's network of providers and caregivers
o C) Any healthcare provider within the state
o D) Any healthcare provider with contractual agreements with the HMO
o Correct answer: B) HMO's network of providers and caregivers
Rationale: HMO members must use the network of providers specified by the
HMO to receive covered care.
8. Which statement is correct about a buy-up option in a disability income insurance
policy for professionals?
o A) It allows the insured to increase coverage without further evidence of
insurability.
o B) It provides a lump sum payment for increased coverage.
o C) It allows the insurer to adjust coverage annually.
o D) It lets the insured extend coverage until retirement.
, o Correct answer: A) It allows the insured to increase coverage without further
evidence of insurability.
Rationale: The buy-up option provides the insured with the ability to increase
coverage in the future without needing to provide additional health information.
9. Bill believes he has a cause of action against his health insurer for its refusal to pay
benefits on a claim. He filed written proof of loss on April 1. Not having received a
response by May 1, he decides to take legal action. What will his attorney probably
do?
o A) Advise him to wait
o B) File an immediate lawsuit
o C) Advise him to contact the insurer again
o D) File a complaint with the Department of Insurance
o Correct answer: A) Advise him to wait
Rationale: Health insurers often have specific timelines to respond to claims, and
it is typically advisable to wait until the full claims process has elapsed before
taking legal action.
10. For tax purposes, a self-employed person includes all of the following, EXCEPT:
• A) A sole proprietor
• B) A limited liability company (LLC) member
• C) A self-employed independent contractor
• D) An incorporated business owner
• Correct answer: D) An incorporated business owner
Rationale: An incorporated business owner is considered a separate entity for tax
purposes and is typically treated differently than other forms of self-employment.
11. The Director of Insurance can examine the business transactions, accounts, and
records of insurers as often as necessary, but must do so at least once in how many
years?
• A) Three
• B) Five
• C) Seven
