NEBRASKA LIFE AND HEALTH EVALUATION EXAM
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔Jessica, age 48, owns a traditional IRA that she funded with tax-deducted
contributions and which is now worth $300,000. Which of the following correctly
describes the tax consequences of converting her IRA to a Roth IRA? - ✔✔She would
have to pay income taxes on the entire $300,000.
✔✔What kind of insurance policy pays benefits to the business owner if an essential
manager were to become disabled? - ✔✔key person disability income insurance
✔✔If Jack takes a new job that is less hazardous than the job he had when he obtained
health coverage, what may the insurer do? - ✔✔reduce the premium
✔✔Dan owns a fixed whole life insurance policy. What type of death benefit is Dan
guaranteed? - ✔✔the policy guarantees a fixed death benefit amount.
✔✔Ralph, Jerry, and Paula are primary and equal beneficiaries of the $600,000
insurance policy on the life of their mother, Judy. Ralph dies before his mother. He
leaves two children, Tim and Hal. Judy's life insurance policy designates the death
benefit per capita. How will the insurer distribute the policy benefits? - ✔✔Jerry and
Paula will each receive $300,000
✔✔For Social Security purposes, Brian is considered currently insured while Samantha
is fully insured. Which of the following statements is correct? - ✔✔Samantha is eligible
for more Social Security benefits than Brian
✔✔When she applied for an individual health insurance policy, Betty neglected to
disclose that her parents had undergone open-heart surgery many years ago. Her
insurer discovers this misstatement four years after the effective date of coverage. What
can it do? - ✔✔nothing
✔✔Why does an insurer require that a certain percentage of eligible members
participate in a group health insurance plan? - ✔✔to protect the insurer from adverse
selection
✔✔Which of the following statements about a Medicare supplement policy is NOT
correct? - ✔✔It can indemnify against loss from illness on a different basis than loss
from accident.
✔✔Which statement is true under a split-dollar life insurance plan? - ✔✔The employer
and employee split the premiums.
, ✔✔Laura was injured in an accident. She incurred $1,000 in medical bills. Even though
she was not disabled or lost any income, her disability income policy paid for these
expenses because it has: - ✔✔a nondisabling injury provision
✔✔What do covered employees receive to show they have coverage under a group life
insurance policy? - ✔✔certificate of insurance
✔✔Under the payor benefit rider of a juvenile life insurance policy, which of the
following happens if the payor becomes disabled before the maximum age specified in
the rider? - ✔✔Premiums are waived until the payor recovers or the insured child
reaches a certain age (e.g., 21 or 25), whichever occurs first.
✔✔What does the employer own under a group insurance plan? - ✔✔the master policy
✔✔In which of the following areas may a life insurance underwriter discriminate in
determining policy eligibility and coverage limits? - ✔✔personal health history
✔✔Which of the following statements regarding the life insurance needs analysis is
correct? - ✔✔Determining the ongoing income needs of surviving dependents is a
critical part of the needs approach to life insurance needs analysis.
✔✔All of the following statements regarding the career agency distribution system are
correct EXCEPT: - ✔✔Personal producing general agents (PPGAs) are commonly hired
to manage career agencies
✔✔Which of the following is NOT an unfair claims settlement practice if committed by
an insurance company in Nebraska? - ✔✔failing to promptly settle a claim for which
liability is uncertain
✔✔An insurer can nonrenew an individual health insurance policy for all of the following
reasons EXCEPT: - ✔✔deterioration of the insured's health
✔✔The purpose of the insuring clause is to: - ✔✔describe the type and scope of
coverage
✔✔The primary reason for using third-party ownership in personal life insurance for
estate planning purposes is to: - ✔✔remove the life insurance proceeds from the
insured's estate and thus reduce the value of the taxable estate
✔✔Which statement is correct about health savings accounts (HSAs)? - ✔✔instead of
paying higher premiums for health insurance, the HSA can pay for qualified health care
expenses.
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔Jessica, age 48, owns a traditional IRA that she funded with tax-deducted
contributions and which is now worth $300,000. Which of the following correctly
describes the tax consequences of converting her IRA to a Roth IRA? - ✔✔She would
have to pay income taxes on the entire $300,000.
✔✔What kind of insurance policy pays benefits to the business owner if an essential
manager were to become disabled? - ✔✔key person disability income insurance
✔✔If Jack takes a new job that is less hazardous than the job he had when he obtained
health coverage, what may the insurer do? - ✔✔reduce the premium
✔✔Dan owns a fixed whole life insurance policy. What type of death benefit is Dan
guaranteed? - ✔✔the policy guarantees a fixed death benefit amount.
✔✔Ralph, Jerry, and Paula are primary and equal beneficiaries of the $600,000
insurance policy on the life of their mother, Judy. Ralph dies before his mother. He
leaves two children, Tim and Hal. Judy's life insurance policy designates the death
benefit per capita. How will the insurer distribute the policy benefits? - ✔✔Jerry and
Paula will each receive $300,000
✔✔For Social Security purposes, Brian is considered currently insured while Samantha
is fully insured. Which of the following statements is correct? - ✔✔Samantha is eligible
for more Social Security benefits than Brian
✔✔When she applied for an individual health insurance policy, Betty neglected to
disclose that her parents had undergone open-heart surgery many years ago. Her
insurer discovers this misstatement four years after the effective date of coverage. What
can it do? - ✔✔nothing
✔✔Why does an insurer require that a certain percentage of eligible members
participate in a group health insurance plan? - ✔✔to protect the insurer from adverse
selection
✔✔Which of the following statements about a Medicare supplement policy is NOT
correct? - ✔✔It can indemnify against loss from illness on a different basis than loss
from accident.
✔✔Which statement is true under a split-dollar life insurance plan? - ✔✔The employer
and employee split the premiums.
, ✔✔Laura was injured in an accident. She incurred $1,000 in medical bills. Even though
she was not disabled or lost any income, her disability income policy paid for these
expenses because it has: - ✔✔a nondisabling injury provision
✔✔What do covered employees receive to show they have coverage under a group life
insurance policy? - ✔✔certificate of insurance
✔✔Under the payor benefit rider of a juvenile life insurance policy, which of the
following happens if the payor becomes disabled before the maximum age specified in
the rider? - ✔✔Premiums are waived until the payor recovers or the insured child
reaches a certain age (e.g., 21 or 25), whichever occurs first.
✔✔What does the employer own under a group insurance plan? - ✔✔the master policy
✔✔In which of the following areas may a life insurance underwriter discriminate in
determining policy eligibility and coverage limits? - ✔✔personal health history
✔✔Which of the following statements regarding the life insurance needs analysis is
correct? - ✔✔Determining the ongoing income needs of surviving dependents is a
critical part of the needs approach to life insurance needs analysis.
✔✔All of the following statements regarding the career agency distribution system are
correct EXCEPT: - ✔✔Personal producing general agents (PPGAs) are commonly hired
to manage career agencies
✔✔Which of the following is NOT an unfair claims settlement practice if committed by
an insurance company in Nebraska? - ✔✔failing to promptly settle a claim for which
liability is uncertain
✔✔An insurer can nonrenew an individual health insurance policy for all of the following
reasons EXCEPT: - ✔✔deterioration of the insured's health
✔✔The purpose of the insuring clause is to: - ✔✔describe the type and scope of
coverage
✔✔The primary reason for using third-party ownership in personal life insurance for
estate planning purposes is to: - ✔✔remove the life insurance proceeds from the
insured's estate and thus reduce the value of the taxable estate
✔✔Which statement is correct about health savings accounts (HSAs)? - ✔✔instead of
paying higher premiums for health insurance, the HSA can pay for qualified health care
expenses.
