NEBRASKA LIFE AND HEALTH EXAMINATION TEST
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔# 41 A life insurance policy gualifies as a Modified Endowment Contract (MEC) if the
amount of premium paid exceeds the amount that insurance in how many years? a) 3
years b) 5 years c) 7 years d) The life of the policy - ✔✔c) 7 years
✔✔# 44. Which of the following is provided by skilled medical personnel to those who
need occasional medical assistance or rehabilitative care? a) Intermediate care b)
Custodial care c) Home health care d) Skilled care - ✔✔a) Intermediate care
✔✔# 46, Dividends received on participating life insurance policies are a) Not taxable
because they are a retum of unused premiums. b) Taxable because they are a return
on your investment. c) Not taxable because they are a return on your investment. d)
Taxable because they are a returh of unused premiums. - ✔✔a) Not taxable because
they are a retum of unused premiums.
✔✔#47. On an Accidental Death and Dismemberment (AD&D) policy, the death benefit
payable is known as the a) Capital sum. b) Policy limit c) Principal sum d) Face amount
- ✔✔c) Principal sum
✔✔# 48. What is the purpose of the impairment rider in a health insurance policy? a) To
cover impalrments that otherwise be covered b) To provide disability coverage c) To
identify pre-existing conditions d) To exclude coverage for a specific Impairment - ✔✔d)
To exclude coverage for a specific Impairment
✔✔# 50, Which of the following individuals would be a likely candidate to purchase a
deferred annuity? a) Somegne who wants to grow retirement funds tax deferred b)
Someone who needs to start receiving benefit payments within 6 months of the annuity
purchase c) Someone who wants to leave the death benefit to the beneficiaries d)
Someone who cannot afford life insurance - ✔✔a) Somegne who wants to grow
retirement funds tax deferred b)
✔✔# 53. All of the following must sign an application for health insurance EXCEPT the
a) Producer. b) Insurer c) The proposed insured. di Applicant. - ✔✔b) Insurer
✔✔#54. How many days notice must an insurer provide to an insured regarding the
lapse of a policy due to outstanding loans? a) 7 days b) 10 days c) 15 days d) 30 day -
✔✔d) 30 day
✔✔#55 Conrad receives $50.000 from a $100,000 Accidental Death and
Dismemberment policy as a result of the loss of his left arm in an accident. Conrad has
received the a) Principal Amount. b) Capital Amount c) Contributory Amount. d) Primary
Amount - ✔✔b) Capital Amount
, ✔✔#56. An annuity has accumulated the cash value of $70,000, of which $30,000 is
from premium payments. The annuitant dies during the accumulation phase. The
beneficiary will receive a) $30,000. b) $70,000. c) $100,000 (combination of the cash
value and premiums paid). d) A survivor benefit determined by the insurance company.
- ✔✔a) b) $70,000.
✔✔# 59. Which of the following is guaranteed under a variable whole life insurance
policy? a) Stock performance b) Minimum death benefit c) Interest rates d) Cash value -
✔✔b) Minimum death benefit
✔✔#62 An employee dies having 6 quarters of coverage during the previous 13-quarter
period, What status of coverage does the employee have under Social Security? a)
Fully insured b) Uninsured c) Conditionally insured d) Currently insured - ✔✔d)
Currently insured
✔✔#65. Variable insurance and variable annuities are regulated by a) SEC FINRA and
Departments of Insurance b) Departments of Insurance only. c) NAIC. d) SEC and
FINRA only. - ✔✔a) SEC FINRA and Departments Insurance
✔✔# 68. If an individual willfully violates provisions of the Fair Credit Reporting Act,
what is the maximum civil penalty? a) $1,000 b) $2,500 c) $5,000 d) $10,000 - ✔✔b)
$2,500
✔✔#70. In order for an alumni association to be eligible to purchase group health
insurance for its members, all of these statements must be true EXCEPT when the
association a) Has a constitution, by-laws, and must hold at least annual meetings. b) Is
organized for reasons other than buying insurance. c) Has at least 100 members. d)
Has been active for five years minimum. - ✔✔. d) Has been active for five years
minimum.
✔✔#74. Insureds have the right to do which of the following if they have NOT received
the proper claim forms within 15 days of their notice to the insurer of a covered loss
under a major medical policy? a) Demand full payment immediately for the claim b)
Speak with a claims adjuster or another representative from the insurance company c)
Submit the description in their own words on a plain sheet of paper, d) Be reimbursed
any copayment or deductible on the claim - ✔✔c) Submit the description in their own
words on a plain sheet of paper,
✔✔#75. All of the following are true about key-person insurance EXCEPT a). The
business is the beneficiary. b) The death benefit is taxable to the business c) The
business is the applicant and owner. d) The employee must give written consent by
signing the application. - ✔✔. b) The death benefit is taxable to the business
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔# 41 A life insurance policy gualifies as a Modified Endowment Contract (MEC) if the
amount of premium paid exceeds the amount that insurance in how many years? a) 3
years b) 5 years c) 7 years d) The life of the policy - ✔✔c) 7 years
✔✔# 44. Which of the following is provided by skilled medical personnel to those who
need occasional medical assistance or rehabilitative care? a) Intermediate care b)
Custodial care c) Home health care d) Skilled care - ✔✔a) Intermediate care
✔✔# 46, Dividends received on participating life insurance policies are a) Not taxable
because they are a retum of unused premiums. b) Taxable because they are a return
on your investment. c) Not taxable because they are a return on your investment. d)
Taxable because they are a returh of unused premiums. - ✔✔a) Not taxable because
they are a retum of unused premiums.
✔✔#47. On an Accidental Death and Dismemberment (AD&D) policy, the death benefit
payable is known as the a) Capital sum. b) Policy limit c) Principal sum d) Face amount
- ✔✔c) Principal sum
✔✔# 48. What is the purpose of the impairment rider in a health insurance policy? a) To
cover impalrments that otherwise be covered b) To provide disability coverage c) To
identify pre-existing conditions d) To exclude coverage for a specific Impairment - ✔✔d)
To exclude coverage for a specific Impairment
✔✔# 50, Which of the following individuals would be a likely candidate to purchase a
deferred annuity? a) Somegne who wants to grow retirement funds tax deferred b)
Someone who needs to start receiving benefit payments within 6 months of the annuity
purchase c) Someone who wants to leave the death benefit to the beneficiaries d)
Someone who cannot afford life insurance - ✔✔a) Somegne who wants to grow
retirement funds tax deferred b)
✔✔# 53. All of the following must sign an application for health insurance EXCEPT the
a) Producer. b) Insurer c) The proposed insured. di Applicant. - ✔✔b) Insurer
✔✔#54. How many days notice must an insurer provide to an insured regarding the
lapse of a policy due to outstanding loans? a) 7 days b) 10 days c) 15 days d) 30 day -
✔✔d) 30 day
✔✔#55 Conrad receives $50.000 from a $100,000 Accidental Death and
Dismemberment policy as a result of the loss of his left arm in an accident. Conrad has
received the a) Principal Amount. b) Capital Amount c) Contributory Amount. d) Primary
Amount - ✔✔b) Capital Amount
, ✔✔#56. An annuity has accumulated the cash value of $70,000, of which $30,000 is
from premium payments. The annuitant dies during the accumulation phase. The
beneficiary will receive a) $30,000. b) $70,000. c) $100,000 (combination of the cash
value and premiums paid). d) A survivor benefit determined by the insurance company.
- ✔✔a) b) $70,000.
✔✔# 59. Which of the following is guaranteed under a variable whole life insurance
policy? a) Stock performance b) Minimum death benefit c) Interest rates d) Cash value -
✔✔b) Minimum death benefit
✔✔#62 An employee dies having 6 quarters of coverage during the previous 13-quarter
period, What status of coverage does the employee have under Social Security? a)
Fully insured b) Uninsured c) Conditionally insured d) Currently insured - ✔✔d)
Currently insured
✔✔#65. Variable insurance and variable annuities are regulated by a) SEC FINRA and
Departments of Insurance b) Departments of Insurance only. c) NAIC. d) SEC and
FINRA only. - ✔✔a) SEC FINRA and Departments Insurance
✔✔# 68. If an individual willfully violates provisions of the Fair Credit Reporting Act,
what is the maximum civil penalty? a) $1,000 b) $2,500 c) $5,000 d) $10,000 - ✔✔b)
$2,500
✔✔#70. In order for an alumni association to be eligible to purchase group health
insurance for its members, all of these statements must be true EXCEPT when the
association a) Has a constitution, by-laws, and must hold at least annual meetings. b) Is
organized for reasons other than buying insurance. c) Has at least 100 members. d)
Has been active for five years minimum. - ✔✔. d) Has been active for five years
minimum.
✔✔#74. Insureds have the right to do which of the following if they have NOT received
the proper claim forms within 15 days of their notice to the insurer of a covered loss
under a major medical policy? a) Demand full payment immediately for the claim b)
Speak with a claims adjuster or another representative from the insurance company c)
Submit the description in their own words on a plain sheet of paper, d) Be reimbursed
any copayment or deductible on the claim - ✔✔c) Submit the description in their own
words on a plain sheet of paper,
✔✔#75. All of the following are true about key-person insurance EXCEPT a). The
business is the beneficiary. b) The death benefit is taxable to the business c) The
business is the applicant and owner. d) The employee must give written consent by
signing the application. - ✔✔. b) The death benefit is taxable to the business
