Nebraska Laws and Rules Questions and
Answers
1. A consultant derives their income from which source? - ANS-Clients
2. A dependent may be removed from group sickness & accident coverage in each of the
following situations EXCEPT - ANS-Employee enrolls in Medicare
3. A handicapped child is covered under an individual sickness and healthy policy. If
continuation of coverage is needed beyond the policy's age limit, which of the following
is required? - ANS-Proof of incapacity and dependency upon reaching the age limit
4. A lapsed long-term care policy may be reinstated within ___ months of the lapse date if
the insured was mentally incapacitated. - ANS-5
5. A licensee who is required to take continuing education must complete 24 hours of
continuing education, which includes _____ hours of ethics coursework. - ANS-3
6. A licensee whose name or address changes must notify the Director within ___ days. -
ANS-30
7. A life insurance policy can be contested by the insurer only during the first ___ years of
the contract. - ANS-2
8. A life insurance policy that is paid annually must contain a grace period of at least ___
month(s). - ANS-1
9. A Medicare Supplement policy must provide coverage for a pre-existing condition after
the policy has been in effect for at least ___ months - ANS-6
10. A producer has indicated to a potential client that the proposed life insurance policy is
covered by the Nebraska Life and Health Insurance Guaranty Association. This action
taken by the producer is - ANS-prohibited by law
11. A producer MUST notify the Director for - ANS-conducting business under an
assumed name
12. A terminally ill policyowner enters into an agreement to sell his life insurance policy at a
discount. This agreement is called a(n) - ANS-viatical settlement
13. A(n) _____ insurer is qualified and licensed to conduct business in Nebraska -
ANS-admitted
14. A(n) _________ charges a fee for contracted insurance advisory services. -
ANS-consultant
15. A(n) _________ producer lives in another state and transacts insurance in Nebraska. -
ANS-nonresident
16. A(n) __________ is appointed by an insurer and presents policies on its behalf. -
ANS-producer
17. ABC Insurance Company markets its products by soliciting customers by mass media
advertising and mail WITHOUT using the services of a producer. Which of these
marketing systems does the insurer utilize? - ANS-Direct response
18. According to the Federal Fraud and False Statements Act, which of these is considered
to be an intentional violation? - ANS-Making false entries in a company's books
Answers
1. A consultant derives their income from which source? - ANS-Clients
2. A dependent may be removed from group sickness & accident coverage in each of the
following situations EXCEPT - ANS-Employee enrolls in Medicare
3. A handicapped child is covered under an individual sickness and healthy policy. If
continuation of coverage is needed beyond the policy's age limit, which of the following
is required? - ANS-Proof of incapacity and dependency upon reaching the age limit
4. A lapsed long-term care policy may be reinstated within ___ months of the lapse date if
the insured was mentally incapacitated. - ANS-5
5. A licensee who is required to take continuing education must complete 24 hours of
continuing education, which includes _____ hours of ethics coursework. - ANS-3
6. A licensee whose name or address changes must notify the Director within ___ days. -
ANS-30
7. A life insurance policy can be contested by the insurer only during the first ___ years of
the contract. - ANS-2
8. A life insurance policy that is paid annually must contain a grace period of at least ___
month(s). - ANS-1
9. A Medicare Supplement policy must provide coverage for a pre-existing condition after
the policy has been in effect for at least ___ months - ANS-6
10. A producer has indicated to a potential client that the proposed life insurance policy is
covered by the Nebraska Life and Health Insurance Guaranty Association. This action
taken by the producer is - ANS-prohibited by law
11. A producer MUST notify the Director for - ANS-conducting business under an
assumed name
12. A terminally ill policyowner enters into an agreement to sell his life insurance policy at a
discount. This agreement is called a(n) - ANS-viatical settlement
13. A(n) _____ insurer is qualified and licensed to conduct business in Nebraska -
ANS-admitted
14. A(n) _________ charges a fee for contracted insurance advisory services. -
ANS-consultant
15. A(n) _________ producer lives in another state and transacts insurance in Nebraska. -
ANS-nonresident
16. A(n) __________ is appointed by an insurer and presents policies on its behalf. -
ANS-producer
17. ABC Insurance Company markets its products by soliciting customers by mass media
advertising and mail WITHOUT using the services of a producer. Which of these
marketing systems does the insurer utilize? - ANS-Direct response
18. According to the Federal Fraud and False Statements Act, which of these is considered
to be an intentional violation? - ANS-Making false entries in a company's books
