Nebraska Life and Health License Exam With
Correct Answers 2025-2026
Which of the following is a form of long-term care that is provided outside an individual's
residence for groups of adults who are either physically or mentally disabled, on less
than a 24-hour basis? - ANSWER>>adult day care
All of the following statements concerning split-dollar life insurance plans are correct
EXCEPT: - ANSWER>>The employer pays the entire premium and the employee
receives the policy benefits.
Darlene forgot to pay the premium due October 1 for her individual health insurance
policy. She will not allow the policy to lapse provided the premium is paid prior to what
date? - ANSWER>>October 31
All of the following statements are accurate about long-term care riders attached to a
life insurance policy EXCEPT - ANSWER>>An insured must first be hospitalized before
he or she will qualify for the payment of LTC benefits
Which of the following best typifies the use of a structured settlement annuity? -
ANSWER>>Shirley was paralyzed in a car accident, and a jury awarded her $2 million,
which must be paid to her over a 20-year period
What is the purpose of disability income insurance? - ANSWER>>to replace income
lost during disability
The basic purpose for the insuring clause of a life insurance policy is to: -
ANSWER>>state the insurer's promise to pay the death benefit to the named beneficiary
if the insured dies
Holly just turned 65 and purchased a Medicare Select policy. Which statement correctly
,describes the features of her policy? - ANSWER>>It contains restricted network
provisions.
Which plan reimburses the insured for the cost of covered medical care received? -
ANSWER>>indemnity plan
For purposes of group health insurance, a small employer is defined in Nebraska as any
person or entity that employs no more than how many employees? - ANSWER>>50
Although the producer's contract does not specifically cite this authority, the producer
is expected to call prospects on behalf of the insurer to set sales appointments. What
type of producer authority is this? - ANSWER>>implied authority
The life insurance Buyer's Guide helps prospective buyers in all of the following ways
EXCEPT: - ANSWER>>most qualified insurer
Policyholders buying a health insurance policy issued in Nebraska have a right to review
the policy without obligation for at least how many days after it is delivered? -
ANSWER>>10
Jeff is a licensed insurance producer in New York and Nebraska. He has been indicted
for embezzlement in New York and his initial pretrial hearing is scheduled to occur on
March 1st. How many days after the hearing must he report this to the Nebraska
Director of Insurance? - ANSWER>>30
The Smiths set up a Section 529 prepaid tuition plan for their daughter, Jenna. They
purchased two semesters of college at their in-state public university. They paid
$15,000 for the investment. At the time Jenna attends college, two semesters of college
cost $30,000. Which of the following statements is true? - ANSWER>>The Smiths
prepaid tuition plan pays for two semesters of college.
Individuals who commit crimes of dishonesty in the course of interstate insurance
transactions may be sentenced to all of the following EXCEPT: -
ANSWER>>imprisonment for up to 25 years
, From an insurance standpoint, underwriting is best described as: - ANSWER>>the
process of determining whether an applicant is an insurable risk
An employer in Arizona has five employees and wants to buy a group health insurance
policy to cover them. Which of the following may the insurer do in underwriting the
policy? - ANSWER>>require the employees to provide evidence of insurability or take a
medical examination
What is another name for the annuitization phase of an annuity contract? -
ANSWER>>the payout stage
Which of the following is the closest description of how the income tax treats life
insurance proceeds paid upon the death benefit accelerated under a life insurance
policy's accelerated death benefit rider when the insured is terminally ill? -
ANSWER>>They are generally income tax free.
The fiduciary for a group health insurance plan has what function? - ANSWER>>to
manage the plan in a fiduciarily sound financial manner
This year, Agent Todd received 20 percent of his total commissions from life and health
insurance written for his relatives and friends. Which statement is correct? -
ANSWER>>Agent Todd has conducted controlled business.
For what circumstance does a fixed deferred annuity contract pay a death benefit? -
ANSWER>>only if the contract owner or annuitant dies during the accumulation period
Which is correct about the purpose of Medicare supplement policies? -
ANSWER>>They help pay for hospital, medical, and surgical costs as well as provide
funds for deductibles and coinsurance.
Brady bought an individual life insurance policy on February 1. He normally will not be
allowed to enter into a viatical settlement contract within how many years after buying
Correct Answers 2025-2026
Which of the following is a form of long-term care that is provided outside an individual's
residence for groups of adults who are either physically or mentally disabled, on less
than a 24-hour basis? - ANSWER>>adult day care
All of the following statements concerning split-dollar life insurance plans are correct
EXCEPT: - ANSWER>>The employer pays the entire premium and the employee
receives the policy benefits.
Darlene forgot to pay the premium due October 1 for her individual health insurance
policy. She will not allow the policy to lapse provided the premium is paid prior to what
date? - ANSWER>>October 31
All of the following statements are accurate about long-term care riders attached to a
life insurance policy EXCEPT - ANSWER>>An insured must first be hospitalized before
he or she will qualify for the payment of LTC benefits
Which of the following best typifies the use of a structured settlement annuity? -
ANSWER>>Shirley was paralyzed in a car accident, and a jury awarded her $2 million,
which must be paid to her over a 20-year period
What is the purpose of disability income insurance? - ANSWER>>to replace income
lost during disability
The basic purpose for the insuring clause of a life insurance policy is to: -
ANSWER>>state the insurer's promise to pay the death benefit to the named beneficiary
if the insured dies
Holly just turned 65 and purchased a Medicare Select policy. Which statement correctly
,describes the features of her policy? - ANSWER>>It contains restricted network
provisions.
Which plan reimburses the insured for the cost of covered medical care received? -
ANSWER>>indemnity plan
For purposes of group health insurance, a small employer is defined in Nebraska as any
person or entity that employs no more than how many employees? - ANSWER>>50
Although the producer's contract does not specifically cite this authority, the producer
is expected to call prospects on behalf of the insurer to set sales appointments. What
type of producer authority is this? - ANSWER>>implied authority
The life insurance Buyer's Guide helps prospective buyers in all of the following ways
EXCEPT: - ANSWER>>most qualified insurer
Policyholders buying a health insurance policy issued in Nebraska have a right to review
the policy without obligation for at least how many days after it is delivered? -
ANSWER>>10
Jeff is a licensed insurance producer in New York and Nebraska. He has been indicted
for embezzlement in New York and his initial pretrial hearing is scheduled to occur on
March 1st. How many days after the hearing must he report this to the Nebraska
Director of Insurance? - ANSWER>>30
The Smiths set up a Section 529 prepaid tuition plan for their daughter, Jenna. They
purchased two semesters of college at their in-state public university. They paid
$15,000 for the investment. At the time Jenna attends college, two semesters of college
cost $30,000. Which of the following statements is true? - ANSWER>>The Smiths
prepaid tuition plan pays for two semesters of college.
Individuals who commit crimes of dishonesty in the course of interstate insurance
transactions may be sentenced to all of the following EXCEPT: -
ANSWER>>imprisonment for up to 25 years
, From an insurance standpoint, underwriting is best described as: - ANSWER>>the
process of determining whether an applicant is an insurable risk
An employer in Arizona has five employees and wants to buy a group health insurance
policy to cover them. Which of the following may the insurer do in underwriting the
policy? - ANSWER>>require the employees to provide evidence of insurability or take a
medical examination
What is another name for the annuitization phase of an annuity contract? -
ANSWER>>the payout stage
Which of the following is the closest description of how the income tax treats life
insurance proceeds paid upon the death benefit accelerated under a life insurance
policy's accelerated death benefit rider when the insured is terminally ill? -
ANSWER>>They are generally income tax free.
The fiduciary for a group health insurance plan has what function? - ANSWER>>to
manage the plan in a fiduciarily sound financial manner
This year, Agent Todd received 20 percent of his total commissions from life and health
insurance written for his relatives and friends. Which statement is correct? -
ANSWER>>Agent Todd has conducted controlled business.
For what circumstance does a fixed deferred annuity contract pay a death benefit? -
ANSWER>>only if the contract owner or annuitant dies during the accumulation period
Which is correct about the purpose of Medicare supplement policies? -
ANSWER>>They help pay for hospital, medical, and surgical costs as well as provide
funds for deductibles and coinsurance.
Brady bought an individual life insurance policy on February 1. He normally will not be
allowed to enter into a viatical settlement contract within how many years after buying
