NEBRASKA LIFE AND HEALTH TEST PAPER 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔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.
✔✔Which of the following does NOT fall within the definition of a life insurance
advertisement? - ✔✔a memo from an insurer's president to employees
✔✔Variable life insurance policies offer all of the following EXCEPT: - ✔✔flexible
premium payments
✔✔To reinstate a lapsed life insurance policy under the typical reinstatement provision,
the policyowner must provide all of the following, EXCEPT: - ✔✔a valid reason for the
unpaid premiums
✔✔An insurer would use which of the following to limit or exclude coverage for an
applicant's health condition? - ✔✔impairment rider
✔✔A group disability income plan with a maximum benefit period of less than two years
is what type of plan? - ✔✔Short-term disability plan
✔✔Dave receives Social Security retirement benefits. His wife Cathy is still working.
Which statement about Cathy's Social Security spousal benefit is CORRECT? -
✔✔Cathy can choose either the spousal benefit or the worker's benefit.
✔✔What type of life insurance policy distributes its divisible surplus to policyowners in
the form of policy dividends? - ✔✔participating policy
✔✔A claimant on a health insurance policy must give written notice of the claim to the
insurer within how many days following a loss? - ✔✔20
✔✔Cal bought a $100,000 universal life policy ten years ago. He has paid $8,000 in
premiums into the policy. He now decides to surrender the policy for its full $15,000
cash value. What amount is taxable? - ✔✔$7,000
QUESTIONS WITH SOLUTIONS RATED A+
✔✔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.
✔✔Which of the following does NOT fall within the definition of a life insurance
advertisement? - ✔✔a memo from an insurer's president to employees
✔✔Variable life insurance policies offer all of the following EXCEPT: - ✔✔flexible
premium payments
✔✔To reinstate a lapsed life insurance policy under the typical reinstatement provision,
the policyowner must provide all of the following, EXCEPT: - ✔✔a valid reason for the
unpaid premiums
✔✔An insurer would use which of the following to limit or exclude coverage for an
applicant's health condition? - ✔✔impairment rider
✔✔A group disability income plan with a maximum benefit period of less than two years
is what type of plan? - ✔✔Short-term disability plan
✔✔Dave receives Social Security retirement benefits. His wife Cathy is still working.
Which statement about Cathy's Social Security spousal benefit is CORRECT? -
✔✔Cathy can choose either the spousal benefit or the worker's benefit.
✔✔What type of life insurance policy distributes its divisible surplus to policyowners in
the form of policy dividends? - ✔✔participating policy
✔✔A claimant on a health insurance policy must give written notice of the claim to the
insurer within how many days following a loss? - ✔✔20
✔✔Cal bought a $100,000 universal life policy ten years ago. He has paid $8,000 in
premiums into the policy. He now decides to surrender the policy for its full $15,000
cash value. What amount is taxable? - ✔✔$7,000
