Free Nebraska Accident & Health practice questions

Answer: D. Before the producer begins using the trade name

A producer doing business under any name other than the producer's legal name must notify the director prior to using that assumed name. Notice within 30 days after first use or at the next renewal comes after the name is already in use, and notice only when someone asks may never be given at all. The obligation is triggered before the name is used.

Answer: D. No, because after 2 years from issue only fraudulent misstatements can void it or defeat the claim

The mandatory time limit on certain defenses provision allows only fraudulent application misstatements to be used, once 2 years have passed from the issue date, to void the policy or deny a claim for loss or disability beginning after that period. Here the disability began after that period and the error was innocent, so the insurer cannot rely on it. A material but innocent misstatement is not usable after that point, and far from barring all contests, the provision still allows a fraudulent misstatement to be used.

Answer: A. Furnish evidence of completion for the current two-year period to the department

Neb. Rev. Stat. Sec. 44-3904(4) provides that once the section's requirements are met, the licensee furnishes evidence of completion for the current two-year period to the department. Holding records until an audit does not satisfy a duty to furnish them. Reporting only a shortfall reverses the rule, which calls for evidence that the requirements were met. The evidence covers the current period, not a later one.

Answer: B. He currently holds a resident producer license there in good standing

One condition for a Nebraska nonresident producer license is that the applicant currently holds a resident producer license in good standing in his home state. A license held at some earlier time fails the requirement that it be current, and a pending application is not a license at all. Passing Nebraska's own producer examination is not among the conditions listed in that provision.

Answer: B. Six hours total across all three associations

Neb. Rev. Stat. Sec. 44-3904(3)(a) caps active participation credit at six hours for each two-year period, however many associations the licensee has participated in. Three associations therefore still yield six hours in total. Multiplying six or three hours by the number of associations ignores that cap, and 12 hours exceeds it.

Answer: D. The 21-hour requirement covering the producer's lines

Neb. Rev. Stat. Sec. 44-3904(3)(a) allows approved active participation credit, for a licensee who belongs to a professional insurance association, to be applied to the 21-hour requirement in subdivision (1)(a)(i) or (1)(b), which includes the life and accident and health or sickness lines. The same subsection bars using that credit for other continuing education requirements or for the three ethics hours under subsection (2). So it cannot go toward ethics, toward any requirement at will, or toward a separate six-hour line requirement, and the subsection also limits it to six hours.

Answer: B. That the insurer acted with actual malice in making the statement

Under Neb. Rev. Stat. Sec. 44-4062(7), an insurer, its authorized representative, a producer and the director are shielded from civil liability for statements and information provided under the section or requested in writing by the director, in the absence of actual malice. The section's exception is actual malice; it does not lift the immunity for inaccuracy or negligence as such, and nothing in it makes advance notice to the producer a condition of the immunity.

Answer: D. It may act at its discretion, subject to conditions the director approves

For an impaired member insurer, the law says the association may, in its discretion, guarantee, assume, reissue or reinsure the insurer's policies, or provide funds and other means to assure payment of its contractual obligations. Any conditions the association imposes must be approved by the director and must not impair the insurer's contractual obligations. Because the authority is permissive, there is no duty to assume every policy at once; the authority exists without any liquidation order; and policy owner consent is not a stated condition.

Answer: B. Within 30 days of delivery

The law gives an individual long-term care policyholder 30 days from delivery to return the policy and receive a refund of the premium, and the policyholder may do so if not satisfied for any reason. The policy must carry a notice of that right on its first page or attached to it. The other periods offered are not the period the law sets.

Answer: C. On the 45th day after the date of the conditional receipt

Under the mandatory reinstatement clause, when an application is required and the insurer neither approves it nor has previously written the insured to disapprove it, the policy is reinstated on the 45th day after the conditional receipt date. Approval is therefore not the only way back into force, and the other days offered do not set the reinstatement date.