Free Nebraska Life & Health practice questions

Answer: A. Read the law so as to carry out the purpose stated in its purpose section

The construction section is one sentence: the law is to be construed to effect the purpose set out in its purpose section, which is protecting covered persons when a member insurer is impaired or insolvent. That sentence names no other rule of interpretation, so it does not direct a court to favor member insurers, to read the law against owners, or to apply the law of the failed insurer's home state.

Answer: D. 18 years of age

Before approving a resident producer application, the director must find, among other things, that the applicant has reached 18 years of age. An applicant younger than that falls short of the minimum, and the other ages offered are not the minimum Nebraska sets.

Answer: C. Act in the consumer's best interest, without putting the agent's or insurer's finances first

Nebraska requires an agent who recommends an annuity to act in the consumer's best interest, judged by the circumstances known when the recommendation is made, and not to place the agent's or insurer's financial interest ahead of the consumer's. The law says these duties do not create a fiduciary relationship and impose no ongoing monitoring under the care obligation, so the fiduciary choice fails. It also says the annuity with the lowest compensation structure need not be the one recommended, and that the agent is not required to analyze products outside the agent's own authority and license.

Answer: D. All are waived except those the nonresident licensing section itself imposes

When a nonresident applicant holds a valid home-state license and the home state licenses Nebraska producers on the same basis, Neb. Rev. Stat. Sec. 44-4063(1) directs the director to waive the license application requirements, with one exception: the requirements imposed by the nonresident licensing section. So the requirements do not all apply in full, and the waiver does not reach the nonresident section's own conditions. Waiving only the examination understates the waiver, which covers every application requirement outside the nonresident section.

Answer: B. Serving on a formal committee of the association and taking part in its work

Sec. 44-3902(1) defines active participation through three kinds of involvement: attending formal association meetings at which a formal business program is presented; serving on the association's board of directors or one of its formal committees while being involved in that body's activities; and taking part in industry, regulatory or legislative meetings held by or for the association. Committee service with real involvement is one of those three. Membership without attendance, reading association publications and recruiting members are not among the activities the definition names, so none of them counts as active participation.

Answer: C. Grant an extension of time of no more than one year

Neb. Rev. Stat. Sec. 44-3907(1) lets the director, for good cause shown, extend the time for completing the continuing education requirements, but no extension may exceed one year. A two-year extension exceeds that limit. The subsection authorizes extra time, not a waiver of the requirement. It is not limited to the ethics hours; it reaches the requirements of sections 44-3901 to 44-3908.

Answer: D. Within 90 days after March 31

When a policy makes periodic payments for a continuing loss, the mandatory proof of loss clause requires the insured to submit written proof no later than 90 days after each period of insurer liability closes, so the deadline for this period runs from March 31. Measuring from the start of the disability misreads the clause, which ties the deadline to the end of each period. A shorter period is less than the clause requires, and one year is the outer limit that applies only when timely proof was not reasonably possible.

Answer: A. 7 days

When the insurer reserves the right to refuse renewal, the required grace period clause must provide at least 7 days for a weekly premium policy. The shortest grace period for a monthly premium policy is 10 days and for all other policies 31 days, so neither is the weekly minimum.

Answer: A. The insurer may not nonrenew the policy because of the insured's declining mental health

The law prohibits canceling, nonrenewing or otherwise terminating a long-term care policy on grounds of the insured's age or the deterioration of the insured's mental or physical health, so worsening dementia is not a permitted basis. Giving notice does not make a prohibited ground permissible, and age is itself a prohibited ground. The prohibition applies to any long-term care policy, whatever label its renewal provision carries.

Answer: B. Within 30 days of delivery, for a premium refund if not satisfied for any reason

Nebraska requires a Medicare supplement policy or certificate to have a notice prominently printed on its first page, or attached, stating in substance that the holder may return it within 30 days of delivery and have the premium refunded if, after examining it, the insured is not satisfied for any reason. The period runs from delivery, not from the application date, and the notice does not condition the refund on an absence of claims or reduce it by claims paid.