Free Nebraska Life practice questions

Answer: B. Fifteen working days after receipt of the inquiry

Under Neb. Rev. Stat. Sec. 44-3905(1)(c)(xv), one of the grounds for an administrative penalty or removal from the approved sponsor list, after notice and hearing, is a sponsor's failure to respond to the department within fifteen working days after receiving its inquiry. The period is counted in working days, not calendar days, and it runs from receipt of the inquiry rather than its mailing. Ten working days and thirty calendar days do not match the period the subsection states.

Answer: D. It is excluded because the owner, not the insurer, bears its risk

The law excludes from coverage any part of a policy or contract that the insurer does not guarantee or under which the owner carries the risk. The subaccounts fit that description, so only the guaranteed fixed account remains eligible for coverage, subject to the statutory limits. The annuity limit caps covered annuity value; it does not bring an unguaranteed portion into coverage. How the subaccount value compares with the fixed account plays no part in the rule, and the interest ceiling is a separate exclusion for interest-rate-based parts.

Answer: A. Twelve hours, because six hours are owed for each line held

Sec. 44-3904(1)(a)(iv) covers licensees qualified for lines other than those addressed in subdivisions (i) through (iii), and it requires six hours in each two-year period for every line, miscellaneous lines included, in which the licensee is licensed. Two such lines therefore produce twelve hours. The requirement is counted per line rather than per licensee, the twenty-one-hour figure belongs to subdivision (1)(a)(i) for life, accident and health or sickness, property, casualty and personal lines, and no nine-hour per-line figure appears in the statute.

Answer: D. The member insurer that issued the policy is domiciled in Nebraska

For a policy owner who is not a resident, the law extends coverage only when all of its listed conditions are met: the issuing member insurer is domiciled in Nebraska, the owner's state of residence has a similar association, and the owner is ineligible for coverage from any other state's association because the insurer was not licensed in that state at the time that state's law specifies. Domicile of the insurer is the only choice that is one of those conditions.

Answer: C. No credit, because the activity was repeated within the same two-year period

Under Neb. Rev. Stat. Sec. 44-3904(1)(d), a licensee may not take the same continuing education activity again for credit within one two-year period, so the October completion earns nothing toward the requirement. A second completion does not earn fresh certified hours, because the repeat bar governs. The subsection contains no partial credit for a repeat and no exception for a repeat the director approves in advance.

Answer: B. 24 hours

Neb. Rev. Stat. Sec. 44-3904(1)(c) requires every licensee to show the director the hours owed for each line held, but it also sets a ceiling: no licensee has to complete more than 24 cumulative hours under subsection (1) in any two-year period beginning on or after January 1, 2000. A producer whose per-line hours would total 33 therefore owes 24. The full 33-hour total ignores that ceiling. The 21-hour figure is the requirement for the major lines in subdivision (1)(a)(i), not the ceiling for a producer holding more lines. Owing only 12 hours ignores that subdivision (1)(c) calls for the hours for each line held, up to the ceiling.

Answer: D. Twenty-one hours in total, covering both lines together

Sec. 44-3904(1)(a)(i) sets twenty-one hours of approved continuing education in each two-year period commencing on or after January 1, 2010, for producers holding life, accident and health or sickness, property, casualty or personal lines authority. The six-hours-per-line rule in the same subdivision governed only periods that commenced before January 1, 2010, so twelve hours describes the old requirement. No fifteen-hour per-line figure or six-hour combined figure appears in the subdivision.

Answer: B. It adds no hours to those the producer already owes for life

Sec. 44-3904(1)(a)(iv) also provides that a licensee qualified to solicit variable life and variable annuity products owes no additional continuing education because of that qualification. The producer's hours stay at what the life line already requires. Treating the variable qualification as an extra six-hour line, an added three-hour topic or a doubling of the life hours all contradict that provision.

Answer: A. The insurer, which answers for compliance even when its producer's inaction caused the violation

Under the rule, the insurer is responsible for compliance, and the rule expressly reaches a violation arising from the action or inaction of either the insurer or its insurance producer. So the producer is not the only party responsible. The director may also order a general agency, an independent agency or the producer to take corrective action for a harmed consumer, but that sits alongside the insurer's responsibility rather than replacing it, and the rule assigns the consumer no compliance duty.

Answer: B. 5 years after the insurer completes the transaction

The rule requires insurers and producers to keep the information collected from the consumer, the disclosures made, including summaries of oral disclosures, and other information used in the recommendation. They must keep it for 5 years after the insurer completes the transaction. A 3-year period measured from the recommendation, a period measured from termination of the contract, or keeping the records until the annuity ends does not match the rule.