Free Nebraska Property & Casualty practice questions

Answer: C. Both coverages, each with bodily injury limits of $25,000 per person and $50,000 per accident

Neb. Rev. Stat. Sec. 44-6408(1) bars delivering, issuing or renewing a motor vehicle liability policy on a vehicle principally garaged in Nebraska unless it provides both uninsured and underinsured motorist coverage, each at $25,000 for one person and $50,000 for two or more persons in one accident. Underinsured coverage is required alongside uninsured coverage, not left optional. The $100,000 and $300,000 figures are the ceiling on the higher limits an insurer must provide on written request, not the required minimum. The required limits are for bodily injury, sickness, disease, or death, and subsection (1) sets no property damage amount for these coverages.

Answer: A. The attempted cancellation is void, so it does not take effect

Neb. Rev. Stat. Sec. 44-523(4) declares void any attempted cancellation that violates the section. A cancellation for a reason other than nonpayment needs at least 30 days' mailed notice under subdivision (1)(a), so a 12-day notice violates the section and the attempt is void. The remedy the section states is voidness. It does not let the cancellation proceed on its stated date with a penalty instead, it does not substitute a later effective date, and it creates no step by which the insured's written acknowledgment could cure the short notice.

Answer: C. Thirty days after the thirteenth qualifying week has been completed

Sec. 48-106(2)(d) exempts an agricultural employer of unrelated workers unless, in a calendar year, it employs ten or more unrelated, full-time employees on each working day for thirteen calendar weeks, and the weeks need not run consecutively. Once that test is met, the act applies to the employer thirty days after the thirteenth such week. The farm here met the test with twelve such workers, so its coverage is not defeated by the gaps between the weeks, does not start the moment the thirteenth week begins, and does not wait for a new calendar year.

Answer: D. Payment is barred, because Jordan solicited insurance without a required license

An insurer or a producer may not pay a commission, service fee, brokerage or other valuable consideration to someone for selling, soliciting or negotiating insurance in Nebraska if that person must be licensed and is not. Jordan solicited insurance without a required license, so the producer may not share the commission. The prohibition reaches producers as well as insurers, covers any valuable consideration rather than only payments labeled commissions, and sets no percentage below which a share is allowed.

Answer: A. Three hours on insurance industry ethics, on top of the subsection (1) hours

Section 44-3904(2) requires every licensee who owes hours under subsection (1) to complete three hours of approved ethics education each two-year period, and it says these are in addition to the subsection (1) activities. That rules out treating the ethics hours as part of the line-of-insurance hours, and it rules out six hours, which is not the figure subsection (2) uses.

Answer: A. One year

Section 44-3907(1) allows the director, for good cause shown, to extend the time for completing the continuing education requirements, but the extension may not exceed one year. Two years exceeds that limit. Six months and ninety days are within it but are not the maximum the statute permits.

Answer: B. Within thirty days

Nebraska requires a licensee who changes an address to notify the director within thirty days of the change, by any means acceptable to the director. The statute sets thirty days, so both 10 days and 60 days misstate the deadline. Waiting for the next renewal is wrong because the deadline runs from the change itself, not from the renewal cycle.

Answer: C. Into three separate accounts: the workers' compensation insurance account, the automobile insurance account, and the account for all other insurance to which the act applies

The section creating the association says that for purposes of administration and assessment the association is divided into three separate accounts: the workers' compensation insurance account, the automobile insurance account, and the account for all other insurance to which the act applies. The division matters because the association allocates claims paid and expenses incurred among the accounts separately and assesses member insurers separately for each account. Membership is compulsory rather than optional for every insurer within the law's definition of a member insurer.

Answer: C. Not less than ten days after service

The notice must set the hearing for a date not less than ten days after the charges and notice are served. A shorter minimum falls short of what the statute requires, and a longer one is not the minimum Nebraska sets. The statute does fix a minimum, so the hearing cannot be set for an arbitrary earlier date.

Answer: B. Through an association that assesses the cost of that protection among insurers

The law states its purpose as providing a way to pay covered claims without excessive delay and without financial loss to claimants or policyholders when an insurer becomes insolvent, helping detect and prevent insurer insolvencies, and providing an association to assess the cost of that protection among insurers. None of the other funding sources named in the choices appears in that purpose statement.