Nebraska Insurance Exam

Which entity is responsible for approving all Medicare Supplement advertisements?

Director of Insurance

An insurer is required to offer inflation protection to each long-term care applicant at the time of purchase. This inflation protection...

does NOT require evidence of insurability

A licensee who is required to take continuing education must complete 24 hours of continuing education, which includes ___ hour(s) of ethics work

3

A life insurance policy can be contested by the insurer only during the first ___ years of the contract.

two

Every ___ year(s), a producer's license in Nebraska must be renewed.

Two

The dental specialty which deals with the replacement of missing teeth is called

prosthodontics

When an insurer markets its Medicare Supplement products in Nebraska, which method is acceptable?

Replacing an existing policy with one that has greater benefits

An insured must be notified in writing within ___ days of any change in ownership for a viatical settlement.

20

A producer is meeting with a client to determine whether an annuity would be suitable for purchase. Which of the following topics needs to be discussed with this client?

Financial status of the client

A Producer's failure to provide title and true nature of a policy upon solicitation is an example of

misrepresentation

A consultant derives their income from which source?

Clients

Which entity is responsible for regulating claims settlement practices of insurers?

State insurance departments

A(n) ______ is appointed by an insurer and presents policies on its behalf

producer

Which of the following is NOT an unfair claims settlement practice?

Negotiating a settlement amount by arbitration

Group life plans sold in Nebraska typically contain a conversion option. If the insured elects this option, the new policy

does NOT require evidence of insurability

In Nebraska, a group sickness and accident certificate of coverage MUST contain a(n)

summary of policy features and benefits

A viatical settlement broker represents the

viator

Which of the following is covered by a basic dental indemnity plan?

Non-surgical periodontal treatment

The maximum prison sentence given under federal law for unfair and deceptive insurance practices is

15 years

In Nebraska, the Human Immunodeficiency Virus (HIV) consent form

must disclose who will be receiving a copy of the test results

A television advertisement features a sickness and accident insurance product that is endorsed by a specific group. In this advertisement,

any control by the insurer over this group must be disclosed.

In Nebraska, qualified long-term care plans require each of the following EXCEPT

At least 3 days of prior hospitalization

Persuading an insured, to the insured's detriment, to switch policies is called

twisting

A lapsed long-term care policy may be reinstated within ____ months of the lapse date if the insured was mentally incapacitated

5

Any agreement that unreasonably restrains the business of insurance is a violation of which Unfair Trade Practice?

Boycott, coercion, and intimidation

A producer's first-year commission on Medicare supplements may not exceed ____ of the compensation paid in the second year

200%

An example of rebating would be

splitting the commission with the buyer on a sale of insurance

An insurer wishing to conduct business in Nebraska MUST obtain a

certificate of authority

An order issued by the Director that prohibits a specific practice listed in the order is called a(n)

cease and desist order

Which of these is NOT an Unfair Claims Settlement Practice

Refusing to pay persons bringing false or fraudulent claims

A dependent may be removed from group sickness & accident coverage in each of the following situations EXCEPT

Employee enrolls in Medicare

While processing a life insurance claim, the insurer discovers that the insured's age was misstated on the application. Under these circumstances, the insurer is entitled to

pay proceeds based on what the premiums would have purchased at the insured's actual age.

Charging different premiums to policyholders in the same risk classification is referred to as

unfair discrimination

Whose interests are being protected under replacement rules?

Policyowner

A Medicare Supplement policyowner has ___ days after policy delivery to return the policy and receive a refund of premium

30

An insurance applicant has made a false statement on the application that will affect the insurer's decision on whether or not to issue the policy. This false statement is considered to be a(n)

material misrepresentation

Under which circumstance may an insurable interest exist between two individuals in absence of an economic interest?

They are marriage partners

Which of the following is a requirement for an individual to receive an insurance license in Nebraska?

Passing the appropriate examination

An insurer may refuse the renewal of a small employer health plan for

nonpayment of premiums

A Nebraska resident producer must be at least ___ years of age

A handicapped child is covered under an individual sickness and health policy. If continuation of coverage is needed beyond the policy's age limit, which of the following is required?

Proof of incapacity and dependency upon reaching the age limit

The authority for a producer to bind an insurer to an insurance contract is found in the

producer's appointment

A(n) _______ insurer writes business in a state other than the one in which it is domiciled

foreign

Policy owners MUST be provided with privacy notices every

year

Insurance crimes which affect interstate commerce are prosecuted by the

US Attorney General

In Nebraska, small group sickness & accident coverage can be terminated in each of the following circumstances EXCEPT

Timely payout of premium

Which term refers to insurance written on the interests of the licensee, the licensee's employer, or the licensee's immediate family?

Controlled business

In Nebraska, continuing education credits are approved by the

Director of Insurance

Rick provides a notice of claim to his sickness and accident insurer. If he does not receive a claim form within 15 days, he may comply with proof of loss provision by

submitting written proof of loss

Violations of a cease and desist order may result in

suspension or revocation of license

Which of the following is NOT an unfair act during the underwriting process?

Discriminating against applicants of DIFFERENT risk classes

How long can pre-existing conditions be excluded in long-term care policies?

6 months

Which of the following is NOT a valid reason for an insurer to contest a life insurance policy during the policy's first two years of existence?

Misstatement of age

During the sale of a life insurance policy, a producer may provide an incomplete illustration

never

According to the federal fraud and false statement regulation, what is required for a prohibited person to transact insurance business in this state?

Written consent from the state insurance regulatory agency

Upon meeting company requirements, a lapsed life insurance policy may be reinstated for up to ____ year(s)

3

A life annuity with period certain is characterized as

guaranteeing benefit payments for a stated minimum number of years

Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?

Guaranteed insurability rider

Which of the following health insurance plans charges a premium that cannot be increased?

Noncancelable

A disability income insurance policy was recently issued with a rating. What does this mean?

Policyowner will be charged an additional premium

The insurance coverage in a variable life insurance policy may vary based on the value of

its underlying investments

Which of the following types of health insurers is characterized by a limited choice of providers?

Health maintenance organization

A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. Which of the following does this statute originate from?

Fair Credit Reporting Act

Which of these is NOT considered the responsibility of a producer during the underwriting process?

Selecting the final approval date

What is the effect of the market value adjustment in a market value adjustment annuity?

Transfers some of the investment risk to the policyowner

An employer pays the accident and health insurance premiums for its employees. The premiums paid by the employer are

deductible to the business

Which of the following describes coverage for the Medicare Part B coinsurance?

A Medicare Supplement core benefit

Mary is an employee who is covered with a disability income policy through her employer. She pays for the portion of the premium attributable to the cost of residual disability benefits, while her employer pays for the remainder. What are the tax implications of this policy?

Residual benefits will be received income tax-free

Which of the following covers the Part A deductible of Medicare?

Medicare Supplement core benefits

Darrell has a group long-term disability income policy paid by his employer. Which of these statements is true?

The specified benefit amount is a percentage of his wages

Under a long-term care inflation rider, the benefit levels

periodically increase without proof of insurability

Which benefit can be found in an equity indexed annuity, but not in a fixed annuity?

Protection against long-term inflation

An annuitant is paid $495 per month until the contract value is exhausted at some undetermined date in the future. Which type of annuity payout option is this?

Fixed amount

Which of the following is NOT an allowable exclusion for long-term care insurance policies?

Care for incurable conditions

Which of the following disability buy-sell agreements is best suited for business with a limited number of partners?

Cross-purchase agreement

An individual working part-time has a gross income of $5,000 for the year. If this individual has an IRA, what is the maximum deductible IRA contribution allowable?

$5,000

What action can an insurer take to discourage malingering and false disability claims?

Limit the amount of benefits an insured can receive from two disability policies with the same insurer.

A Keogh plan is a(n)

qualified retirement plan for the self employed

Which of the following is NOT a reason for a business to buy key person life insurance?

An increased pension liability if the key employee dies

Kim is covered under two medical expense plans. Plan A pays up to $5,000. Plan B pays up to $4,000. If she incurs $7,000 in expenses, the coordination of benefits provision dictates that

Plan A pays up to $5,000 and Plan B pays up to $2,000

Which of these is NOT a true statement of the war exclusion?

It applies to civil insurrections

A life annuity feature which provides benefit payments for a minimum number of years, no matter when the annuitant dies, is called

period certain

An insured must be notified in writing within _____ days of any change in ownership for a viatical settlement

20

In a qualified retirement plan, the yearly contributions to an employee's account

are restricted to maximum limits set by the IRS

Which of the following best describes a point-of-service (POS) plan?

A plan which combines indemnity plan features with those of an HMO

Peter, age 50, surrenders his modified endowment contract (MEC). How is the gain treated in terms of federal income taxes?

The gain is treated as taxable income and a penalty tax is imposed on the gain

Assets that back the non-guaranteed values of variable life insurance products are held in which account?

Separate account set up by the insurer

Custodial care is normally covered under

long-term care insurance

Which of these statements reflects an accurate portrayal of Medicare SELECT?

Insured uses preferred providers in exchange for paying lower premiums

Which statement concerning the Entire Contract provision in an individual accident and health insurance policy is TRUE

The agent doesn't have the authority to change the policy or waive its provisions

Which of the following is associated with an immediate annuity?

Lack of an accumulation period

For employees covered in multiple states under a group health plan, jurisdiction rules cannot alter

COBRA laws

An insurer will typically assess a back-end load on a deferred annuity that is cancelled during the early contract years. What is this back-end load referred to as?

Surrender charge

Which of the following is generally a form of group credit life insurance?

Decreasing term insurance

What is considered the collateral on a life insurance policy loan?

The policy's cash value

Which of the following reduces the opportunity for overinsurance?

Coordination of benefits provision

A teacher recently retired at age 63 and has a tax sheltered annuity (TSA). Periodic deposits total $120,000 and the value of the contract is now worth $200,000. How much is taxed if the current value is surrendered today?

$200,000

How is a collateral assignment used in a life insurance contract?

Transfers specific ownership rights to a ceditor

Ken is age 65 and has 2 years until he receives Social Security retirement income benefits. At his current age, which is true about Medicare Part A Hospital Insurance coverage?

It is available through application to Social Security

An arrangement where an individual is authorized to act on behalf of another person or company is established through

the law of agency