Nebraska Life and Health License Exam Questions and Answers, Exams of Nursing

Download Nebraska Life and Health License Exam Questions and Answers and more Exams Nursing in PDF only on Docsity!

Questions and Answers (Latest Update

2024)

Before delivering a health insurance policy to a client, the producer alters the insuring clause in a way that he believes will benefit the insurance company. Which of the following statements is true about this alteration? - Correct Answer ✅It is prohibited by the entire contract provision Which organization offers health insurance to Nebraska residents who are denied health insurance and unable to obtain coverage from private companies due to pre-existing medical conditions? - Correct Answer ✅Nebraska Comprehensive Health Insurance Pool Newborn children are automatically covered under an insured's individual health insurance policy for how long? - Correct Answer ✅from birth to 31 days As beneficiary of her husband's life insurance, Beth chooses to receive payments for life. However, she is guaranteed that the payments will be made for ten years. Beth has chosen which of the following? - Correct Answer ✅life income with period certain

Questions and Answers (Latest Update

2024)

Which method of determining the benefit amount is most common in individual disability income policies? - Correct Answer ✅flat amount Which statement describes the "pool of money" approach to benefits under a long-term care insurance policy? - Correct Answer ✅Benefits are defined as a total sum of money from which money can be drawn in any amount for as long as the money lasts. Which statement best describes the restrictions an insurer must operate under when using information from the MIB? - Correct Answer ✅Insurers cannot rate or decline a life insurance applicant based solely on MIB information. Which of the following must HMO members use to receive covered care? - Correct Answer ✅HMO's network of providers and caregivers

Questions and Answers (Latest Update

2024)

Which statement is correct about a buy-up option in a disability income insurance policy for professionals? - Correct Answer ✅It lets the insured buy more coverage in the future without evidence of insurability. Bill believes he has a cause of action against his health insurer for its refusal to pay benefits on a claim. He filed written proof of loss on April 1. Not having received a response by May 1, he decides to take legal action. What will his attorney probably do? - Correct Answer ✅advise him to wait For tax purposes, a self-employed person includes all of the following, EXCEPT: - Correct Answer ✅an incorporated business owner The Director of Insurance can examine the business transactions, accounts, and records of insurers as often as necessary, but must do so at least once in how many years? - Correct Answer ✅five

Questions and Answers (Latest Update

2024)

An insured has a comprehensive major medical insurance policy with a $1,000 deductible and 80/20 coinsurance. She incurs a bill of $11,000. What will she pay in total? - Correct Answer ✅$3, Adam owns an individual long-term care policy that was issued in Nebraska. Which of the following conditions must the policy cover? - Correct Answer ✅Alzheimer's disease Tax law considers any limited payment life insurance policy that is paid-up in seven years or less to be which of the following? - Correct Answer ✅a modified endowment contract Eric fails to pay the annual premium on his major medical insurance policy. The grace period provision allows him to pay the premium within how many days after the due date? - Correct Answer ✅ 31 When can the owner of a deferred annuity select a settlement option? - Correct Answer ✅any time prior to annuitization

Questions and Answers (Latest Update

2024)

When completing an application for life insurance, Andrew states that he is 39 years old, though he is actually 45. When the insurer discovers this, what will it probably do? - Correct Answer ✅adjusted the benefits When underwriting a group life insurance policy, which of the following does the underwriter look at? - Correct Answer ✅the group as a whole Alana let her life insurance policy lapse two years ago and now wants to reinstate the policy. Which action is she NOT required to take to reinstate the policy? - Correct Answer ✅pay the next year's premium in advance A long-term care insurance policy issued in Nebraska cannot exclude coverage or limit benefits for which of the following?

• Correct Answer ✅Alzheimer's disease What happens if the provisions of an insurer's health insurance policies contradict state law? - Correct Answer

Questions and Answers (Latest Update

2024)

✅The provisions are changed automatically to comply with the law. Whether a variable annuity's monthly income rises, falls, or stays level depends largely on which of the following? - Correct Answer ✅the assumed interest rate (AIR) selected by the contract owner Producers and insurers selling Medicare supplement insurance policies are prohibited from engaging in all of the following acts EXCEPT: - Correct Answer ✅replacement Jessica, age 48, owns a traditional IRA that she funded with tax-deducted contributions and which is now worth $300,000. Which of the following correctly describes the tax consequences of converting her IRA to a Roth IRA? - Correct Answer ✅She would have to pay income taxes on the entire $300,000.

Questions and Answers (Latest Update

2024)

What kind of insurance policy pays benefits to the business owner if an essential manager were to become disabled? - Correct Answer ✅key person disability income insurance If Jack takes a new job that is less hazardous than the job he had when he obtained health coverage, what may the insurer do? - Correct Answer ✅reduce the premium Dan owns a fixed whole life insurance policy. What type of death benefit is Dan guaranteed? - Correct Answer ✅the policy guarantees a fixed death benefit amount. Ralph, Jerry, and Paula are primary and equal beneficiaries of the $600,000 insurance policy on the life of their mother, Judy. Ralph dies before his mother. He leaves two children, Tim and Hal. Judy's life insurance policy designates the death benefit per capita. How will the insurer distribute the policy benefits? - Correct Answer ✅Jerry and Paula will each receive $300,

Questions and Answers (Latest Update

2024)

For Social Security purposes, Brian is considered currently insured while Samantha is fully insured. Which of the following statements is correct? - Correct Answer ✅Samantha is eligible for more Social Security benefits than Brian When she applied for an individual health insurance policy, Betty neglected to disclose that her parents had undergone open-heart surgery many years ago. Her insurer discovers this misstatement four years after the effective date of coverage. What can it do? - Correct Answer ✅nothing Why does an insurer require that a certain percentage of eligible members participate in a group health insurance plan? - Correct Answer ✅to protect the insurer from adverse selection Which of the following statements about a Medicare supplement policy is NOT correct? - Correct Answer ✅It can indemnify against loss from illness on a different basis than loss from accident.

Questions and Answers (Latest Update

2024)

Which statement is true under a split-dollar life insurance plan? - Correct Answer ✅The employer and employee split the premiums. Laura was injured in an accident. She incurred $1,000 in medical bills. Even though she was not disabled or lost any income, her disability income policy paid for these expenses because it has: - Correct Answer ✅a nondisabling injury provision What do covered employees receive to show they have coverage under a group life insurance policy? - Correct Answer ✅certificate of insurance Under the payor benefit rider of a juvenile life insurance policy, which of the following happens if the payor becomes disabled before the maximum age specified in the rider? - Correct Answer ✅Premiums are waived until the payor recovers or the insured child reaches a certain age (e.g., 21 or 25), whichever occurs first.

Questions and Answers (Latest Update

2024)

What does the employer own under a group insurance plan? - Correct Answer ✅the master policy In which of the following areas may a life insurance underwriter discriminate in determining policy eligibility and coverage limits? - Correct Answer ✅personal health history Which of the following statements regarding the life insurance needs analysis is correct? - Correct Answer ✅Determining the ongoing income needs of surviving dependents is a critical part of the needs approach to life insurance needs analysis. All of the following statements regarding the career agency distribution system are correct EXCEPT: - Correct Answer ✅Personal producing general agents (PPGAs) are commonly hired to manage career agencies Which of the following is NOT an unfair claims settlement practice if committed by an insurance company in Nebraska?

Questions and Answers (Latest Update

2024)

• Correct Answer ✅failing to promptly settle a claim for which liability is uncertain An insurer can nonrenew an individual health insurance policy for all of the following reasons EXCEPT: - Correct Answer ✅deterioration of the insured's health The purpose of the insuring clause is to: - Correct Answer ✅describe the type and scope of coverage The primary reason for using third-party ownership in personal life insurance for estate planning purposes is to: - Correct Answer ✅remove the life insurance proceeds from the insured's estate and thus reduce the value of the taxable estate Which statement is correct about health savings accounts (HSAs)? - Correct Answer ✅instead of paying higher premiums for health insurance, the HSA can pay for qualified health care expenses.

Questions and Answers (Latest Update

2024)

Which of the following does NOT fall within the definition of a life insurance advertisement? - Correct Answer ✅a memo from an insurer's president to employees Variable life insurance policies offer all of the following EXCEPT: - Correct Answer ✅flexible premium payments To reinstate a lapsed life insurance policy under the typical reinstatement provision, the policyowner must provide all of the following, EXCEPT: - Correct Answer ✅a valid reason for the unpaid premiums An insurer would use which of the following to limit or exclude coverage for an applicant's health condition? - Correct Answer ✅impairment rider A group disability income plan with a maximum benefit period of less than two years is what type of plan? - Correct Answer ✅Short-term disability plan

Questions and Answers (Latest Update

2024)

Dave receives Social Security retirement benefits. His wife Cathy is still working. Which statement about Cathy's Social Security spousal benefit is CORRECT? - Correct Answer ✅Cathy can choose either the spousal benefit or the worker's benefit. What type of life insurance policy distributes its divisible surplus to policyowners in the form of policy dividends? - Correct Answer ✅participating policy A claimant on a health insurance policy must give written notice of the claim to the insurer within how many days following a loss? - Correct Answer ✅ 20 Cal bought a $100,000 universal life policy ten years ago. He has paid $8,000 in premiums into the policy. He now decides to surrender the policy for its full $15,000 cash value. What amount is taxable? - Correct Answer ✅$7, Jennifer purchases an individual health insurance policy on June 1. One week later, she loses her job and decides she can

Questions and Answers (Latest Update

2024)

no longer afford the policy. What are her options? - Correct Answer ✅return the policy for a full refund of premiums Under the proof of loss provision of a health insurance policy, how long does the insured have to give written proof of loss to the insurer? - Correct Answer ✅90 days Producers and insurers must maintain records of their insurance transactions for at least how long? - Correct Answer ✅five years Which insurance company function calculates company mortality and morbidity rates as well as the dividends on participating life insurance policies? - Correct Answer ✅actuarial division Which one of the following would a state NOT permit as a life insurance policy exclusion? - Correct Answer ✅death resulting from a plane crash in which the insured was a fare- paying passenger

Questions and Answers (Latest Update

2024)

Which rider is NOT commonly found in a disability income policy? - Correct Answer ✅long-term care rider Which statement about profit-sharing plans is correct? - Correct Answer ✅Contribution limits for profit-sharing plans are the same as those that apply to all defined contribution plans. Which of the following correctly describes the basic tax treatment of deferred annuity death proceeds paid out before the contract is annuitized? - Correct Answer ✅A portion of the death benefit, essentially representing the sum of premiums paid into the annuity, is taxable. When Tom, an agent for ABC Insurance, receives an approved policy, he MUST do all of the following, EXCEPT: - Correct Answer ✅A. mail the policy to the applicant by certified mail and set up a time for the policyowner to meet with Tom to review it

Questions and Answers (Latest Update

2024)

Agent Jones and Trudy are meeting to discuss Medicare supplement policies. At what point must Agent Jones give Trudy an outline of coverage? - Correct Answer ✅when Trudy applies for a policy Which of the following doubles or triples the benefits if the insured dies as the direct result of an accident? - Correct Answer ✅accidental death benefit (ADB) riders Which of the following is a benefit trigger under a long-term care insurance policy? - Correct Answer ✅cognitive impairment A worker's eligibility for Social Security disability benefits and benefit amount does NOT depend on: - Correct Answer ✅the worker's family status What is the only restriction on naming an annuitant? - Correct Answer ✅The annuitant must be a natural person.

Questions and Answers (Latest Update

2024)

Ethel is at full retirement age with Part B coverage. She incurs $1,000 in Medicare-approved health care charges. What must she pay? - Correct Answer ✅the deductible plus 20 percent of the expenses Which of the following statements about the renewability of small group plans is NOT true? - Correct Answer ✅Plans can be canceled only after the insurer provides 180 days' prior notice. Which of the following will happen if the outstanding balance of a whole life insurance policy loan, including accrued interest, ever exceeds the policy's cash value? - Correct Answer ✅The insurer will cancel the policy. Frank intends to use his life insurance to make the down payment on a vacation home. In so doing, Frank is using which of the following? - Correct Answer ✅the policy's cash value

Questions and Answers (Latest Update

2024)

Sandy and Cindy are healthy, are both 45 years old, and have similar life expectancies. Though they are insured by the same company, Sandy's life insurance premiums are considerably lower than Cindy's. What may this indicate a case of? - Correct Answer ✅unfair discrimination When Terry applied for his life insurance policy four years ago, he omitted any information in the application related to treatment he had received several years earlier for a serious chronic illness. Which of the following actions can the insurance company take when it learns of the omission? - Correct Answer ✅nothing Which disability would most likely qualify for a full benefit under the presumption of disability provision? - Correct Answer ✅loss of eyesight How does a family income policy differ from a family maintenance policy? - Correct Answer ✅A family income policy combines whole life insurance with decreasing term

Questions and Answers (Latest Update

2024)

insurance, while a family maintenance policy combines whole life and level term insurance. Brent fails to pay his premium when due, and his life insurance policy lapses. Two years later, he pays the premium. The insurer accepts the payment, and the policy continues in force. Which provision allows this to happen? - Correct Answer ✅reinstatement Emily, age 48, withdrew $8,000 from her SIMPLE plan to buy a car. How much penalty tax will she owe? - Correct Answer ✅$ The guaranteed renewability provision in a health insurance policy guarantees that the policy can be renewed until the insured: - Correct Answer ✅reaches age 65 An insurable interest will typically be presumed in all of the following types of relationships EXCEPT: - Correct Answer ✅neighbor and friend

Questions and Answers (Latest Update

2024)

Which statement is correct about the taxation of health insurance expenses? - Correct Answer ✅Premiums paid for individual disability income insurance are not deductible. Three times a week, Ernest pays for a licensed nurse to come to his house and help with his diabetes management. The nurse also helps with everyday tasks such as bathing and eating. Which type of care is Ernest receiving? - Correct Answer ✅home health care When acting in the best interests of applicants and insureds, producers must: - Correct Answer ✅give all important information about a proposed policy Sasha, Kendall, Adam, and Julio are licensed producers in Nebraska. The Director would NOT be able to suspend or revoke which producer's license for engaging in the following acts? - Correct Answer ✅Sasha, who sold insurance policies to family members and friends this year

Questions and Answers (Latest Update

2024)

Which of the following statements about health insurance advertisements is NOT correct? - Correct Answer ✅Advertisements must disclose that policyholders are protected by the Nebraska Life and Health Insurance Guaranty Association. Dental plans commonly group covered treatment and benefits into how many classes? - Correct Answer ✅three Which of the following best describes insurable interest? - Correct Answer ✅It refers to the financial relationship between the policyowner and the insured person or property. When meeting with a prospect to discuss life insurance, Agent Tyler makes disparaging comments about the financial stability and reputation of a competitor to dissuade the prospect from purchasing its policies. Which unfair trade practice has Agent Tyler committed? - Correct Answer ✅A. defamation

Questions and Answers (Latest Update

2024)

Tom is employed by Acme Industries and covered by its group long-term disability income policy. Acme pays 80 percent of the premium. Tom pays 20 percent of the premium. He becomes disabled and receives a monthly benefit payment. How much of this benefit is subject to federal income tax? - Correct Answer ✅80% Which type of long-term care is provided outside a person's home for groups of adults who are physically or mentally disabled, on less than a 24-hour basis? - Correct Answer ✅adult day care All the following statements regarding split-dollar life insurance plans are correct EXCEPT: - Correct Answer ✅The employer pays the entire premium and the employee receives the policy benefits. Darlene failed to pay the premium on her individual health insurance policy, which was due on October 1. She can avoid lapsing the policy if she pays the premium before what date?

• Correct Answer ✅October 31

Questions and Answers (Latest Update

2024)

All of the following statements about life insurance policy long-term care riders are correct, EXCEPT: - Correct Answer ✅An insured must first be hospitalized before qualifying for LTC benefit payments Which of the following best typifies the use of a structured settlement annuity? - Correct Answer ✅Shirley was paralyzed in a car accident, and a jury awarded her $2 million, which must be paid to her over a 20-year period What is the purpose of disability income insurance? - Correct Answer ✅to replace income lost during disability The basic purpose for the insuring clause of a life insurance policy is to: - Correct Answer ✅state the insurer's promise to pay the death benefit to the named beneficiary if the insured dies Holly just turned 65 and purchased a Medicare Select policy. Which statement correctly describes the features of her

Questions and Answers (Latest Update

2024)

policy? - Correct Answer ✅It contains restricted network provisions. Which plan reimburses the insured for the cost of covered medical care received? - Correct Answer ✅indemnity plan For purposes of group health insurance, a small employer is defined in Nebraska as any person or entity that employs no more than how many employees? - Correct Answer ✅ 50 Though not specifically cited in the producer's contract, the producer is expected to telephone prospects on the insurer's behalf to arrange sales appointments. This is an example of what kind of producer authority? - Correct Answer ✅implied authority The life insurance Buyer's Guide helps prospective buyers determine all of the following EXCEPT: - Correct Answer ✅most qualified insurer

Questions and Answers (Latest Update

2024)

Policyholders who buy a health insurance policy issued in Nebraska are entitled to review the policy without obligation for at least how many days after it is delivered? - Correct Answer ✅ 10 Jeff is a licensed insurance producer in both New York and Nebraska. He is charged with embezzlement in New York, and his first pretrial hearing is set for March 1. He must notify the Nebraska Director of Insurance of this charge within how many days of the hearing? - Correct Answer ✅ 30 The Smiths set up a Section 529 prepaid tuition plan for their daughter, Jenna. They invested a total of $15,000, which covers the current cost of two semesters of college at their in-state public university. However, by the time Jenna goes to college, it will cost $30,000 for two semesters. What will happen in this case? - Correct Answer ✅The Smiths' prepaid tuition plan will cover two semesters of college. Persons who commit crimes of dishonesty while engaged in interstate insurance transactions can be sentenced to all of