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Nebraska Producer's Examination for Life Insurance Series 13-01 — Information & Free Practice

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Nebraska Producer's Examination for Life Insurance Series 13-01

Provider
PSI Services LLC
Format
Computer examination
Exam questions
100 scored questions plus 5 unscored items
Time limit
2 hours
Passing score
70%
Examination outline
  • 1.0 Insurance Regulation (15%)
    • 1.1 General
    • State specific licensing requirements
    • License issuance (44-4052, 44-4053)
    • License issuance (44-4052, 44-4053) > Application
    • License maintenance
    • License maintenance > Change of name/phone number/address/email address (44-4054(8))
    • License maintenance > Assumed business name (44-4057)
    • License maintenance > Reporting of actions (44-4065)
    • License maintenance > Continuing education including exemptions (44-3901 to 44-3908)
    • License maintenance > Penalties
    • License maintenance > Appointment and termination process
    • License duration
    • License duration > Renewal/nonrenewal (44-4054)
    • License duration > Reinstatement
    • License duration > Continuation
    • License duration > Termination (44-4062)
    • License duration > Surrender
    • License duration > Lapse
    • License duration > Inactivity due to military service
    • License duration > Inactivity due to extenuating circumstances
    • Disciplinary actions related to the license
    • Disciplinary actions related to the license > Denial
    • Disciplinary actions related to the license > Suspension (44-2633, 44-4059)
    • Disciplinary actions related to the license > Surrender
    • Disciplinary actions related to the license > Revocation or refusal to issue or renew (44-2633, 44-4059)
    • Penalties
    • Penalties > Civil
    • Penalties > Criminal (28-631)
    • Penalties > Hearings (44-4059(2))
    • Penalties > Fines (44-2634, 44-4059(4))
    • Penalties > Cease and desist order (44-1529, 44-1542)
    • 1.2 Licensing Types, Purposes, and Processes
    • License types (44-4054)
    • License types (44-4054) > Producer (44-4049, 44-4054)
    • License types (44-4054) > Consultant (44-2606 to 44-2635)
    • License types (44-4054) > Agency
    • License types (44-4054) > Resident (44-2625, 44-4055, 44-4063)
    • License types (44-4054) > Nonresident (44-2625, 4055, 44-4063)
    • License types (44-4054) > Temporary (44-4058)
    • Licensing requirements
    • Licensing requirements > Eligibility and qualification
    • Licensing requirements > Licensing exemptions (44-4051)
    • 1.3 State Regulation
    • Acts constituting insurance transaction
    • Acts constituting insurance transaction > Negotiate
    • Acts constituting insurance transaction > Sell
    • Acts constituting insurance transaction > Solicit
    • Director's general duties and powers (44-101.01, 44-2635)
    • Producer regulatory requirements
    • Producer regulatory requirements > Policy signatures
    • Producer regulatory requirements > Application signatures
    • Producer regulatory requirements > Premium payment
    • Producer regulatory requirements > Producer representation
    • Producer regulatory requirements > Commissions/compensation and fees (44-4060)
    • Producer regulatory requirements > Controlled business (44-361.01, 44-361.02)
    • Producer regulatory requirements > Appointment (44-4061)
    • Producer regulatory requirements > Fiduciary responsibility
    • Producer regulatory requirements > Impersonation
    • Producer regulatory requirements > Records maintenance (44-5905)
    • Producer regulatory requirements > Claims reporting
    • Company regulatory requirements
    • Company regulatory requirements > Solvency
    • Company regulatory requirements > Financial requirements
    • Company regulatory requirements > Certificate of authority (44-303)
    • Company regulatory requirements > State of domicile
    • Company regulatory requirements > Records maintenance
    • Company regulatory requirements > Policy forms/rates/exceptions
    • Company regulatory requirements > Appointment/termination
    • Company regulatory requirements > Capital and surplus requirements (44-214, 44-305)
    • Company regulatory requirements > Unfair trade practices complaint register (44-1525(9))
    • Difference between admitted, non-admitted, foreign, and domestic insurers
    • Unfair trade practices
    • Unfair trade practices > Unfair discrimination (44-1525(7))
    • Unfair trade practices > Misrepresentation (44-1525(1))
    • Unfair trade practices > False or deceptive advertising (44-1525(2))
    • Unfair trade practices > Claims settlement
    • Unfair trade practices > Boycott (44-1525(4))
    • Unfair trade practices > Coercion (44-1525(4))
    • Unfair trade practices > Intimidation (44-1525(4))
    • Unfair trade practices > Defamation (44-1525(3))
    • Unfair trade practices > False financial statements
    • Unfair trade practices > Fraud
    • Unfair trade practices > Illegal inducements including rebating and twisting (44-361, 44-1525(8))
    • Unfair trade practices > Misappropriation of funds
    • Unfair trade practices > Testimonials
    • Unfair trade practices > Comparisons
    • Unfair trade practices > Nondisclosure of fees or charges (44-354)
    • Other prohibited practices
    • Other prohibited practices > Commingling of funds
    • Other prohibited practices > Non-transparency
    • Other prohibited practices > STOLI/IOLI
    • Other prohibited practices > Prohibited fees/premiums/extra charges
    • Other prohibited practices > Larceny
    • Other prohibited practices > Acting without a license
    • Unfair claims settlement practices (44-1539, 44-1540)
    • Nonpublic personal information and privacy protection
    • Policy replacement
    • Solicitation and sales (210 Nebraska Administrative Code Ch. 33)
    • Solicitation and sales (210 Nebraska Administrative Code Ch. 33) > Advertising (210 Nebraska Administrative Code Ch. 50)
    • Solicitation and sales (210 Nebraska Administrative Code Ch. 33) > Provisions/rules
    • Solicitation and sales (210 Nebraska Administrative Code Ch. 33) > Policy summary
    • Solicitation and sales (210 Nebraska Administrative Code Ch. 33) > Buyer's Guide (210 Nebraska Administrative Code Ch. 33, § 005, NAIC Current Model Buyer's Guide)
    • Solicitation and sales (210 Nebraska Administrative Code Ch. 33) > Illustrations (210 Nebraska Administrative Code Ch. 72)
    • Solicitation and sales (210 Nebraska Administrative Code Ch. 33) > Suitability
    • Solicitation and sales (210 Nebraska Administrative Code Ch. 33) > Backdating
    • Selection criteria and unfair discrimination (44- 1525(7)(a))
    • Insurance Fraud Act (44-6601 to 44-6608)
    • Privacy of Insurance Consumer Information Act (44-901 to 44-925) Neb. Rev. Stat. §44-902(1)(a)
    • 1.4 Federal Regulation
    • Federal Law (18 U.S. Code § 1033)
    • Fair Credit Reporting Act (15 USC 1681–1681d)
    • Fraud and false statements including 1033 and 1034 waiver
    • "Prohibited Persons" Waiver (Consent to Work) (18 U.S. Code § 1033-1034)
    • Other federal regulations
    • Other federal regulations > Do Not Call List (Telephone Consumer Protection Act)
    • Other federal regulations > Can-Spam Act
    • Other federal regulations > Sarbanes-Oxley Act
    • Other federal regulations > Consumer Data Privacy and Security Act
    • Other federal regulations > Gramm-Leach-Bliley Act
  • 2.0 General Insurance (13%)
    • 2.1 Risk management key terms
    • Risk
    • Exposure
    • Hazard
    • Peril
    • Loss
    • Insurance
    • 2.2 Methods of handling risk
    • Avoidance
    • Retention
    • Sharing
    • Reduction
    • Transfer
    • 2.3 Other risk concepts
    • Elements of insurable risks
    • Adverse selection
    • Law of large numbers
    • Reinsurance
    • 2.4 Types of insurers
    • Stock
    • Mutual
    • Fraternal benefit society
    • 2.5 Financial rating services
    • A.M. Best
    • Standard and Poor's
    • Moody's
    • 2.6 Distribution systems
    • Independent
    • Direct
    • Exclusive/captive agent
    • Exchanges
    • 2.7 Law of agency
    • Insurer as principal
    • Producer/agent/broker-insurer relationships
    • 2.8 Authority and powers of producers/agents/brokers
    • Express
    • Implied
    • Apparent
    • 2.9 Elements of a legal contract
    • Offer and acceptance
    • Consideration
    • Competent parties
    • Legal purpose
    • 2.10 Legal interpretations affecting contracts
    • Reasonable expectations
    • Indemnity
    • Utmost good faith
    • Concealment
    • Representations
    • Misrepresentations
    • Warranties
    • Fraud
  • 3.0 Life Insurance Basics (17%)
    • 3.1 Producer Authority and Powers
    • Insurable interest
    • Personal uses of life insurance
    • Personal uses of life insurance > Survivor protection
    • Personal uses of life insurance > Estate creation/conservation
    • Personal uses of life insurance > Cash accumulation
    • Personal uses of life insurance > Security
    • Personal uses of life insurance > Exemption from creditor claims/probate
    • Needs approach to determining amount of personal life insurance
    • Needs approach to determining amount of personal life insurance > Types of information gathered
    • Needs approach to determining amount of personal life insurance > Determining lump-sum needs
    • Needs approach to determining amount of personal life insurance > Planning for income needs
    • Business uses of life insurance
    • Business uses of life insurance > Key person
    • Business uses of life insurance > Buy-sell
    • Factors in premium determination
    • Factors in premium determination > Mortality
    • Factors in premium determination > Interest
    • Factors in premium determination > Expense
    • Field underwriting
    • Field underwriting > Application procedures
    • Field underwriting > Required signatures
    • Field underwriting > Notice of information practices and premium collection
    • Field underwriting > Conditional receipt
    • Policy delivery
    • Policy delivery > Policy review
    • Policy delivery > Effective date of coverage
    • Policy delivery > Premium collection
    • Policy delivery > Statement of Good Health
    • Policy delivery > Delivery/electronic delivery requirements
    • Information sources and regulation
    • Information sources and regulation > Application
    • Information sources and regulation > Producer report
    • Information sources and regulation > Attending physician statement
    • Information sources and regulation > Investigative consumer report
    • Information sources and regulation > Medical Information Bureau (MIB)
    • Information sources and regulation > Medical examination and lab tests including HIV (RL 71-531)
    • Information sources and regulation > Financial information
    • Risk classifications
    • Risk classifications > Preferred
    • Risk classifications > Standard
    • Risk classifications > Substandard/rated
    • Risk classifications > Declined
  • 4.0 Life Insurance Policies (18%)
    • 4.1 Characteristics of Level Term
    • Renewability
    • Level premium
    • Convertibility
    • Term-to-65
    • 4.2 Decreasing Term
    • Credit/mortgage protection
    • 4.3 Whole Life
    • Ordinary
    • Limited pay
    • Single premium
    • 4.4 Characteristics of Whole Life
    • Cash value
    • Maturity
    • Guarantees
    • 4.5 Universal and Indexed Life
    • 4.6 Variable products
    • Regulation of variable products
    • Qualifications of producers for the sale of variable products
    • General account versus separate account
    • 4.7 Specialized policies
    • Joint life/first-to-die
    • Survivorship life/second-to-die
    • 4.8 Characteristics of Group Life
    • Individual certificates
    • Eligibility
    • Plan sponsors
    • Underwriting requirements
    • Required provisions (44-1607)
    • Assignability (44-1619)
    • Conversion (44-1607(8– 10), 44-1613, 44-1614)
    • Standard provisions
  • 5.0 Life Insurance Policy Provisions, Options and Riders (18%)
    • 5.1 Required Provisions (44-502)
    • Ownership
    • Assignment
    • Entire contract (44-502(3))
    • Right to examine (free look) (44-502.05)
    • Payment of premiums (44-502(1))
    • Grace period (44-502(2))
    • Reinstatement (44-502(11))
    • Incontestability (44-502(5))
    • Misstatement of age or sex (44-502(6))
    • Exclusions (44-502(5))
    • Statements of the insured (44- 502(4))
    • Payment of claims (44- 502(12))
    • Interest on proceeds (44-3, 44-143)
    • Prohibited provisions including backdating (44-503)
    • Suicide
    • Consideration
    • Insuring clause
    • 5.2 Beneficiaries
    • Designation options
    • Designation options > Individuals
    • Designation options > Classes
    • Designation options > Estates
    • Designation options > Minors
    • Designation options > Trusts
    • Succession
    • Succession > Primary
    • Succession > Contingent
    • Revocable versus irrevocable
    • Common Disaster Clause
    • 5.3 Settlement Options
    • Types of settlement options
    • Types of settlement options > Cash payment
    • Types of settlement options > Interest only
    • Types of settlement options > Fixed-period installments
    • Types of settlement options > Fixed-amount installments
    • Types of settlement options > Life income
    • Types of settlement options > Single life
    • Types of settlement options > Joint and survivor
    • Retained asset account
    • Spendthrift clause
    • 5.4 Nonforfeiture Options
    • Types of nonforfeiture options
    • Types of nonforfeiture options > Cash surrender value
    • Types of nonforfeiture options > Extended term
    • Types of nonforfeiture options > Reduced paid-up insurance
    • 5.5 Policy Loan and Withdrawal Options
    • Types of loans and withdrawals
    • Types of loans and withdrawals > Policy loans
    • Types of loans and withdrawals > Automatic premium loans
    • Types of loans and withdrawals > Withdrawals or partial surrenders
    • 5.6 Dividend Options
    • Dividend options
    • Dividend options > Cash
    • Dividend options > Reduction of premium/loan
    • Dividend options > Accumulation at interest
    • Dividend options > One-year term
    • Dividend options > Paid-up additions
    • Dividend options > Paid-up insurance
    • 5.7 Policy Riders
    • Disability riders
    • Disability riders > Waiver of premium
    • Disability riders > Waiver of cost of insurance (Universal Life)
    • Disability riders > Disability income benefit
    • Disability riders > Guaranteed insurability
    • Accelerated (living) and long-term care benefits/riders
    • Accelerated (living) and long-term care benefits/riders > Conditions for payment
    • Accelerated (living) and long-term care benefits/riders > Effect on death benefit
    • Accelerated (living) and long-term care benefits/riders > Qualifying events
    • Accelerated (living) and long-term care benefits/riders > Disclosure
    • Accelerated (living) and long-term care benefits/riders > Exclusions and restrictions
    • Additional insureds
    • Additional insureds > Spouse/other-insured term
    • Additional insureds > Children's term
    • Additional insureds > Family term
    • Riders affecting death benefit
    • Riders affecting death benefit > Accidental death and dismemberment
    • Riders affecting death benefit > Cost of living
    • Riders affecting death benefit > Return of premium
  • 6.0 Annuities (11%)
    • 6.1 Annuity Basics
    • Annuity concepts and uses
    • Annuity concepts and uses > Accumulation/annuity periods
    • Annuity concepts and uses > Owner
    • Annuity concepts and uses > Annuitant
    • Annuity concepts and uses > Beneficiary
    • Annuity concepts and uses > Death of owner
    • Annuity concepts and uses > Nebraska Protection in Annuity Transactions Act (44-8101 to 44-8109)
    • Types of annuities
    • Types of annuities > Single premium
    • Types of annuities > Fixed premium
    • Types of annuities > Flexible premium
    • Types of annuities > Immediate
    • Types of annuities > Deferred
    • Features/aspects of annuities
    • Features/aspects of annuities > Nonforfeiture
    • Features/aspects of annuities > Surrender charges
    • Fixed versus variable annuities (44-2212, 44-216; 210 Administrative Code Ch. 15, § 006, § 011)
    • Fixed versus variable annuities (44-2212, 44-216; 210 Administrative Code Ch. 15, § 006, § 011) > Interest rate guarantees
    • Fixed versus variable annuities (44-2212, 44-216; 210 Administrative Code Ch. 15, § 006, § 011) > Separate account
    • Fixed versus variable annuities (44-2212, 44-216; 210 Administrative Code Ch. 15, § 006, § 011) > General account
    • 6.2 Payout Options
    • Life contingency benefit options
    • Life contingency benefit options > Pure life
    • Life contingency benefit options > Life with guaranteed minimum
    • Life contingency benefit options > Single life
    • Life contingency benefit options > Multiple life
    • Annuity certain payment options
    • Annuity certain payment options > Installments for a fixed period/amount
  • 7.0 Federal Taxation of Life Insurance and Annuities (8%)
    • 7.1 General
    • Taxation of amounts available to policyowner
    • Taxation of amounts available to policyowner > Cash value increases
    • Taxation of amounts available to policyowner > Dividends
    • Taxation of amounts available to policyowner > Loans
    • Taxation of amounts available to policyowner > Surrenders
    • Taxation of amounts available to policyowner > Accelerated benefits
    • Taxation of amounts available to policyowner > Death benefit
    • Taxation of amounts received by the beneficiary
    • Taxation of amounts received by the beneficiary > General rules and exceptions
    • Taxation of amounts received by the beneficiary > Settlement options
    • Taxation of amounts received by the beneficiary > Tax implications of estate as beneficiary
    • Section 1035 exchanges
    • Qualified versus nonqualified annuities
    • Qualified versus nonqualified annuities > General requirements
    • Qualified versus nonqualified annuities > Taxation of distributions/withdrawals/contributions
    • Qualified versus nonqualified annuities > Premature distributions
    • Qualified versus nonqualified annuities > During accumulation phase
    • Qualified versus nonqualified annuities > Annuity phase, exclusion ratio
    • Modified endowment contracts (MECs)
    • Modified endowment contracts (MECs) > Modified endowment versus life insurance
    • Modified endowment contracts (MECs) > Seven-pay test
    • Modified endowment contracts (MECs) > Distributions
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