NE Life & Health study guide
NE Life & Health · Work through your exam, one topic at a time.
The Nebraska Life & Health producer license authorizes an individual to sell, solicit, and negotiate life insurance and health insurance products in Nebraska. It is the credential that new agents, agency staff, and career-changers pursue when they want to work in life, annuities, disability income, medical expense, and group benefits markets. The NE Life & Health study guide has 10 sections and about 3,348 words.
01Insurance Regulation
Insurance in the United States is regulated principally at the state level. In Nebraska, the Nebraska Department of Insurance , headed by a Director of Insurance appointed by the Governor , licenses producers and companies, approves policy forms and rates, conducts financial and market-conduct examinations, and enforces the unfair trade practice statutes.
348 words, about 2 min02General Insurance Concepts
Insurance deals with pure risk - the chance of loss only. Speculative risk (gain or loss, as in gambling or investing) is not insurable.
367 words, about 2 min03Life Insurance Basics
Life insurance replaces income, funds obligations (mortgage, education, business obligations), pays estate taxes and settlement costs, and creates charitable gifts. Two classic measuring tools: human life value (present value of the insured's future earnings minus personal expenses) and the needs approach (immediate cash needs + income replacement + education + debt, minus existing resources).
338 words, about 2 min04Life Insurance Policies
Term provides pure death protection for a stated period with no cash value . Varieties: level (face constant), decreasing (face declines - mortgage protection), increasing (face rises), renewable (guaranteed renewal without proof of insurability, at higher premium), convertible (exchange for permanent coverage; conversion may be attained-age or original-age).
331 words, about 2 min05Life Insurance Policy Provisions, Options and Riders
Entire contract - the policy plus attached application is the whole agreement; no side promises count. Incontestability - after two years the insurer cannot contest for misrepresentation (fraud in some states excepted).
357 words, about 2 min06Annuities
An annuity is a contract that liquidates a sum of money over time, protecting against longevity risk . Parties: owner (controls the contract), annuitant (whose life expectancy drives payments), beneficiary (receives survivor benefits).
344 words, about 2 min07Health Insurance Basics
Health insurance prices morbidity (frequency and severity of illness) rather than mortality. Adverse selection is controlled by underwriting, waiting periods, and preexisting-condition rules.
291 words, about 1 min08Health Insurance Policy Provisions
Individual health policies follow a standard set of required provisions: entire contract , time limit on certain defenses (typically two years, after which misstatements cannot void the policy except fraud), grace period (commonly 7 days weekly, 10 days monthly, 31 days other), reinstatement (coverage restored with evidence of insurability; a new contestable period applies to new statements), notice of claim (usually 20 days), claim forms (15 days), proof of loss (90 days), time of payment of claims (immediate/45 days), physical examination , legal actions (no suit before 60 days, generally within 3 years), change of occupation (benefits reduced if the insured moves to a more hazardous class), misstatement of age , unpaid premium , cancellation (5–10 days' notice), and conformity with state statutes . Preexisting-condition limitations, coordination of benefits (primary/secondary rules prevent duplicate payment), subrogation , conversion privilege (group to individual without evidence of insurability), continuation , and exclusions (war, self-inflicted injury, illegal occupation, elective cosmetic procedures).
330 words, about 2 min09Disability Income and Medical Expense Insurance
The definition of disability decides everything. Own occupation pays when the insured cannot perform their own specific job (broader, more expensive); any occupation pays only when unable to perform any job for which they are reasonably suited by education and experience.
318 words, about 2 min10Group Health Insurance and Federal Tax Considerations
Group coverage underwrites the group , not the individual. Key requirements: a group formed for a reason other than buying insurance , eligibility rules (full-time, actively at work), a minimum participation percentage (often 75% of eligible employees in a contributory plan; 100% in some noncontributory plans), and no individual evidence of insurability during open enrollment.
324 words, about 2 min