How life policy provisions, nonforfeiture options, dividend and settlement options and riders work in general is covered in the national Life Policy Provisions, Options and Riders guide. Nebraska's required life provisions are in Neb. Rev. Stat. 44-502, its prohibited provisions in 44-503, and its free look in 44-502.05. Life sales are governed by the solicitation rule (210 NAC 33), the illustrations rule (210 NAC 72), the advertising rule (210 NAC 50) and the replacement rule (210 NAC 19).

Required provisions (44-502)

Prohibited provisions (44-503)

• Backdating. A policy may not be dated more than six months before the application.
• Suicide. A policy may not exclude or limit suicide that occurs more than two years after the policy date.

Free look and claim interest

• Free look (44-502.05). Every individual life or annuity policy, except credit life, carries a notice that the buyer may return it within 10 days of delivery for a premium refund. The returned policy is void from the beginning.
• Interest on proceeds (44-3,143). If lump-sum proceeds aren't paid within 30 days after proof of death, interest runs from the date proof was received. Failing to pay it is an unfair claims practice.

Ownership, consent and creditors

• Insurable interest (44-103(13)). The beneficiary must have reason to expect some benefit from the insured's continued life, through a financial relationship or one of blood or marriage.
• Consent (44-704). A policy may be issued on someone else's life only on that person's application or written consent. A spouse may insure the other spouse, and anyone may insure a child, without the insured's consent. A qualified charity may own a policy with the insured's written consent and needs no insurable interest.
• Beneficiary rights (44-370). The owner may assign or surrender the policy without the beneficiary's consent unless the designation is irrevocable.
• Creditor protection (44-371). Proceeds and benefits are exempt from the insured's creditors. Cash and loan values totaling more than $100,000 aren't exempt.

Solicitation, illustrations and advertising

Solicitation (210 NAC 33)

• The agent must say they're acting as a life insurance agent and give the insurer's full name.
• Titles like "financial planner" can't imply fee-based advice unless that's true.
• Buyer's Guide and policy summary. The Buyer's Guide goes out before the initial premium is accepted, or with the policy if there's an unconditional refund right of at least 10 days. The policy summary is titled "Statement of Policy Cost and Benefit Information."
• Failing to deliver them is an omission that misrepresents the policy.
• On request, an insurer may charge up to $20 to prepare a statement of in-force policy data.
• The rule doesn't apply to annuities, credit life, most group life, ERISA plans or variable life.

Illustrations (210 NAC 72)

• An illustration must be labeled "life insurance illustration."
• It can't use "vanishing premium" or similar terms.
• The applicant signs that non-guaranteed elements could be higher or lower, and the producer signs a certification.

Advertising (210 NAC 50)

• Testimonials must be genuine and reflect the author's current opinion.
• Ads are kept five years after they stop being used.

Replacement (210 NAC 19)

What counts as a replacement

• An existing policy is converted to reduced paid-up or extended term, or otherwise reduced by using its nonforfeiture values.
• Using existing values within 4 months before or 13 months after the new policy date is evidence of a financed purchase.

Exempt: existing non-convertible term that expires in five years or less and can't be renewed, among others.

Producer's duties

1. Submit a statement signed by the applicant and producer on existing coverage.
2. If it's a replacement, present and read the replacement notice, unless the applicant declines, no later than when the application is taken. Both sign, and the applicant keeps a copy.
3. Leave all sales material with the applicant when the application is completed.

Replacing insurer's duties

• Notify the existing insurer within five business days.
• Tell the owner of the right to return the new policy within 30 days of delivery for an unconditional full refund.
• If the same insurer replaces its own policy, it credits time already served under the old incontestability and suicide periods.

Common exam traps

• The Nebraska life grace period is one month, with optional interest of up to 6%.
• The life and annuity free look is 10 days. The replacement free look is 30 days.
• Suicide can't be excluded more than two years after the policy date.
• The 15-day lapse notice applies to policies issued on or after January 1, 2026.
• Death proceeds earn interest if not paid within 30 days of proof.