Free Types of Life Insurance Policies Study Guide
Nebraska Life exam — Types of Life Insurance Policies.
Term, whole, universal and variable life, and the general features of group life, are covered in the national Types of Life Insurance Policies guide. Nebraska's Life exam adds the group life standard provisions (Neb. Rev. Stat. 44-1607 to 44-1619) and the rules for variable contracts (44-2201 and following).
Group life standard provisions (44-1607)
| Provision | Nebraska rule |
|---|---|
| Grace period | 31 days for every premium except the first. Death benefit coverage continues |
| Incontestability | After two years from the issue date, the policy can't be contested except for nonpayment |
| Facility of payment | If the policy reserves it, up to $2,000 may be paid to someone equitably entitled because of funeral or last-illness expenses |
| Conversion when employment ends | An individual policy without evidence of insurability if the application and first premium are made within 31 days |
| Conversion when the group policy ends | Available to people insured for at least five years. The amount may be limited to the lesser of the coverage lost (less other group coverage) or $10,000 |
| Death during the conversion period | The amount that could have been converted is paid as a group claim |
| Total disability | Coverage may continue on a premium-paying basis for six months from the start of disability. It ends sooner if a disability provision applies or the group policy ends |
Other group life rules
- Late notice of conversion (44-1613). An insured who isn't told of the conversion right in time gets extra time ending 15 days after notice is given. The extension can't run more than 60 days past the original conversion period.
- Dependent coverage (44-1614). Coverage on a spouse or dependent child can't exceed 50% of the employee's insurance.
- Assignment (44-1619). An insured may assign rights under a group policy, including the right to name a beneficiary, to anyone except the group policyholder.
Variable life and variable annuities
- Licensing:
- Selling variable products requires the variable life and variable annuity line.
- That line requires a life license, held or applied for, plus passing scores on FINRA Series 6 and 63, or 7 and 66. There's no separate Nebraska exam.
- Anyone selling individual variable annuities must be licensed for variable contracts (44-2216).
- Separate accounts (44-2212). Variable life cash values are held in a separate account invested in subaccounts the owner chooses. A separate account isn't liable for the insurer's other business or other separate accounts.
Other definitions you may see
- Pre-need funeral insurance is life insurance or a fixed annuity bought solely to pay for funeral services or merchandise (44-4049(10)).
- Pure risk involves only the chance of loss or no loss. Speculative risk also has a chance of gain (44-2611).
- Life line of authority (44-4054(1)(a)). It covers life insurance, endowments and annuities, and may include AD&D and disability income benefits.
Common exam traps
- Group life facility of payment is $2,000 in Nebraska.
- Group conversion: 31 days. A plan termination conversion requires five years of coverage and may be capped at $10,000.
- Dependent group life can't exceed 50% of the employee's amount.
- Variable products require FINRA registration. Nebraska gives no separate exam.
Practice Types of Life Insurance Policies questions All Life topics
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
