Nebraska Property & Casualty Insurance License Exam — All Questions
3 questions
In Nebraska, an owner who does not carry a liability policy may instead file proof of financial responsibility. One accepted form is a surety bond conditioned for the payment of up to what amount?
- a.$10,000
- b.$40,000
- c.$75,000✓
- d.$500,000
Nebraska DMV financial-responsibility guidance (dmv.nebraska.gov) states an acceptable surety bond must be conditioned for the payment of up to $75,000. Most owners meet the requirement by simply carrying a liability policy instead; verify current requirements with the Nebraska DMV.
What is the best practice for a Nebraska producer quoting the state's minimum auto liability limits to a client?
- a.Quote whatever another state uses, since limits are identical nationwide
- b.Tell the client no minimum exists
- c.Assume the minimum never changes
- d.Confirm the current statutory split limits with the Nebraska DMV / Department of Insurance, because legislatures periodically raise minimums✓
State minimum auto liability limits are set by statute and are periodically increased. A producer should verify the current per-person, per-accident, and property-damage figures against official Nebraska DMV / Department of Insurance guidance rather than quoting a remembered number that may be outdated.
Uninsured/underinsured motorist (UM/UIM) coverage on an auto policy is designed to:
- a.Pay the other driver's damages when your client is at fault
- b.Pay your client's own bodily-injury damages when an at-fault driver has no insurance or not enough✓
- c.Replace collision coverage on the client's own vehicle
- d.Cover only property damage to buildings
UM/UIM protects the policyholder (and covered occupants), paying their injury damages when the at-fault driver is uninsured or underinsured. Whether Nebraska mandates it or requires it to be offered, and at what limits, is set by statute — confirm the current rule with the Nebraska Department of Insurance.