Nebraska Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in Nebraska?
- a.Nebraska Department of Insurance✓
- b.Nebraska Department of Motor Vehicles
- c.Nebraska Department of Banking and Finance
- d.Nebraska Secretary of State
Nebraska regulates insurers and licenses property and casualty producers through the Nebraska Department of Insurance (verified at doi.nebraska.gov). The Department of Motor Vehicles handles vehicle registration and proof of financial responsibility but does not license producers.
A Nebraska producer gives a prospect part of her commission in cash to persuade them to buy a homeowners policy. Under Nebraska's unfair insurance trade practices rules, this is:
- a.Allowed if the producer keeps a receipt
- b.Allowed for first-time buyers only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Rebating — giving any part of the premium or commission, or other valuable consideration, as an inducement to buy — is a prohibited unfair trade practice. It can create unfair discrimination between similarly situated insureds and is grounds for discipline by the Nebraska Department of Insurance.
Under Nebraska law, once a personal auto or homeowners policy has been in force beyond its initial underwriting period, mid-term cancellation by the insurer is generally allowed only:
- a.For any reason, with no notice to the insured
- b.For specific statutory reasons such as nonpayment of premium, fraud, or a substantial increase in risk, with required advance written notice✓
- c.Only during the first 24 hours after issuance
- d.Never, because in-force policies can never be cancelled
Like most states, Nebraska restricts mid-term cancellation of seasoned personal-lines policies to defined grounds (for example nonpayment, material misrepresentation/fraud, or a substantial increase in the hazard) and requires advance written notice. The exact notice day-counts are set by statute and change periodically; confirm the current figures with the Nebraska Department of Insurance before relying on a specific number.