Nebraska Life & Health Insurance License Exam Overview
The Nebraska Life & Health Insurance License Exam is administered by PSI Services LLC (PSI) on behalf of the Nebraska Department of Insurance (DOI). Nebraska is a unique insurance market—home to major insurers including Mutual of Omaha and Berkshire Hathaway—creating exceptional career opportunities for licensed producers.
Nebraska is one of the states that does not require pre-licensing education, allowing you to schedule your exam immediately. The exam requires a 70% passing score and offers both in-person and remote proctored testing options.
Exam Format at a Glance
| Component | Combined Exam | Life Only | Health Only |
|---|---|---|---|
| Total Questions | 150 | 100 | 100 |
| Time Limit | 2.5 hours | 2 hours | 2 hours |
| Passing Score | 70% | 70% | 70% |
| Testing Vendor | PSI | ||
| Exam Fee | $47 | $43 | $43 |
| Pre-licensing | Not required | Not required | Not required |
Exam Options: Nebraska offers both a combined Life and Health exam (150 questions) and separate single-line exams for Life only or Health only (100 questions each). Most candidates take the combined exam for greater flexibility in their career.
Why Get Licensed in Nebraska?
- Insurance industry hub — Home to Mutual of Omaha and Berkshire Hathaway
- No pre-licensing required — Start studying and take the exam immediately
- Career headquarters — Many insurance companies have corporate offices in Omaha
- Growing Omaha metro — Strong client base and economic growth
- Midwest market access — Central location for regional opportunities
- Industry networking — Connections to major insurance employers
- Remote exam option — Flexibility to test from home
Start Your FREE Nebraska Life & Health Exam Prep
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Key Topics Covered on the Exam
1. Life Insurance Fundamentals (30%)
Types of Life Insurance:
- Term Life (level, decreasing, renewable, convertible)
- Whole Life (ordinary, limited pay, single premium)
- Universal Life (flexible premiums, adjustable death benefit)
- Variable Life (securities-based, requires additional FINRA licensing)
Nebraska Life Insurance Policy Provisions:
| Provision | Nebraska Requirement |
|---|---|
| Grace Period | 31 days |
| Incontestability | 2 years from policy issue |
| Suicide Clause | 2 years |
| Free Look Period | 10 days |
| Reinstatement | 3 years |
| Misstatement of Age | Adjustment of benefits |
Key Life Insurance Concepts:
- Beneficiary designations (primary, contingent, revocable, irrevocable)
- Settlement options (lump sum, interest only, fixed period, life income)
- Policy loans and nonforfeiture options
- Dividend options for participating policies
- Annuity products and tax treatment
2. Health Insurance Fundamentals (30%)
Major Medical Coverage:
- Deductibles, copays, and coinsurance
- Out-of-pocket maximums
- Network types (HMO, PPO, EPO, POS)
- Essential health benefits under ACA
Nebraska-Specific Health Topics:
Nebraska uses the federal marketplace (Healthcare.gov) for individual and family health insurance coverage. Understanding how the ACA marketplace works is essential for the exam.
Nebraska State Health Programs:
| Program | Description |
|---|---|
| Nebraska Medicaid | State Medicaid program for eligible low-income residents |
| Heritage Health | Managed care program for Medicaid/CHIP enrollees |
| CHIP | Children's Health Insurance Program up to 218% FPL |
| Medicaid Expansion | Adults up to 138% FPL (effective October 2020) |
Heritage Health Program Details:
- Nebraska's comprehensive managed care Medicaid program
- Combines physical health, behavioral health, dental, and pharmacy
- Over 400,000 Nebraskans enrolled
- Three statewide health plans: Nebraska Total Care, WellCare of Nebraska, United HealthCare
- Members choose their health plan
- Open enrollment November 1 - December 15 annually
- $4 billion investment in community health
Medicaid Expansion:
- Took effect October 2020
- Covers adults under 65 with income up to 138% FPL
- Administered through Heritage Health managed care
Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the Nebraska Life & Health exam.
3. Annuities (15%)
Annuity Types:
- Fixed annuities (guaranteed interest rate)
- Variable annuities (market-based returns, requires securities license)
- Indexed annuities (tied to market index)
- Immediate vs. deferred annuities
Nebraska Annuity Suitability:
- Producers must complete a state-approved 4-hour Annuity Best Interest course before selling annuity products
- Suitability analysis required for all annuity recommendations
- Enhanced documentation requirements for senior consumers
4. Nebraska Insurance Regulations (15%)
Regulatory Authority: The Nebraska Department of Insurance regulates all insurance activities in the state under Nebraska Revised Statutes Chapter 44.
Key Nebraska Insurance Laws:
| Regulation | Requirement |
|---|---|
| Licensing Authority | Nebraska DOI |
| Exam Vendor | PSI Services LLC |
| License Renewal | Every 2 years on birth month |
| CE Requirement | 24 hours per 2-year period |
| Ethics Requirement | 3 hours of CE must be ethics |
Continuing Education Requirements:
| Requirement | Details |
|---|---|
| Total Hours | 24 hours every 2 years |
| Ethics | 3 hours required |
| Carryover | Not allowed |
| Course Repetition | Cannot repeat in same reporting period |
| Renewal Window | 90 days before expiration |
CE Details:
- 24 hours total every 2-year license term
- 3 hours must be in insurance-related ethics
- Additional ethics hours count toward general credit
- License renewal on last day of birth month every 2 years
- Even birth year = even renewal year; odd birth year = odd renewal year
- CE must be completed before renewal window opens
Special Training Requirements:
- Long-Term Care: 8-hour initial training, then 4-hour refresher every 2 years
- Annuity Training: 4-hour Annuity Best Interest course before selling annuities
- Flood Insurance: One-time 3-hour course for NFIP sales
Exempt from CE Requirements:
- Limited-lines licenses (credit life, auto mechanical breakdown, prepaid legal, motor club, prepaid dental, HMO, unemployment credit)
- Non-residents in good standing with home state
- Crop Only Producers: 6 CE hours including 3 ethics
5. Ethics and Producer Responsibilities (10%)
Producer Duties:
- Fiduciary responsibility to clients
- Needs analysis and suitability determination
- Full disclosure of policy terms and conditions
- Proper handling of premiums
- Reporting misconduct to the Department
Prohibited Practices:
- Rebating (returning part of premium to client)
- Twisting (misrepresenting to induce replacement)
- Churning (excessive policy replacements)
- Misrepresentation of policy benefits
- Unfair discrimination
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Life insurance products and provisions | 15-18 |
| Week 2-3 | Health insurance and Nebraska programs | 15-18 |
| Week 3-4 | Annuities and retirement products | 8-10 |
| Week 4-5 | Nebraska regulations and Chapter 44 | 10-12 |
| Week 5-6 | Practice exams and review | 15-20 |
Total recommended study time: 65-80 hours
Nebraska-Specific Exam Tips
1. Utilize Free Resources
Nebraska DOI provides valuable study resources:
- Exam Content Outlines — Breakdown of topics and question percentages
- Candidate Information Bulletin — Testing procedures and requirements
- Practice Exams — Available through PSI website
2. Master the Key Numbers
| Topic | Number to Remember |
|---|---|
| Grace period (life) | 31 days |
| Free look period | 10 days |
| Incontestability | 2 years |
| CE requirement | 24 hours/2 years |
| Ethics CE | 3 hours |
| Passing score | 70% |
| Combined exam questions | 150 |
| Combined exam time | 2.5 hours |
3. Know Heritage Health
Understanding Nebraska's Medicaid managed care program is essential:
- Three health plan options for members
- Combines physical, behavioral, dental, and pharmacy benefits
- Open enrollment period November 1 - December 15
- Over 400,000 enrollees statewide
4. Study Nebraska Chapter 44
The state section heavily tests Nebraska Revised Statutes Chapter 44:
- Producer licensing requirements
- Unfair trade practices
- Policy provisions specific to Nebraska
- DOI authority and enforcement
- Consumer protection regulations
Common Mistakes to Avoid
- Underestimating the 150-question exam — Plan adequate study time
- Skipping Nebraska-specific content — State questions are significant
- Not understanding Heritage Health — Key Nebraska health program
- Ignoring annuity suitability — Nebraska has specific training requirements
- Missing CE requirements — 24 hours with 3 ethics required
- Cramming — Spread study over 4-6 weeks for best retention
- Not using PSI practice exams — Available through testing vendor
After Passing Your Exam
- Wait 2-3 business days — Results upload to DOI system
- Apply for license through NIPR.com
- Pay license fee to Nebraska DOI
- Affiliate with insurance company or agency
- Complete special training before selling LTC, annuities, or flood insurance
- Begin your career — Nebraska's insurance hub awaits!
Scheduling Your Exam
- Visit PSI Nebraska Insurance
- Create an account and select exam type
- Choose in-person testing center OR remote proctored exam
- Pay the exam fee ($47 combined, $43 single line)
- Bring two valid government-issued IDs to in-person exams (one with photo)
Remote Exam Option: Nebraska offers remote proctored exams through PSI Bridge. You need:
- Computer or laptop compatible with PSI Bridge platform
- Webcam and stable internet connection
- Quiet, private testing environment
Nebraska's Insurance Industry Advantage
Nebraska offers unique advantages for insurance professionals:
Major Insurance Employers:
- Mutual of Omaha — Life, health, and financial services
- Berkshire Hathaway — Parent of GEICO, National Indemnity, and many more
- Physicians Mutual — Supplemental insurance
- Blue Cross Blue Shield of Nebraska — Health insurance
- Ameritas — Life insurance and financial services
Getting licensed in Nebraska positions you for career opportunities with these industry leaders, many of which have corporate headquarters in Omaha.
Start Your Nebraska Insurance Career Today
The Nebraska Life & Health license opens doors to one of the nation's premier insurance markets. With major insurers headquartered in Omaha and no pre-licensing requirements, you can launch your career quickly.
Our free study materials include:
- Complete topic coverage for the combined exam
- Practice questions with detailed explanations
- Nebraska-specific regulations and Heritage Health
- Chapter 44 study guides
- AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.