10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The NE-PC exam has 150 questions and runs 2 hours 30 minutes.
These 10 free NE-PC questions are organized by exam domain, so you can see how each part of the Nebraska Property & Casualty Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
A Nebraska-licensed producer is arraigned on a felony charge involving alleged premium diversion. No trial date has been set, and the producer has not been convicted. What must the producer do?
Correct answer: A - Report within 30 days after the arraignment, initial pretrial hearing, or waiver and submit the charging documents.
A homeowners insurer increases an applicant's premium partly because of information in a consumer report. Which communication best satisfies the Fair Credit Reporting Act adverse-action requirement?
Correct answer: C - Give the reporting agency's name, address, and phone number; state that it did not make the decision; and explain dispute and 60-day free-report rights.
At a Nebraska agency, an unlicensed receptionist performs several tasks. Which task crosses from clerical support into activity requiring producer licensing?
Correct answer: D - Recommending a liability limit and urging the caller to submit an application
An insurer privately instructs a producer not to bind restaurant risks. The insurer still supplies signed binder forms, lists the producer publicly as authorized to bind commercial accounts, and never communicates the restriction to applicants. A restaurant owner reasonably relies on that appearance. The owner's reliance is based on:
Correct answer: B - Apparent authority created by the insurer's conduct
After reviewing its fire exposure, a woodworking shop installs automatic sprinklers and raises its property deductible from $1,000 to $25,000. How should the two decisions be classified?
Correct answer: C - Risk reduction followed by risk retention
An insurer reports $520,000 in incurred losses, $40,000 in loss-adjustment expenses, $800,000 in earned premium, and a 24% expense ratio. Which conclusion is correct?
Correct answer: A - A 70% loss ratio and a 94% combined ratio indicate about a 6% underwriting profit before investment income.
A commercial building is valued at $1,200,000 and carries a $720,000 limit with an 80% coinsurance clause. A covered fire causes $240,000 in damage, and the deductible is $10,000. Assuming no other limit applies, what will the insurer pay?
Correct answer: D - $170,000
A claims-made-and-reported errors and omissions policy has a January 1, 2022 retroactive date, expires December 31, 2026, and includes a one-year extended reporting period. Assuming all other terms are met, which claim fits the policy's timing requirements?
Correct answer: B - A claim first made and reported in June 2027 for a negligent act committed in 2025
Under an unendorsed DP-3, a contractor accidentally spills dye, staining a built-in hardwood floor and the homeowner's television. No exclusion applies, and accidental staining is not one of Coverage C's named perils. How should the loss be analyzed?
Correct answer: C - Coverage A covers the built-in floor; Coverage C does not cover the television for this unlisted cause.
A guest trips over a child's toy at an insured's home and incurs $2,400 in medical expenses. The facts do not establish negligence, and the guest is neither an insured nor a household resident. Which homeowners response is most accurate?
Correct answer: D - Coverage F can pay qualifying medical expenses without fault; Coverage E requires legal liability.
The NE-PC exam also covers these domains. Drill them in the full free practice test:
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