Nebraska Life and Health License Practice Exam 2026 – Comprehensive Test Prep

The scenario presents a situation where various producers have engaged in different types of sales activities concerning insurance policies. The key aspect to focus on is the behavior of selling insurance policies to family members.

The correct answer indicates that Sasha, who sold insurance policies to family members and friends, would be the producer's license that the Director could suspend. This is because selling insurance policies to family members can raise ethical and regulatory concerns, particularly if there are issues of favoritism, coercion, or lack of compliance with proper agency practices.

In contrast, Julio, who has sold insurance policies, but not to relatives, and Adam, who sold only to friends, are not engaging in the specific activity that could lead to suspension. Their actions do not fall into the category of potentially problematic sales to family members. Kendall, having not sold any policies at all, has not engaged in any behavior that would warrant disciplinary action from the Director.

Since Sasha is involved in the problematic practice, while Julio, Adam, and Kendall are not, it emphasizes that ethical standards and practices play a significant role in a producer's compliance and standing with regulatory authorities. Thus, the correct answer highlights the significance of family sales in assessing potential violations that could lead to action against a producer's license.