NE Apprentice License

The Nebraska Department of Insurance can now issue temporary licenses to apprentice insurance producers who have not yet achieved full licensure.

To secure a license the apprentice insurance producer must have a sponsoring insurance producer who has held a valid Nebraska license for at least one year. The sponsoring producer may not supervise more than 10 apprentices during a calendar year or five at a given time. A sponsor who supervises more than 5 apprentices per year must ensure that at least 25% of their apprentice producers take the required licensing examination. If the 25% rate is not obtained, the sponsor must make available to the Department documentation regarding the rate and what good faith efforts were made towards compliance.

The apprentice is not required to pass an examination to obtain a temporary license but must eventually intend to apply for a full resident insurance license.

An apprentice license may be denied for any violation of the insurance code and regulations. Additionally, the supervision powers of a resident insurance producer may be suspended or revoked, after notice and opportunity for a hearing, if it is determined that the sponsoring producer or company abused the temporary appointment powers.

To obtain a temporary license, the apprentice must complete an application with a filing fee. The sponsoring producer must submit a signed form stating that:

• the applicant is being considered for appointment by the insurance producer as its agent
• the sponsor will act as a suitable mentor for the apprentice and assumes responsibility for all acts of the apprentice;
• The applicant will complete training under the supervision of the insurance producer; and
• The applicant intends to seek a license under the same lines of authority as the sponsor

The apprentice temporary license is valid for 120 days after the date of issuance and cannot be reissued.

If the sponsoring insurance producer is no longer licensed or chooses not to continue sponsoring the apprentice for any reason, the apprentice has 10 days to obtain new sponsorship and notify the Department of Insurance. The apprentice may not sell, solicit, or negotiate insurance in that interim period.

The sponsoring producer may not knowingly pay, directly or indirectly, to an apprentice; and an apprentice producer may not receive, commission on the sale of insurance covering:

• the apprentice;
• a person related to the apprentice;
• a person who is or has been, during the past six months, the apprentice’s employer; or
• a person who is or has been during the past six months an employee of the apprentice.

An apprentice producer may not engage in an insurance sale or other agency transaction that the apprentice knows or should know will result or is intended to result in the purchase of a new life insurance or annuity contract and any of the following actions regarding an existing insurance or annuity contract:

• termination of the contract by lapse, forfeiture, surrender or other means;
• conversion of the contract to reduced paid-up insurance, a continuation of the contract as extended term insurance, or reduction in the value of the contract using nonforfeiture benefits or other policy values;
• amendment of the contract to reduce benefits, or the term for which coverage would otherwise remain in force or for which benefits would be paid;
• reissuance of the contract with a reduction in cash value; or
• pledge of the contract as collateral or subjection of the contract to borrowing, whether in a single loan or under a schedule of borrowing, for amounts that in the aggregate exceed 25% of the loan value prescribed by the contract.

Until an electronic application is available, all applications and forms for the producer apprentice license must be submitted to the Nebraska Department of Insurance at DOI.Licensing@Nebraska.gov or by mail to:

Nebraska Department of Insurance
PO Box 95087
Lincoln, NE 68509-5087