Nebraska Revised Statute 44-369

Chapter 44 Section 369

44-369.

Premium notes; sale or pledge before delivery of policy; prohibited.

It shall be unlawful for any company or agent thereof to hypothecate, sell or dispose of a promissory note, received in payment for any part of a premium on a policy of insurance applied for under the provisions of this chapter, prior to the delivery of the policy to the applicant.

Source

  • Laws 1913, c. 154, § 154, p. 471;
  • R.S.1913, § 3291;
  • Laws 1919, c. 190, tit. V, art. XI, § 19, p. 653;
  • C.S.1922, § 7898;
  • C.S.1929, § 44-1119;
  • R.S.1943, § 44-369.

Annotations

  • Sale or pledge of note given for insurance premium is unlawful prior to delivery of policy. Standard Investment Co. v. Fisher, 126 Neb. 394, 253 N.W. 427 (1934).

  • Evidence was insufficient to show good faith in the purchase of note which was bought before insurance policy delivered. State Bank v. House, 114 Neb. 681, 209 N.W. 246 (1926).

  • A bank purchasing with full knowledge that the note was given to pay insurance prior to delivery of policy is not a bona fide holder and cannot recover thereon. Stockmen's State Bank v. Fisher, 106 Neb. 525, 184 N.W. 55 (1921).