44-101. Insurance; business public in character; deceptive practices prohibited.

Within the intent of this chapter, the business of apportioning and distributing losses arising from specified causes among all those who apply and are accepted to receive the benefits of such service, is public in character, and requires that all those having to do with it shall at all times be actuated by good faith in everything pertaining thereto, shall abstain from deceptive or misleading practices, and shall keep, observe and practice the principles of law and equity in all matters pertaining to such business. Upon the insurer, the insured, and their representatives, shall rest the burden of maintaining proper practices in said business.

Source:Laws 1913, c. 154, § 1, p. 393; R.S.1913, § 3137; Laws 1919, c. 190, tit. V, art. II, § 1, p. 573; C.S.1922, § 7743; C.S.1929, § 44-101; R.S.1943, § 44-101.


Annotations

44-101.01. Department of Insurance; general powers; director; duties.

The Department of Insurance shall have general supervision, control, and regulation of insurance companies, associations, and societies and the business of insurance in Nebraska, including companies in process of organization. The Director of Insurance shall be the chief administrative officer of the department. The director shall have the power and duty to enforce and execute all the insurance laws of this state and to adopt and promulgate all needful rules and regulations for the purpose of carrying out the true spirit and meaning of Chapter 44 and all laws relating to the business of insurance and, to that end, may authorize and empower an assistant or employee to do any and all things that he or she may do and on his or her behalf, and he or she shall see that all laws respecting insurance companies and insurance agents are faithfully executed. The director or his or her representative shall issue all certificates and licenses as provided for in Chapter 44. If the applicant is an individual, the application for a certificate or license shall include the applicant's social security number. The director and his or her authorized representative shall have the power and authority to do all things and to perform all acts the department is given the power and authority to do.

Source:Laws 1913, c. 154, § 3, p. 396; R.S.1913, § 3139; Laws 1919, c. 190, tit. V, art. III, § 1, p. 576; C.S.1922, § 7745; C.S.1929, § 44-201; R.S.1943, § 44-104; R.R.S.1943, § 81-501; Laws 1969, c. 360, § 3, p. 1284; Laws 1981, LB 113, § 22; Laws 1989, LB 92, § 1; Laws 1997, LB 752, § 109.


Annotations

44-102. Insurance, defined.

For purposes of Chapter 44, unless the context otherwise requires, insurance shall mean a contract whereby one party, called the insurer, for a consideration, undertakes to pay money or its equivalent or to do an act valuable to another party, called the insured, or to his or her beneficiary, upon the happening of the hazard or peril insured against whereby the party insured or his or her beneficiary suffers loss or injury.

Source:Laws 1913, c. 154, § 1, p. 394; R.S.1913, § 3137; Laws 1919, c. 190, tit. V, art. II, § 1, p. 573; C.S.1922, § 7743; C.S.1929, § 44-101; R.S.1943, § 44-102; Laws 1989, LB 92, § 2.


Annotations

44-102.01. Insurance; service contract excluded.

For purposes of Chapter 44, insurance does not include a service contract. For purposes of this section, service contract means (1) a motor vehicle service contract as defined in section 44-3521 or (2) a contract or agreement, whether designated as a service contract, maintenance agreement, warranty, extended warranty, or similar term, whereby a person undertakes to furnish, arrange for, or, in limited circumstances, reimburse for service, repair, or replacement of any or all of the components, parts, or systems of any covered residential dwelling or consumer product when such service, repair, or replacement is necessitated by wear and tear, failure, malfunction, inoperability, inherent defect, or failure of an inspection to detect the likelihood of failure.

Source:Laws 1990, LB 1136, § 91; Laws 2011, LB535, § 10.    


44-103. Terms, defined.

For purposes of Chapter 44, unless the context otherwise requires:

(1) The terms company, corporation, insurance company, or insurance corporation shall include all corporations, associations, partnerships, or individuals engaged as insurers in the business of insurance;

(2) Domestic designates those companies incorporated or formed in this state;

(3) Foreign designates those companies incorporated or formed under the laws of the United States or any other state in the United States and alien designates those companies incorporated or formed under the laws of any country other than the United States;

(4) Admitted company or authorized company designates a company qualified and licensed to transact business under Chapter 44;

(5) Nonadmitted company or unauthorized company designates a company not licensed to transact business in this state under Chapter 44;

(6) Unearned premiums and net value of policies severally shall mean the liability of an insurance company upon its insurance contracts, other than accrued claims, computed by rules of valuation established herein;

(7) Profits of a mutual company shall mean that portion of its cash funds not required for payment of losses and expenses nor set apart for any purpose allowed by law;

(8) Agent or insurance agent shall mean an insurance producer;

(9) Broker or insurance broker shall mean an insurance producer;

(10) Insurance producer or producer shall mean a person required to be licensed under the laws of this state, including the Insurance Producers Licensing Act, to sell, solicit, or negotiate insurance;

(11) Adjuster or insurance adjuster shall mean a person, copartnership, or corporation who undertakes to ascertain and report the actual loss or damage to the subject matter of the insurance due to the hazard or peril insured against;

(12) Director shall mean the Director of Insurance;

(13)(a) Insurable interest shall mean every interest in property or any relation thereto, or liability in respect thereof, of such a nature that a contemplated peril might directly damnify the insured.

(b) Insurable interest, in the matter of life and health insurance, exists when the beneficiary because of relationship, either pecuniary or from ties of blood or marriage, has reason to expect some benefit from the continuance of the life of the insured;

(14) Double insurance exists when the same party is insured by several insurers separately in respect to the same subject and interest;

(15) Overinsurance exists when a party having an insurable interest in property has insurance thereon against the same hazard or peril in excess of the actual value of his or her interest therein;

(16) Reinsurance shall mean a contract by which an insurer procures a third party to insure it against loss or liability by reason of such original insurance;

(17) Department shall mean the Department of Insurance;

(18) Rebate shall mean anything of value or the making of an agreement, expressed or implied, that will directly or indirectly diminish any premium below the amount specified in the policy but shall not include the dividend or refund paid or allowed on participating policies nor bonuses paid or allowed directly by any company upon nonparticipating policies which have been in force at least five years;

(19) Stock company shall mean a company with a capital stock that charges a fixed premium and is required to maintain the reserve provided by Chapter 44;

(20) Mutual company shall mean a company without capital stock that charges a fixed premium and is required to maintain the same reserve as a stock company;

(21) Assessment association shall mean a company that meets its losses and expenses from assessment levied upon its members; and

(22) Insurer shall include all companies, exchanges, societies, or associations whether organized on the stock, mutual, assessment, or fraternal plan of insurance and reciprocal insurance exchanges.

Source:Laws 1913, c. 154, § 2, p. 394; R.S.1913, § 3138; Laws 1919, c. 190, tit. V, art. II, § 2, p. 573; C.S.1922, § 7744; C.S.1929, § 44-102; R.S.1943, § 44-103; Laws 1984, LB 801, § 45; Laws 1989, LB 92, § 3; Laws 2001, LB 51, § 22.    


Cross References

Annotations

44-104. Transferred to section 81-501.

44-105. Certificate of authority; grant; conditions; examination.

Before granting a certificate of authority to any insurance company to issue policies or make contracts of insurance in this state, the Department of Insurance shall be satisfied by such examination as it may cause to be made or such evidence as it may require that such company is duly qualified under the laws of this state to transact business in this state. The department shall examine a corporation which has received a permit from the department to complete its organization as an insurance company whenever it deems it necessary or prudent to protect shareholders, applicants for membership or for insurance, creditors, or the public.

Source:Laws 1913, c. 154, § 8, p. 398; R.S.1913, § 3144; Laws 1919, c. 190, tit. V, art. III, § 1, p. 576; C.S.1922, § 7745; C.S.1929, § 44-201; R.S.1943, § 44-105; Laws 1957, c. 178, § 10, p. 615; Laws 1989, LB 92, § 4.


44-106. Domestic company; books and records required.

The Department of Insurance shall require every domestic insurance company to keep its books, records, accounts and vouchers in such manner that it may readily verify its annual statement, and ascertain whether the company is solvent and has complied with the law.

Source:Laws 1913, c. 154, § 8, p. 398; R.S.1913, § 3144; Laws 1919, c. 190, tit. V, art. III, § 1, p. 576; C.S.1922, § 7745; C.S.1929, § 44-201; R.S.1943, § 44-106.


44-107. Repealed. Laws 1993, LB 583, § 116.

44-107.01. Repealed. Laws 1993, LB 583, § 116.

44-107.02. Repealed. Laws 1993, LB 583, § 116.

44-107.03. Repealed. Laws 1993, LB 583, § 116.

44-108. Repealed. Laws 1993, LB 583, § 116.

44-108.01. Repealed. Laws 1993, LB 583, § 116.

44-108.02. Repealed. Laws 1993, LB 583, § 116.

44-108.03. Repealed. Laws 1993, LB 583, § 116.

44-108.04. Repealed. Laws 1993, LB 583, § 116.

44-109. Repealed. Laws 1993, LB 583, § 116.

44-110. Repealed. Laws 1993, LB 583, § 116.

44-111. Repealed. Laws 1993, LB 583, § 116.

44-111.01. Repealed. Laws 1993, LB 583, § 116.

44-112. Department of Insurance; records.

The Department of Insurance shall preserve in a permanent form a record of its proceedings, and the acts and proceedings of its officers, including a concise statement of the results of all investigations or examinations of insurance companies.

Source:Laws 1913, c. 154, § 17, p. 405; R.S.1913, § 3153; Laws 1919, c. 190, tit. V, art. III, § 10, p. 583; C.S.1922, § 7754; C.S.1929, § 44-210; R.S.1943, § 44-112.


44-112.01. Transferred to section 44-6606.

44-113. Department; report; contents.

The Department of Insurance shall transmit to the Governor, ten days prior to the opening of each session of the Legislature, a report of its official transactions, containing in a condensed form the statements made to the department by every insurance company authorized to do business in this state pursuant to Chapter 44, as audited and corrected by it, arranged in tabular form or in abstracts, in classes according to the kind of insurance, which report shall also contain (1) a statement of all insurance companies authorized to do business in this state during the year ending December 31 next preceding, with their names, locations, amounts of capital, dates of incorporation, and of the commencement of business and kinds of insurance in which they are engaged respectively; and (2) a statement of the insurance companies whose business has been closed since making the last report, and the reasons for closing such businesses, with the amount of their assets and liabilities, so far as the amount of their assets and liabilities are known or can be ascertained by the department. The report shall also be transmitted electronically to the Clerk of the Legislature. Each member of the Legislature shall receive a copy of such report by making a request for it to the director. The department may transmit the report by electronic format through the portal established under section 84-1204 after notification of such type of delivery is given to the recipient. The department shall maintain the report in a form capable of accurate duplication on paper.

Source:Laws 1913, c. 154, § 18, p. 405; R.S.1913, § 3154; Laws 1919, c. 190, tit. V, art. III, § 11, p. 583; C.S.1922, § 7755; C.S.1929, § 44-211; R.S.1943, § 44-113; Laws 1969, c. 359, § 2, p. 1268; Laws 1979, LB 322, § 14; Laws 2003, LB 216, § 1;    Laws 2012, LB719, § 1;    Laws 2012, LB782, § 53.    


44-114. Department; fees for services.

In addition to any other fees and charges provided by law, the following shall be due and payable to the Department of Insurance: (1) For filing the documents, papers, statements, and information required by law upon the organization of domestic or the entry of foreign or alien insurers, statistical agents, or advisory organizations, three hundred dollars; (2) for filing each amendment of articles of incorporation, twenty dollars; (3) for filing restated articles of incorporation, twenty dollars; (4) for renewing each certificate of authority of insurers, statistical agents, or advisory organizations, one hundred dollars, except domestic assessment associations, which shall pay twenty dollars; (5) for issuance of an amended certificate of authority, one hundred dollars; (6) for filing a certified copy of articles of merger involving a domestic or foreign insurance corporation holding a certificate of authority to transact insurance business in this state, fifty dollars; (7) for filing an annual statement, two hundred dollars; (8) for each certificate of valuation, deposit, or compliance or other certificate for whomsoever issued, five dollars; (9) for filing any report which may be required by the department from any unincorporated mutual association, no fee shall be due; (10) for copying official records or documents, fifty cents per page; and (11) for a preadmission review of documents required to be filed for the admission of a foreign insurer or for the organization and licensing of a domestic insurer other than an assessment association, a nonrefundable fee of one thousand dollars.

Source:Laws 1913, c. 154, § 19, p. 406; R.S.1913, § 3155; Laws 1919, c. 190, tit. V, art. III, § 12, p. 584; C.S.1922, § 7756; C.S.1929, § 44-212; Laws 1935, c. 101, § 1, p. 330; C.S.Supp.,1941, § 44-212; R.S.1943, § 44-114; Laws 1955, c. 168, § 2, p. 478; Laws 1965, c. 250, § 1, p. 708; Laws 1969, c. 359, § 3, p. 1269; Laws 1969, c. 360, § 1, p. 1282; Laws 1977, LB 333, § 1; Laws 1980, LB 481, § 31; Laws 1984, LB 801, § 46; Laws 1989, LB 92, § 10; Laws 1991, LB 233, § 42; Laws 2003, LB 216, § 2;    Laws 2012, LB887, § 1.    


Annotations

44-115. Repealed. Laws 1947, c. 159, § 2.

44-116. Examination; expenses collected; Department of Insurance Cash Fund; created; use; investment.

All money collected by the Department of Insurance for examination of the affairs of domestic, foreign, or alien insurance companies and insurers as defined in and pursuant to the Insurers Examination Act or any other provision of Chapter 44 or for valuing the reserve liabilities of life insurance companies shall be remitted by the department to the State Treasurer for credit to the Department of Insurance Cash Fund, which fund is hereby created. Money in the Department of Insurance Cash Fund may be used for transfers to the General Fund at the direction of the Legislature. Any money in the Department of Insurance Cash Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1913, c. 154, § 21, p. 406; R.S.1913, § 3157; Laws 1919, c. 190, tit. V, art. III, § 14, p. 584; Laws 1921, c. 24, § 2, p. 150; C.S.1922, § 7758; Laws 1923, c. 189, § 1, p. 433; C.S.1929, § 44-214; R.S.1943, § 44-116; Laws 1955, c. 169, § 1, p. 484; Laws 1965, c. 251, § 1, p. 709; Laws 1969, c. 584, § 43, p. 2370; Laws 1983, LB 469, § 2; Laws 1989, LB 92, § 11; Laws 1991, LB 233, § 43; Laws 1993, LB 583, § 11; Laws 1994, LB 1066, § 30.


Cross References

44-117. Examiners; expenses; payment.

The Director of Administrative Services is, upon presentation of a voucher properly countersigned by the Director of Insurance, authorized to draw warrants against the Department of Insurance Cash Fund for the purpose of paying the salaries and expenses of the personnel of the actuarial and examining staff of the Department of Insurance.

Source:Laws 1913, c. 154, § 21, p. 407; R.S.1913, § 3157; Laws 1919, c. 190, tit. V, art. III, § 14, p. 585; Laws 1921, c. 24, § 2, p. 150; C.S.1922, § 7758; Laws 1923, c. 189, § 1, p. 433; C.S.1929, § 44-214; R.S.1943, § 44-117; Laws 1955, c. 169, § 2, p. 485; Laws 1989, LB 92, § 12.


44-118. Repealed. Laws 1993, LB 583, § 116.

44-119. Actuaries and examiners; appointment.

In order to discharge the responsibilities of the department, including the requirements of the Insurers Examination Act, there shall be appointed a sufficient staff of actuaries and examiners which shall include:

(1) One or more life insurance actuaries;

(2) One or more property and casualty insurance actuaries;

(3) One or more actuarial examiners;

(4) A chief financial examiner and one or more assistant chief financial examiners;

(5) One or more financial examiners;

(6) A chief market conduct examiner; and

(7) One or more market conduct examiners.

The examiners described in subdivisions (3) through (5) of this section hired after March 4, 2003, shall hold office at the will of the director and shall receive such salary as fixed by the director and approved by the Governor based upon the level of credentials for the positions. Each employee who is employed as an examiner on March 4, 2003, may elect to become employed at will. The election to become employed at will may be made at any time upon notification to the director in writing, but once made, such election shall be final. Until the election to be employed at will is made, the employee shall be treated as continuing participation in the State Personnel System.

Source:Laws 1923, c. 189, § 1, p. 433; C.S.1929, § 44-214; R.S.1943, § 44-119; Laws 1947, c. 160, § 1(1), p. 439; Laws 1989, LB 92, § 13; Laws 1993, LB 583, § 12; Laws 2003, LB 85, § 2.    


Cross References

44-119.01. Repealed. Laws 1973, LB 462, § 4.

44-119.02. Repealed. Laws 1971, LB 104, § 1.

44-119.03. Repealed. Laws 1959, c. 266, § 1.

44-119.04. Repealed. Laws 1959, c. 266, § 1.

44-119.05. Repealed. Laws 1961, c. 286, § 1.

44-120. Domestic company; capital stock; impairment; notice to shareholders.

Whenever it appears to the Department of Insurance from any proper showing or from any examination made that the capital stock of any domestic stock insurance company is impaired or that its assets are insufficient to justify its continuance in business, the department, in lieu of proceeding immediately in the manner authorized by the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, may at once determine the amount of such impairment or deficiency and thereupon issue a written notice to the company requiring its shareholders to make good the amount of the impairment or deficiency with cash or authorized investments or to reduce its capital stock, not below statutory requirements, within a reasonable time not to exceed ninety days from the service of the notice.

Source:Laws 1913, c. 154, § 9, p. 400; R.S.1913, § 3145; Laws 1919, c. 190, tit. V, art. III, § 2, p. 577; C.S.1922, § 7746; C.S.1929, § 44-202; R.S.1943, § 44-120; Laws 1967, c. 259, § 1, p. 682; Laws 1989, LB 92, § 14; Laws 1989, LB 319, § 62.


Cross References

Annotations

44-121. Domestic company; capital stock; failure to restore; proceedings authorized.

If the amount of any such impairment or deficiency shall not be made good within the time specified in such notice and proof thereof filed with the Department of Insurance, the company shall be proceeded against in the manner authorized and directed by the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act.

Source:Laws 1913, c. 154, § 9, p. 400; R.S.1913, § 3145; Laws 1919, c. 190, tit. V, art. III, § 2, p. 578; C.S.1922, § 7746; C.S.1929, § 44-202; R.S.1943, § 44-121; Laws 1989, LB 319, § 63.


Cross References

44-122. Domestic company; stock reduction; procedure.

No reduction of stock shall be made except by approval of at least two-thirds of the directors. The directors, after such reduction of stock, may require such shareholder to surrender his or her stock and in lieu thereof may issue a new certificate for such number of shares as each shall be entitled to.

Source:Laws 1913, c. 154, § 9, p. 400; R.S.1913, § 3145; Laws 1919, c. 190, tit. V, art. III, § 2, p. 578; C.S.1922, § 7746; C.S.1929, § 44-202; R.S.1943, § 44-122; Laws 1989, LB 92, § 15; Laws 1999, LB 259, § 1.    


44-123. Domestic mutual company; assets; deficiency; notice.

Whenever it shall appear from any proper showing, or from any examination made, that the assets and resources of any domestic mutual insurance company are insufficient to meet the minimum conditions prescribed in section 44-219 as now existing or hereafter amended, the Department of Insurance shall promptly determine the amount of such deficiency, and thereupon issue a written notice and requisition to the directors and officers of such company, requiring them to make good the amount of such deficiency within a reasonable time, not to exceed one hundred eighty days, from the service of such notice and requisition.

Source:Laws 1913, c. 154, § 10, p. 400; R.S.1913, § 3146; Laws 1919, c. 190, tit. V, art. III, § 3, p. 578; C.S.1922, § 7747; C.S.1929, § 44-203; R.S.1943, § 44-123; Laws 1949, c. 136, § 1, p. 355.


Annotations

44-124. Domestic mutual company; assets; deficiency; service of notice; failure to restore; proceedings authorized.

Such notice and requisition may be served by either registered or certified letter, having affixed the proper postage, and directed to the company at its principal place of business in this state. Upon the service of such notice and requisition, the directors and officers thereof shall forthwith cause such deficiency to be made good and proof thereof to be filed in the office of the Department of Insurance within the time specified in the notice and requisition. If such deficiency shall not be made good within the time specified in the notice and requisition and satisfactory proof thereof filed with the department, such company shall be proceeded against in the manner authorized and directed by the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act.

Source:Laws 1913, c. 154, § 10, p. 401; R.S.1913, § 3146; Laws 1919, c. 190, tit. V, art. III, § 3, p. 578; C.S.1922, § 7747; C.S.1929, § 44-203; R.S.1943, § 44-124; Laws 1957, c. 242, § 33, p. 846; Laws 1989, LB 319, § 64.


Cross References

44-125. Repealed. Laws 1989, LB 319, § 82.

44-126. Repealed. Laws 1989, LB 319, § 82.

44-127. Repealed. Laws 1989, LB 319, § 82.

44-127.01. Repealed. Laws 1989, LB 319, § 82.

44-127.02. Repealed. Laws 1989, LB 319, § 82.

44-127.03. Repealed. Laws 1989, LB 319, § 82.

44-127.04. Repealed. Laws 1989, LB 319, § 82.

44-127.05. Repealed. Laws 1989, LB 319, § 82.

44-127.06. Repealed. Laws 1989, LB 319, § 82.

44-127.07. Repealed. Laws 1989, LB 319, § 82.

44-127.08. Repealed. Laws 1989, LB 319, § 82.

44-127.09. Repealed. Laws 1989, LB 319, § 82.

44-127.10. Repealed. Laws 1989, LB 319, § 82.

44-127.11. Repealed. Laws 1988, LB 352, § 190.

44-127.12. Repealed. Laws 1977, LB 366, § 16.

44-127.13. Repealed. Laws 1989, LB 319, § 82.

44-127.14. Repealed. Laws 1989, LB 319, § 82.

44-127.15. Repealed. Laws 1989, LB 319, § 82.

44-127.16. Repealed. Laws 1989, LB 319, § 82.

44-127.17. Repealed. Laws 1989, LB 319, § 82.

44-127.18. Repealed. Laws 1989, LB 319, § 82.

44-127.19. Repealed. Laws 1989, LB 319, § 82.

44-127.20. Repealed. Laws 1989, LB 319, § 82.

44-127.21. Repealed. Laws 1989, LB 319, § 82.

44-127.22. Repealed. Laws 1989, LB 319, § 82.

44-127.23. Repealed. Laws 1989, LB 319, § 82.

44-127.24. Repealed. Laws 1989, LB 319, § 82.

44-127.25. Repealed. Laws 1989, LB 319, § 82.

44-127.26. Repealed. Laws 1989, LB 319, § 82.

44-127.27. Repealed. Laws 1989, LB 319, § 82.

44-127.28. Repealed. Laws 1989, LB 319, § 82.

44-127.29. Repealed. Laws 1989, LB 319, § 82.

44-127.30. Repealed. Laws 1989, LB 319, § 82.

44-127.31. Repealed. Laws 1989, LB 319, § 82.

44-128. Repealed. Laws 1989, LB 319, § 82.

44-129. Repealed. Laws 1989, LB 319, § 82.

44-130. Repealed. Laws 1989, LB 319, § 82.

44-131. Repealed. Laws 1989, LB 319, § 82.

44-132. Repealed. Laws 1989, LB 319, § 82.

44-133. Domestic company; certificate of authority; suspension or revocation; appeal.

Whenever any of the grounds mentioned in section 44-4809, 44-4812, or 44-4817 are shown to exist as to a domestic company after a hearing upon notice to the company, the Department of Insurance may suspend or revoke the certificate of authority of such company to do business, instead of applying to the court, which order of suspension or revocation shall be subject to appeal, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1913, c. 154, § 12, p. 403; R.S.1913, § 3148; Laws 1919, c. 190, tit. V, art. III, § 5, p. 581; C.S.1922, § 7749; C.S.1929, § 44-205; R.S.1943, § 44-133; Laws 1969, c. 359, § 4, p. 1269; Laws 1988, LB 352, § 39; Laws 1989, LB 319, § 65.


Cross References

Annotations

44-133.01. Transferred to section 44-248.

44-133.02. Transferred to section 44-249.

44-133.03. Transferred to section 44-250.

44-133.04. Transferred to section 44-251.

44-133.05. Transferred to section 44-252.

44-133.06. Transferred to section 44-253.

44-133.07. Transferred to section 44-254.

44-133.08. Transferred to section 44-255.

44-134. Foreign or alien company; certificate of authority; suspension or revocation; appeal.

Whenever the authority of a foreign or alien company to do business is suspended or revoked by its state of domicile or state of entry into the United States or whenever any of the grounds mentioned in section 44-4809, 44-4812, or 44-4817 exist as to a foreign or alien company, the Department of Insurance may suspend or revoke the certificate of authority of such company to do business in this state, which order of suspension or revocation shall be subject to appeal, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1913, c. 154, § 13, p. 404; R.S.1913, § 3149; Laws 1919, c. 190, tit. V, art. III, § 6, p. 581; C.S.1922, § 7750; C.S.1929, § 44-206; R.S.1943, § 44-134; Laws 1969, c. 359, § 5, p. 1270; Laws 1988, LB 352, § 40; Laws 1989, LB 319, § 66.


Cross References

44-135. Foreign company; certificate of authority; required; personal jurisdiction.

Any foreign or alien insurance company or association, before it shall do any business in this state, shall procure a certificate of authority to do business in this state as provided by the laws of the State of Nebraska. Procuring such a certificate shall constitute sufficient contact with this state for the exercise of personal jurisdiction over the company or association in any action arising out of its activities in this state.

Source:Laws 1913, c. 154, § 14, p. 404; R.S.1913, § 3150; Laws 1919, c. 190, tit. V, art. III, § 7, p. 582; C.S.1922, § 7751; Laws 1929, c. 123, § 1, p. 468; C.S.1929, § 44-207; Laws 1935, c. 103, § 1, p. 336; Laws 1937, c. 99, § 1, p. 346; C.S.Supp.,1941, § 44-207; R.S.1943, § 44-135; Laws 1983, LB 447, § 53.


Annotations

44-136. Foreign company; dissolution; effect on actions.

The dissolution of any foreign insurance company or association shall not take away or impair the right of any person to commence an action in this state against such companies or associations, or their statutory successors as agents thereof, and procure service upon such companies or their statutory successors, as herein provided, for any liability previously incurred.

Source:Laws 1935, c. 103, § 1, p. 337; Laws 1937, c. 99, § 1, p. 347; C.S.Supp.,1939, § 44-207; C.S.Supp.,1941, § 44-207; R.S.1943, § 44-136.


44-137. Repealed. Laws 1983, LB 447, § 104.

44-137.01. Transferred to section 44-2010.

44-137.02. Transferred to section 44-2011.

44-137.03. Repealed. Laws 1983, LB 447, § 104.

44-137.04. Repealed. Laws 1983, LB 447, § 104.

44-137.05. Repealed. Laws 1983, LB 447, § 104.

44-137.06. Repealed. Laws 1983, LB 447, § 104.

44-137.07. Transferred to section 44-2012.

44-137.08. Transferred to section 44-2013.

44-137.09. Repealed. Laws 1989, LB 92, § 278.

44-137.10. Transferred to section 44-2009.

44-138. Repealed. Laws 1999, LB 259, § 17.

44-139. Transferred to section 44-5503.

44-140. Transferred to section 44-5504.

44-141. Transferred to section 44-5505.

44-142. Transferred to section 44-5506.

44-143. Repealed. Laws 1978, LB 836, § 13.

44-144. Repealed. Laws 1978, LB 836, § 13.

44-145. Transferred to section 44-5507.

44-146. Repealed. Laws 1978, LB 836, § 13.

44-147. Transferred to section 44-5508.

44-147.01. Transferred to section 44-5509.

44-147.02. Transferred to section 44-5510.

44-147.03. Transferred to section 44-5511.

44-147.04. Transferred to section 44-5512.

44-147.05. Transferred to section 44-5513.

44-147.06. Transferred to section 44-5514.

44-148. Repealed. Laws 1989, LB 92, § 278.

44-149. Domestic companies; right to do business in other states; reciprocity.

If any domestic insurance company or association, or domestic fraternal benefit society, having a certificate of authority from the Department of Insurance, shall make application for admission to any other state or country, and shall comply with all the statutory regulations of such state or country, and it shall be refused admission to such state or country, the director may revoke every certificate of authority granted to like companies or societies organized under the laws of the state or country so refusing admission to a domestic insurance company or association or domestic fraternal benefit society, unless and until such country or state shall grant the necessary license or certificate to such domestic insurance company or association or fraternal benefit society.

Source:Laws 1913, c. 154, § 155a, p. 472; R.S.1913, § 3293; Laws 1919, c. 190, tit. V, art. XI, § 21, p. 654; C.S.1922, § 7900; C.S.1929, § 44-1121; R.S.1943, § 44-149; Laws 1971, LB 792, § 1; Laws 1987, LB 17, § 1.


44-150. Reciprocal licenses; retaliation; penalties; taxes; domicile of alien insurer.

(1) When by or pursuant to the laws of any other state or foreign country any taxes, licenses and other fees, in the aggregate, or any fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions, are or would be imposed upon Nebraska insurers, or upon the agents or representatives of such insurers, which are in excess of such taxes, licenses and other fees, in the aggregate, or which are in excess of the fines, penalties, deposit requirements, or other obligations, prohibitions, or restrictions directly imposed upon similar insurers, or upon the agents or representatives of such insurers, of such other state or country under the statutes of this state, so long as such laws of such other state or country continue in force or are so applied, the same taxes, licenses and other fees, in the aggregate, or fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions of whatever kind shall be imposed by the Director of Insurance upon the insurers, or upon the agents or representatives of such insurers, of such other state or country doing business or seeking to do business in Nebraska. Any tax, license or other fee, or other obligation imposed by any city, county, or other political subdivision or agency of such other state or country on Nebraska insurers or their agents or representatives shall be deemed to be imposed by such state or country within the meaning of this section.

(2) This section shall not apply as to personal income taxes, nor as to ad valorem taxes on real or personal property nor as to special-purpose obligations or assessments heretofore imposed by another state in connection with particular kinds of insurance, other than property insurance; except that deductions, from premium taxes or other taxes otherwise payable, allowed on account of real estate or personal property taxes paid shall be taken into consideration by the Director of Insurance in determining the propriety and extent of retaliatory action under this section.

(3) Nothing in this section shall require retaliatory action because of fees, obligations, or prohibitions imposed on Nebraska insurance producers licensed pursuant to the Insurance Producers Licensing Act.

(4) For the purposes of this section the domicile of an alien insurer, other than insurers formed under the laws of Canada, shall be that state designated by the insurer in writing filed with the Director of Insurance at time of admission to this state or within twelve months after September 28, 1959, whichever date is the later, and may be any one of the following states: (a) That in which the insurer was first authorized to transact insurance; (b) that in which is located the insurer's principal place of business in the United States; or (c) that in which is held the larger deposit of trusteed assets of the insurer for the protection of its policyholders and creditors in the United States.

If the insurer makes no such designation its domicile shall be deemed to be that state in which is located its principal place of business in the United States.

In the case of an insurer formed under the laws of Canada or a province thereof, its domicile shall be deemed to be that province in which its head office is situated.

Source:Laws 1913, c. 154, § 24, p. 408; R.S.1913, § 3160; Laws 1917, c. 72, § 1, p. 176; Laws 1919, c. 190, tit. V, art. III, § 17, p. 586; C.S.1922, § 7761; C.S.1929, § 44-217; Laws 1937, c. 100, § 1, p. 348; C.S.Supp.,1941, § 44-217; R.S.1943, § 44-150; Laws 1959, c. 194, § 1, p. 700; Laws 1999, LB 260, § 1;    Laws 2001, LB 51, § 23.    


Cross References

44-151. Loan, surrender or nonforfeiture values; reciprocal interest provisions.

Whenever the laws of any other state, or the rules and regulations of the insurance department of any such state, shall require of insurance companies organized under the laws of this state the payment of loan, surrender or nonforfeiture values to policyholders of such companies with such other state or states, based upon a minimum rate of interest less than that used by such Nebraska company, or companies, in computing the amount of such loan, surrender or nonforfeiture values to be paid to its policyholders within this state, then, as a condition precedent to a company organized under the laws of such other state being permitted to conduct or continue to conduct business in this state, the Department of Insurance may require that such company shall compute the loan, surrender or nonforfeiture values to be paid to Nebraska policyholders by such company or companies of such other state on the basis of a minimum interest rate less than the interest rate used by such company or companies as a basis for such loan, surrender or nonforfeiture values in its home state, by an amount equal to the difference between the rate used by such Nebraska company or companies in computing such values to be paid to its policyholders in this state and the minimum rate required by such other state or states, to be used by such Nebraska company or companies in computing the amount of such values to be paid by it to its policyholders in such other state or states.

Source:Laws 1917, c. 72, § 1, p. 177; Laws 1919, c. 190, tit. V, art. III, § 17, p. 586; C.S.1922, § 7761; C.S.1929, § 44-217; Laws 1937, c. 100, § 1, p. 349; C.S.Supp.,1941, § 44-217; R.S.1943, § 44-151.


44-152. Domestic company; refusal of another state or country to license; retaliatory action.

Whenever it appears to the Director of Insurance that permission to transact business within any state of the United States or within any foreign country is refused to a company organized under the laws of this state after a certificate of compliance has been issued to the company by the director and after such company has complied with all laws of such state or foreign country, then and in every such case the director may forthwith cancel the authority of every company organized under the laws of such state or foreign government licensed to do business in this state and may refuse a certificate of authority to every such company thereafter applying to him or her for authority to do business in this state until his or her certificate has been duly recognized by the government of such state or country.

Source:Laws 1937, c. 100, § 1, p. 350; C.S.Supp.,1941, § 44-217; R.S.1943, § 44-152; Laws 1989, LB 92, § 39.


44-153. Repealed. Laws 1989, LB 92, § 278.

44-154. Director; information; disclosure; confidentiality; privilege.

(1) Unless otherwise expressly prohibited by Chapter 44, the director may:

(a) Share documents, materials, or other information, including otherwise confidential and privileged documents, materials, or information, with other state, federal, foreign, and international regulatory and law enforcement agencies, the International Association of Insurance Supervisors, the Bank for International Settlements, and the National Association of Insurance Commissioners and its affiliates and subsidiaries if the recipient agrees to maintain the confidential or privileged status of the document, material, or other information;

(b) Receive documents, materials, or other information, including otherwise confidential and privileged documents, materials, or information, from other state, federal, foreign, or international regulatory and law enforcement agencies, the International Association of Insurance Supervisors, the Bank for International Settlements, and the National Association of Insurance Commissioners and its affiliates and subsidiaries. The director shall maintain as confidential or privileged any document, material, or other information received pursuant to an information-sharing agreement entered into pursuant to this section with notice or the understanding that the document, material, or other information is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and

(c) Enter into agreements governing sharing and use of information consistent with this subsection.

(2)(a) All confidential and privileged information obtained by or disclosed to the director by other state, federal, foreign, or international regulatory and law enforcement agencies, the International Association of Insurance Supervisors, the Bank for International Settlements, or the National Association of Insurance Commissioners and its affiliates and subsidiaries pursuant to this section with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or other information shall:

(i) Be confidential and privileged;

(ii) Not be a public record subject to disclosure by the director pursuant to sections 84-712 to 84-712.09;

(iii) Not be subject to subpoena; and

(iv) Not be subject to discovery or admissible in evidence in any private civil action.

(b) Notwithstanding the provisions of subdivision (2)(a) of this section, the director may use the documents, materials, or other information in any regulatory or legal action brought by the director.

(3) The director, and any other person while acting under the authority of the director who has received information from other state, federal, foreign, or international regulatory and law enforcement agencies, the International Association of Insurance Supervisors, the Bank for International Settlements, or the National Association of Insurance Commissioners or its affiliates and subsidiaries pursuant to this section, may not, and shall not be required to, testify in any private civil action concerning such information.

(4) Nothing in this section shall constitute a waiver of any applicable privilege or claim of confidentiality in the documents, materials, or other information received from state, federal, foreign, or international regulatory and law enforcement agencies, the International Association of Insurance Supervisors, the Bank for International Settlements, or the National Association of Insurance Commissioners or its affiliates and subsidiaries pursuant to this section as a result of disclosure to the director or as a result of information sharing authorized by this section.

Source:Laws 2001, LB 52, § 26;    Laws 2012, LB887, § 2.    


44-155. Copies of records or documents; furnish; cost.

Whenever numerous copies of the same records or documents are furnished or certified to by the Department of Insurance, the Director of Insurance may reduce such fees for copies or certifications thereto if he deems the total fees to be excessive; and he may, when he deems it in the public interest, furnish without charge to the various state insurance regulatory authorities and persons other than insurers, copies, certified copies, or certifications of all records, documents, or information requested.

Source:Laws 1955, c. 168, § 11, p. 482; Laws 1961, c. 210, § 2, p. 626.


44-156. Repealed. Laws 1985, LB 726, § 1.

44-156.01. Fees and charges; erroneously paid; refund; conditions.

Commencing with any fee or charge imposed for 1985 or any subsequent year, whenever it appears to the satisfaction of the Director of Insurance that, because of a mistake of fact, error in calculation, or erroneous interpretation of a statute of this or any other state, district, province, territory, or country, any fee or charge, excluding taxes, has been paid to the director pursuant to any provision of law which is not required by law or which is in excess of the amount legally chargeable, he or she shall have the authority to refund the amount of such payment or overpayment. The refund may be made by applying such amount towards the payment of other like or similar fees or charges, except taxes, already due or which may become due until such payment or overpayment has been fully refunded. No amount shall be refunded for payment or overpayment made after two years have elapsed from the end of the year for which any fee or charge was payable. This section shall not authorize or permit refunding of any taxes.

Source:Laws 1986, LB 1114, § 4.


44-157. Fees and charges; manner of payment; deposited in Department of Insurance Cash Fund.

All fees and charges required by Chapter 44 shall be paid in the manner and within the time prescribed by the Director of Insurance as approved by the Tax Commissioner. All such fees and charges, including fees and charges collected pursuant to the retaliatory statutes of such chapter, which are in excess of or in addition to the fees and charges collected pursuant to such chapter, shall be deposited by the State Treasurer to the account of and for the use of the Department of Insurance Cash Fund to be appropriated and expended for the supervision, control, and regulation of the business of insurance in Nebraska. If payment of any such fee or charge is not made within the time prescribed, as approved, the director shall report such failure or neglect to the Attorney General who shall institute an action in the name of the State of Nebraska for the purpose of recovering the money due. All fees and charges of any nature whatsoever which are paid to the Department of Insurance or to the Director of Insurance by virtue of his or her office shall be paid forthwith into the state treasury and deposited by the State Treasurer to the Department of Insurance Cash Fund.

Source:Laws 1955, c. 168, § 13, p. 483; Laws 1965, c. 251, § 2, p. 710; Laws 1989, LB 92, § 40.


44-158. Repealed. Laws 1989, LB 92, § 278.

44-159. Repealed. Laws 1994, LB 857, § 1.

44-160. Repealed. Laws 1994, LB 857, § 1.

44-161. Foreign insurer; becoming domestic insurer; requirements.

Any insurer which is organized under the laws of any other state and is admitted to do business in this state for the purpose of writing insurance may become a domestic insurer by complying with all of the requirements of law relative to the organization and licensing of a domestic insurer of the same type and by designating its principal place of business at a place in this state. If an insurer transfers its domicile to this state, any investment held by the insurer at the time of the transfer, which shall have been an authorized investment under the laws of the insurer's former state of domicile, shall be deemed an authorized investment under the Insurers Investment Act. The domestic insurer shall be entitled to like certificates and licenses to transact business in this state and shall be subject to the authority and jurisdiction of this state.

Source:Laws 1989, LB 61, § 1; Laws 2004, LB 1047, § 1.    


Cross References

44-162. Domestic insurer; transfer of domicile; effect.

Any domestic insurer may, upon the approval of the Director of Insurance, transfer its domicile to any other state in which it is admitted to transact the business of insurance. Upon such a transfer, the domestic insurer shall cease to be a domestic insurer and shall be admitted to this state if qualified as a foreign insurer. The Director of Insurance shall approve any such proposed transfer unless he or she determines such transfer is not in the interest of the policyholders of this state.

Source:Laws 1989, LB 61, § 2.


44-163. Insurer; transfer of domicile; effect on business; filing requirements.

The certificate of authority, agents' appointments, licenses, rates, and other items which the Director of Insurance allows, in his or her discretion, which are in existence at the time any insurer licensed to transact the business of insurance in this state transfers its domicile to this or any other state by merger, consolidation, or any other lawful method, shall continue in full force and effect upon such transfer if such insurer remains duly qualified to transact the business of insurance in this state. All outstanding policies of any transferring insurer shall remain in full force and effect and need not be endorsed as to the new name of the company or its new location unless so ordered by the director. Every transferring insurer shall file new policy forms with the director on or before the effective date of the transfer but may use existing policy forms with appropriate endorsements if allowed by and under such conditions as approved by the director. Every such transferring insurer shall file promptly and shall notify the director of the details of the proposed transfer and resulting amendments to corporate documents filed or required to be filed with the director.

Source:Laws 1989, LB 61, § 3.


44-164. Insurer; transfer of domicile; rules and regulations.

The Director of Insurance may adopt and promulgate rules and regulations to carry out sections 44-161 to 44-163.

Source:Laws 1989, LB 61, § 4.


44-165. Financial conglomerate; supervision on consolidated basis; director; powers; duties; application fee; violation; enforcement powers; administrative penalty; unfair trade practice; criminal penalty; appeal; expenses of supervision.

(1)(a) A financial conglomerate may submit to the jurisdiction of the Director of Insurance for supervision on a consolidated basis under this section. Supervision under this section shall be in addition to all statutory and regulatory requirements imposed on domestic insurers and shall be for the purpose of determining how the operations of the financial conglomerate impact insurance operations.

(b) For purposes of this section:

(i) Control has the same meaning as in section 44-2121; and

(ii) Financial conglomerate means either an insurance company domiciled in Nebraska or a person established under the laws of the United States, any state, or the District of Columbia which directly or indirectly controls an insurance company domiciled in Nebraska. Financial conglomerate includes the person applying for supervision under this section and all entities, whether insurance companies or otherwise, to the extent the entities are controlled by such person.

(2) The director may approve any application for supervision under this section that meets the requirements of this section and the rules and regulations adopted and promulgated under this section.

(3)(a) The director may adopt and promulgate rules and regulations for supervision of a financial conglomerate, including all persons controlled by a financial conglomerate, that will permit the director to assess at the level of the financial conglomerate the financial situation of the financial conglomerate, including solvency, risk concentration, and intra-group transactions.

(b) Such rules and regulations shall require the financial conglomerate to:

(i) Have in place sufficient capital adequacy policies at the level of the financial conglomerate;

(ii) Report to the director at least annually any significant risk concentration at the level of the financial conglomerate;

(iii) Report to the director at least annually all significant intra-group transactions of regulated entities within a financial conglomerate. Such reporting shall be in addition to all reports required under any other provision of Chapter 44; and

(iv) Have in place at the level of the financial conglomerate adequate risk management processes and internal control mechanisms, including sound administrative and accounting procedures.

(c) In adopting and promulgating the rules and regulations, the director:

(i) Shall consider the rules and regulations that may be adopted by a member state of the European Union, the European Union, or any other country for the supervision of financial conglomerates;

(ii) Shall require the filing of such information as the director may determine;

(iii) Shall include standards and processes for effective qualitative group assessment, quantitative group assessment including capital adequacy, affiliate transaction, and risk concentration assessment, risks and internal capital assessments, disclosure requirements, and investigation and enforcement powers;

(iv) Shall state that supervision of financial conglomerates concerns how the operations of the financial conglomerate impact the insurance operations;

(v) Shall adopt an application fee in an amount not to exceed the amount necessary to recover the cost of review and analysis of the application; and

(vi) May verify information received under this section.

(4)(a) If it appears to the director that a financial conglomerate that submits to the jurisdiction of the director under this section, or any director, officer, employee, or agent thereof, willfully violates this section or the rules and regulations adopted and promulgated under this section, the director may order the financial conglomerate to cease and desist immediately any such activity. After notice and hearing, the director may order the financial conglomerate to void any contracts between the financial conglomerate and any of its affiliates or among affiliates of the financial conglomerate and restore the status quo if such action is in the best interest of policyholders, creditors, or the public.

(b) If it appears to the director that any financial conglomerate that submits to the jurisdiction of the director under this section, or any director, officer, employee, or agent thereof, has committed or is about to commit a violation of this section or the rules and regulations adopted and promulgated under this section, the director may apply to the district court of Lancaster County for an order enjoining such financial conglomerate, director, officer, employee, or agent from violating or continuing to violate this section or the rules and regulations adopted and promulgated under this section and for such other equitable relief as the nature of the case and the interest of the financial conglomerate's policyholders, creditors, or the public may require.

(c)(i) Any financial conglomerate that fails, without just cause, to provide information which may be required under the rules and regulations adopted and promulgated under this section may be required by the director, after notice and hearing, to pay an administrative penalty of one hundred dollars for each day's delay not to exceed an aggregate penalty of ten thousand dollars. The director may reduce the penalty if the financial conglomerate demonstrates to the director that the imposition of the penalty would constitute a financial hardship to the financial conglomerate.

(ii) Any financial conglomerate that fails to notify the director of any action for which such notification may be required under the rules and regulations adopted and promulgated under this section may be required by the director, after notice and hearing, to pay an administrative penalty of not more than two thousand five hundred dollars per violation.

(iii) Any violation of this section or the rules and regulations adopted and promulgated under this section shall be an unfair trade practice under the Unfair Insurance Trade Practices Act in addition to any other remedies and penalties available under the laws of this state.

(d) Any director or officer of a financial conglomerate that submits to the jurisdiction of the director under this section who knowingly violates or assents to any officer or agent of the financial conglomerate to violate this section or the rules and regulations adopted and promulgated under this section may be required by the director, after notice and hearing, to pay in his or her individual capacity an administrative penalty of not more than five thousand dollars per violation. In determining the amount of the penalty, the director shall take into account the appropriateness of the penalty with respect to the gravity of the violation, the history of previous violations, and such other matters as justice may require.

(e) After notice and hearing, the director may terminate the supervision of any financial conglomerate under this section if it ceases to qualify as a financial conglomerate under this section or the rules and regulations adopted and promulgated under this section.

(f) If it appears to the director that any person has committed a violation of this section or the rules and regulations adopted and promulgated under this section which so impairs the financial condition of a domestic insurer that submits to the jurisdiction of the director under this section as to threaten insolvency or make the further transaction of business by such financial conglomerate hazardous to its policyholders or the public, the director may proceed as provided in the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act to take possession of the property of such domestic insurer and to conduct the business thereof.

(g) If it appears to the director that any person that submits to the jurisdiction of the director under this section has committed a violation of this section or the rules and regulations adopted and promulgated under this section which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the director may, after giving notice and an opportunity to be heard, suspend, revoke, or refuse to renew such insurer's license or authority to do business in this state for such period as the director finds is required for the protection of policyholders or the public. Any such determination shall be accompanied by specific findings of fact and conclusions of law.

(h)(i) Any financial conglomerate that submits to the jurisdiction of the director under this section that willfully violates this section or the rules and regulations adopted and promulgated under this section shall be guilty of a Class IV felony.

(ii) Any director, officer, employee, or agent of a financial conglomerate that submits to the jurisdiction of the director under this section who willfully violates this section or the rules and regulations adopted and promulgated under this section or who willfully and knowingly subscribes to or makes or causes to be made any false statements, false reports, or false filings with the intent to deceive the director in the performance of his or her duties under this section or the rules and regulations adopted and promulgated under this section shall be guilty of a Class IV felony.

(iii) Any person aggrieved by any act, determination, order, or other action of the director pursuant to this section or the rules and regulations adopted and promulgated under this section may appeal. The appeal shall be in accordance with the Administrative Procedure Act.

(iv) Any person aggrieved by any failure of the director to act or make a determination required by this section or the rules and regulations adopted and promulgated under this section may petition the district court of Lancaster County for a writ in the nature of a mandamus or a peremptory mandamus directing the director to act or make such determination forthwith.

(i) The powers, remedies, procedures, and penalties governing financial conglomerates under this section shall be in addition to any other provisions provided by law.

(5)(a) The director may contract with such qualified persons as the director deems necessary to allow the director to perform any duties and responsibilities under this section.

(b) The reasonable expenses of supervision of a financial conglomerate under this section shall be fixed and determined by the director who shall collect the same from the supervised financial conglomerate. The financial conglomerate shall reimburse the amount upon presentation of a statement by the director. All money collected by the director for supervision of financial conglomerates pursuant to this section shall be remitted in accordance with section 44-116.

(c) All information, documents, and copies thereof obtained by or disclosed to the director pursuant to this section shall be held by the director in accordance with sections 44-154 and 44-2138.

Source:Laws 2008, LB855, § 50;    Laws 2014, LB700, § 14.    


Cross References

44-201. Insurance; lines; enumerated.

An insurance corporation may be formed for the following purposes or may insure the following lines:

(1) LIFE INSURANCE. Insurance upon lives of persons, including endowments and annuities, and every insurance pertaining thereto and disability benefits, except that life insurance shall not include variable life insurance specified in subdivision (2) of this section and variable annuities specified in subdivision (3) of this section;

(2) VARIABLE LIFE INSURANCE. Insurance on the lives of individuals, the amount or duration of which varies according to the investment experience of any separate account or accounts established and maintained by the insurer as to such insurance;

(3) VARIABLE ANNUITIES. Insurance policies issued on an individual or group basis by which an insurer promises to pay a variable sum of money either in a lump sum or periodically for life or for some other specified period;

(4) SICKNESS AND ACCIDENT INSURANCE. Insurance against loss or expense resulting from the sickness of the insured, from bodily injury or death of the insured by accident, or both, and every insurance pertaining thereto;

(5) PROPERTY INSURANCE. Insurance against loss or damage, including consequential loss or damage, to real or personal property of every kind and any interest in such property from any and all hazards or causes, except that property insurance shall not include title insurance specified in subdivision (15) of this section and marine insurance specified in subdivision (18) of this section;

(6) CREDIT PROPERTY INSURANCE. Insurance against loss or damage to personal property used as collateral for securing a loan or to personal property purchased pursuant to a credit transaction, but only insofar as it applies to property sold to or pledged by individual consumers for personal use;

(7) GLASS INSURANCE. Insurance against loss or damage to glass, including its lettering, ornamentation, and fittings;

(8) BURGLARY AND THEFT INSURANCE. Insurance against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation or wrongful conversion, disposal, or concealment or from any attempt at any of the foregoing;

(9) BOILER AND MACHINERY INSURANCE. Insurance against any liability and loss or damage to life, person, property, or interest resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery, or apparatus;

(10) LIABILITY INSURANCE. Insurance against legal liability for the death, injury, or disability of any person, for injury or damage to any person, or for damage to property, and the providing of medical, hospital, surgical, or disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries, or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to liability insurance, except that liability insurance shall not include workers' compensation and employers liability insurance specified in subdivision (11) of this section;

(11) WORKERS' COMPENSATION AND EMPLOYERS LIABILITY INSURANCE. Insurance against the legal liability of any employer for the death or disablement of or injury to an employee whether imposed by common law or statute or assumed by contract, except that workers' compensation and employers liability insurance shall not include liability insurance specified in subdivision (10) of this section;

(12) VEHICLE INSURANCE. Insurance against any loss or damage to any land vehicle, other than railroad rolling stock, or any draft animal, from any hazard or cause, and against any loss, liability, or expense resulting from or incidental to ownership, maintenance, or use of any such vehicle or animal, together with insurance against accidental injury to or death of any person, irrespective of legal liability of the insured, if such insurance is issued as an incidental part of insurance on the vehicle or draft animal;

(13) FIDELITY INSURANCE. Insurance guaranteeing the fidelity of persons holding positions of public or private trust;

(14) SURETY INSURANCE. Insurance guaranteeing the performance of contracts other than insurance policies or guaranteeing and executing all bonds, undertakings, and contracts of suretyship, except that surety insurance shall not include title insurance specified in subdivision (15) of this section and financial guaranty insurance specified in subdivision (19) of this section;

(15) TITLE INSURANCE. (a) Insurance guaranteeing or indemnifying owners of real property or others interested therein against loss or damage suffered by reason of (i) liens, encumbrances upon, defects in, or the unmarketability of title to such real property, or adverse claim to title in real property with reasonable examination of title guaranteeing, warranting, or otherwise insuring by a title insurer the correctness of searches relating to the title to real property and (ii) defects in the authorization, execution, or delivery of an encumbrance upon such real property, or any share, participation, or other interest in such encumbrance, guaranteeing, warranting, or otherwise insuring by a title insurer the validity and enforceability of evidences of indebtedness secured by an encumbrance upon or interest in such real property; or

(b) Insurance guaranteeing or indemnifying owners of personal property or secured parties or others interested therein against loss or damage pertaining to adverse claims to title, liens, encumbrances upon, or security interests in personal property or fixtures, including the existence or nonexistence of attachment, perfection, or priority of security interests in personal property or fixtures under the Uniform Commercial Code or other laws, rules, or regulations establishing procedures for the attachment, perfection, or priority of security interests in personal property or fixtures or the accuracy or completeness of the search or filing results obtained from public registries established for determining liens or security interests in personal property or fixtures or the existence or nonexistence of protected purchaser status under the Uniform Commercial Code;

(16) CREDIT INSURANCE. Insurance against loss or damage from the failure of persons indebted to or to become indebted to the insured to meet existing or contemplated liabilities, including agreements to purchase uncollectible debts, except that credit insurance shall not include mortgage guaranty insurance specified in subdivision (17) of this section and financial guaranty insurance specified in subdivision (19) of this section;

(17) MORTGAGE GUARANTY INSURANCE. Insurance against financial loss by lenders by reason of nonpayment of principal, interest, or other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust, or other instrument constituting a lien or charge on real estate;

(18) MARINE INSURANCE. Insurance against loss or damage, including consequential loss or damage, to vessels, craft, aircraft, automobiles, and vehicles of every kind as well as goods, freights, cargoes, merchandise, effects, disbursements, profits, money, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry, and respondentia interests, and all kinds of property and interests therein in respect to, pertaining to, or in connection with any or all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas, or waters, on land or in the air, or while being assembled, packed, crated, baled, compressed, or similarly prepared for shipment or while awaiting the same, or during any delays, storage, transshipment, or reshipment incidental thereto; including marine builders' risks and war risks; and against loss or damage to persons or property in connection with or appertaining to marine, inland marine, transit, or transportation insurance, including loss or damage to either, arising out of or in connection with the construction, repair, operation, maintenance, or use of the subject matter of such primary insurance, but not including life insurance or surety bonds; but, except as specified in this subdivision, marine insurance shall not include insurance against loss by reason of bodily injury to the person;

(19) FINANCIAL GUARANTY INSURANCE. (1) Insurance issued in the form of a surety bond, insurance policy, or, when issued by an insurer, an indemnity contract and any guaranty similar to the foregoing types, against financial loss to an insured claimant, obligee, or indemnitee as a result of any of the following events:

(a) Failure of any obligor on any debt instrument or other monetary obligation, including common or preferred stock guaranteed under a surety bond, insurance policy, or indemnity contract, to pay when due principal, interest, premium, dividend, or purchase price of or on such instrument or obligation, when such failure is the result of a financial default or insolvency, regardless of whether such obligation is incurred directly or as guarantor by or on behalf of another obligor that has also defaulted;

(b) Changes in the levels of interest rates, whether short or long term, or the differential in interest rates between various markets or products;

(c) Changes in the rate of exchange of currency;

(d) Inconvertibility of one currency into another for any reason or inability to withdraw funds held in a foreign country resulting from restrictions imposed by a governmental authority;

(e) Changes in the value of specific assets or commodities, financial or commodity indices, or price levels in general; or

(f) Other events which the Director of Insurance determines are substantially similar to any of the events described in subdivisions (a) through (e) of this subdivision.

(2) Financial guaranty insurance shall not include:

(a) Insurance of any loss resulting from any event described in subdivisions (19)(1)(a) through (e) of this section if the loss is payable only upon the occurrence of any of the following, as specified in a surety bond, insurance policy, or indemnity contract:

(i) A fortuitous physical event;

(ii) A failure of or deficiency in the operation of equipment; or

(iii) An inability to extract or recover a natural resource;

(b) Any individual or schedule public official bond;

(c) Any contract bond, including bid, payment, or maintenance bond, or a performance bond when the bond is guarantying the execution of any contract other than a contract of indebtedness or other monetary obligation;

(d) Any court bond required in connection with judicial, probate, bankruptcy, or equity proceedings, including waiver, probate, open estate, and life tenant bond;

(e) Any bond running to the federal, state, county, or municipal government or other political subdivision as a condition precedent to granting of a license to engage in a particular business or of a permit to exercise a particular privilege;

(f) Any loss security bond or utility payment indemnity bond running to a governmental unit, railroad, or charitable organization;

(g) Any lease, purchase, and sale or concessionaire surety bond;

(h) Credit unemployment insurance, meaning insurance on a debtor, in connection with a specific loan or other credit transaction, to provide payments to creditor in the event of unemployment of the debtor for the installments or other periodic payments becoming due while a debtor is unemployed;

(i) Credit insurance, meaning insurance indemnifying manufacturers, merchants, or educational institutions extending credit against loss or damage resulting from nonpayment of debts owed to them for goods or services provided in the normal course of their business;

(j) Guaranteed investment contracts issued by life insurance companies which provide that the life insurer itself will make specified payments in exchange for specific premiums or contributions;

(k) Funding agreements;

(l) Synthetic guaranteed investment contracts;

(m) Guaranteed interest contracts;

(n) Deposit administration contracts;

(o) Surety insurance as specified in subdivision (14) of this section and mortgage guaranty insurance as specified in subdivision (17) of this section;

(p) Indemnity contracts or similar guaranties to the extent that they are not otherwise limited or proscribed by Chapter 44 in which a life insurer:

(i) Guaranties its obligations or indebtedness or the obligations or indebtedness of a subsidiary of which it owns more than fifty percent, other than a financial guaranty insurance corporation, except that:

(A) To the extent that any such obligations or indebtedness are backed by specific assets, such assets shall at all times be owned by the insurer or the subsidiary; and

(B) In the case of the guaranty of the obligations or indebtedness of the subsidiary that is not backed by specific assets of the life insurer, such guaranty terminates once the subsidiary ceases to be a subsidiary; or

(ii) Guaranties obligations or indebtedness, including the obligation to substitute assets where appropriate, with respect to specific assets acquired by a life insurer in the course of normal investment activities and not for the purpose of resale with credit enhancement, or guaranties obligations or indebtedness acquired by its subsidiary if such assets have been:

(A) Acquired by a special purpose entity, the sole purpose of which is to acquire specific assets of the life insurer or the subsidiary and issue securities or participation certificates backed by such assets; or

(B) Sold to an independent third party; or

(iii) Guaranties obligations or indebtedness of an employee or agent of the life insurer; and

(q) Any other form of insurance covering risks which the director determines to be substantially similar to any of the risks described in subdivisions (a) through (p) of this subdivision; and

(20) MISCELLANEOUS INSURANCE. Insurance upon any risk, including but not limited to legal expense insurance and mechanical breakdown insurance, not included within subdivisions (1) through (19) of this section, and which is a proper subject for insurance, not prohibited by law or contrary to sound public policy, to be determined by the Department of Insurance.

Source:Laws 1913, c. 154, § 78, p. 426; R.S.1913, § 3215; Laws 1917, c. 77, § 1, p. 183; Laws 1919, c. 190, tit. V, art. V, § 1, p. 606; C.S.1922, § 7814; Laws 1925, c. 124, § 1, p. 326; Laws 1927, c. 136, § 1, p. 374; C.S.1929, § 44-401; Laws 1935, c. 96, § 1, p. 319; C.S.Supp.,1941, § 44-401; R.S.1943, § 44-201; Laws 1949, c. 138, § 1, p. 358; Laws 1965, c. 253, § 1, p. 712; Laws 1967, c. 261, § 18, p. 693; Laws 1967, c. 262, § 1, p. 699; Laws 1971, LB 767, § 1; Laws 1973, LB 234, § 1; Laws 1978, LB 767, § 1; Laws 1989, LB 92, § 41; Laws 1991, LB 235, § 2; Laws 2004, LB 1047, § 2;    Laws 2015, LB180, § 1.    


Annotations

44-201.01. Certificate of authority; lines of insurance; director; duties.

Any insurance company which is, on August 25, 1989, the holder of a valid certificate of authority issued by the Department of Insurance in effect immediately prior to such date may, on and after such date, subject to compliance with Chapter 44 and the rules and regulations of the department, continue to transact any insurance business in this state authorized by such certificate of authority and shall thereafter be eligible to have such certificate of authority renewed pursuant to Chapter 44. The Director of Insurance shall determine what line or lines of insurance as specified in section 44-201 each renewed certificate of authority shall include. Any certificate of authority valid on August 25, 1989, shall expire on April 30, 1990, as provided in section 44-303.

Source:Laws 1989, LB 92, § 42.


44-202. Insurance companies; organization; businesses authorized.

(1) Companies may be formed upon the stock or mutual plan to transact any line or lines of insurance authorized by section 44-201, upon the assessment plan to transact any line or lines of insurance specified in subdivisions (4), (5), (7), and (18) of such section, or upon the fraternal plan to transact insurance as authorized in Chapter 44, article 10. An assessment association may, in addition to any line or lines of insurance described in subdivisions (4), (5), (7), and (18) of section 44-201, be authorized to transact any line or lines of insurance which a mutual company may transact when such association has accumulated and thereafter at all times maintains the same reserves, surplus, and contingency funds required to be maintained by a mutual company organized to transact the same line or lines of insurance.

(2) A domestic company may, notwithstanding limitations otherwise applicable and if it maintains books and records which account for such business, engage directly in any of the following businesses: (a) Rendering investment advice; (b) rendering services related to the functions involved in the operation of its insurance business, including, but not limited to, actuarial, loss prevention, marketing and sales, safety engineering, data processing, accounting, claims, appraisal, and collection services; (c) acting as trustee or fiduciary in the administration of pension, profit-sharing, and other benefit plans for employees and self-employed persons and individual retirement accounts or annuities, if, in the judgment of the company, such plans constitute qualified plans under the Internal Revenue Code; (d) acting as administrative agent for a governmental instrumentality which is performing an insurance function for a health or welfare program; and (e) any other business activity reasonably complementary or supplementary to its insurance business, either to the extent necessarily or properly incidental to the insurance business which the company is authorized to do in this state or to the extent approved by the Director of Insurance and subject to any limitations he or she may prescribe for the protection of the interests of the policyholders of the company taking into account the effect of such business on the company's existing insurance business and its surplus, the proposed allocation of the estimated cost of such business, and the risks inherent in such business as well as the relative advantages to the company and its policyholders of conducting such business directly instead of through a subsidiary.

Source:Laws 1913, c. 154, § 79, p. 427; R.S.1913, § 3216; Laws 1919, c. 190, tit. V, art. V, § 2, p. 608; C.S.1922, § 7815; Laws 1925, c. 124, § 2, p. 328; C.S.1929, § 44-402; Laws 1931, c. 89, § 1, p. 250; C.S.Supp.,1941, § 44-402; R.S.1943, § 44-202; Laws 1949, c. 139, § 1, p. 363; Laws 1951, c. 136, § 1, p. 560; Laws 1972, LB 1336, § 1; Laws 1975, LB 437, § 1; Laws 1989, LB 92, § 43; Laws 1995, LB 574, § 42.


44-202.01. Insurance companies; licensed on August 25, 1989; continuance of authority.

An insurer holding a valid certificate of authority to transact insurance in this state immediately prior to August 25, 1989, may continue to be authorized to transact the same lines of insurance permitted by such certificate of authority by maintaining thereafter the same amount of paid-in capital stock, if a stock insurer, or the same amount of surplus, if a mutual insurer, as required by the laws of this state for such authority immediately prior to such date, except that if such insurer, on or after such date, is determined by the director to be maintaining an amount which complies with the requirements as to capital and surplus as provided in sections 44-214, 44-219, and 44-243, then such insurer shall continue to comply with such requirements. On and after such date the insurer shall not be granted authority to transact any other or additional line of insurance unless it then fully complies with the requirements as to capital and surplus as provided by sections 44-214, 44-219, and 44-243 with respect to insurers applying for original certificates of authority.

Source:Laws 1965, c. 253, § 6, p. 719; Laws 1967, c. 262, § 2, p. 703; Laws 1989, LB 92, § 44.


44-203. Insurance companies; lines of insurance; authorized.

Except as provided in section 44-1984, a company may be formed or an existing company may be authorized to transact any one or more of the lines of insurance specified in section 44-201.

Source:Laws 1913, c. 154, § 80, p. 428; R.S.1913, § 3217; Laws 1919, c. 190, tit. V, art. V, § 3, p. 608; C.S.1922, § 7816; Laws 1925, c. 124, § 3, p. 329; C.S.1929, § 44-403; R.S.1943, § 44-203; Laws 1951, c. 136, § 2, p. 560; Laws 1971, LB 767, § 2; Laws 1973, LB 181, § 1; Laws 1989, LB 92, § 45; Laws 1991, LB 235, § 3; Laws 1997, LB 53, § 47.


44-203.01. Repealed. Laws 1989, LB 92, § 278.

44-204. Repealed. Laws 1951, c. 136, § 4.

44-205. Insurance companies; formation; articles of incorporation; filing.

Five or more natural persons may act as incorporators of an insurance corporation. The articles of incorporation shall be signed by each incorporator and delivered to the Department of Insurance for approval or disapproval, and if approved and found by it to be in accordance with the laws of this state, the department shall so certify. When such articles are thus approved, they shall be filed in the office of the Secretary of State and a duplicate copy bearing the date of filing in the office of the Secretary of State shall be filed in the office of the department. Upon the filing and recording of the articles of incorporation in the office of the Secretary of State as provided in this section corporate existence shall commence.

Source:Laws 1913, c. 154, § 81, p. 429; R.S.1913, § 3218; Laws 1919, c. 190, tit. V, art. V, § 4, p. 609; Laws 1921, c. 305, § 1, p. 963; C.S.1922, § 7817; C.S.1929, § 44-404; R.S.1943, § 44-205; Laws 1989, LB 92, § 46; Laws 1997, LB 52, § 1.


44-205.01. Articles of incorporation; contents.

(1) The articles of incorporation filed pursuant to section 44-205 shall state (a) the corporate name, which shall not so nearly resemble the name of an existing corporation as, in the opinion of the Director of Insurance, will mislead the public or cause confusion, (b) the place in Nebraska where the registered office and principal office will be located, (c) the purposes, which shall be restricted to the kind or kinds of insurance to be undertaken, such other kinds of business which it shall be empowered to undertake, and the powers necessary and incidental to carrying out such purposes, and (d) such other particulars as are required by the Nebraska Model Business Corporation Act and Chapter 44.

(2) The articles of incorporation may state such other particulars as are permitted by the Nebraska Model Business Corporation Act and Chapter 44, including provisions relating to the management of the business and regulation of the affairs of the corporation and defining, limiting, and regulating the powers of the corporation, its board of directors, and the shareholders of a stock corporation or the members of a mutual or assessment corporation.

Source:Laws 1957, c. 178, § 1, p. 611; Laws 1972, LB 1336, § 2; Laws 1989, LB 92, § 47; Laws 1995, LB 109, § 215; Laws 2014, LB749, § 280.    


Cross References

44-206. Insurance companies; formation; notice; publication.

Within the earlier of thirty days after receiving the certificate of authority to transact business or four months after filing its articles of incorporation, such corporation shall publish a notice in some legal newspaper, which notice shall contain the same information, as far as practicable, as that required under the Nebraska Model Business Corporation Act.

Source:Laws 1913, c. 154, § 81, p. 429; R.S.1913, § 3218; Laws 1919, c. 190, tit. V, art. V, § 4, p. 609; Laws 1921, c. 305, § 1, p. 963; C.S.1922, § 7817; C.S.1929, § 44-404; R.S.1943, § 44-206; Laws 1989, LB 92, § 48; Laws 1995, LB 109, § 216; Laws 2014, LB749, § 281.    


Cross References

44-207. Insurance companies; formation; executive officers; qualifications.

Insurance companies hereafter organizing under the laws of this state are required to have as their executive officers persons who are known to be capable of running the affairs of an insurance company. The requirements shall consist of good character and known business ability, the latter requirement including a practical knowledge of the executive duties of conducting an insurance business.

Source:Laws 1921, c. 305, § 1, p. 963; C.S.1922, § 7817; C.S.1929, § 44-404; R.S.1943, § 44-207.


44-208. Insurance companies; stock distribution and sale; compensation; limitation; statement.

No domestic insurance company shall issue, cause, or allow to be issued any stock or stock subscriptions at any time upon which all expenses of distribution and sale, including promotion, commissions, and underwriting fees, exceed ten percent of the amount paid in money upon such stock or stock subscriptions. All persons incorporating a stock insurance company shall sign a statement before a notary public stating that no one person or group of persons shall receive directly or indirectly any money or securities whatsoever for promoting and organizing any such company in excess of that amount provided for in the insurance laws of this state pertaining to the promotion and organization of insurance companies, and such statement shall be filed in the office of the Department of Insurance.

Source:Laws 1921, c. 305, § 1, p. 963; C.S.1922, § 7817; C.S.1929, § 44-404; R.S.1943, § 44-208; Laws 1989, LB 92, § 49.


44-208.01. Insurance companies; organization; filings required.

(1) In addition to the statement required by section 44-208 of persons incorporating stock companies, the incorporators of all domestic stock, mutual, and assessment insurers shall file with the Department of Insurance (a) copies of the proposed bylaws, (b) forms of subscriptions for capital stock or forms of application for membership or for insurance, and (c) a bond payable to the Director of Insurance and his or her successors, as trustees, in the penal sum to be determined by the Director of Insurance and in no event to be less than ten thousand dollars, with corporate surety, and conditioned upon the faithful accounting to the corporation on completion of its organization and the receipt of its certificate of authority from the Department of Insurance, to the shareholders, applicants for membership or for policies, or creditors, or to the trustee, receiver, or assignee of the corporation, duly appointed in any court of competent jurisdiction in this state, in accordance with their respective rights in the event the organization of the corporation is not completed and a certificate of authority to do business is not procured.

(2) In addition to the requirements of subsection (1) of this section, the incorporators of stock insurers shall file an application to solicit subscriptions for stock which shall include (a) the correct names and addresses of the incorporators and promoters, (b) a detailed statement of the plan upon which the corporation will operate, (c) the names, the addresses, and a brief description of the business experience of the proposed executive officers, including supervisory and administrative personnel, (d) the par value of the stock, (e) the subscription price of the stock, (f) the amount to be expended for organization and promotion expenses, expressed in a percentage of the subscription price of the stock, (g) the proposed plan of soliciting subscriptions for stock, (h) the place and manner in which the proceeds from full and partial subscriptions for stock will be held pending the corporation's organization, (i) an outline of the manner in which the corporation proposes to maintain its books and records, including the records pertaining to the solicitation of subscriptions for stock, (j) duplicate copies of all advertising matter which is to be used in connection with the sale of stock, (k) duplicate copies of all contracts to be entered into with persons employed to solicit subscriptions, and (l) such other information as may be required by the Department of Insurance.

Source:Laws 1957, c. 178, § 2, p. 612; Laws 1989, LB 92, § 50.


44-208.02. Insurance companies; organization; subscriptions to stock; permit.

If the Director of Insurance approves the forms of subscriptions for capital stock or the forms of application for membership or for insurance, the corporate surety on the bond required by section 44-208.01, and, in the case of stock insurers, the application to solicit subscriptions for stock, he or she shall deliver to the promoter or incorporators a permit in the name of the corporation authorizing it to complete its organization. Upon receiving such permit, the corporation shall have authority to solicit subscriptions and payments for capital stock if a stock insurer and applications and premiums or advance assessments for insurance if other than a stock insurer and to exercise such powers, subject to the limitations imposed by the Nebraska Model Business Corporation Act and Chapter 44, as may be necessary and proper in completing its organization and qualifying for a license to transact the kind or kinds of insurance proposed in its articles of incorporation. No corporation shall issue policies or enter into contracts of insurance until it receives a certificate of authority permitting it to do so.

Source:Laws 1957, c. 178, § 3, p. 613; Laws 1989, LB 92, § 51; Laws 1995, LB 109, § 217; Laws 2014, LB749, § 282.    


Cross References

44-208.03. Insurance companies; organization; solicitors; written contract required; filing.

No person shall solicit subscriptions for the capital stock of, or applications for membership or for insurance in any corporation in the process of organization, unless he has entered into a written contract with the corporation and a certificate of his authority, signed by at least three incorporators, has been filed with the Department of Insurance.

Source:Laws 1957, c. 178, § 4, p. 613.


44-208.04. Insurance companies; organization; promotion expense; subscription, required stipulations.

Every subscription to the capital stock of a corporation in the process of organization shall contain a stipulation that no sum shall be used for promotion or organization expense in excess of a stated percent of the amount paid upon the subscription. Such sum shall in no event exceed the percentage permitted by law. All sums paid by subscribers shall be held or invested in the manner described in the corporation's application for approval to solicit subscriptions required by section 44-208.01, and no sums may be disbursed by the corporation except for commissions or other promotion or organization expenses until the corporation has procured a certificate of authority from the Department of Insurance. Every subscription for stock, and every application for membership or for insurance made prior to the date the corporation is authorized to write insurance, shall contain a stipulation that the consideration paid by the subscriber or applicant shall be returned to him without any deduction except for organization and promotion expenses actually incurred, in no event to exceed the maximum permitted by law, in case the corporation fails to complete its organization and procure its certificate of authority, or issue the policy applied for.

Source:Laws 1957, c. 178, § 5, p. 613.


44-208.05. Insurance companies; organization; failure to complete; proceedings authorized.

(1) If a corporation does not qualify for a certificate of authority within one year from the date it receives its permit to complete its organization or if an agent of the corporation employed to solicit subscriptions or applications has violated the insurance laws of the state, the Director of Insurance may revoke such permit and order the assets of the corporation to be distributed to the persons or legal entities entitled thereto or proceed against the corporation as an insolvent insurance company in the manner authorized and directed by the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act.

(2) If any corporation does not qualify to receive its certificate of authority within two years from the date it receives its permit to complete organization, the Director of Insurance shall order the assets of the corporation to be distributed to the persons or legal entities entitled thereto or proceed against the corporation as an insolvent insurance company in the manner authorized and directed by the act.

Source:Laws 1957, c. 178, § 6, p. 614; Laws 1989, LB 92, § 52; Laws 1989, LB 319, § 67.


Cross References

44-208.06. Insurance companies; shares of stock; sale in excess of subscription price, limitation.

Until a certificate of authority is issued to a corporation to transact business on the stock plan and for three years thereafter, no shares of stock shall be issued by the corporation or sold or transferred by the promoters, incorporators, or other persons engaged in soliciting subscriptions or in organizing or promoting the corporation, without approval of the Department of Insurance, for an amount in excess of the original subscription price as stated in the application required by section 44-208.01. Except to the extent provided in this section, sales and transfers of shares of stock by the record owner or owners shall not be subject to sections 44-208.01 to 44-208.08.

Source:Laws 1957, c. 178, § 7, p. 615; Laws 1989, LB 92, § 53.


44-208.07. Insurance companies; organization; rules and regulations.

The Director of Insurance shall have authority to adopt and promulgate rules and regulations to regulate all other matters in connection with the organization of domestic insurers for the purpose of protecting the public or preventing fraud.

Source:Laws 1957, c. 178, § 8, p. 615; Laws 1989, LB 92, § 54.


44-208.08. Insurance companies; organization; violation of law; personal liability of solicitors.

Any person, firm, association, partnership, limited liability company, or corporation which solicits any subscriptions for stock or any application for membership or for a policy or sells any surplus note for any insurer in process of organization in violation of law shall be personally liable to any person from whom he or she may have solicited such subscription for stock or application or to whom he or she may have sold such surplus note in an amount equal to that paid by the purchaser or applicant. Suit to recover the same may be brought by such purchasers or applicants, jointly or severally, in any court of competent jurisdiction in this state.

Source:Laws 1957, c. 178, § 9, p. 615; Laws 1989, LB 92, § 55; Laws 1993, LB 121, § 219.


44-209. Repealed. Laws 1989, LB 92,§278.

44-210. Annual meeting; special meeting; voting rights; proxies; preferred stock; limitation on right to vote; quorum requirements; when.

Every domestic stock and mutual company and assessment association shall hold an annual meeting of its shareholders, if a stock company, or of its members, if a mutual company or an assessment association, on or before the 30th day of June in each and every calendar year, for the purpose of receiving the report of its officers and directors, to elect directors whose terms expire, and to transact such other business as may be lawful for it to do. Special meetings of the shareholders or members may be held as may be provided in the articles of incorporation or the bylaws and as otherwise provided by law. Each outstanding share of stock in a stock company and each member in a mutual company or assessment association shall be entitled to one vote on each matter submitted to a vote at an annual or special meeting of the shareholders or members, except as otherwise provided by law and except that any such stock company in its articles of incorporation may provide that the holders of preferred shares of stock shall have no right to vote and, in such event, such shares of stock shall not be entitled to vote. A shareholder or member may vote either in person or by proxy executed in writing by the shareholder or member or by his or her duly authorized attorney in fact appointing any director, officer, shareholder, or member for such purpose. In the case of a mutual company or an assessment association, such proxy may be incorporated into a member's application for insurance or policy. All such proxies shall be filed or on file with the stock or mutual company or assessment association at least five days prior to the day of the meeting, and they shall expire eleven months from their effective date, unless otherwise provided in such proxy, application, or policy. Nothing in this section shall be construed to prohibit or limit the right of a shareholder or member to vote in person or otherwise revoke any such proxy at any time prior to any exercise thereof. In the case of a mutual company or an assessment association, there shall be no quorum requirements for any meeting of members except as set forth in the articles of incorporation or the bylaws of such mutual company or assessment association.

Source:Laws 1913, c. 154, § 63, p. 422; R.S.1913, § 3199; Laws 1919, c. 190, tit. V, art. IV, § 33, p. 602; C.S.1922, § 7798; C.S.1929, § 44-333; R.S.1943, § 44-210; Laws 1963, c. 265, § 1, p. 794; Laws 1965, c. 254, § 1, p. 720; Laws 1989, LB 92, § 56; Laws 1994, LB 1222, § 47.


44-211. Incorporators; manage business until first meeting of shareholders; board of directors; election; number; qualifications; powers.

The business and affairs of an insurance corporation shall be managed by the incorporators until the first meeting of shareholders or members and then and thereafter by a board of directors elected by the shareholders or members and as otherwise provided by law. The board of directors shall consist of not less than five persons, and one of them shall be a resident of the State of Nebraska. At least one-fifth of the directors of an insurance company, which is not subject to section 44-2135, shall be persons who are not officers or employees of such company. A person convicted of a felony may not be a director, and all directors shall be of good moral character and known professional, administrative, or business ability, such business ability to include a practical knowledge of insurance, finance, or investment. No person shall hold the office of director unless he or she is a policyholder, if the company is a mutual company or assessment association. Unless otherwise provided in the articles of incorporation, the board of directors shall make all bylaws. A director shall discharge his or her duties as a director in accordance with section 21-2,102.

Source:Laws 1913, c. 154, § 82, p. 429; R.S.1913, § 3219; Laws 1919, c. 190, tit. V, art. V, § 5, p. 609; C.S.1922, § 7818; C.S.1929, § 44-405; R.S.1943, § 44-211; Laws 1953, c. 145, § 1, p. 469; Laws 1959, c. 195, § 1, p. 702; Laws 1961, c. 212, § 1, p. 630; Laws 1965, c. 255, § 1, p. 722; Laws 1967, c. 263, § 1, p. 706; Laws 1989, LB 92, § 57; Laws 1991, LB 236, § 35; Laws 1999, LB 259, § 2;    Laws 2007, LB191, § 2;    Laws 2014, LB749, § 283.    


44-211.01. Repealed. Laws 1963, c. 340, § 1.

44-212. Insurance companies; officers; elections; terms; salaries.

The directors of every stock company and the board of directors or members of every mutual company or assessment association may elect such officers as are necessary to conduct the business of the company, including a president, secretary, and treasurer, and employ such other officers and employees as may be required to carry on the business of the company and may fix their terms of office or employment and their salaries and compensation, but such action shall not be in conflict with the provisions of law relating thereto.

Source:Laws 1913, c. 154, § 29, p. 411; R.S.1913, § 3165; Laws 1919, c. 190, tit. V, art. III, § 21, p. 590; C.S.1922, § 7765; C.S.1929, § 44-221; R.S.1943, § 44-212; Laws 1989, LB 92, § 58.


Annotations

44-213. Employee, officer, trustee, or director of domestic company; salaries; length of contract; limitations; deferred payment of compensation; employee benefit plans.

No domestic insurance company shall pay any salary, compensation, or emolument to any salaried employee or to any officer, trustee, or director thereof in excess of a reasonable return for the services performed or to be performed by such person. The shareholders of stock companies and the members of other companies shall retain the power at any meeting to alter or discontinue any employment agreement. No such company shall make an agreement with any salaried employee or with any officer, trustee, or director whereby it agrees that, for any services to be rendered, he or she shall receive any salary, compensation, or emolument that will extend beyond a period of five years from the date of such agreement, but any such company may make a conditional or unconditional agreement with any such person whereby it agrees that, in consideration of a current salary, compensation, or emolument of any amount less than a reasonable return for the services performed or to be performed by such person, he or she shall at specified future time or times, without regard to the five-year limitation set out in this section, receive, either without further condition or subject to reasonable contingencies, additional deferred salary, compensation, or emolument of any amount adequate to make the total thereof received by such person a reasonable return for the services performed by such person. Salary, compensation, and emolument as used in this section shall not include payments made pursuant to a plan for retirement, disability, sickness, accident, or death benefits.

Source:Laws 1913, c. 154, § 46, p. 418; R.S.1913, § 3182; Laws 1919, c. 190, tit. V, art. IV, § 17, p. 597; C.S.1922, § 7782; Laws 1925, c. 125, § 1, p. 331; C.S.1929, § 44-317; R.S.1943, § 44-213; Laws 1945, c. 106, § 1, p. 340; Laws 1953, c. 146, § 1, p. 470; Laws 1957, c. 176, § 1, p. 608; Laws 1961, c. 213, § 1, p. 631; Laws 1975, LB 374, § 1; Laws 1989, LB 92, § 59.


44-213.01. Employee benefit plans; authorized; approval required.

Domestic insurance companies may establish, participate in, or administer plans providing retirement, disability, sickness, accident, or death benefits for their employees, officers, or agents, or any reasonable classification thereof. Such plans may provide disability, sickness, accident, or group life benefits for dependents of any class covered or retired members of such classes. All plans which provide benefits upon or after retirement must be (1) adopted by a two-thirds vote of the members of the board of directors present at the meeting and (2) filed with and approved by the Director of Insurance. All other plans not providing benefits upon or after retirement must be approved by a two-thirds vote of the members of the board of directors of the company present at the meeting.

Source:Laws 1953, c. 146, § 2, p. 471; Laws 1957, c. 176, § 2, p. 608; Laws 1959, c. 196, § 1, p. 703; Laws 1967, c. 264, § 1, p. 707.


44-213.02. Employee benefit plans; department; rules and regulations.

The Department of Insurance shall not later than ninety days after May 25, 1953, adopt and publish appropriate rules and regulations in the manner provided by the Administrative Procedure Act, as now existing or as hereafter amended, which rules and regulations shall prescribe fair, equitable, and reasonable standards for all plans providing retirement, disability, sickness, accident, or death benefits which are established, participated in, or administered by domestic insurance companies. The standards prescribed shall, among other things, (1) prohibit discrimination in favor of officers and supervisory or highly compensated personnel; (2) require that all plans be based upon sound actuarial principles and that adoption thereof will not impair the company's financial position or be prejudicial to the interest of the policyholders; and (3) require that all plans contain stated maximum benefits found by the Director of Insurance to be fair and reasonable and properly related to the compensation of the recipient and the financial condition of the company. Plans which do not comply with the standards prescribed shall not be approved by the Director of Insurance.

Source:Laws 1953, c. 146, § 3, p. 471.


Cross References

44-213.03. Employee benefit plans; modification; procedure.

No modifications of or amendments to any plan for retirement, disability, sickness, accident, or death benefits of any domestic insurance company shall be effective until and unless such modifications or amendments are adopted and approved by a two-thirds vote of the members of the board of directors present at the meeting. All modifications of or amendments to any plan providing benefits upon or after retirement must also be filed with and approved by the Director of Insurance. Such modifications or amendments may provide for increased benefits for retired members if such increase meets the standards required in section 44-213.02, and in the rules and regulations adopted thereunder. All such modifications or amendments shall comply with the provisions of sections 44-213 to 44-213.07 and the Director of Insurance shall review all plans providing benefits upon or after retirement in their entirety and the effect on such plans of such modifications or amendments when considering the same for approval.

Source:Laws 1953, c. 146, § 4, p. 472; Laws 1957, c. 176, § 3, p. 609; Laws 1967, c. 264, § 2, p. 707; Laws 1975, LB 374, § 2.


44-213.04. Employee benefit plans; suspension by director; when allowed.

Whenever the Director of Insurance finds the suspension of contributions by any domestic insurance company to any plan for retirement, disability, sickness, accident, or death benefits to be necessary to protect and conserve the interests of the policyholders, he shall order such suspension, stating the reasons thereof. At such time thereafter as said condition no longer exists, he may permit the company to resume such contributions.

Source:Laws 1953, c. 146, § 5, p. 472.


44-213.05. Employee benefit plans; ratification of prior plan; modification; approval.

Any plan for retirement, disability, sickness, accident, or death benefits which had been established, participated in, or administered by any domestic insurance company and filed with and approved by the Department of Insurance at any time prior to May 25, 1953, may be continued in force from the original date of its inception if (1) such plan is refiled with the Department of Insurance; (2) such plan is found by the Director of Insurance to be in compliance with the provisions of sections 44-213 to 44-213.07; and (3) such plan and its continuance are found by the Director of Insurance to serve to protect and conserve the present and future interests of the policyholders of the company. If the director finds that such plan does not comply with the provisions of sections 44-213 to 44-213.07 but its continuance in modified form will serve to protect and conserve the present and future interests of the policyholders, he may propose modifications to the plan which, if adopted by a two-thirds vote of the board of directors and a majority of the votes cast in person or by proxy at an annual or special meeting of the stockholders of stock companies or the policyholders of other companies within one year from May 25, 1953, will continue the plan in force from the original date of its inception.

Source:Laws 1953, c. 146, § 6, p. 472.


44-213.06. Employee benefit plans; decision of director; hearing; notice; appeal.

In the event the Director of Insurance disapproves any proposed or existing plan, modification thereof, or amendment thereto for providing benefits upon or after retirement, he or she shall, after a hearing thereon has been held and prior written notice of such hearing having been given to the company concerned, issue a written order specifying the reasons for disapproval. An appeal may be taken from the decision of the director, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1953, c. 146, § 7, p. 473; Laws 1957, c. 176, § 4, p. 609; Laws 1969, c. 359, § 8, p. 1271; Laws 1989, LB 6, § 2; Laws 1989, LB 92, § 60.


Cross References

44-213.07. Employee benefit plans; court action; effect of sections.

On and after May 25, 1953, all actions or causes of action in regard to matters pertaining to sections 44-213 to 44-213.07, whether or not the same are pending in court on May 25, 1953, but upon which a judgment has not become final in a court of last resort, shall be governed by the provisions of sections 44-213 to 44-213.07 and not by the provisions of section 49-301.

Source:Laws 1953, c. 146, § 8, p. 473.


44-214. Stock insurance company; capital stock and surplus requirements; lines of insurance authorized; additional requirements.

(1) Except as provided in section 44-202.01, no stock insurance company shall, on and after August 25, 1989, transact any line of insurance specified in section 44-201 in this state unless it maintains a capital stock, actually paid in cash or invested as provided by law, of at least one million dollars, nor shall it, on or after such date, transact the line or lines of insurance specified in subdivisions (1) and (2) of section 44-201 and in addition thereto one or more lines of insurance other than those specified in subdivisions (3) and (4) of such section in this state unless it maintains a capital stock, actually paid in cash or invested as provided by law, of at least two million dollars. No stock insurance company shall, on and after August 25, 1989, begin to transact any line of insurance as specified in section 44-201 unless it has a surplus of at least one million dollars, nor shall it, on and after such date, begin to transact the line or lines of insurance specified in subdivisions (1) and (2) of section 44-201 and in addition thereto one or more lines of insurance other than those specified in subdivisions (3) and (4) of such section in this state unless it has a surplus of at least two million dollars.

(2) The provisions of subsection (1) of this section shall be considered minimum requirements. Stock insurers holding a certificate of authority to transact business in this state shall also be subject to the requirements of the Insurers and Health Organizations Risk-Based Capital Act.

Source:Laws 1913, c. 154, § 86, p. 430; R.S.1913, § 3223; Laws 1919, c. 190, tit. V, art. V, § 9, p. 610; C.S.1922, § 7822; Laws 1925, c. 123, § 1, p. 324; C.S.1929, § 44-409; Laws 1935, c. 98, § 1, p. 326; C.S.Supp.,1941, § 44-409; R.S.1943, § 44-214; Laws 1949, c. 141, § 1, p. 365; Laws 1957, c. 177, § 1, p. 610; Laws 1965, c. 253, § 2, p. 716; Laws 1967, c. 262, § 3, p. 703; Laws 1974, LB 919, § 1; Laws 1989, LB 92, § 61; Laws 1993, LB 583, § 39; Laws 1994, LB 978, § 15; Laws 1999, LB 258, § 1.    


Cross References

Annotations

44-215. Repealed. Laws 1965, c. 253, § 7.

44-216. Mutual company; assessment association; articles of incorporation; contents.

The articles of incorporation of a mutual company or an assessment association may limit the insurance to specified kinds or classes of property, lives, individuals, or liabilities within any subdivision of section 44-201 or the territory within which insurance shall be granted and shall provide the manner in which policyholders of a mutual company shall participate in the profits of the company.

Source:Laws 1913, c. 154, § 85, p. 430; R.S.1913, § 3222; Laws 1919, c. 190, tit. V, art. V, § 8, p. 610; C.S.1922, § 7821; C.S.1929, § 44-408; R.S.1943, § 44-216; Laws 1989, LB 92, § 62.


44-217. Mutual company; assessment association; membership; voting.

Each person, corporation, association, partnership, or limited liability company owning a policy or policies of insurance issued by a mutual company or an assessment association shall be a member thereof and have one vote.

Source:Laws 1913, c. 154, § 83, p. 429; R.S.1913, § 3220; Laws 1919, c. 190, tit. V, art. V, § 6, p. 610; C.S.1922, § 7819; C.S.1929, § 44-406; R.S.1943, § 44-217; Laws 1989, LB 92, § 63; Laws 1993, LB 121, § 220.


Annotations

44-218. Mutual company; limitation of liability.

The liability of a member of a mutual company shall be limited to the premiums stated in the policy.

Source:Laws 1913, c. 154, § 79, p. 428; R.S.1913, § 3216; Laws 1919, c. 190, tit. V, art. V, § 2, p. 608; C.S.1922, § 7815; Laws 1925, c. 124, § 2, p. 328; C.S.1929, § 44-402; Laws 1931, c. 89, § 1, p. 251; C.S.Supp.,1941, § 44-402; R.S.1943, § 44-218; Laws 1957, c. 189, § 1, p. 662; Laws 1989, LB 92, § 64.


Annotations

44-219. Domestic mutual company; transaction of business; policies and reserve required; additional requirements.

(1)(a) No domestic mutual insurance company shall begin to transact the business of insurance until (i) it has received not less than one hundred applications for insurance unless organized to write (A) workers' compensation and employers liability insurance, in which case it shall receive applications from at least twenty employers covering in the aggregate five hundred employees, or (B) the line or lines of insurance specified in subdivisions (13) and (14) of section 44-201, in which case no application shall be required, and in addition thereto (ii) it has received in cash one annual premium for each application for insurance.

(b) Except as provided in section 44-202.01, no mutual insurance company shall, on and after August 25, 1989, transact any line of insurance specified in section 44-201 in this state unless it has and maintains a minimum surplus, in cash or invested as provided by law, of at least one million dollars, nor shall it, on and after such date, transact the line or lines of insurance specified in subdivisions (1) and (2) of section 44-201 and in addition thereto one or more lines of insurance other than those specified in subdivisions (3) and (4) of such section in this state unless it has and maintains a minimum surplus, in cash or invested as provided by law, of at least two million dollars.

(2) The provisions of subsection (1) of this section shall be considered minimum requirements. Mutual insurers holding a certificate of authority to transact business in this state shall also be subject to the requirements of the Insurers and Health Organizations Risk-Based Capital Act.

Source:Laws 1913, c. 154, § 87, p. 431; R.S.1913, § 3224; Laws 1919, c. 190, tit. V, art. V, § 10, p. 611; C.S.1922, § 7823; C.S.1929, § 44-410; Laws 1941, c. 84, § 1, p. 332; C.S.Supp.,1941, § 44-410; R.S.1943, § 44-219; Laws 1949, c. 142, § 1(1), p. 366; Laws 1957, c. 178, § 11, p. 616; Laws 1965, c. 253, § 3, p. 717; Laws 1967, c. 262, § 4, p. 703; Laws 1974, LB 919, § 2; Laws 1986, LB 811, § 15; Laws 1989, LB 92, § 65; Laws 1993, LB 583, § 40; Laws 1994, LB 978, § 16; Laws 1999, LB 258, § 2.    


Cross References

Annotations

44-219.01. Repealed. Laws 1967, c. 262, § 6.

44-219.02. Repealed. Laws 1965, c. 253, § 7.

44-219.03. Repealed. Laws 1965, c. 253, § 7.

44-219.04. Repealed. Laws 1989, LB 92, § 278.

44-219.05. Repealed. Laws 1989, LB 92, § 278.

44-219.06. Repealed. Laws 1989, LB 92, § 278.

44-219.07. Repealed. Laws 1989, LB 92, § 278.

44-219.08. Repealed. Laws 1989, LB 92, § 278.

44-219.09. Repealed. Laws 1989, LB 92, § 278.

44-220. Domestic company; power to borrow; purposes; conditions; issuance of surplus notes.

In addition to the general power and authority to borrow money for its regular business purposes, any domestic insurance company may borrow money: (1) To defray the reasonable expenses of its organization; (2) to provide special contingency loss funds; (3) to provide additional surplus funds; (4) to make good any deficiency; and (5) to provide the amount of minimum surplus required by Chapter 44 and may issue its notes therefor, to be known as surplus notes, which shall fully recite the purpose for which the money was borrowed, if application has been made to the Department of Insurance and approval in writing is obtained from the Director of Insurance for the issuance of such surplus notes in a stated maximum amount. The amount thereof outstanding with the unpaid interest shall be stated in each annual report.

Source:Laws 1913, c. 154, § 84, p. 429; R.S.1913, § 3221; Laws 1919, c. 190, tit. V, art. V, § 7, p. 610; C.S.1922, § 7820; C.S.1929, § 44-407; Laws 1941, c. 83, § 1, p. 330; C.S.Supp.,1941, § 44-407; R.S.1943, § 44-220; Laws 1949, c. 143, § 1, p. 368; Laws 1965, c. 256, § 1, p. 723; Laws 1989, LB 92, § 66; Laws 1994, LB 1222, § 48.


44-221. Domestic company; surplus notes; repayment; interest rate.

(1) Except as provided in this subsection, surplus notes issued prior to September 9, 1995, and the indebtedness which they represent shall not be a liability or claim against any of the assets of the company. The principal of such notes may be paid from time to time, either in full or in part, from available surplus funds of the company only when the amount of the surplus of the company over all liabilities is double that of the principal amount then being paid. The company shall have the right to make such repayments whenever it is able to do so, except that the company shall first receive the prior approval of the Director of Insurance for any such repayments. The director shall use the standards set forth in section 44-2136 relating to adequacy of surplus in determining whether or not to approve such repayments. The interest on such notes shall only be payable from the surplus and shall not exceed such sum as may be fixed. Upon a dissolution of the company, the principal and accrued and unpaid interest shall be payable from the surplus.

(2) Except as provided in this subsection, the principal of surplus notes issued on or after September 9, 1995, and the indebtedness which such notes represent shall not be a liability or claim against any of the assets of the company. The principal of and interest on such notes may be paid from time to time, either in full or in part, from available surplus funds of the company only when the amount of the surplus of the company over all liabilities is double that of the amount of principal and interest then being paid. The company shall have the right to make such payments whenever it is able to do so, except that the company shall first receive the prior approval of the Director of Insurance for any such payments. The director shall use the standards set forth in section 44-2136 relating to adequacy of surplus in determining whether or not to approve such payments. Upon a dissolution of the company, the principal and accrued and unpaid interest shall be payable from the surplus.

Source:Laws 1913, c. 154, § 84, p. 430; R.S.1913, § 3221; Laws 1919, c. 190, tit. V, art. V, § 7, p. 610; C.S.1922, § 7820; C.S.1929, § 44-407; Laws 1941, c. 83, § 1, p. 330; R.S.Supp.,1941, § 44-407; R.S.1943, § 44-221; Laws 1973, LB 405, § 1; Laws 1989, LB 92, § 67; Laws 1991, LB 236, § 36; Laws 1994, LB 1222, § 49; Laws 1995, LB 162, § 1.


44-222. Insurance; maximum risks; exceptions.

Except as otherwise provided by law, no insurance company shall expose itself to any loss on any one risk in an amount exceeding ten percent of its surplus to policyholders as reflected by the last annual statement of the company, except that domestic assessment associations organized for the primary purpose of writing insurance coverage on farm properties and which write such insurance in less than thirty-one counties in Nebraska shall not write any policy for an amount in excess of one-eighth of one percent of its insurance in force. The term loss shall mean the incremental decrease in surplus resulting from payment of a claim equal to the maximum liability of the insurer on any one risk. The term any one risk shall mean, in the case of property insurance, all properties insured by the same insurance company which are customarily considered by underwriters to be subject to loss or destruction from the same hazard or occurrence except hazards or occurrences of a catastrophic nature. The term surplus to policyholders shall mean the amount obtained by subtracting, from the admitted assets, actual liabilities, including any reserves which by law must be maintained. In the case of a stock company, surplus to policyholders shall also include the paid-up and outstanding capital stock. Any reinsurance taking effect simultaneously with the policy or bond shall be deducted in determining whether any one risk or policy exceeds the limitation of risk or policy prescribed in this section. This section shall not be applicable to workers' compensation or employers liability insurance or to any policy or type of coverage as to which the maximum possible loss to the insurance company is not ascertainable on issuance of the policy.

Source:Laws 1913, c. 154, § 88, p. 431; R.S.1913, § 3225; Laws 1919, c. 190, tit. V, art. V, § 11, p. 611; C.S.1922, § 7824; C.S.1929, § 44-411; Laws 1935, c. 98, § 2, p. 326; C.S.Supp.,1941, § 44-411; R.S.1943, § 44-222; Laws 1957, c. 179, § 1, p. 618; Laws 1959, c. 197, § 1, p. 704; Laws 1986, LB 811, § 16; Laws 1987, LB 416, § 18; Laws 1989, LB 92, § 68; Laws 1994, LB 978, § 17.


44-222.01. Insurance; maximum risk; reinsurance; filing information with director.

For the purpose of determining whether any one risk exceeds the limitation imposed by section 44-222, reinsurance shall be in a company acceptable to the Director of Insurance. If requested by the director, the original company writing the risk or policy shall file with the Director of Insurance evidence of such reinsurance listing the name of the reinsurer and such other information pertaining thereto as may be required by the director.

Source:Laws 1959, c. 197, § 2, p. 705; Laws 1989, LB 92, § 69.


44-222.02. Violations; report to Attorney General; suspension of authority to do business; appeal.

The Director of Insurance may, if he or she finds that any person or insurer has violated any of the provisions of sections 44-222 and 44-222.01, report the facts to the Attorney General for prosecution in accordance with the provisions of section 44-395. In lieu of the criminal prosecution provided herein or in addition thereto the Director of Insurance may suspend such insurer's authority to do business in Nebraska for such length of time as the director may prescribe. An appeal may be taken from the decision of the director, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1959, c. 197, § 3, p. 705; Laws 1969, c. 359, § 9, p. 1271; Laws 1988, LB 352, § 41; Laws 1989, LB 92, § 70.


Cross References

44-223. Insurance companies; incorporators and directors; liability.

The original incorporators, until the election of directors, and thereafter the directors shall be jointly and severally liable for any losses incurred during the following time or times: (1) For the excess of any policy above the maximum single risks prescribed by section 44-222 during the time that such policy exceeds such maximum single risks; (2) for any losses occurring upon any new risk taken after the expiration of the period designated by the Department of Insurance in accordance with sections 44-120 to 44-124 in which to make good any deficiency; and (3) for all debts and liabilities contracted prior to the time the company received its certificate of authority.

Source:Laws 1913, c. 154, § 89, p. 432; R.S.1913, § 3226; Laws 1919, c. 190, tit. V, art. V, § 12, p. 612; C.S.1922, § 7825; C.S.1929, § 44-412; R.S.1943, § 44-223; Laws 1959, c. 198, § 1, p. 706; Laws 1989, LB 92, § 71.


44-224. Repealed. Laws 1957, c. 180, § 11.

44-224.01. Reinsurance, merger, consolidation; terms, defined.

For purposes of sections 44-224.01 to 44-224.10, unless the context otherwise requires:

(1) Director shall mean the Director of Insurance or his or her authorized representative;

(2) Policyholders shall mean the members of mutual insurance companies, the members of assessment associations, and the subscribers to reciprocal insurance exchanges;

(3) Merger or contract of merger shall mean a merger or consolidation agreement between stock insurance companies as authorized by the Nebraska Model Business Corporation Act;

(4) Consolidation or contract of consolidation shall mean a merger or consolidation agreement between companies operating on other than the stock plan of insurance; and

(5) Bulk reinsurance or contract of bulk reinsurance shall mean an agreement whereby one company cedes by an assumption reinsurance agreement fifty percent or more of its risks and business to another company.

Source:Laws 1957, c. 180, § 1, p. 620; Laws 1969, c. 359, § 10, p. 1271; Laws 1989, LB 92, § 72; Laws 1995, LB 109, § 218; Laws 2014, LB749, § 284.    


Cross References

44-224.02. Reinsurance; authorization.

(1) Any domestic insurance company may, in the course of its business, accept reinsurance or bulk reinsurance for the same kinds of insurance and within the same limits as it is authorized to transact directly.

(2) Any domestic insurance company may, in the usual course of business, reinsure any of its risks.

Source:Laws 1957, c. 180, § 2, p. 620.


44-224.03. Domestic stock company; bulk reinsurance; contract; approval.

(1) Any domestic stock insurance company may cede its business to another licensed insurer by a contract of bulk reinsurance, but such contract shall not become effective unless first filed with and approved by the director and thereafter approved by a majority vote of the shareholders of the ceding company present in person or by proxy and voting at an annual meeting or at a special meeting called for that purpose.

(2) The director shall approve such contract within a reasonable time after such filing unless he or she finds it is inequitable to the shareholders or policyholders of both insurers. If the director does not approve the contract, he or she shall so notify the respective insurers in writing specifying his or her reasons therefor. If approved by the director, the contract shall then be submitted to the shareholders of the ceding company for their approval as provided in subsection (1) of this section. If approved by the required vote of the shareholders, the contract shall then become effective.

Source:Laws 1957, c. 180, § 3, p. 620; Laws 1989, LB 92, § 73.


44-224.04. Domestic stock company merger; contract; approval.

Any domestic stock insurance company may merge with another stock insurer after the contract of merger is approved by the director. The director shall not approve any such contract of merger unless the interests of the policyholders or shareholders of both parties thereto are properly protected. If the director does not approve the contract of merger, he or she shall issue a written order of disapproval setting forth his or her findings. After having obtained the approval of the director, the contract of merger shall be consummated in the manner set forth in the Nebraska Model Business Corporation Act for the merger or consolidation of stock corporations.

Source:Laws 1957, c. 180, § 4, p. 621; Laws 1969, c. 362, § 1, p. 1286; Laws 1976, LB 916, § 1; Laws 1989, LB 92, § 74; Laws 1995, LB 109, § 219; Laws 2014, LB749, § 285.    


Cross References

44-224.05. Domestic nonstock company; bulk reinsurance; contract; approval.

(1) Any domestic insurance company operating on other than the stock plan may cede its business to another licensed insurer, whether stock, mutual, assessment, or reciprocal exchange, by a contract of bulk reinsurance upon compliance with this section.

(2) Such contract of bulk reinsurance shall not become effective unless first filed with and approved by the director and thereafter approved by a majority vote of the members of the ceding company present in person or by proxy and voting at an annual meeting or at a special meeting called for that purpose. The director shall not approve such contract unless he or she finds it to be fair and equitable to the policyholders of each insurer involved. If the director does not so approve, he or she shall notify each insurer involved in writing specifying his or her reasons therefor.

(3) Contracts of bulk reinsurance whereby an insurer operating on other than the stock plan of insurance cedes its business to a stock insurer shall provide for distribution to each policyholder of the ceding company of his or her equity in the surplus funds, if any, of such ceding company as determined under a fair and equitable formula approved by the director.

Source:Laws 1957, c. 180, § 5, p. 621; Laws 1989, LB 92, § 75.


Annotations

44-224.06. Domestic assessment association; bulk reinsurance; contract.

Any domestic assessment association, which has accumulated and maintains the same reserve for liabilities that is required of a mutual company transacting the same kind or kinds of business, and which has a surplus or contingency funds equal to, or in excess of the surplus required of a mutual company transacting the same kind or kinds of business, may in any contract of reinsurance or bulk reinsurance, agree to limit its assessments to the premium stated in the policies issued by the ceding company.

Source:Laws 1957, c. 180, § 6, p. 622.


44-224.07. Domestic company; consolidation; contract; approval.

(1) A contract of consolidation involving a domestic insurance company shall be approved by a majority vote of the board of directors or other governing body of each of the respective parties thereto as well as by a majority vote of the members present in person or by proxy at an annual meeting or at a special meeting called for that purpose. Such contract of consolidation shall be approved by the director prior to submission to the members for approval. After approval by the members, the officers of the respective parties thereto may enter into and consummate such contract of consolidation and do and perform all acts necessary to the final and complete consummation thereof. Such contract of consolidation shall designate the corporation which is to continue or survive and which shall thereafter retain a certificate of authority issued by the department. The surviving company may assume, in whole or in part, the name of the retiring company. Such contract of consolidation upon becoming effective shall have the effect of transferring the assets, rights, franchises, and interests of the companies so consolidated to the continuing or surviving company, and simultaneously therewith, such surviving or continuing company shall be deemed to have assumed all the liabilities of the consolidated companies. A contract of consolidation need not require a disposition or other distribution of the surplus assets of either party thereto to their respective policyholders. No action or proceeding pending at the time of such consolidation to which either of the consolidating parties may be a party shall be abated or discontinued by reason of such consolidation, but the same may be prosecuted to final judgment in the same manner as if the consolidation had not taken place or the continuing or surviving company may be substituted in place of any such company so consolidated, as the case may be, by order of the court in which the action or proceeding is pending.

(2) Any assessment association which has accumulated and maintains the same reserve for liabilities that is required of a mutual company transacting the same kind or kinds of business and which has a surplus or contingency funds equal to or in excess of that required of a mutual company transacting the same kind or kinds of business may, in any consolidation agreement in which it is to continue or survive as an assessment association, agree to limit its assessments to the premium stated in the policies issued by the retiring company.

Source:Laws 1957, c. 180, § 7, p. 622; Laws 1989, LB 92, § 76.


44-224.08. Reinsurance; special meetings of shareholders; notice.

All special meetings of shareholders or members called pursuant to sections 44-224.03, 44-224.05, and 44-224.07 shall be called upon a printed notice which shall contain (1) the time, place, and purpose of the meeting, (2) a brief statement of the substance of the contract and, in the case of the type of a bulk reinsurance contract contemplated by subsection (3) of section 44-224.05, a brief statement of the plan for distributing or otherwise disposing of the surplus assets, if any, of the ceding company, and (3) a copy of the order of the director approving the contract. Such notice shall be mailed at least ten days prior to the date the special meeting is called and shall be directed to the shareholder or member at his or her last post office address appearing on the records of the company.

Source:Laws 1957, c. 180, § 8, p. 623; Laws 1989, LB 92, § 77.


44-224.09. Merger, consolidation, reinsurance; appeal.

Any party aggrieved by any order of the director approving or disapproving any contract of merger, consolidation, or bulk reinsurance may appeal, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1957, c. 180, § 9, p. 624; Laws 1969, c. 359, § 11, p. 1272; Laws 1988, LB 352, § 42.


Cross References

44-224.10. Reinsurance; consolidation; forfeiture of charter; when.

Whenever any company operating on other than the stock plan reinsures all of its risk and business in bulk its charter shall be deemed forfeited to the State of Nebraska. Whenever any company enters into a contract of consolidation and thereby loses its separate identity, its charter shall be deemed forfeited to the State of Nebraska.

Source:Laws 1957, c. 180, § 10, p. 624.


44-224.11. Domestic company; reinsurance; acceptance; conditions.

(1) In addition to any other reinsurance authority granted by Chapter 44, any domestic insurance company authorized to transact business in this state pursuant to Chapter 44, article 2, may accept reinsurance for any insurance transacted by any affiliate or affiliates of such company which such company is not authorized to transact directly. The term affiliate shall have the same meaning as that stated for such term in section 44-2121.

(2) Before an insurance company may transact a business of accepting reinsurance pursuant to this section, it shall obtain the approval of the Department of Insurance. No such approval shall be granted or continued in effect unless the company has and maintains a minimum surplus, in cash or invested as provided by law, of at least two million dollars and has and maintains admitted assets of at least ten million dollars. No such approval shall be granted or continued in effect if the Director of Insurance finds that such approval would not be in the best interests of the policyholders, shareholders, or public because of the competence, experience, or integrity of the management personnel of such business, the terms of reinsurance accepted in connection with such business, or the effect of the operation of such business on the other operations of the company.

(3) No insurance company shall accept reinsurance pursuant to the authority granted by this section on any one risk in an amount exceeding five percent of its surplus to policyholders as reflected by the last annual statement of the company. The term any one risk and the term surplus to policyholders shall have the same meaning as that stated for such terms in section 44-222.

(4) Nothing in this section shall be construed to require any insurance company otherwise authorized by law to transact the business of reinsurance to exercise the authority granted by this section.

(5) The Department of Insurance shall adopt and promulgate such reasonable rules and regulations as may be necessary or appropriate to carry out the provisions of this section in accordance with the provisions of the Administrative Procedure Act. Such rules and regulations may include rules and regulations pertaining to the form of application for transaction of business authorized by this section, the plan of operation of such business, the qualifications of personnel engaged in such business, and the accounting and reporting procedures applicable to such business.

Source:Laws 1978, LB 464, § 1; Laws 1991, LB 236, § 37.


Cross References

44-225. Repealed. Laws 1957, c. 180, § 11.

44-226. Repealed. Laws 1957, c. 180, § 11.

44-227. Repealed. Laws 1957, c. 180, § 11.

44-228. Repealed. Laws 1957, c. 180, § 11.

44-229. Repealed. Laws 1957, c. 180, § 11.

44-230. Repealed. Laws 1957, c. 180, § 11.

44-231. Domestic company; articles of incorporation; amendment; procedure; exception.

Except as otherwise provided in the Insurers Demutualization Act, any domestic insurance company, association, or society, hereinafter called company, may amend its articles of incorporation from time to time without limitation so long as the articles as amended contain only such provisions as are authorized in original articles of incorporation under Chapter 44. Proposed amendments to the articles shall be made in the following manner:

(1) The board of directors of such company shall adopt, by a two-thirds vote of all of the directors thereof, the proposed amendments to the articles of incorporation;

(2) Prior to the meeting of the shareholders or members at which the proposed amendments are to be considered, the proposed amendments, with all matters relating thereto, shall be submitted to the Department of Insurance for examination. If satisfied that the interests of the policyholders of such company and all concerned are properly protected and that no reasonable objections exist to the proposed amendments to the articles, the department may approve the same or it may require change or modification prior to any approval, as it may deem best for the interest of those affected; and

(3) If the Department of Insurance requires any changes or modifications of the proposed amendments to the articles of incorporation, such amendments shall be in turn submitted to and be adopted by a two-thirds vote of all the directors of such company. The proposed amendments to the articles of incorporation as originally adopted or readopted, as the case may be, shall then be submitted to the shareholders or members of the company entitled to vote for adoption at a regular meeting or a special meeting thereof.

Except as hereinafter provided, notice of such a special meeting together with a description of the proposed amendment to the articles of incorporation shall be given to each shareholder or member entitled to vote in the manner authorized or approved by the department at least thirty days prior thereto.

If the proposed amendments to the articles of incorporation are to be considered at a regular annual meeting of the members or shareholders, the Director of Insurance may, in his or her discretion, require the giving of the same notice as is required for a special meeting.

If the proposed amendments to the articles of incorporation are to be considered at a special meeting of the members of a mutual or assessment company or at a regular annual meeting thereof, notice of which has been required, the Director of Insurance may, upon application of the board of directors of such company, permit the company to exclude from the members entitled to notice those who in the opinion of the director are not reasonably ascertainable.

If the proposed amendments to the articles of incorporation are adopted by a two-thirds vote of all the stock, if a stock company, by a vote of two-thirds of the members voting at such meeting in person or by proxy, if a mutual or assessment company, or pursuant to the Insurers Demutualization Act, then they shall be filed in the same offices as original articles of incorporation as provided in section 44-205, and the same notice shall be published.

Source:Laws 1913, c. 154, § 92, p. 434; R.S.1913, § 3229; Laws 1919, c. 190, tit. V, art. V, § 15, p. 614; C.S.1922, § 7828; C.S.1929, § 44-415; Laws 1935, c. 102, § 1, p. 332; C.S.Supp.,1941, § 44-415; R.S.1943, § 44-231; Laws 1961, c. 214, § 1, p. 632; Laws 1989, LB 92, § 78; Laws 1993, LB 583, § 61; Laws 1997, LB 52, § 2.


Cross References

Annotations

44-232. Repealed. Laws 1993, LB 583, § 116.

44-233. Domestic stock company; change to mutual company; requirements.

If any domestic insurance company, operating upon a stock basis, hereafter desires to amend its articles of incorporation and change its methods of doing business to those of a mutual company, it shall, in addition to the requirements of section 44-231, comply with the provisions of sections 44-233 to 44-241.

Source:Laws 1953, c. 152, § 1, p. 480.


44-234. Domestic stock company; change to mutual company; plan; requirements.

The board of directors shall submit to the Director of Insurance:

(1) Two copies of the proposed amendments to its articles of incorporation as provided for in section 44-231, duly certified by the secretary of the company, for filing in the office of the director and as many additional copies thereof as there are shareholders of the company;

(2) Two copies of a comprehensive plan for the mutualization of the company as approved by the board of directors, duly certified by the secretary of the company, for filing in the office of the director and as many additional copies thereof or copies of an adequate summary of the plan as there are shareholders of the company; and

(3) A complete list of the shareholders of the company showing the name of, number of shares owned by, and the latest address of each shareholder as shown by the company's records.

Source:Laws 1953, c. 152, § 2, p. 480; Laws 1989, LB 92, § 80.


44-235. Domestic stock company; change to mutual company; plan; contents.

The plan for the mutualization of the company shall among other things include:

(1) A statement of the value of the interest of the shareholders in the company as ascertained by the company, which value shall not exceed the fair value thereof, and the amount proposed to be paid to each shareholder upon retirement of his or her shares of stock;

(2) A statement of the method of ascertaining the value of the interest of the shareholders;

(3) A statement of the procedure proposed for paying the shareholders for their stock, which may be done over a period of time and performed with due regard for the interest of the policyholders, and for retiring and canceling the stock;

(4) A statement of the method to be followed in continuing the management of the company during any period intervening between the inception of the plan and the retirement of the stock and in instituting management by the policyholders; and

(5) A provision for approval of the plan for mutualization by at least two-thirds of the policyholders voting in person or by proxy at a meeting of policyholders called by the company upon at least thirty days' written notice mailed to the policyholders at their latest addresses as shown by the company's records and containing an adequate summary of the essential provisions of the plan.

Source:Laws 1953, c. 152, § 3, p. 481; Laws 1989, LB 92, § 81.


44-236. Domestic stock company; change to mutual company; plan; director; duties; notice.

Upon receipt of the documents described in section 44-234, the Director of Insurance shall promptly forward by mail to each shareholder of the company a copy of the proposed amendments to the articles of incorporation, a copy of the plan for mutualization or a summary thereof, and a written notice of hearing. The notice of hearing shall contain:

(1) A notification of the time, which shall be at least thirty days from the time of mailing the notice, and place for the hearing of objections to the plan for mutualization; and

(2) A statement that, upon the hearing and due consideration of the proposed plan and amendments to the articles of incorporation, the director may either disapprove the plan, approve the plan as submitted, including the value of the interest of the shareholders in the company as ascertained and stated in the plan, or approve the plan only subject to such modifications as he or she may propose, in which event it shall be returned to the company for approval by the board of directors, and that upon final approval in either event the plan shall, subject to approval by the owners of at least two-thirds of the stock of the company at a regular or special meeting called for the purpose, be placed in effect and the stock of the company retired and canceled and the value ascertained by the director paid to the shareholders all as provided in the plan.

Source:Laws 1953, c. 152, § 4, p. 481; Laws 1989, LB 92, § 82.


44-237. Domestic stock company; change to mutual company; hearing; objections; evidence.

The Director of Insurance shall hold the hearing on objections as provided by sections 44-233 to 44-241 and shall receive written objections to the plan and amendments from any policyholder or shareholder and any evidence offered in support thereof. He or she may employ such actuaries, appraisers, and other experts and make such examinations of the company and its books, records, and property as he or she deems necessary. The Director of Insurance shall cause a full and complete written record of the hearing to be made. Any interested party having objections to the plan or any part thereof shall fully state such objections in written form and file them with the director prior to the hearing. Upon the hearing any objector may offer such evidence as may be determined by the Director of Insurance to be relevant and proper. Upon appeal from the order of the director, the value of each shareholder's interest in the company and the amount to be paid therefor shall not be increased or decreased by reason of any change of circumstances occurring after the filing of such order.

Source:Laws 1953, c. 152, § 5, p. 482; Laws 1989, LB 92, § 83.


44-238. Domestic stock company; change to mutual company; hearing; order; appeal.

If, upon the hearing, the Director of Insurance disapproves the plan, he or she shall enter a written order fully stating the reason therefor. If he or she approves the proposed plan and amendments, he or she shall (1) make and enter an appropriate order approving them, (2) make a finding that the provisions of the plan are in conformity with the requirements of sections 44-231 and 44-235, (3) make a specific finding as to the fair value of the shareholders' interest in the company as of the date of the order, (4) find the value of each shareholder's interest as represented by his or her shares therein and the amount to be paid therefor, and (5) order that, conditioned upon the approval and adoption of the plan and amendments to the articles of incorporation by the shareholders at a regular or special meeting duly called for the purpose as provided in section 44-231, (a) the plan shall be placed in effect, (b) all shareholders of the company shall surrender their stock for cancellation pursuant to the plan and receive payment therefor in accordance therewith, and (c) upon any shareholder's failing or neglecting to so surrender his or her stock, all of his or her rights, powers, and privileges as such shareholder shall nevertheless terminate and be extinguished, excepting only his or her right to receive payment for his or her stock. The order shall recite that appeal may be had and that the appeal shall be in accordance with the Administrative Procedure Act. A copy of the order, duly certified by the director, shall be promptly forwarded by mail to each of the shareholders of the company at his or her latest address as shown on the records of the company.

Source:Laws 1953, c. 152, § 6, p. 483; Laws 1969, c. 359, § 12, p. 1272; Laws 1988, LB 352, § 43; Laws 1989, LB 92, § 84.


Cross References

44-239. Domestic stock company; change to mutual company; plan; modification by director.

If the Director of Insurance proposes modifications in the proposed plan for mutualization or amendments to the articles of incorporation, he or she shall make such proposals in the form of a written order approving the plan only upon the condition that such modifications be promptly made thereto and approved by a two-thirds vote of the board of directors and adopted by the owners of at least two-thirds of the stock of the company. The order shall in all other respects follow the form and contain the provisions of an order approving such plan as set out in section 44-238 and shall be similarly forwarded to the shareholders of the company.

Source:Laws 1953, c. 152, § 7, p. 484; Laws 1989, LB 92, § 85.


44-240. Domestic stock company; change to mutual company; plan; approval by policyholders.

Any plan for mutualization approved by the Director of Insurance shall be submitted to the policyholders of the company at a meeting held pursuant to the plan and shall be adopted only upon the affirmative vote of two-thirds of the policyholders present and voting in person or by proxy at the meeting as provided in the plan. The plan and amendments to the articles of incorporation shall also be submitted to the shareholders of the company as provided in section 44-231, and upon affirmative vote of at least two-thirds of the shareholders, the plan shall be placed in full effect and operation and the amendments to the articles shall be deemed adopted to become fully effective upon filing at the time specified in the plan and as provided for in section 44-205, and upon such filing being made, the company shall forthwith become and be a mutual insurance company for all purposes. The company shall publish notice of the amendments to its articles of incorporation as provided in section 44-206.

Source:Laws 1953, c. 152, § 8, p. 484; Laws 1989, LB 92, § 86.


44-241. Domestic stock company; change to mutual company; expenses of department; payment by company.

All reasonable expenses incurred by the Department of Insurance shall be certified to by the director and paid by the company.

Source:Laws 1953, c. 152, § 9, p. 484.


44-242. All-lines insurer; terms, defined.

For purposes of sections 44-242 to 44-247, unless the context otherwise requires:

(1) An all-lines insurer shall mean an insurer authorized to write more than one line of insurance included in a life insurance class of insurance and one or more lines of insurance included in a property and liability class of insurance;

(2) Life insurance class of insurance shall mean the lines of insurance specified in subdivisions (1) through (4) of section 44-201; and

(3) Property and liability class of insurance shall mean the lines of insurance specified in subdivisions (4) through (14) and (16) through (20) of section 44-201, except that, with respect to any particular all-lines insurer, the line of insurance specified in subdivision (4) of section 44-201 may be included in either the life insurance class of insurance or property and liability class of insurance but shall not be included in both classes or, without the approval of the department, transferred from one class to another.

Source:Laws 1979, LB 332, § 1; Laws 1989, LB 92, § 87.


44-243. All-lines insurer; minimum surplus; maintain; failure; effect.

Except as provided in section 44-202.01, an all-lines insurer shall maintain a minimum surplus to policyholders, as defined in section 44-222, of at least two million dollars in the form of capital, if a stock insurance company, or in the form of surplus, if a mutual insurance company, in accordance with sections 44-214 and 44-219, respectively. Such an insurer shall not be subject to section 44-245 so long as its surplus to policyholders exceeds such minimum. Whenever the surplus to policyholders of such an insurer falls below such minimum, it shall be deemed to be an impaired insurer and shall automatically be subject to section 44-245.

Source:Laws 1979, LB 332, § 2; Laws 1989, LB 92, § 88.


44-244. All-lines insurer; class of insurance; annual statement; premiums; how accounted for.

Each line of insurance written by an all-lines insurer which is included in the life insurance class of insurance or the property and liability class of insurance shall be accounted for separately in life and accident and health annual statement blanks and fire and casualty annual statement blanks, respectively. Nothing in this section shall prohibit the writing of combination policy forms by an all-lines insurer combining any line or lines of insurance included in the life insurance class of insurance with any line or lines of insurance included in the property and liability class of insurance, but the allocable and separately stated premiums for each line of insurance shall be accounted for separately according to its classification.

Source:Laws 1979, LB 332, § 3; Laws 1989, LB 92, § 89.


44-245. All-lines insurer; impairment or insolvency; liabilities; how charged.

In the event of impairment or insolvency of an all-lines insurer, the excess of the liabilities of one class of insurance over the accumulated assets attributable to that class of insurance may be charged as necessary against the assets of the other class only to the extent that assets attributable to such other class exceed the amount of reserves and other liabilities of such other class.

Source:Laws 1979, LB 332, § 4.


44-246. Insurance statutes, applicability; sections, how construed.

All requirements, limitations, and restrictions of Chapter 44 which apply to specific lines of insurance or to companies identified by the specific lines of insurance transacted by them shall apply to such companies and to all persons or agents thereof with respect to such specific line of insurance only to the extent transacted or conducted by such companies notwithstanding the fact that companies authorized under this section are formed or authorized to transact lines of insurance included in both the life insurance and property and casualty classes of insurance. If any provisions of sections 44-242 to 44-247 conflict with any other provisions of Chapter 44, the provisions of sections 44-242 to 44-247 shall prevail.

Source:Laws 1979, LB 332, § 5; Laws 1989, LB 92, § 90.


44-247. Department; rules and regulations.

The department shall adopt and promulgate rules and regulations necessary to carry out sections 44-242 to 44-247.

Source:Laws 1979, LB 332, § 6; Laws 1989, LB 92, § 91.


44-248. Plan of exchange; act, how cited.

Sections 44-248 to 44-255 shall be known and may be cited as the Insurance Company Plan of Exchange Act.

Source:Laws 1973, LB 296, § 1; R.S.1943, (1988), § 44-133.01; Laws 1989, LB 92, § 23.


44-249. Plan of exchange; adoption.

Any domestic stock insurance company may adopt a plan providing for the exchange of its outstanding shares for the consideration designated in this section to be paid or provided by a corporation which is to acquire such shares in the manner provided in sections 44-248 to 44-255.

The plan of exchange may provide that the acquiring corporation, as consideration for the stock of the domestic corporation, (1) transfer shares of its stock, (2) transfer other securities issued by it, (3) pay cash therefor, (4) pay or provide other consideration, or (5) pay or provide any combination of the foregoing types of consideration.

Acquiring corporation, as used in sections 44-248 to 44-255, shall mean any corporation incorporated under the laws of the State of Nebraska, any foreign or alien corporation domesticated or qualified to do business in Nebraska, or any foreign or alien insurance company authorized to do business in Nebraska.

Source:Laws 1973, LB 296, § 2; R.S.1943, (1988), § 44-133.02.


44-250. Plan of exchange; approval by directors.

The board of directors of each corporation which is a party to a plan of exchange shall by resolution upon a vote of two-thirds of all of its directors approve a plan of exchange setting forth:

(1) The names of the companies proposing to adopt a plan of exchange, and the names of the states or countries under which each of the companies is incorporated or organized;

(2) The terms and conditions of the proposed plan of exchange, and the mode of carrying the same into effect;

(3) The manner and basis of exchanging the shares of stock of the acquired company or other consideration involved in the plan of exchange; and

(4) Such other provisions with respect to the plan of exchange as are deemed necessary or advisable.

Source:Laws 1973, LB 296, § 3; R.S.1943, (1988), § 44-133.03.


44-251. Plan of exchange; approval; submit to shareholders.

(1) Such plan of exchange shall then be submitted to the Director of Insurance for his or her approval after a hearing at which the shareholders of the company to be acquired shall have an opportunity to be heard upon at least ten days' notice to be given by the company to its shareholders of record at the time of mailing such notice. The director shall approve such plan within twenty days after such hearing unless he or she finds that the terms and conditions thereof for the issuance and exchange of securities or other consideration are unfair to the shareholders of the company to be acquired or if he or she finds that any of the conditions set forth in subsection (1) of section 44-2127 exist.

(2) After having obtained the approval of the Director of Insurance, the plan of exchange shall be submitted to a vote at a meeting of the shareholders of the company to be acquired. Such meeting may be either an annual or a special meeting. Notice shall be given not less than twenty days before such meeting to each shareholder of record as of the time of mailing such notice. Such notice shall be deemed to be delivered when deposited in the United States mail with postage prepaid, addressed to the shareholder at his or her address as it appears on the records of the company. A copy or summary of the plan of exchange shall be included in or enclosed with such notice. Each outstanding share of such company shall be entitled to vote on the proposed plan, whether or not such share has voting rights under the provisions of the articles of incorporation of such company. The affirmative vote of two-thirds of all of the outstanding shares, in person or by proxy, shall be necessary for the approval of any such plan by such shareholders.

Source:Laws 1973, LB 296, § 4; R.S.1943, (1988), § 44-133.04; Laws 1989, LB 92, § 24; Laws 1991, LB 236, § 38.


44-252. Plan of exchange; effective; abandon; when.

Upon such approval of the plan by the shareholders, it shall be executed by the company acquired by its president or vice president and by its secretary or an assistant secretary and shall become effective without other action upon the filing thereof with the Director of Insurance along with a certification as to the number of shares outstanding entitled to vote and the number of shares voted for and against such plan respectively. At any time prior to the filing of the same with the director with such certification, the plan of exchange may be abandoned pursuant to the provisions therefor, if any, set forth in the plan.

Source:Laws 1973, LB 296, § 5; R.S.1943, (1988), § 44-133.05.


44-253. Plan of exchange; disapproval by shareholder; demand for payment; disagreement; action of shareholder; judgment; payment; effect.

Any shareholder of the company acquired may elect to exercise a right of dissent by filing with the company, prior to or at the meeting of shareholders at which such proposed plan is submitted to a vote, written objections to such proposed plan. If such proposed plan be approved by the required vote and such shareholder shall not have voted in favor thereof, such shareholder may, within ten days after the date on which the vote was taken, make written demand on the company for payment of the fair value of such shareholder's shares, and, if such proposed plan is effected, such company shall pay to such shareholder, upon surrender of the certificate or certificates representing such shares, the fair value thereof as of the day prior to the date on which the vote was taken approving the proposed plan, excluding any appreciation or depreciation in anticipation of such corporate action. Any shareholder failing to make demand within the ten-day period shall be bound by the terms of the proposed plan. If the proposed plan shall be abandoned or rescinded or the shareholder shall revoke the authority to effect such action, then the right of such shareholder to be paid the fair value of his shares shall cease.

Within twenty days after such plan is effected, the company so acquired shall give written notice thereof to each dissenting shareholder who has made demand as provided in this section, and shall make a written offer to each such shareholder to pay for his shares at a specified price deemed by such company to be the fair value thereof.

If within thirty days after the date on which such plan was effected the fair value of such shares is agreed upon between any such dissenting shareholder and the company, payment therefor shall be made within ninety days after the date on which such plan was effected, upon surrender of the certificate or certificates representing such shares. Upon payment of the agreed value, the dissenting shareholder shall cease to have any interest in such shares.

If within such period of thirty days the dissenting shareholder and the company do not agree, then the dissenting shareholder may, within sixty days after the expiration of the thirty-day period, file a petition in any court of competent jurisdiction in the county in which the registered office of the company is situated asking for a finding and determination of the fair value of such shares, and shall be entitled to a judgment against the company for the amount of such fair value as of the day prior to the date on which such vote was taken approving such plan, together with interest thereon at the rate of five percent per year to the date of such judgment. The action shall be prosecuted as an equitable action and the practice and procedure shall conform to the practice and procedure in equity cases. The judgment shall be payable only upon and simultaneously with the surrender to the company of the certificate or certificates representing such shares.

Upon payment of the judgment, the dissenting shareholder shall cease to have any interest in such shares. Unless the dissenting shareholder shall file such petition within the time limited by the provisions of this section, such shareholder and all persons claiming under him shall be conclusively presumed to have approved and ratified the plan and shall be bound by the terms thereof.

Shares acquired by the company pursuant to payment of the agreed value therefor or payment of the judgment entered therefor, as provided in this section, shall stand canceled unless otherwise provided for in the plan of exchange.

Source:Laws 1973, LB 296, § 6; R.S.1943, (1988), § 44-133.06.


Annotations

44-254. Plan of exchange; transfer; effect.

(1) Upon a plan of exchange becoming effective, the exchange provided for therein shall be considered to have been consummated and each shareholder of the stock insurance company acquired shall cease to be a shareholder of such company. The ownership of all shares of the issued and outstanding stock of such company shall vest in the acquiring corporation automatically without any physical transfer or deposit of certificates representing such shares. The acquiring corporation thereupon shall become the sole shareholder of such stock insurance company and have all of the rights, privileges, immunities and powers and, except as otherwise provided in sections 44-248 to 44-255, be subject to all the duties and liabilities to the extent provided by law of a shareholder of an insurance company organized under the laws of this state.

(2) Certificates representing shares of a domestic insurance company to be acquired prior to the plan of exchange becoming effective shall, after the plan of exchange becomes effective, represent (a) shares of the issued and outstanding capital stock or other securities issued by the acquiring corporation and (b) the right, if any, to receive cash or other consideration upon such terms as are specified in the plan of exchange. The plan of exchange may specify that all such certificates shall after the plan of exchange becomes effective represent only the right to receive shares of stock or other securities issued by the acquiring corporation, or cash or other consideration or any combination thereof, upon such terms as are specified in the plan of exchange.

Source:Laws 1973, LB 296, § 7; R.S.1943, (1988), § 44-133.07.


44-255. Plan of exchange; corporate status.

The stock company acquired under a plan of exchange and the acquiring corporation shall be in all respects separate and distinct corporations, with neither corporation having any liability to the creditors or policyholders, if any, or shareholders of the other for any acts or omissions of the officers, directors, or shareholders of either or both of such corporations.

Source:Laws 1973, LB 296, § 8; R.S.1943, (1988), § 44-133.08.


44-301. Insurance companies; corporation laws apply; exceptions.

The Nebraska Model Business Corporation Act, except as otherwise provided in Chapter 44, shall apply to all domestic incorporated insurance companies so far as the act is applicable or pertinent to and not in conflict with other provisions of the law relating to such companies. An assessment association that has accumulated and continues to maintain (1) reserves and (2) surplus or contingency funds at least equal to those required of a mutual insurance company shall, unless otherwise provided by law, be deemed to have all the powers and privileges in transacting its business and managing its affairs as those possessed by a mutual insurance company qualified to transact the same line or lines of insurance as the assessment association.

Source:Laws 1913, c. 154, § 30, p. 412; R.S.1913, § 3166; Laws 1919, c. 190, tit. V, art. IV, § 1, p. 590; C.S.1922, § 7766; C.S.1929, § 44-301; R.S.1943, § 44-301; Laws 1955, c. 172, § 1, p. 488; Laws 1989, LB 92, § 92; Laws 1995, LB 109, § 220; Laws 2014, LB749, § 286.    


Cross References

44-302. Insurance law; companies and persons amenable.

All domestic insurance companies, and all insurance agents, solicitors, brokers, surveyors or adjusters doing business in this state, and all insurance business transacted in whole or in part within or outside this state, the subject and matter of which is located wholly or in part in this state, shall be subject to and be governed by this chapter, and the records of such insurance company, agent, solicitor, broker, surveyor or adjuster doing business in this state shall be subject to inspection and examination of the Department of Insurance.

Source:Laws 1913, c. 154, § 35, p. 413; R.S.1913, § 3171; Laws 1919, c. 190, tit. V, art. IV, § 6, p. 591; C.S.1922, § 7771; C.S.1929, § 44-306; R.S.1943, § 44-302.


44-303. Insurance companies; certificate of authority; duration; promotion expenses; use of premiums prohibited.

No insurance company shall transact any insurance business in this state unless it has received a certificate of authority from the Department of Insurance to do so. This certificate shall expire on the last day of April in each year and shall be renewed annually if the company has continued to comply with the laws of this state and the rules and regulations of the department. Authority to do an insurance business shall be refused any company which contracts to pay or does pay any part of the premiums arising from insurance it has written or may write as compensation, directly or indirectly, for promoting or organizing the company.

Source:Laws 1913, c. 154, § 31, p. 412; R.S.1913, § 3167; Laws 1919, c. 190, tit. V, art. IV, § 2, p. 591; C.S.1922, § 7767; C.S.1929, § 44-302; R.S.1943, § 44-303; Laws 1957, c. 178, § 12, p. 617; Laws 1965, c. 257, § 1, p. 724; Laws 1989, LB 92, § 93.


44-304. Insurance companies; authority to do business; conditions.

Every insurance company before transacting the business of insurance in this state shall file in the office of the Department of Insurance a legally authenticated copy of its charter, articles of incorporation or record of its organization, and bylaws as follows: (1) If a domestic company, a copy of its articles of incorporation together with any amendments made therein; and (2) if a foreign or alien company, a copy of its articles of incorporation or charter and bylaws, including all amendments made therein, with a certificate duly executed by the officer having the custody of such articles or charter, under his or her seal of office, that such company is duly authorized under the laws of such state or country to do business therein, and a certificate showing the amount of issued and outstanding capital stock and assets as required by section 44-305. Such company shall furnish such other information and copies of all other papers which the department may require.

Source:Laws 1913, c. 154, § 37, p. 413; R.S.1913, § 3173; Laws 1919, c. 190, tit. V, art. IV, § 8, p. 592; C.S.1922, § 7773; C.S.1929, § 44-308; R.S.1943, § 44-304; Laws 1989, LB 92, § 94.


44-305. Foreign or alien company; capital and surplus required.

No foreign or alien insurance company shall be permitted to transact any business of insurance in this state: (1) If a stock company, unless it possesses, in its own exclusive name and right, paid-up, unimpaired capital stock and surplus equal to the minimum amount required by section 44-214 to entitle any domestic stock insurance company to transact a like kind or kinds of business; and (2) if a mutual company, unless it owns, has, and possesses, in its own exclusive name and right, surplus unimpaired of the kind and equal to the minimum amount required by section 44-219 to entitle any domestic mutual insurance company to transact a like kind or kinds of business. No part of such minimum capital or surplus shall consist of the capital stock of its own or any other insurance company. No alien insurance company shall be authorized to transact any business of insurance in this state unless it shall have deposited with the insurance department of some one state in the United States not less than two hundred thousand dollars in approved securities for the benefit of all its policyholders in the United States.

Source:Laws 1913, c. 154, § 38, p. 414; R.S.1913, § 3174; Laws 1919, c. 190, tit. V, art. IV, § 9, p. 593; C.S.1922, § 7774; C.S.1929, § 44-309; R.S.1943, § 44-305; Laws 1947, c. 161, § 1, p. 442; Laws 1989, LB 92, § 95.


44-306. Repealed. Laws 1989, LB 92, § 278.

44-307. Insurance companies; business authorized.

No domestic insurance company shall transact any business other than that specified in its articles of incorporation or otherwise authorized by law, and no foreign or alien company admitted to transact business in this state shall transact any other kind of business than that which it has been authorized by the laws of the state or country of its incorporation to do.

Source:Laws 1913, c. 154, § 48, p. 419; R.S.1913, § 3184; Laws 1919, c. 190, tit. V, art. IV, § 19, p. 598; C.S.1922, § 7784; C.S.1929, § 44-319; R.S.1943, 44-307; Laws 1969, c. 356, § 20, p. 1251.


44-308. Assessment life associations; new associations prohibited.

No life insurance company or association, other than fraternal benefit society, which issues contracts, the performance of which is contingent upon the payment of assessments or calls made upon its members, shall be hereafter organized to do business within this state. All such companies or associations as are now licensed to do business within the state on such plans may continue and carry on the business of insurance on the plan under which they are organized and doing business July 17, 1913, without being required to value their assessment policies or certificates of membership as yearly renewal term contracts.

Source:Laws 1913, c. 154, § 150, p. 470; R.S.1913, § 3287; Laws 1919, c. 190, tit. V, art. XI, § 15, p. 652; C.S.1922, § 7894; C.S.1929, § 44-1115; R.S.1943, § 44-308; Laws 1987, LB 17, § 2.


44-309. Pollutant exclusion; exception for bodily injury.

An exclusion in a homeowner's or owner's, landlord's, and tenant's policy of insurance for loss arising out of the discharge, dispersal, release, or escape of pollutants shall include an exception to the exclusion for bodily injury sustained within a building and caused by smoke, fumes, vapor, or soot produced by or originating from a heating system or ventilation system. This section applies to policies issued or delivered in this state on or after January 1, 2015.

Source:Laws 2014, LB876, § 1.    


44-310. Individual sickness and accident or medicare supplement policy; death of insured; refund of unearned premium.

In the event of the death of the insured of an individual sickness and accident or medicare supplement policy, the insurer, upon receipt of a request for a pro rata refund by a party legally entitled to claim such a refund, shall refund the unearned premium prorated to the month of the insured's death if the request has been made within one year after the insured's death. The refund of the premium and termination of the coverage shall be without prejudice to any claim originating prior to the date of the insured's death.

Source:Laws 2014, LB735, § 1.    


44-311. Health care sharing ministry; treatment under insurance laws.

(1) A health care sharing ministry shall not be considered to be engaging in the business of insurance for purposes of the insurance laws of this state.

(2) For purposes of this section, health care sharing ministry means a faith-based, nonprofit organization that is tax-exempt under the Internal Revenue Code which:

(a) Limits its participants to those who are of a similar faith;

(b) Acts as a facilitator among participants who have financial or medical needs and matches those participants with other participants with the present ability to assist those with financial or medical needs in accordance with criteria established by the health care sharing ministry;

(c) Provides for the financial or medical needs of a participant through contributions from one participant to another;

(d) Provides amounts that participants may contribute with no assumption of risk or promise to pay among the participants and no assumption of risk or promise to pay by the health care sharing ministry to the participants;

(e) Provides a written monthly statement to all participants that lists the total dollar amount of qualified needs submitted to the health care sharing ministry, as well as the amount actually published or assigned to participants for their contribution;

(f) Provides a written disclaimer on or accompanying all applications and guideline materials distributed by or on behalf of the organization that reads, in substance:

IMPORTANT NOTICE. This organization is not an insurance company, and its product should never be considered insurance. If you join this organization instead of purchasing health insurance, you will be considered uninsured. By the terms of this agreement, whether anyone chooses to assist you with your medical bills as a participant of this organization will be totally voluntary, and neither the organization nor any participant can be compelled by law to contribute toward your medical bills. Regardless of whether you receive payment for medical expenses or whether this organization continues to operate, you are always personally responsible for the payment of your own medical bills. This organization is not regulated by the Nebraska Department of Insurance. You should review this organization's guidelines carefully to be sure you understand any limitations that may affect your personal medical and financial needs;

(g) Has participants which retain participation even after they develop a medical condition; and

(h) Conducts an annual audit which is performed by an independent certified public accounting firm in accordance with generally accepted accounting principles and which is made available to the public upon request.

Source:Laws 2014, LB700, § 12.    


44-312. Telehealth and telemonitoring services covered under policy, certificate, contract, or plan; insurer; duties.

(1) For purposes of this section:

(a) Telehealth means the use of medical information electronically exchanged from one site to another, whether synchronously or asynchronously, to aid a health care provider in the diagnosis or treatment of a patient. Telehealth includes services originating from a patient's home or any other location where such patient is located, asynchronous services involving the acquisition and storage of medical information at one site that is then forwarded to or retrieved by a health care provider at another site for medical evaluation, and telemonitoring; and

(b) Telemonitoring means the remote monitoring of a patient's vital signs, biometric data, or subjective data by a monitoring device which transmits such data electronically to a health care provider for analysis and storage.

(2) Any insurer offering (a) any individual or group sickness and accident insurance policy, certificate, or subscriber contract delivered, issued for delivery, or renewed in this state, (b) any hospital, medical, or surgical expense-incurred policy, except for policies that provide coverage for a specified disease or other limited-benefit coverage, or (c) any self-funded employee benefit plan to the extent not preempted by federal law, shall provide upon request to a policyholder, certificate holder, or health care provider a description of the telehealth and telemonitoring services covered under the relevant policy, certificate, contract, or plan.

(3) The description shall include:

(a) A description of services included in telehealth and telemonitoring coverage, including, but not limited to, any coverage for transmission costs;

(b) Exclusions or limitations for telehealth and telemonitoring coverage, including, but not limited to, any limitation on coverage for transmission costs;

(c) Requirements for the licensing status of health care providers providing telehealth and telemonitoring services; and

(d) Requirements for demonstrating compliance with the signed written statement requirement in section 71-8505.

Source:Laws 2015, LB257, § 1.    


44-313. Insurer; contract for pharmacist professional services; authorized.

(1) For purposes of this section:

(a) Insurer means any insurer offering any individual or group sickness and accident insurance policy or subscriber contract delivered, issued for delivery, or renewed in this state and any hospital, medical, or surgical expense-incurred policy, except for policies that provide coverage for a specified disease or other limited-benefit coverage, and any self-funded employee benefit plan to the extent not preempted by federal law; and

(b) Pharmacist professional services means professional services provided to patients by licensed pharmacists as allowed by law.

(2) On and after January 1, 2016, an insurer may contract with a licensed pharmacist for pharmacist professional services. Nothing in this section shall prohibit an insurer from contracting with a licensed pharmacist who is not employed or associated with a pharmacy. Nothing in this section shall require a licensed pharmacist to contract with an insurer for pharmacist professional services.

Source:Laws 2015, LB342, § 1.    


44-314. City or county offering individual or family health insurance to first responders; prohibited acts.

(1) No city or county offering an individual or family health insurance policy to first responders shall cancel such individual or family health insurance for any first responder who suffers serious bodily injury from an assault that occurs while the first responder is on duty and that results in the first responder falling below the minimum number of working hours needed to maintain his or her regular individual or family health insurance.

(2) The city or county shall only be obligated to provide such health insurance while the first responder is employed with the city or county.

(3) A city or county may cancel such health insurance if the first responder does not return to employment within twelve months after the date of injury.

(4) For purposes of this section, first responder means a sheriff, deputy sheriff, police officer, paid firefighter, or paid individual licensed under a licensure classification in subdivision (1) of section 38-1217 who provides medical care in order to prevent loss of life or aggravation of physiological or psychological illness or injury.

Source:Laws 2017, LB444, § 1.    


44-315. Repealed. Laws 1991, LB 237, § 72.

44-316. Repealed. Laws 1991, LB 237, § 72.

44-317. Loans from insurance client; restrictions.

No insurance producer, surplus lines licensee, or insurance consultant shall obtain a loan from an insurance client that is not a financial institution and who is not related to the insurance producer, surplus lines licensee, or insurance consultant by birth, marriage, or adoption.

Source:Laws 2001, LB 51, § 25.    


44-318. Authority to transact business; certificate of department; evidentiary effect.

A certificate under the seal of the department, relative to the authority of the company, insurance producer, business entity, or surplus lines licensee to transact business in this state upon any particular date, shall be received by any court in this state in lieu of the testimony of the director.

Source:Laws 2001, LB 51, § 26.    


44-319. Insurance producer or surplus lines licensee; fiduciary duties.

Every person acting as an insurance producer or surplus lines licensee in this state shall be responsible in a fiduciary capacity for all funds received or collected as an insurance producer or surplus lines licensee. Nothing in this section shall be construed to require any person to maintain a separate bank deposit if the funds of each principal are clearly ascertainable from the books of accounts and records of that person.

Source:Laws 2001, LB 51, § 27.    


44-319.01. Domestic companies; securities; terms, defined.

For purposes of sections 44-319.01 to 44-319.13, unless the context otherwise requires:

(1) Director shall mean the Director of Insurance or his or her authorized representative;

(2) Policyholders shall mean all persons having a legal or equitable right against a depositing insurer or assessment association arising out of or by reason of depositing insurer's or association's policies and obligees under its surety contracts;

(3) State shall mean any state of the United States, the government of Puerto Rico, and the District of Columbia;

(4) Eligible securities shall mean the investments authorized under the Insurers Investment Act other than investments authorized under sections 44-5134, 44-5143 to 44-5145, 44-5149, 44-5152, and 44-5153, and unless otherwise provided by law, the values of such investments shall, for the purpose of sections 44-319.01 to 44-319.13, be an amount not exceeding the current market values thereof; and

(5) Insurer shall mean stock and mutual insurance companies and reciprocal exchanges.

Source:Laws 1955, c. 174, § 1, p. 498; Laws 1961, c. 210, § 3, p. 627; Laws 1969, c. 359, § 13, p. 1273; Laws 1991, LB 237, § 58; Laws 1997, LB 273, § 1; Laws 1998, LB 1035, § 1.


Cross References

44-319.02. Domestic companies; securities; amount required.

Every domestic insurer hereafter organized to transact the business of insurance in this state shall deposit and continually maintain with the Department of Insurance eligible securities for the benefit of all of its policyholders in the United States in the amount of one hundred thousand dollars.

Source:Laws 1955, c. 174, § 2, p. 499; Laws 1989, LB 92, § 96.


44-319.03. Domestic companies; securities; deposit; minimum required.

Every domestic assessment association hereafter organized to transact the business of insurance in this state, except (1) health and accident assessment associations and (2) assessment associations organized primarily to write insurance coverage on farm properties against the perils of fire, lightning, windstorm, and hail, shall deposit with the Department of Insurance eligible securities for the benefit of all of its policyholders in the United States equal to one-fifth of the minimum surplus funds required of domestic mutual insurance companies licensed to write the same kind or kinds of insurance.

Source:Laws 1955, c. 174, § 3, p. 499; Laws 1993, LB 583, § 73.


44-319.04. Domestic companies; securities; transacting business in foreign state; deposit permitted.

Domestic insurers and assessment associations transacting or desiring to transact business in any other state, province, or country may deposit additional securities with the Department of Insurance in the kind and to the amount required by such other state, province, or country as a condition to transact business therein.

Source:Laws 1955, c. 174, § 4, p. 499.


44-319.05. Domestic companies; securities; deposit; aggregate required.

Every domestic insurer and assessment association required by Chapter 44 to deposit securities with the Department of Insurance shall continue to deposit all of its eligible securities until they aggregate the sum of one hundred thousand dollars.

Source:Laws 1955, c. 174, § 5, p. 499; Laws 1989, LB 92, § 97.


44-319.06. Foreign companies; securities; amount required.

No foreign insurer or assessment association now or hereafter authorized to do business in this state shall henceforth transact such business unless it shall deposit and continually maintain with the Department of Insurance or with the proper official of some one state of the United States designated by law to accept such deposit, eligible securities in the amount of not less than one hundred thousand dollars for the benefit of all of its policyholders in the United States.

Source:Laws 1955, c. 174, § 6, p. 499.


44-319.07. Securities; exchange; withdrawal; approval of director; forfeiture for failure to comply.

(1) The depositing insurer or assessment association may, from time to time, exchange for the deposited securities, or any of them, other securities eligible for deposit if the aggregate value of such deposit will not thereby be reduced below the amount required by sections 44-319.01 to 44-319.13. Upon application of the depositing insurer or assessment association, the director may approve the withdrawal of securities which are in excess of the amount required by sections 44-319.01 to 44-319.13. Insurers and assessment associations may, upon an application approved by the director, withdraw all or any part of the securities so deposited upon good cause therefor being shown. Securities so withdrawn shall, except if withdrawn as the result of a merger, consolidation, or total reinsurance, be used to pay excess losses only and shall be restored within such time and under such conditions as the director may direct by order.

(2) If the depositing insurer or assessment association fails to comply with the requirements of subsection (1) of this section or the rules and regulations adopted and promulgated pursuant to section 44-319.11, such insurer or assessment association shall forfeit five hundred dollars for each such failure. The director shall collect and remit the forfeitures to the State Treasurer for distribution in accordance with Article VII, section 5, of the Constitution of Nebraska.

Source:Laws 1955, c. 174, § 7, p. 500; Laws 2007, LB117, § 2.    


44-319.08. Securities; not subject to execution.

No creditor or other claimant may levy upon such a deposit or any part thereof. Upon an order of liquidation, rehabilitation, or conservation of any depositing insurer or assessment association by a court of competent jurisdiction, the funds deposited and the income therefrom shall be deemed transferred to the director as liquidator, rehabilitator, or conservator.

Source:Laws 1955, c. 174, § 8, p. 500.


44-319.09. Securities deposited under former law; treatment.

All securities now held on deposit by the director, which were made pursuant to any prior insurance law, shall be deemed to be held in compliance with the provisions of sections 44-319.01 to 44-319.13, for the purpose for which such deposits were originally made.

Source:Laws 1955, c. 174, § 9, p. 500.


44-319.10. Interest; collectible by depositing insurer; Securities Deposit Trust Fund; created; disbursement.

(1) Unless prohibited by the order of a court, all income on securities deposited with the Department of Insurance or with an authorized depository of the department shall be collectible by the depositing insurer or assessment association. In the event such income is paid to the Director of Insurance or to the department, it shall be paid by the department into the state treasury and deposited by the State Treasurer in a trust fund to be known as the Securities Deposit Trust Fund which is hereby created, to be expended as provided by this section.

(2) The Director of Administrative Services, upon presentation of a voucher properly countersigned by the director, is authorized to draw his warrants against the Securities Deposit Trust Fund only for the purpose of paying to depositing insurers or assessment associations entitled thereto, amounts equal to the total income paid to the director or to the department on securities deposited with the department, all as more fully explained in subsection (1) of this section.

Source:Laws 1955, c. 174, § 10, p. 500; Laws 1957, c. 182, § 1, p. 633; Laws 1979, LB 196, § 1.


44-319.11. Securities; designation of depository; director; duties.

The director may designate any bank or trust company domiciled in this state as the depository for the Department of Insurance to receive and hold for safekeeping purposes any securities deposited pursuant to sections 44-319.01 to 44-319.13 or any prior insurance law. The holding of any such securities shall be at the expense of the insurer or assessment association. The director is hereby relieved of all personal and official liability for securities held by or in transit to or from such authorized depository. The director shall (1) adopt and promulgate reasonable rules and regulations relative to the manner in which securities may be deposited and withdrawn and (2) purchase such insurance as he or she may deem necessary for the protection of the State of Nebraska and its employees and agents. The premium for such insurance shall be paid from the Department of Insurance Cash Fund.

Source:Laws 1955, c. 174, § 11, p. 501; Laws 1989, LB 92, § 98.


44-319.12. Securities; liquidation; effect.

All securities heretofore or hereafter deposited with the Department of Insurance by any incorporated or unincorporated insurer or assessment association shall become the property of the State of Nebraska in the event such securities remain unclaimed for a period of not less than seven years following the effective date of a voluntary or involuntary liquidation, merger, consolidation, or total reinsurance thereof. It shall be the duty of the director to take necessary action to transfer the proceeds of such securities to the State Treasurer who shall, upon receipt thereof, deposit such proceeds to the account of the state General Fund.

Source:Laws 1955, c. 174, § 12, p. 501.


44-319.13. Sections; cumulative.

Nothing in sections 44-319.01 to 44-319.13 shall be construed to amend, repeal, or otherwise affect the provisions of sections 44-305 and 44-821 to 44-825.

Source:Laws 1955, c. 174, § 13, p. 501.


44-320. Domestic company; officers and directors; borrowing and sales to company prohibited; exception.

(1) Except as provided in subsections (2) through (6) of this section, no director or officer of any domestic insurance company shall directly or indirectly receive any money or valuable consideration for negotiating any loan for the company or for selling or aiding in the sale of any property to or by the company and no such director or officer shall directly or indirectly borrow money from, purchase any property from, or sell any property to the company.

(2)(a) Nothing in this section shall prevent any domestic insurance company from making a loan to an officer of the company for the purchase of a principal residence or acquiring the principal residence of an officer in connection with the relocation of the officer's place of employment at the request of the company either during the course of employment or upon initial employment of such officer. Any loan permitted under this subsection shall be secured by a first trust deed or first mortgage and shall not exceed seventy-five percent of the market value of the property. Any acquisition permitted under this subsection shall not exceed the market value of the property.

(b) For purposes of this subsection, market value shall mean the market value of real estate as determined by a real property appraiser credentialed by the Real Property Appraiser Board.

(c) Any loan or acquisition permitted under this subsection shall be subject to (i) the approval of the domestic insurance company's board of directors or a delegated committee of the company and (ii) prior written approval of the Director of Insurance based upon written application by the company including full and fair disclosure of the terms of the transaction. Approval of such transaction by the Director of Insurance shall be presumed unless notice of disapproval is received by the applicant within thirty days of the filing of the application. Approval of such transaction may be denied if the director finds that it is not in the best interest of the company or that the terms of the transaction are not fair and reasonable to the company.

(3) Nothing in this section shall prevent any director or officer of any domestic insurance company from purchasing from his or her company an insurance policy or annuity contract if (a) the purchase is in the ordinary course of the company's business and subject to all of the requirements normally imposed by the company in the sale of such policies and contracts and (b) no discount granted to the director or officer in connection with the purchase is greater than discounts provided to other employees of the company in connection with the sale of similar policies and contracts.

(4) Nothing in this section shall prevent any director or officer of any domestic insurance company from purchasing from his or her company surplus personal property having a total purchase price not in excess of ten thousand dollars in any calendar year if the personal property is sold to the director or officer at not less than its fair market value.

(5) Nothing in this section shall prevent any director or officer of any domestic insurance company from selling to his or her company property of any type or nature having a total purchase price not in excess of ten thousand dollars in any calendar year if the sale is in the ordinary course of business of the director's or officer's business and if the property is sold to the company at not more than its fair market value.

(6) Except as otherwise provided in this section, if any director or officer of any domestic insurance company desires to borrow money from, purchase any property from, or sell any property to the company in excess of ten thousand dollars in any calendar year, the company shall file an application with the Director of Insurance requesting written approval to engage in such transaction. The application shall set out the names of all of the parties interested in the transaction and the respective percentage of interest of each party, a brief description of the nature of the transaction, and a full disclosure of all consideration given or received by the company in connection with such transaction. The application shall be a public record open to public inspection from the date of filing. If the transaction is not approved or disapproved by the director within thirty days from the date of filing, the transaction shall be deemed disapproved. In determining whether to approve or disapprove such transaction, the director shall consider the following factors:

(a)(i) The fact that the transaction has been disclosed or made known to the board of directors of the company or a delegated committee of the company which must authorize approval or ratify the transaction by a vote or consent sufficient for the purpose without counting the vote or consent of any interested director or officer; and

(ii) If applicable, the fact of such transaction has been disclosed or made known to the shareholders entitled to vote and they authorize approval or ratify such transaction by vote or written consent; or

(b)(i) The transaction is fair and reasonable to the company; and

(ii) The transaction is of a nature normally engaged in by the company and the consideration is fair and reasonable.

(7) The Director of Insurance may proceed in a court of competent jurisdiction against a domestic insurance company to reverse or hold invalid a transaction made in violation of subsection (6) of this section unless the transaction was approved pursuant to such subsection.

(8) In addition to other remedies and penalties available under the law of this state, each violation of this section shall be an unfair trade practice in the business of insurance subject to the Unfair Insurance Trade Practices Act.

Source:Laws 1913, c. 154, § 43, p. 417; R.S.1913, § 3179; Laws 1919, c. 190, tit. V, art. IV, § 14, p. 595; C.S.1922, § 7779; C.S.1929, § 44-314; R.S.1943, § 44-320; Laws 1953, c. 149, § 1(1), p. 477; Laws 1988, LB 713, § 1; Laws 1991, LB 234, § 1; Laws 1991, LB 237, § 59; Laws 2006, LB 778, § 4.    


Cross References

44-320.01. Domestic company; capital stock; retirement not to constitute sale, when; reinsurance or consolidation; effect.

Retirement of the capital stock of a domestic stock insurance company and the payment to the holders of such stock of its value under a plan for the mutualization of such company shall not constitute a sale of such stock within the prohibition of section 44-320; nor shall a contract to reinsure or assume the risks and business of another insurance company through reinsurance or consolidation as provided for by sections 44-224.01 to 44-224.10, be deemed to be either a sale or purchase of property within the prohibition of section 44-320.

Source:Laws 1953, c. 149, § 1(2), p. 477; Laws 1959, c. 198, § 2, p. 706.


44-321. Repealed. Laws 1991, LB 237, § 72.

44-322. Insurance companies; annual financial statement; contents; time of filing; failure to file; administrative penalty; participation in information system.

(1)(a)(i) Every insurance company holding a certificate of authority to transact the business of insurance in this state shall file with the director or, if required by the director, with the National Association of Insurance Commissioners, on or before March 1 of each year, an annual financial statement for the year ending December 31 immediately preceding on forms prescribed by the director which conform substantially to the forms adopted by the National Association of Insurance Commissioners, except that fees, premium tax payments, and other payments associated with such filings shall be paid to the director.

(ii) The financial statement shall be prepared in accordance with annual statement instructions and accounting practices and procedures manuals as prescribed by the director which conform substantially to the annual statement instructions and the Accounting Practices and Procedures Manuals adopted by the National Association of Insurance Commissioners.

(iii) The salaries and compensation of the officers and any other information required by the director shall be filed with the director.

(iv) Every insurance company subject to this section shall make such other periodic financial filings as the director may reasonably require.

(b)(i) Within seven days after the failure of an insurance company to comply with the requirements of subdivision (1)(a) of this section, the director shall notify the insurance company of such failure.

(ii) Subject to subdivision (1)(b)(iii) of this section, if an insurance company fails to comply with the requirements of subdivision (1)(a) of this section and any rules and regulations adopted and promulgated under such subdivision and any orders issued under such subdivision, (A) such insurance company shall forfeit one hundred dollars for each day thereafter such failure continues and the insurance company continues to transact any business of insurance and (B) in addition to the forfeiture required under subdivision (1)(b)(ii)(A) of this section, the director may suspend or refuse to renew the certificate of authority of the insurance company until it has complied with the requirements of subdivision (1)(a) of this section and any rules and regulations adopted and promulgated under such subdivision and any orders issued under such subdivision. All such forfeitures collected by the director shall be remitted to the State Treasurer for credit to the permanent school fund.

(iii) For good and sufficient cause shown, the director may grant a reasonable extension of time not to exceed thirty days within which the financial statement may be filed as required under subdivision (1)(a) of this section without the forfeiture required under subdivision (1)(b)(ii)(A) of this section and without any suspension or refusal to renew authorized under subdivision (1)(b)(ii)(B) of this section.

(2) Every insurance company holding a certificate of authority to transact the business of insurance in this state shall participate in the National Association of Insurance Commissioners Insurance Regulatory Information System, including the payment of all fees and charges of such system, except as exempted by the director. Each participating insurance company shall file with the National Association of Insurance Commissioners on or before March 1 of each year a copy of its annual financial statement along with any additional filings required by the director for the immediately preceding year. The financial statement so filed shall be in the same format and scope as that required by subsection (1) of this section and shall include a signed jurat page and actuarial certification except as exempted by the director. Each participating insurance company shall file with the National Association of Insurance Commissioners any amendments and addendums to the financial statement and annual and quarterly financial statement information in computer readable format as required by the Insurance Regulatory Information System.

Source:Laws 1913, c. 154, § 45, p. 417; R.S.1913, § 3181; Laws 1917, c. 75, § 1, p. 181; Laws 1919, c. 190, tit. V, art. IV, § 16, p. 596; C.S.1922, § 7781; C.S.1929, § 44-316; R.S.1943, § 44-322; Laws 1957, c. 183, § 1, p. 635; Laws 1991, LB 237, § 60; Laws 1994, LB 978, § 18; Laws 1995, LB 162, § 2; Laws 1999, LB 326, § 1;    Laws 2003, LB 216, § 3.    


44-322.01. Financial analysis ratios; examination synopses; confidentiality; immunity.

(1) All financial analysis ratios and examination synopses concerning insurance companies that are submitted to the director by the National Association of Insurance Commissioners which are determined by such association to be confidential may not be disclosed or released for public inspection by the director.

(2) In the absence of actual malice, members of the National Association of Insurance Commissioners, the association's duly authorized committees, subcommittees, task forces, delegates, and employees, and all others charged with the responsibility of collecting, reviewing, analyzing, and disseminating the information developed from the filing of the annual statement convention blanks are acting as agents of the director and shall not be subject to civil liability for libel, slander, or any cause of action by virtue of their collection, review, and analysis or dissemination of the data and information collected from the filings required of insurance companies under the insurance laws of this state or similar laws of other states.

Source:Laws 1989, LB 92, § 9.


44-323. Repealed. Laws 1989, LB 92, § 278.

44-324. Repealed. Laws 1989, LB 92, § 278.

44-325. Domestic insurer; dividends; payment; limitation.

No domestic insurer shall declare or pay a dividend from any source other than earned surplus. For purposes of this section, earned surplus means an amount equal to the unassigned funds of an insurer as set forth in the most recent annual statement of the insurer submitted to the Director of Insurance including any surplus arising from unrealized capital gains or revaluation of assets.

Any dividend in excess of the unassigned funds of an insurer, excluding any surplus arising from unrealized capital gains or revaluation of assets, shall be deemed an extraordinary dividend and shall be subject to the requirements of section 44-2134.

Source:Laws 1913, c. 154, § 53, p. 420; R.S.1913, § 3189; Laws 1919, c. 190, tit. V, art. IV, § 24, p. 599; C.S.1922, § 7789; C.S.1929, § 44-324; R.S.1943, § 44-325; Laws 1976, LB 916, § 2; Laws 1996, LB 689, § 1.


44-326. Domestic company; disbursements; how made.

No domestic company shall make any disbursement of one hundred dollars or more other than policy proceeds or benefits unless the disbursement is evidenced by an invoice, a statement of account, or a voucher issued by or on behalf of the person, firm, or corporation receiving the money and correctly describing the consideration for the disbursement. If the invoice, statement of account, or voucher is unavailable, the disbursement shall be evidenced by an affidavit of some officer of the company identifying the disbursement and the consideration for the disbursement and stating the reason the invoice, statement of account, or voucher is unavailable.

Source:Laws 1913, c. 154, § 47, p. 418; R.S.1913, § 3183; Laws 1919, c. 190, tit. V, art. IV, § 18, p. 597; C.S.1922, § 7783; C.S.1929, § 44-318; R.S.1943, § 44-326; Laws 1989, LB 92, § 99.


44-327. Repealed. Laws 1984, LB 801, § 50.

44-328. Repealed. Laws 1984, LB 801, § 50.

44-329. Repealed. Laws 1984, LB 801, § 50.

44-330. Repealed. Laws 1984, LB 801, § 50.

44-331. Repealed. Laws 1984, LB 801, § 50.

44-332. Repealed. Laws 1984, LB 801, § 50.

44-333. Repealed. Laws 1984, LB 801, § 50.

44-333.01. Repealed. Laws 1984, LB 801, § 50.

44-333.02. Repealed. Laws 1984, LB 801, § 50.

44-333.03. Repealed. Laws 1984, LB 801, § 50.

44-333.04. Repealed. Laws 1984, LB 801, § 50.

44-333.05. Repealed. Laws 1984, LB 801, § 50.

44-333.06. Repealed. Laws 1984, LB 801, § 50.

44-334. Repealed. Laws 1984, LB 801, § 50.

44-334.01. Repealed. Laws 1984, LB 801, § 50.

44-335. Repealed. Laws 1984, LB 801, § 50.

44-336. Transferred to section 44-3909.

44-336.01. Transferred to section 44-3910.

44-336.02. Transferred to section 44-3911.

44-336.03. Transferred to section 44-3912.

44-336.04. Transferred to section 44-3913.

44-336.05. Transferred to section 44-3914.

44-336.06. Transferred to section 44-3915.

44-337. Repealed. Laws 1961, c. 218, § 8.

44-338. Repealed. Laws 1961, c. 218, § 8.

44-339. Repealed. Laws 1984, LB 801, § 50.

44-339.01. Repealed. Laws 1984, LB 801, § 50.

44-339.02. Repealed. Laws 1984, LB 801, § 50.

44-340. Repealed. Laws 1984, LB 801, § 50.

44-341. Repealed. Laws 1984, LB 801, § 50.

44-342. Repealed. Laws 1984, LB 801, § 50.

44-342.01. Repealed. Laws 1984, LB 801, § 50.

44-342.02. Repealed. Laws 1984, LB 801, § 50.

44-342.03. Repealed. Laws 1984, LB 801, § 50.

44-342.04. Repealed. Laws 1984, LB 801, § 50.

44-343. Repealed. Laws 1984, LB 801, § 50.

44-344. Repealed. Laws 1984, LB 801, § 50.

44-344.01. Repealed. Laws 1984, LB 801, § 50.

44-345. Repealed. Laws 1984, LB 801, § 50.

44-346. Repealed. Laws 1984, LB 801, § 50.

44-347. Repealed. Laws 1984, LB 801, § 50.

44-348. Policies, bonds, or certificates; form; approval.

Except as otherwise provided in Chapter 44 or by the director, no insurance policy, bond, or certificate issued under such policy or bond shall be issued or delivered in this state unless and until a copy of the form has been filed with and approved by the director.

Source:Laws 1913, c. 154, § 138, p. 466; R.S.1913, § 3275; Laws 1919, c. 190, tit. V, art. XI, § 3, p. 648; C.S.1922, § 7882; C.S.1929, § 44-1103; R.S.1943, § 44-348; Laws 1989, LB 92, § 100; Laws 1991, LB 233, § 44.


Annotations

44-349. Policy or contract; statement required.

No policy or contract of insurance or renewal thereof shall be made, issued, used, or delivered by any assessment insurer in this state unless it states on its face that it is issued by an assessment insurer.

Source:Laws 1913, c. 154, § 136, p. 466; R.S.1913, § 3273; Laws 1919, c. 190, tit. V, art. XI, § 1, p. 647; C.S.1922, § 7880; C.S.1929, § 44-1101; R.S.1943, § 44-349; Laws 1959, c. 201, § 1, p. 711; Laws 2008, LB855, § 3.    


44-350. Insurance companies; use of name; policies; state name of company; exceptions.

Every insurance company shall conduct its business in this state in its own name, and the policies and contracts of insurance issued by it shall be headed or entitled by such name. Two or more companies may jointly issue an underwriter's policy, upon which must appear the names of the companies guaranteeing the same, and such companies shall be jointly and severally liable thereon; Provided, this limitation shall not apply to any insurance company admitted to this state and issuing an underwriter's policy prior to the passage and approval of this chapter, nor, in the discretion of the Department of Insurance, to any insurance company desiring to issue an underwriter's policy after the passage and approval of this chapter.

Source:Laws 1913, c. 154, § 32, p. 412; R.S.1913, § 3168; Laws 1919, c. 190, tit. V, art. IV, § 3, p. 591; C.S.1922, § 7768; C.S.1929, § 44-303; R.S.1943, § 44-350.


44-351. Insurance companies; similar names; use prohibited.

No company, association, or society organized under sections 44-202 to 44-208.08 shall take any name in use by any other company, association, or society or so closely resembling such name as to mislead the public as to its identity.

Source:Laws 1913, c. 154, § 73, p. 424; R.S.1913, § 3209; Laws 1919, c. 190, tit. V, art. IV, § 43, p. 604; C.S.1922, § 7808; C.S.1929, § 44-343; R.S.1943, § 44-351; Laws 1989, LB 92, § 101.


Annotations

44-352. Insurance companies; name of other company; use; penalty; appeal.

It shall be unlawful for any insurance company to permit the use of its name or for any other company, person, or firm to use the name of any insurance company in such a way as to deceive or mislead the public. The violation of this section or section 44-351 by an insurance company shall be grounds for the suspension or revocation of its license, and the person, firm, or corporation so using the name of an insurance company shall be punished by a fine not exceeding one hundred dollars for each offense. An appeal of a suspension, revocation, or fine may be taken, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1913, c. 154, § 33, p. 412; R.S.1913, § 3169; Laws 1919, c. 190, tit. V, art. IV, § 4, p. 591; C.S.1922, § 7769; C.S.1929, § 44-304; R.S.1943, § 44-352; Laws 1969, c. 359, § 14, p. 1274; Laws 1988, LB 352, § 44; Laws 1989, LB 92, § 102.


Cross References

44-353. Policies; department may inspect.

The Department of Insurance and its employees shall have the right at any time to inspect any policy covering any risk in this state. Every policyholder shall procure and exhibit any policy in his possession or control when required for the inspection of the department or its assistants or employees.

Source:Laws 1913, c. 154, § 68, p. 423; R.S.1913, § 3204; Laws 1919, c. 190, tit. V, art. IV, § 38, p. 603; C.S.1922, § 7803; C.S.1929, § 44-338; R.S.1943, § 44-353.


44-354. Policies; special fees prohibited.

It shall be unlawful for any insurance company, association or society, or for any officer, manager, agent, or other representative thereof, to include in the sum charged or designated in any policy as the consideration for insurance, any fee, compensation, charge, or perquisite whatsoever, not specified in the policy. When collected the same shall be reported as such.

Source:Laws 1913, c. 154, § 69, p. 423; R.S.1913, § 3205; Laws 1919, c. 190, tit. V, art. IV, § 39, p. 603; C.S.1922, § 7804; C.S.1929, § 44-339; R.S.1943, § 44-354.


Annotations

44-355. Policies; premiums; report required.

Every agent or other representative of any company issuing a policy on its own behalf in this state shall report to the company the exact consideration charged and written in the policy as a premium for the risk.

Source:Laws 1913, c. 154, § 70, p. 424; R.S.1913, § 3206; Laws 1919, c. 190, tit. V, art. IV, § 40, p. 603; C.S.1922, § 7805; C.S.1929, § 44-340; R.S.1943, § 44-355.


44-356. Policies; violations; penalty.

(1) A violator of any of the provisions of section 44-353 shall be fined not more than one hundred dollars.

(2) A violation of any of the provisions of section 44-354 or 44-355 shall be an unfair trade practice in the business of insurance subject to the Unfair Insurance Trade Practices Act.

Source:Laws 1913, c. 154, § 71, p. 424; R.S.1913, § 3207; Laws 1919, c. 190, tit. V, art. IV, § 41, p. 603; C.S.1922, § 7806; C.S.1929, § 44-341; R.S.1943, § 44-356; Laws 1989, LB 92, § 103; Laws 2008, LB855, § 4.    


Cross References

44-357. Policies; stipulations forbidden.

No insurance company shall issue in this state any policy or contract of insurance containing a provision, stipulation or agreement that such policy shall be construed according to the laws of any other state or country, or any provision limiting the time within which an action may be brought to less than the regular period of time prescribed by the statutes of limitations of this state, unless otherwise prescribed by this chapter.

Source:Laws 1913, c. 154, § 49, p. 419; R.S.1913, § 3185; Laws 1919, c. 190, tit. V, art. IV, § 20, p. 598; C.S.1922, § 7785; C.S.1929, § 44-320; R.S.1943, § 44-357.


Annotations

44-358. Policies; misrepresentations; warranties; conditions; effect.

No oral or written misrepresentation or warranty made in the negotiation for a contract or policy of insurance by the insured, or in his behalf, shall be deemed material or defeat or avoid the policy, or prevent its attaching, unless such misrepresentation or warranty deceived the company to its injury. The breach of a warranty or condition in any contract or policy of insurance shall not avoid the policy nor avail the insurer to avoid liability, unless such breach shall exist at the time of the loss and contribute to the loss, anything in the policy or contract of insurance to the contrary notwithstanding.

Source:Laws 1913, c. 154, § 51, p. 419; R.S.1913, § 3187; Laws 1919, c. 190, tit. V, art. IV, § 22, p. 598; C.S.1922, § 7787; C.S.1929, § 44-322; R.S.1943, § 44-358.


Annotations

44-359. Policies; actions; attorney's fees.

In all cases when the beneficiary or other person entitled thereto brings an action upon any type of insurance policy, except workers' compensation insurance, or upon any certificate issued by a fraternal benefit society, against any company, person, or association doing business in this state, the court, upon rendering judgment against such company, person, or association, shall allow the plaintiff a reasonable sum as an attorney's fee in addition to the amount of his or her recovery, to be taxed as part of the costs. If such cause is appealed, the appellate court shall likewise allow a reasonable sum as an attorney's fee for the appellate proceedings, except that if the plaintiff fails to obtain judgment for more than may have been offered by such company, person, or association in accordance with section 25-901, then the plaintiff shall not recover the attorney's fee provided by this section.

Source:Laws 1913, c. 234, § 1, p. 738; R.S.1913, § 3212; Laws 1919, c. 190, tit. V, art. IV, § 46, p. 604; C.S.1922, § 7811; C.S.1929, § 44-346; R.S.1943, § 44-359; Laws 1971, LB 958, § 1; Laws 1986, LB 811, § 17; Laws 1987, LB 17, § 4.


Annotations

44-360. Insurance companies; agreements affecting rates or lessening competition; prohibited; appeal.

If any insurance company authorized to transact business in this state or any agent or representative thereof shall, either within or outside this state, directly or indirectly, enter into any contract, understanding, or combination with any other insurance company, agent, or representative thereof or with any association of such companies or agents, for the purpose of controlling the rates to be charged for insuring any risk or class or classes of risks in this state or for the purpose of, or that may have the tendency or effect of, preventing or lessening lawful competition in the transaction of the business of insurance in this state, the Department of Insurance shall forthwith revoke its license and the licenses of its agents, and no renewal of the license shall be granted until after the expiration of one year from the date of final revocation. An appeal may be taken from the decision of the department, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1913, c. 154, § 50, p. 419; R.S.1913, § 3186; Laws 1919, c. 190, tit. V, art. IV, § 21, p. 598; C.S.1922, § 7786; C.S.1929, § 44-321; Laws 1935, c. 100, § 1, p. 329; C.S.Supp.,1941, § 44-321; R.S.1943, § 44-360; Laws 1969, c. 359, § 15, p. 1274; Laws 1988, LB 352, § 45.


Cross References

44-361. Rebates; prohibited; activities not considered a rebate.

No insurance company, by itself or any other party, and no insurance agent or broker, personally or by any other party, shall offer, promise, allow, give, set off, or pay, directly or indirectly, any rebate of, or part of, the premium payable on the policy, or of any policy, or agent's commission thereon, or earnings, profits, dividends, or other benefits founded, arising, accruing or to accrue thereon or therefrom, or any paid employment or contract for service, or for advice of any kind, or any other valuable consideration or inducement to, or for insurance, on any risk authorized to be taken under section 44-201 now or hereafter to be written, which is not specified in the policy contract of insurance; nor shall any such company, agent, or broker, personally or otherwise, offer, promise, give, sell or purchase any stock, bonds, securities or property, or any dividends or profits accruing or to accrue thereon, or other things of value whatsoever, as inducement to insurance or in connection therewith, which is not specified in the policy. No insured person or party shall receive or accept, directly or indirectly, any rebate of premium, or part thereof, or agent's or broker's commission thereon, payable on the policy, or on any policy of insurance, or any favor or advantage or share in the dividends or other benefits to accrue on, or any valuable consideration or inducement not specified in the policy contract of insurance. Extending of interest-free credit on life and liability insurance premiums or interest-free credit on crop hail insurance premiums shall not be a rebate of the premium. Payments made pursuant to the Nebraska Right to Shop Act shall not be considered a rebate of the premium for purposes of this section.

Source:Laws 1913, c. 154, § 140, p. 466; R.S.1913, § 3277; Laws 1919, c. 190, tit. V, art. XI, § 5, p. 648; C.S.1922, § 7884; C.S.1929, § 44-1105; R.S.1943, § 44-361; Laws 1961, c. 220, § 1, p. 653; Laws 1971, LB 137, § 1; Laws 1972, LB 1354, § 2; Laws 2018, LB1119, § 25.    
Effective Date: July 19, 2018


Cross References

Annotations

44-361.01. Rebates; circumventing; presumptions.

(1) A licensed agent whose total commissions and underwriting fees on business written upon the property, life, health, or liability of himself or herself, his or her relatives by consanguinity or affinity, and his or her employer or employees exceed ten percent of the total commissions or underwriting fees received during any one license year shall be presumed to have obtained a license or renewal thereof primarily to circumvent the enforcement of section 44-361, except that for a licensed agent soliciting crop insurance, the percentage shall be thirty percent for commissions and underwriting fees on crop insurance business.

(2) A licensed agent whose total commissions and underwriting fees on business written upon the property, life, health, or liability of himself or herself, his or her relatives by consanguinity or affinity, and his or her employer or employees exceed thirty percent of the total commissions and underwriting fees received during any one license year shall be conclusively presumed to have obtained a license or renewal thereof primarily to circumvent the enforcement of section 44-361, except that for a licensed agent soliciting crop insurance, the percentage shall be fifty percent for commissions and underwriting fees on crop insurance business.

Source:Laws 1955, c. 175, § 3, p. 503; Laws 2013, LB59, § 1.    


44-361.02. Rebates; circumventing; enforcement; penalty.

Any agent who is found to have obtained a license or renewal primarily to circumvent enforcement of section 44-361 shall, in addition to any other penalty imposed by law, be guilty of a Class V misdemeanor.

Source:Laws 1955, c. 175, § 4, p. 504; Laws 1977, LB 40, § 232.


44-362. Repealed. Laws 1989, LB 92, § 278.

44-363. Repealed. Laws 1989, LB 92, § 278.

44-364. Repealed. Laws 1989, LB 92, § 278.

44-365. Repealed. Laws 1989, LB 92, § 278.

44-366. Repealed. Laws 1989, LB 92, § 278.

44-367. Rebates; violation; license; revocation; appeal.

The license of any insurance company, agent, or broker found by the Department of Insurance, after hearing, to have violated section 44-361 may be revoked or suspended. Appeal may be taken from the decision of the Director of Insurance, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1913, c. 154, § 144, p. 469; R.S.1913, § 3281; Laws 1919, c. 190, tit. V, art. XI, § 9, p. 650; C.S.1922, § 7888; C.S.1929, § 44-1109; Laws 1935, c. 97, § 2, p. 325; C.S.Supp.,1941, § 44-1109; R.S.1943, § 44-367; Laws 1969, c. 359, § 16, p. 1274; Laws 1988, LB 352, § 46; Laws 1989, LB 92, § 104.


Cross References

44-368. Repealed. Laws 1989, LB 92, § 278.

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

44-370. Life insurance policy; proceeds; payments; sale; surrender; pledge; change of beneficiary.

A life insurance company may provide that the amount to become due under a policy shall be paid in installments to a beneficiary therein named. If such beneficiary shall die before all said installments are paid, said policy may provide to whom the remaining ones shall be paid. Any person holding a policy in any such company may, without the consent of the beneficiary, unless the appointment of such beneficiary be irrevocable, either sell and surrender the same to the company, or pledge or assign the same as security for a debt, which, if due the company, shall be secured by said policy, whether it is in the possession of the company or not; or, with the consent of the company, he may change his beneficiary unless the appointment of such beneficiary be irrevocable.

Source:Laws 1913, c. 154, § 153, p. 471; R.S.1913, § 3290; Laws 1919, c. 190, tit. V, art. XI, § 18, p. 653; C.S.1922, § 7897; C.S.1929, § 44-1118; R.S.1943, § 44-370; Laws 1969, c. 366, § 1, p. 1302.


Annotations

44-371. Annuity contract; insurance proceeds and benefits; exempt from claims of creditors; exceptions.

(1)(a) Except as provided in subdivision (1)(b) of this section and in section 68-919, all proceeds, cash values, and benefits accruing under any annuity contract, under any policy or certificate of life insurance payable upon the death of the insured to a beneficiary other than the estate of the insured, or under any accident or health insurance policy shall be exempt from attachment, garnishment, or other legal or equitable process and from all claims of creditors of the insured and of the beneficiary if related to the insured by blood or marriage, unless a written assignment to the contrary has been obtained by the claimant.

(b) Subdivision (1)(a) of this section shall not apply to:

(i) An individual's aggregate interests greater than one hundred thousand dollars in all loan values or cash values of all matured or unmatured life insurance contracts and in all proceeds, cash values, or benefits accruing under all annuity contracts owned by such individual; and

(ii) An individual's interest in all loan values or cash values of all matured or unmatured life insurance contracts and in all proceeds, cash values, or benefits accruing under all annuity contracts owned by such individual, to the extent that the loan values or cash values of any matured or unmatured life insurance contract or the proceeds, cash values, or benefits accruing under any annuity contract were established or increased through contributions, premiums, or any other payments made within three years prior to bankruptcy or within three years prior to entry against the individual of a money judgment which thereafter becomes final.

(c) An insurance company shall not be liable or responsible to any person to determine or ascertain the existence or identity of any such creditors prior to payment of any such loan values, cash values, proceeds, or benefits.

(2) Notwithstanding subsection (1) of this section, proceeds, cash values, and benefits accruing under any annuity contract or under any policy or certificate of life insurance payable upon the death of the insured to a beneficiary other than the estate of the insured shall not be exempt from attachment, garnishment, or other legal or equitable process by a judgment creditor of the beneficiary if the judgment against the beneficiary was based on, arose from, or was related to an act, transaction, or course of conduct for which the beneficiary has been convicted by any court of a crime punishable only by life imprisonment or death. No insurance company shall be liable or responsible to any person to determine or ascertain the existence or identity of any such judgment creditor prior to payment of any such proceeds, cash values, or benefits. This subsection shall apply to any judgment rendered on or after January 1, 1995, irrespective of when the criminal conviction is or was rendered and irrespective of whether proceedings for attachment, garnishment, or other legal or equitable process were pending on March 14, 1997.

Source:Laws 1933, c. 73, § 1, p. 315; C.S.Supp.,1941, § 44-1130; R.S.1943, § 44-371; Laws 1980, LB 940, § 4; Laws 1981, LB 327, § 1; Laws 1987, LB 335, § 1; Laws 1997, LB 47, § 1; Laws 2005, LB 465, § 3;    Laws 2017, LB268, § 8.    


Annotations

44-372. Life insurance; annuity; nonpayment of premium; effect.

Any policy containing a provision for a deferred annuity on the life of the insured only, unless paid for by a single premium, shall provide that in the event of the nonpayment of any premium after three full years' premium shall have been paid, the annuity shall automatically become converted into a paid-up annuity for such proportion of the original annuity as the number of completed years' premiums paid bears to the total number of premiums required under the contract.

Source:Laws 1913, c. 154, § 146, p. 469; R.S.1913, § 3283; Laws 1919, c. 190, tit. V, art. XI, § 11, p. 651; C.S.1922, § 7890; C.S.1929, § 44-1111; R.S.1943, § 44-372.


Annotations

44-373. Corporate directors, officers, and employees; insurance upon lives; requirements.

Whenever a corporation, organized under the laws of this state, has heretofore caused or shall hereafter cause the life of any director, officer, agent or employee to be insured, or whenever such corporation is named as a beneficiary in, or assignee of, any policy of life insurance, due authority to assign, release, relinquish, convert, surrender, change the beneficiary, or to take any other or different action with reference to such insurance, shall be sufficiently evidenced to the insurance company by a written statement that the same has been approved by a majority of the board of directors, which statement shall be signed by the president and the secretary, or other corresponding officer, of such corporation, under its corporate seal. Such statement shall be binding upon such corporation, and shall protect the insurance company concerned in any act done or suffered by it upon the faith thereof without further inquiry into the validity of the corporate authority or the regularity of the corporate proceedings. No person shall be disqualified, by reason of interest in the subject matter, from acting as a director or as a member of the executive committee of such corporation on any corporate act touching such insurance.

Source:Laws 1927, c. 137, § 1, p. 378; C.S.1929, § 44-1123; R.S.1943, § 44-373.


44-374. Property insurance; insurable interest required.

No policy of insurance shall be issued upon any property except in the name of some party having an interest in the property.

Source:Laws 1913, c. 154, § 34, p. 413; R.S.1913, § 3170; Laws 1919, c. 190, tit. V, art. IV, § 5, p. 591; C.S.1922, § 7770; C.S.1929, § 44-305; R.S.1943, § 44-374.


Annotations

44-375. Insurance; applicable only to insured's interest.

When the name of the party intended to be insured is specified in a policy, such insurance can be applied only to his own proper interest.

Source:Laws 1913, c. 154, § 64, p. 423; R.S.1913, § 3200; Laws 1919, c. 190, tit. V, art. IV, § 34, p. 602; C.S.1922, § 7799; C.S.1929, § 44-334; R.S.1943, § 44-375.


Annotations

44-376. Insurance; policy issued to agent or trustee.

When insurance is issued to an agent or trustee, the fact that his principal or beneficiary is the person really insured is sufficiently indicated by describing him as agent or trustee or by other general words in the policy.

Source:Laws 1913, c. 154, § 65, p. 423; R.S.1913, § 3201; Laws 1919, c. 190, tit. V, art. IV, § 35, p. 603; C.S.1922, § 7800; C.S.1929, § 44-335; R.S.1943, § 44-376.


44-377. Insurance; joint, partnership, or limited liability company interest; policy terms.

To render an insurance policy effective by one partner, member, or part owner applicable to the interest of another partner, member, or owner, it is necessary that the terms of the policy should be such as are applicable to the joint, partnership, or limited liability company interest.

Source:Laws 1913, c. 154, § 66, p. 423; R.S.1913, § 3202; Laws 1919, c. 190, tit. V, art. IV, § 36, p. 603; C.S.1922, § 7801; C.S.1929, § 44-336; R.S.1943, § 44-377; Laws 1993, LB 121, § 221.


44-378. Insurance; insured described generally; who may claim.

When the description of the insured in the policy is so general that it may comprehend any person or class of persons, he only can claim the benefit of the policy who can show that it was intended to include him.

Source:Laws 1913, c. 154, § 67, p. 423; R.S.1913, § 3203; Laws 1919, c. 190, tit. V, art. IV, § 37, p. 603; C.S.1922, § 7802; C.S.1929, § 44-337; R.S.1943, § 44-378.


44-379. Transferred to section 44-522.

44-379.01. Transferred to section 44-523.

44-380. Transferred to section 44-501.02.

44-381. Repealed. Laws 1971, LB 958, § 2.

44-382. Repealed. Laws 1989, LB 92, § 278.

44-383. Repealed. Laws 1989, LB 92, § 278.

44-384. Repealed. Laws 1989, LB 92, § 278.

44-385. Repealed. Laws 1989, LB 92, § 278.

44-386. Unincorporated mutual associations; business authorized; contributions; restrictions; exceptions.

Nothing in Chapter 44 shall be construed to prevent any number of persons, not to exceed two thousand five hundred, who are residents of this state from making mutual pledges and giving valid obligations to each other for their own insurance from loss by fire, lightning, tornado, cyclone, windstorms, hail, death, or other cause for which insurance may be obtained under any of the laws of this state. Such association of persons shall in no case insure any property not owned by one of their number and no life except that of their number, nor shall the provisions of Chapter 44, article 3, or the Insurers Investment Act be applicable to such associations of persons except that the Department of Insurance may require such reports as it deems advisable. Such associations of persons shall receive no premiums, shall make no dividends, and shall not hire or compensate any agent, solicitors, adjusters, or appraisers. Officers and employees of such association shall be hired by the board of directors. All salaries of such officers and employees shall be approved by the board, but in no case shall such salaries exceed ten dollars per day. No such association of persons shall ever make any levies or collect any money from its members or prospective members except to pay for losses on property or lives insured and such expenses as are necessary and incidental to the operation of such association, except that one membership fee of not more than five dollars per person may be charged at the time of entrance for the purpose of providing a fund, which shall not be in excess of one hundred fifty percent of the average monthly disbursement during such calendar year at the end of each calendar year unless specifically approved by the director each year, out of which benefits may be paid pending assessment receipts and for the purpose of paying initial expenses. All fees and receipts shall be debited to the assets of the association and shall be expended as allowable for expenses, salaries, and benefits or distributed as provided in this section. No money shall be paid or donated to any organization or to any person except as a benefit or as an allowable salary or expense. All expenses including salaries shall not exceed twenty percent of all assessments, levies, and fees received. No surplus except that in the fund described in this section shall be maintained or allowed. Advance payments of assessments shall not be considered as surplus money for purposes of this section. All surplus money except that maintained in the fund and that allowed for expenses and salaries must be distributed to the members, except that if membership in such association is limited to the employees or former employees of a particular employer and such employer has contributed funds to such association to be used to pay benefits to the members in the period during which any such surplus fund was accumulated, then upon any distribution of such surplus, other than in payment of expenses, salaries, and benefits, whether upon the order of the Director of Insurance or otherwise, such distribution shall be equitably divided among the members in good standing on the date of such distribution and such employer in proportion to their respective contributions made in the period during which such surplus was accumulated. No such distribution shall be made until approved by the director.

Source:Laws 1913, c. 154, § 77, p. 425; R.S.1913, § 3214; Laws 1919, c. 190, tit. V, art. IV, § 48, p. 605; C.S.1922, § 7813; C.S.1929, § 44-348; R.S.1943, § 44-386; Laws 1963, c. 268, § 1, p. 801; Laws 1971, LB 510, § 1; Laws 1979, LB 417, § 1; Laws 1991, LB 237, § 61.


Cross References

44-386.01. Unincorporated mutual associations; contract of association; approval of director required; changes or additions, filing.

No association described in section 44-386 as may hereafter be formed shall provide any insurance coverage until it has filed with and received the approval of the Department of Insurance on such association's contract of association containing the name of the association, the place in Nebraska where its principal office will be located, the method of electing its officers and directors, and the method and procedure of doing business and copies of all contracts of association for insurance, applications, policies, certificates, and other evidence of insurance coverage to be used by such association in connection with its operation. No such association shall receive approval to operate if it has not filed its contract of association prior to August 25, 1989. All changes of or any additions to such information shall first be filed with and approved by the department before such changes or additions are used or become effective.

Source:Laws 1963, c. 268, § 2, p. 802; Laws 1989, LB 92, § 105.


44-386.02. Unincorporated mutual associations; existing associations, continuance in operation; approval required.

No such association now existing shall continue to operate after June 30, 1964, unless it shall have met the requirements of section 44-386.01.

Source:Laws 1963, c. 268, § 3, p. 802.


44-386.03. Unincorporated mutual associations; annual meetings; election of officers and directors; vote required; notice of meeting.

Every such association shall hold annual meetings of its members at regular intervals which shall not be, in any case, more than fourteen nor less than ten months apart. At such annual meeting there shall be transacted such business of the association as may come before it, which business shall include but not be limited to the election of officers or directors from among the members. All of said officers or directors shall be elected annually and shall not be less than five in number; Provided, that the Director of Insurance may approve a different number of directors and officers, or a different method of choosing the directors or officers, or both, or both a different number and a different method of choosing such directors and officers, if, in the opinion of the director, the interests of the members of the association are adequately protected thereby. Passage of all matters and business of such association shall require at least a majority vote of the members present in person or by proxy at any annual meeting or at any special meeting called. Notice of such annual meeting or special meeting shall be mailed to each member at his last-known address or otherwise distributed to him not less than ten nor more than thirty days prior to such meeting; Provided, that all references to members in this section shall be construed to mean a parent or the legal guardian of every member who is under twenty years of age. The minutes of every annual and special meeting must be taken and made available to any member upon request.

Source:Laws 1963, c. 268, § 4, p. 802; Laws 1969, c. 367, § 2, p. 1304; Laws 1972, LB 1059, § 1.


44-386.04. Unincorporated mutual associations; books and records; open to inspection by department.

The books and records of every such association and every officer, director, or employee thereof shall be subject to the inspection and examination of the Department of Insurance. Upon at least ten days' written notice to the president or secretary of the association, the Director of Insurance may require that the books and records be brought to the Department of Insurance for inspection and examination.

Source:Laws 1963, c. 268, § 5, p. 803; Laws 1969, c. 367, § 3, p. 1305.


44-386.05. Unincorporated mutual associations; hearing on business affairs; notice; expenses.

Whenever, from an inspection of the books and records or a review of the annual report, the Director of Insurance deems it prudent for the protection of the members of any association, he or she may conduct a hearing on the business affairs of the association. Notice shall be given as provided in the Administrative Procedure Act. Actual expenses of the Department of Insurance shall be paid by the association.

Source:Laws 1969, c. 367, § 4, p. 1305; Laws 1989, LB 6, § 4; Laws 1989, LB 92, § 106.


Cross References

44-386.06. Unincorporated mutual associations; cease and desist orders; misappropriation of funds; director; duties.

If, after the hearing provided for in section 44-386.05, the Director of Insurance finds that any rule or regulation adopted and promulgated pursuant to section 44-386.08 or any statute is being violated, he or she may issue an order to cease and desist all business of the association or any activity connected therewith until such time as corrective measures have been taken. If the director determines that any officer or member has misappropriated any funds or wrongfully converted any funds to his or her own use, he or she shall refer the matter to the county attorney of the county in which the books of the association are kept for prosecution by the county attorney under the applicable criminal statutes.

Source:Laws 1969, c. 367, § 5, p. 1306; Laws 1989, LB 92, § 107.


44-386.07. Unauthorized mutual associations; cease and desist order; appeal.

If the Director of Insurance orders any person to cease and desist all business of the association or any activity connected therewith, such order may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1969, c. 367, § 6, p. 1306; Laws 1988, LB 352, § 48.


Cross References

44-386.08. Unincorporated mutual associations; rules and regulations.

The Director of Insurance may adopt and promulgate rules and regulations for the administration and enforcement of the provisions of sections 44-386.01 to 44-386.07, for the procedures for examination of books and records, for the requirements of reports, and for procedures for approval of changes or additions of evidence of insurance coverage to be used by the associations.

Source:Laws 1969, c. 367, § 7, p. 1306; Laws 1989, LB 92, § 108.


44-387. Transferred to section 44-1499.

44-388. Transferred to section 44-14,100.

44-389. Transferred to section 44-14,101.

44-390. Transferred to section 44-14,102.

44-391. Repealed. Laws 1995, LB 385, § 14.

44-392. Insurance; solicitation and sale; when authorized.

Any bank, trust company, investment company, bank affiliate, corporation, partnership, limited liability company, or association, owned or controlled by any bank located in this state, may sell or solicit any kind or form of insurance, either directly or indirectly, through any officer, agent, employee, or representative thereof. The sale and solicitation of insurance pursuant to this section shall be subject to compliance with the insurance laws of this state and rules and regulations adopted and promulgated thereunder.

Source:Laws 1933, c. 74, § 1, p. 316; C.S.Supp.,1941, § 44-349; R.S.1943, § 44-392; Laws 1959, c. 202, § 1, p. 711; Laws 1977, LB 40, § 236; Laws 1993, LB 121, § 222; Laws 1999, LB 191, § 1.    


44-393. Insurance laws; violations; reports confidential.

Every insurance company, agent, solicitor, or broker, and every person or party having knowledge of violation of any of the provisions of this chapter, is required to promptly report the facts and circumstances pertaining thereto to the Department of Insurance, which report and the name of the informant may be held confidential by the department, its officers, assistants and employees, and not be made public.

Source:Laws 1913, c. 154, § 62, p. 422; R.S.1913, § 3198; Laws 1919, c. 190, tit. V, art. IV, § 32, p. 602; C.S.1922, § 7797; C.S.1929, § 44-332; R.S.1943, § 44-393.


44-394. Insurance companies; violations; general penalty.

Any company or person who knowingly violates any provision of this chapter for which no penalty is provided, shall be guilty of a Class III misdemeanor.

Source:Laws 1913, c. 154, § 155, p. 472; R.S.1913, § 3292; Laws 1919, c. 190, tit. V, art. XI, § 20, p. 653; C.S.1922, § 7899; C.S.1929, § 44-1120; R.S.1943, § 44-394; Laws 1977, LB 40, § 237.


Annotations

44-395. Actions; prosecution and defense; duties of Attorney General and county attorneys.

In all proceedings instituted in any court, or otherwise, under the provisions of this chapter, it shall be and hereby is made the duty of the Attorney General, and of the several county attorneys throughout the state, to prosecute or defend all such proceedings, when requested by the Department of Insurance.

Source:Laws 1913, c. 154, § 145, p. 469; R.S.1913, § 3282; Laws 1919, c. 190, tit. V, art. XI, § 10, p. 650; C.S.1922, § 7889; C.S.1929, § 44-1110; R.S.1943, § 44-395.


44-396. Insurance companies or officers; actions against; witnesses; immunity.

No person shall be excused from testifying, or from producing any books, papers, contracts, agreements or documents at the trial or hearing of any person or company charged with violating any provisions of this chapter, on the ground that such testimony or evidence may tend to incriminate himself, but no person shall be prosecuted for any act concerning which he shall be compelled so as to testify or produce evidence, documentary or otherwise, except for perjury committed in so testifying.

Source:Laws 1913, c. 154, § 152, p. 471; R.S.1913, § 3289; Laws 1919, c. 190, tit. V, art. XI, § 17, p. 653; C.S.1922, § 7896; C.S.1929, § 44-1117; R.S.1943, § 44-396.


44-397. Repealed. Laws 1991, LB 237, § 72.

44-398. Repealed. Laws 1991, LB 237, § 72.

44-399. Repealed. Laws 1991, LB 237, § 72.

44-3,100. Repealed. Laws 1989, LB 92, § 278.

44-3,101. Repealed. Laws 1989, LB 92, § 278.

44-3,102. Repealed. Laws 1981, LB 273, § 33.

44-3,103. Repealed. Laws 1981, LB 273, § 33.

44-3,104. Repealed. Laws 1989, LB 92, § 278.

44-3,105. Repealed. Laws 1989, LB 92, § 278.

44-3,106. Repealed. Laws 1989, LB 92, § 278.

44-3,107. Equity securities insider trading; statement of certain owners; form; required; filing.

Every domestic stock insurer shall file with the Director of Insurance, on such forms as the director may require, a separate statement for each person who is directly or indirectly the beneficial owner of more than ten percent of any class of any equity security of such insurer, and for each person who is a director or an officer of such insurer. The statement of the amount of all equity securities of such insurer, directly or indirectly owned by the individuals enumerated above, shall be filed with the director on or before January 1, 1970; within ten days after a person becomes an officer, director, or such beneficial owner; and within ten days after the close of each calendar month thereafter, if there has been a change in such ownership.

Source:Laws 1965, c. 248, § 1, p. 702; Laws 1969, c. 368, § 1, p. 1307.


44-3,107.01. Equity securities insider trading; terms, defined.

As used in sections 44-3,107 to 44-3,114, unless the context otherwise requires:

(1) Person shall mean any individual, corporation, partnership, limited liability company, association, joint-stock company, business trust, unincorporated organization, or holding company whose primary purpose is owning or controlling insurance companies. A holding company shall be presumed to have as its primary purpose the owning or controlling of insurance companies if fifty-one percent or more of the assets of the holding company consist of the equity securities of one or more stock insurers, one of which is a domestic stock insurer; and

(2) Officer shall mean president, vice president, treasurer, actuary, secretary, controller, or any other person who performs the company functions corresponding to those performed by any of the foregoing officers.

Source:Laws 1969, c. 368, § 2, p. 1307; Laws 1993, LB 121, § 223.


44-3,107.02. Equity securities insider trading; holder or owner of stock; report; filing; violation; effect.

Any person who is the beneficial owner of more than ten percent of the equity securities of any class of a domestic stock insurer and any officer or director of a domestic stock insurer who shall purchase or hold the stock of such insurer shall report such purchase or holding to such domestic stock insurer. Such report shall be filed with such insurer within five days after a person becomes an officer, director or such beneficial owner and not later than the close of the calendar month in which there has been a change in such ownership. Failure of any individual to report such ownership or purchase shall relieve the insurer of the duties prescribed in section 44-3,107 unless the insurer knows or should have known that the purchase was made by an officer, director, or beneficial owner of more than ten percent of the equity securities of the insurer.

Source:Laws 1969, c. 368, § 3, p. 1308.


44-3,107.03. Equity securities insider trading; owner; reports; filing.

A person, instead of the insurer, shall file the reports required by section 44-3,107 if:

(1) He fails to make the reports required by section 44-3,107.02; or

(2) His indirect beneficial ownership in the equity securities of a domestic stock insurer through a holding company, together with the amount of such equity securities of which he is otherwise directly or indirectly the beneficial owner, aggregate more than ten percent of the outstanding equity securities of a domestic stock insurer.

Source:Laws 1969, c. 368, § 4, p. 1308.


44-3,107.04. Equity securities insider trading; failure to file report; penalty.

Any domestic insurer which fails to comply with section 44-3,107 and any person who fails to comply with section 44-3,107.03 shall forfeit to the State of Nebraska the sum of one hundred dollars for each and every day such failure to comply shall continue. Such forfeiture, which shall be in lieu of any criminal penalty for such failure to comply which might be deemed to arise under sections 44-3,107 to 44-3,107.04 and 44-3,111 to 44-3,114, shall be payable into the treasury of the State of Nebraska and shall be recoverable in a civil suit in the name of the State of Nebraska.

Source:Laws 1969, c. 368, § 5, p. 1308.


44-3,108. Equity securities insider trading; unfair transactions; action for damages; limitation.

For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director or officer by reason of his relationship to such company, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such company within any period of less than six months, unless such security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the company, irrespective of any intention on the part of such beneficial owner, director or officer in entering into such transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six months. Suit to recover such profit may be instituted at law or in equity in any court of competent jurisdiction by the company, or by the owner of any security of the company in the name and in behalf of the company if the company shall fail or refuse to bring such suit within sixty days after request or shall fail diligently to prosecute the same thereafter; but no such suit shall be brought more than two years after the date such profit was realized. This section shall not be construed to cover any transaction where such beneficial owner was not such both at the time of the purchase and sale, or the sale and purchase, of the security involved, or any transaction or transactions which the Director of Insurance by rules and regulations may exempt as not comprehended within the purpose of this section.

Source:Laws 1965, c. 248, § 2, p. 703; Laws 1972, LB 1059, § 3.


44-3,109. Equity securities insider trading; unlawful acts.

It shall be unlawful for any such beneficial owner, director or officer, directly or indirectly, to sell any equity security of such company if the person selling the security or his principal (1) does not own the security sold, or (2) if owning the security, does not deliver it against such sale within twenty days thereafter, or does not within five days after such sale deposit it in the mails or other usual channels of transportation; but no person shall be deemed to have violated this section if he proves that notwithstanding the exercise of good faith he was unable to make such delivery or deposit within such time, or that to do so would cause undue inconvenience or expense.

Source:Laws 1965, c. 248, § 3, p. 703.


44-3,110. Equity securities insider trading; exemptions.

The provisions of section 44-3,108 shall not apply to any purchase and sale, or sale and purchase, and the provisions of section 44-3,109 shall not apply to any sale, of an equity security of a domestic stock insurance company not then or theretofore held by him in an investment account, by a dealer in the ordinary course of his business and incident to the establishment or maintenance by him of a primary or secondary market, otherwise than on an exchange as defined in the Securities Exchange Act of 1934, for such security. The Director of Insurance may, by such rules and regulations as he deems necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.

Source:Laws 1965, c. 248, § 4, p. 704.


44-3,111. Equity securities insider trading; arbitrage transactions; exceptions.

The provisions of sections 44-3,107 to 44-3,109 shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the Director of Insurance may adopt and promulgate in order to carry out the purposes of sections 44-3,107 to 44-3,114.

Source:Laws 1965, c. 248, § 5, p. 704; Laws 1969, c. 368, § 6, p. 1309; Laws 1989, LB 92, § 109.


44-3,112. Equity security, defined.

Equity security when used in sections 44-3,107 to 44-3,114 shall mean (1) any stock or similar security, (2) any security convertible, with or without consideration, into such a security or carrying any warrant or right to subscribe to or purchase such a security, (3) any such warrant or right, or (4) any other security which the Director of Insurance deems to be of similar nature and considers necessary or appropriate, by such rules and regulations as he or she may adopt and promulgate in the public interest or for the protection of investors, to treat as an equity security.

Source:Laws 1965, c. 248, § 6, p. 704; Laws 1969, c. 368, § 7, p. 1309; Laws 1989, LB 92, § 110.


44-3,113. Equity securities insider trading; applicability of sections.

The provisions of sections 44-3,107 to 44-3,109 shall not apply to equity securities of a domestic stock insurance company if such securities shall be registered, or shall be required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as amended, and a copy of such registration has been filed with the director, if so requested.

Source:Laws 1965, c. 248, § 7, p. 705; Laws 1969, c. 368, § 8, p. 1309.


44-3,114. Equity securities insider trading; rules and regulations.

The Director of Insurance shall have the power to adopt and promulgate such rules and regulations as may be necessary for the execution of the functions vested in him or her by the provisions of sections 44-3,107 to 44-3,113 and may for such purpose classify domestic stock insurance companies, securities, and other persons or matters within his or her jurisdiction. No provision of sections 44-3,107 to 44-3,109 imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule or regulation of the Director of Insurance, notwithstanding that such rule or regulation may, after such act or omission, be amended, rescinded, or determined by judicial or other authority to be invalid for any reason.

Source:Laws 1965, c. 248, § 8, p. 705; Laws 1969, c. 368, § 9, p. 1309; Laws 1989, LB 92, § 111.


44-3,115. Shareholders information; applicability of sections; insurer, file documents with director.

Sections 44-3,115 to 44-3,118 shall apply to all domestic stock insurers having one hundred or more shareholders, except that such sections shall not apply to any insurer if ninety-five percent or more of its stock is owned or controlled by a parent or an affiliated insurer and the remaining shares are held by less than five hundred shareholders. A domestic stock insurer which files with the Securities and Exchange Commission forms of proxies, consents, and authorizations complying with the requirements of the Securities Exchange Act of 1934, the Securities Exchange Act amendments of 1964, and the rules and regulations of the Securities and Exchange Commission promulgated thereunder shall file copies of all such documents with the Director of Insurance on the same date such documents are filed with the Securities and Exchange Commission.

Source:Laws 1965, c. 249, § 1, p. 706; Laws 1969, c. 369, § 1, p. 1310; Laws 1989, LB 92, § 112.


44-3,116. Shareholders information; file documents with director.

To insure that shareholders are provided with adequate information and to prevent fraud, deception, or dissemination of misleading information, a copy of every form of proxy, consent, or authorization for use at any meeting of shareholders and a copy of every solicitation, announcement, or other communication to shareholders under circumstances reasonably calculated to result in the procurement, withholding, or revocation of a proxy, consent, or authorization shall be filed with the director by the person intending to use, issue, publish, or circulate such document.

Source:Laws 1965, c. 249, § 2, p. 706; Laws 1969, c. 369, § 2, p. 1311; Laws 1989, LB 92, § 113.


44-3,116.01. Shareholders information; director; disapproval; effect.

The documents required to be filed with the Director of Insurance by sections 44-3,116 and 44-3,117 shall not be used, issued, published or circulated before a period of ten days following the date of such filing, or any such shorter period as may be authorized by the director, has elapsed. Within such ten-day or shorter period, the director may disapprove of any document filed with him, stating his reasons therefor in writing, in which case such documents shall not be used, issued, published, or circulated.

Source:Laws 1969, c. 369, § 3, p. 1311.


44-3,116.02. Shareholders information; failure to file; disapproved; effect; penalty.

Any domestic stock insurer or any person who uses any proxy, consent or authorization obtained in violation of sections 44-3,115 to 44-3,118, or who fails to make the filing required by sections 44-3,115 to 44-3,118 and who thereafter uses any document required to be filed, or who uses any document before it has been filed with the director for the required period of time, or who uses any such document after receiving written notice that the document has been disapproved by the Director of Insurance, or who uses any document which is false or misleading with respect to any material fact or omits to state any material fact shall forfeit to the State of Nebraska the sum of one thousand dollars. Such forfeiture, which shall be in lieu of any criminal penalties for such act or failure to act which might be deemed to arise under the provisions of sections 44-3,115 to 44-3,118, shall be payable to the State Treasurer and shall be recoverable in a civil suit in the name of the State of Nebraska.

Source:Laws 1969, c. 369, § 4, p. 1311.


44-3,117. Shareholders information; filing requirements.

Unless proxies, consents, or authorizations in respect of a stock of a domestic insurer subject to the provisions of section 44-3,115 are solicited by or on behalf of the management of such insurer from the holders of record of stock of such insurer in accordance with the rules and regulations adopted and promulgated by the Director of Insurance pursuant to sections 44-3,115 to 44-3,118 prior to any annual or other meeting, such insurer shall, in accordance with such rules and regulations, file with the director and transmit to all shareholders of record information substantially equivalent to the information which would be required to be transmitted if such a solicitation were made.

Source:Laws 1965, c. 249, § 3, p. 707; Laws 1969, c. 369, § 5, p. 1312; Laws 1989, LB 92, § 114.


44-3,118. Shareholders information; rules and regulations.

In accordance with the provisions of sections 44-3,115 to 44-3,118, the Director of Insurance shall adopt and promulgate such rules and regulations as are reasonable, necessary, or appropriate in the public interest or for the protection of investors (1) to define the provisions and applicability of sections 44-3,115 to 44-3,118, (2) to require that information including proxy statements be transmitted to shareholders and to prescribe the kind, content, and form of such information and the circumstances, time, and manner in which such information shall be transmitted, (3) to prescribe the content, form, and requirements of proxies, consents, and authorizations and the circumstances, time, and manner in which such proxies, consents, and authorizations may be solicited, and (4) to require that information, including forms of proxy statements, proxies, consents, and authorizations, be filed with the director and to prescribe the kind, content, and form of such information and the circumstances, time, and manner in which such information shall be filed.

Source:Laws 1965, c. 249, § 4, p. 707; Laws 1969, c. 369, § 6, p. 1312; Laws 1989, LB 92, § 115.


44-3,119. Borrowing or rental of securities; insurance company; member, officer, director, attorney in fact; unlawful.

Any member, officer, director, or attorney in fact of any company or association licensed to do an insurance business in this state, who on behalf of such company or association borrows, rents, hires, leases, or otherwise engages the use of stocks, bonds, debentures, notes, investment certificates, securities, or other obligations or evidences of indebtedness owned or issued by any other corporation, company, association, or individual, or of any government political subdivision or agency thereof, with intent to injure or defraud any other company, body politic or corporation, or person, or to deceive the Director of Insurance or any other person legally authorized to examine the affairs of any such company or association shall be guilty of a felony.

Source:Laws 1969, c. 352, § 1, p. 1231.


44-3,120. Borrowing or rental of securities; aiding and abetting; unlawful.

Any corporation organized under any laws of this state, or the laws of any other state, or which has an office or is transacting business in this state, which is engaged in, organizing or receiving subscriptions for or disposing of stocks of, or in any manner aiding or taking part in the formation or in the business of an insurance company or association, either as agent or otherwise, or which is holding capital stock of one or more insurance companies for the purpose of controlling the management thereof as voting trustees or otherwise, or any employee, agent, or attorney thereof, who aids and abets such insurance company or association in borrowing, renting, hiring, leasing, or engaging the use of such stocks, bonds, debentures, notes, investment certificates, securities, or other obligations or evidences of indebtedness, shall be guilty of a felony.

Source:Laws 1969, c. 352, § 2, p. 1232.


44-3,121. Violations; penalty.

Any person convicted for violation of section 44-3,119 or 44-3,120 shall be guilty of a Class IV felony.

Source:Laws 1969, c. 352, § 3, p. 1232; Laws 1977, LB 40, § 240.


44-3,122. Violations by corporation; penalty.

Any corporation convicted for violation of section 44-3,120 shall be punished by a fine of not more than ten thousand dollars.

Source:Laws 1969, c. 352, § 4, p. 1232.


44-3,123. Possession of borrowed or rented securities; proceedings authorized.

If any insurance company or association is found in possession of stocks, bonds, debentures, notes, investment certificates, securities, or other obligations or evidences of indebtedness acquired in violation of section 44-3,119 or if any of its officers, directors, members, or attorneys in fact have been convicted under section 44-3,119, such company or association may be subject to suspension of its certificate of authority by the Director of Insurance. Nothing in this section shall be construed to prevent the Director of Insurance from proceeding against such insurance company or association in the manner authorized and directed by the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act.

Source:Laws 1969, c. 352, § 5, p. 1232; Laws 1989, LB 319, § 68.


Cross References

44-3,124. Repealed. Laws 1989, LB 214, § 10.

44-3,125. Repealed. Laws 1989, LB 214, § 10.

44-3,126. Repealed. Laws 1989, LB 214, § 10.

44-3,127. Fine or penalty; collected by department; deposited in permanent school fund.

All money collected by the Department of Insurance as a fine or penalty shall be paid to the State Treasurer who shall deposit such money in the permanent school fund.

Source:Laws 1979, LB 196, § 2.


44-3,128. Automobile liability policy; insurance carrier; surcharge prohibited.

When any person insured under an automobile liability policy is involved in an accident in which the license of the operator of another motor vehicle is suspended pursuant to section 60-507 because the operator failed to provide proof of financial responsibility and there is a reasonable possibility of judgment being rendered against such operator, the insurance carrier covering the insured person shall not surcharge any of the automobile coverages in the insured party's current policy or any subsequent renewal policy for any loss which was sustained in such accident by the insured person and covered under such person's automobile liability policy.

Source:Laws 1985, LB 404, § 4.


44-3,128.01. Automobile liability policy or endorsement; right of subrogation of medical payments; limitation.

A provision in an automobile liability policy or endorsement which is effective in this state and which grants the insurer the right of subrogation for payment of benefits under the medical payments coverage portion of the policy shall be valid and enforceable, except that if the claimant receives less than actual economic loss from all parties liable for the bodily injuries, subrogation of medical payments shall be allowed in the same proportion that the medical expenses bear to the total economic loss. For purposes of this section, it shall be conclusively presumed that any settlement or judgment which is less than the policy limits of any applicable liability insurance coverage constitutes complete recovery of actual economic loss.

Source:Laws 1991, LB 224, § 1.


Annotations

44-3,129. Health care coverages or services; legislative intent.

The Legislature recognizes the increasing number of proposals to mandate or require the offering of health care coverages or services by insurance or otherwise, health care service contractors, and health maintenance organizations as a component of insurance policies or employee welfare benefit plans. Improved access to health care services by segments of the population which desire such services can provide beneficial social and health consequences which may be in the public interest.

The cost ramifications of expanding health care coverages and services are a growing concern. The structures of such coverages or services and the steps taken to create incentives to provide cost-effective services or to take advantage of cost-offsetting features of services can significantly influence the cost impact of mandating particular coverages and services.

Source:Laws 1986, LB 895, § 1.


44-3,130. Health care coverages or services; defined.

For purposes of sections 44-3,129 to 44-3,131, health care coverages or services shall mean any services rendered for a fee which are included in the furnishing to any individual of medical care, or other services incident to the furnishing of such care, as well as the furnishing to any person of any and all other services for the purpose of preventing, alleviating, curing, or healing human illness or injury.

Source:Laws 1986, LB 895, § 2.


44-3,131. Health care coverages or services; applicability of provisions.

No legislative proposal to mandate or require the offering of health care coverages or services shall apply to any insurer unless the proposal applies equally to employee welfare benefit plans described in 29 U.S.C. 1001 et seq.

Source:Laws 1986, LB 895, § 3.


44-3,132. Repealed. Laws 1995, LB 385, § 14.

44-3,133. Furnishing information; exemption from liability.

(1) Any person acting without malice, fraudulent intent, or bad faith shall be immune from any civil liability by virtue of filing reports or furnishing other information required by Chapter 44 or required by the Director of Insurance under the authority granted in Chapter 44.

(2) The Director of Insurance or any employee of the Department of Insurance acting without malice, fraudulent intent, or bad faith shall be immune from any civil liability by virtue of the publication of any report or bulletin related to the official activities of the Department of Insurance.

(3) This section shall not abrogate or modify in any way any common-law or statutory privilege or immunity.

Source:Laws 1987, LB 399, § 2; Laws 1995, LB 385, § 12.


44-3,134. Motor vehicle theft or fraud; terms, defined.

As used in sections 44-3,134 to 44-3,142, unless the context otherwise requires:

(1) Authorized agency shall mean the Nebraska State Patrol, a local governmental police department, a county sheriff's office, a county attorney, a municipal attorney, a United States district attorney, a duly constituted criminal investigative agency of the United States Government, and the office of the Nebraska Attorney General;

(2) Insurer shall mean any insurance company, adjustor, or agent; and

(3) Relevant shall mean having a tendency to make the existence of any information that is of consequence to an investigation of motor vehicle theft or motor vehicle insurance fraud or a determination of such issue more probable or less probable than it would be without such information.

Source:Laws 1987, LB 78, § 1.


44-3,135. Motor vehicle theft or fraud; relevant information; release to authorized agency.

Upon written request to an insurer by an authorized agency, an insurer or person acting on behalf of the insurer shall release to a requesting authorized agency any or all relevant information relating to any specific motor vehicle theft or motor vehicle insurance fraud which the insurer may possess. Relevant information may include, but shall not be limited to:

(1) Insurance policy information relevant to the motor vehicle theft or motor vehicle insurance fraud under investigation, including any application for such a policy;

(2) Policy premium records;

(3) History of previous claims made by the insured;

(4) Information relating to the investigation of the motor vehicle theft or motor vehicle insurance fraud, including statements of any person, proof of loss, and notice of loss; and

(5) Any other relevant evidence or information which the authorized agency reasonably believes is important.

Source:Laws 1987, LB 78, § 2.


44-3,136. Motor vehicle theft or fraud; notification by insurer.

When an insurer knows the identity of a person whom the insurer has probable cause to believe committed a criminal or fraudulent act relating to a motor vehicle theft or a motor vehicle insurance claim or has knowledge of such a criminal or fraudulent act which the insurer reasonably believes has not been reported to an authorized agency and the suspected person is insured by the insurer, then for the purpose of notification and investigation the insurer or person acting on behalf of the insurer may notify, in writing, an authorized agency of such knowledge or reasonable belief and provide any additional relevant information in accordance with section 44-3,135.

Source:Laws 1987, LB 78, § 3.


44-3,137. Motor vehicle theft or fraud; notice; effect.

For purposes of sections 44-3,134 to 44-3,142, when an insurer provides any authorized agency with notice pursuant to section 44-3,136, such notice shall be deemed sufficient for all authorized agencies.

Source:Laws 1987, LB 78, § 4.


44-3,138. Motor vehicle theft or fraud; information; release.

The authorized agency which receives information pursuant to sections 44-3,134 to 44-3,142 may release or provide such information to any other authorized agency.

Source:Laws 1987, LB 78, § 5.


44-3,139. Motor vehicle theft or fraud; relevant information; release to insurer; when.

Any insurer which provides information to an authorized agency pursuant to sections 44-3,134 to 44-3,142 shall have the right to request and receive relevant information from such authorized agency. The authorized agency shall provide the requested relevant information to the insurer or agent authorized by the insurer not more than thirty days after the completion of the agency's investigation.

Source:Laws 1987, LB 78, § 6.


44-3,140. Motor vehicle theft or fraud; relevant information; disclosure prohibited.

It shall be unlawful for any insurer, any person acting on behalf of the insurer, or an authorized agency to make any relevant information received or released under sections 44-3,134 to 44-3,142 a public record except in a criminal or civil proceeding.

Source:Laws 1987, LB 78, § 7.


44-3,141. Motor vehicle theft or fraud; release of relevant information; immunity.

Any insurer, any person acting on behalf of the insurer, an authorized agency, or any of their respective employees, who releases relevant information under sections 44-3,134 to 44-3,142 with reasonable cause to believe the truth of such information, shall be immune from any civil or criminal liability for releasing such information.

Source:Laws 1987, LB 78, § 8.


44-3,142. Motor vehicle theft or fraud; violation; penalty.

Any person violating any provision of sections 44-3,134 to 44-3,142 shall be guilty of a Class IV misdemeanor.

Source:Laws 1987, LB 78, § 9.


44-3,143. Life insurance policy proceeds; payment of interest; when.

(1) Any insurance company authorized to do business in this state shall pay interest on any proceeds due on a life insurance policy if:

(a) The insured was a resident of this state on the date of death;

(b) The date of death was on or after June 6, 1991;

(c) The beneficiary elects in writing to receive the proceeds in a lump-sum payment; and

(d) The proceeds are not paid to the beneficiary within thirty days of receipt of proof of death of the insured by the insurance company.

(2) Interest shall accrue from the date of receipt of proof of death to the date of payment at the rate calculated pursuant to section 45-103 in effect on January 1 of the calendar year in which occurs the date of receipt of proof of death. For purposes of this section, date of payment shall include the date of the postmark stamped on an envelope, properly addressed and postage prepaid, containing the payment.

(3) If an action is commenced to recover the proceeds, this section shall not require the payment of interest for any period of time for which interest is awarded pursuant to sections 45-103 to 45-103.04.

(4) A violation of this section shall be an unfair claims settlement practice subject to the Unfair Insurance Claims Settlement Practices Act.

Source:Laws 1991, LB 419, § 40; Laws 2011, LB72, § 1.    


Cross References

44-3,144. Health care coverage of children; terms, defined.

For purposes of sections 44-3,144 to 44-3,150:

(1) Authorized attorney has the same meaning as in section 43-512;

(2) Child means an individual to whom or on whose behalf a legal duty of support is owed by an obligor;

(3) Department means the Department of Health and Human Services;

(4) Employer means an individual, a firm, a partnership, a corporation, an association, a union, a political subdivision, a state agency, or any agent thereof who pays income to an obligor on a periodic basis and has or provides health care coverage to the obligor-employee;

(5) Health care coverage means a health benefit plan or combination of plans, including fee for service, health maintenance organization, preferred provider organization, and other types of coverage available to either party, under which medical services could be provided to dependent children, that provide medical care or benefits;

(6) Insurer means an insurer as defined in section 44-103 offering a group health plan as defined in 29 U.S.C. 1167, as such section existed on January 1, 2002;

(7) Medical support means the provision of health care coverage, contribution to the cost of health care coverage, contribution to expenses associated with the birth of a child, other uninsured medical expenses of a child, or any combination thereof;

(8) Medical assistance program means the program established pursuant to the Medical Assistance Act;

(9) National medical support notice means a uniform administrative notice issued by the county attorney, authorized attorney, or department to enforce the medical support provisions of a support order;

(10) Obligee has the same meaning as in section 43-3341;

(11) Obligor has the same meaning as in section 43-3341;

(12) Plan administrator means the person or entity that administers health care coverage for an employer;

(13) Qualified medical child support order means an order that meets the requirements of 29 U.S.C. 1169, as such section existed on January 1, 2002; and

(14) Uninsured medical expenses means the reasonable and necessary health-related expenses that are not paid by health care coverage.

Source:Laws 1994, LB 1224, § 72; Laws 1996, LB 1044, § 234; Laws 1997, LB 307, § 103; Laws 2002, LB 1062, § 6;    Laws 2006, LB 1248, § 56;    Laws 2009, LB288, § 14;    Laws 2018, LB702, § 4.    
Effective Date: July 19, 2018


Cross References

44-3,145. Health care coverage of children; insurer; prohibited acts.

An insurer shall not deny enrollment of a child under the health care coverage of the obligor on the ground that:

(1) The child was born out of wedlock;

(2) The child is not claimed as a dependent on the obligor's federal income tax return; or

(3) The child does not reside with the obligor or in the insurer's service area.

Source:Laws 1994, LB 1224, § 73; Laws 2002, LB 1062, § 7.    


44-3,146. Health care coverage of children; insurer; court or administrative order; duties; national medical support notice; effect.

(1) An insurer shall, in any case in which an obligor is required by a court or administrative order to provide health care coverage for a child and the obligor is eligible for family health care coverage through the insurer:

(a) Permit an obligor to enroll under such health care coverage any such child who is otherwise eligible for such coverage without regard to any enrollment season restriction;

(b) If an obligor is covered but fails to make application to obtain coverage for such child, enroll such child under such health care coverage upon application by (i) the obligee without regard to any enrollment season restriction, (ii) in any case in which services are provided under Title IV-D of the federal Social Security Act, as such act existed on January 1, 2002, the county attorney or authorized attorney without regard to any enrollment season restriction, or (iii) in any case in which services are not provided under Title IV-D of the federal Social Security Act, as such act existed on January 1, 2002, the department without regard to any enrollment season restriction; and

(c) Not cancel or eliminate health care coverage for any such child unless the insurer is provided satisfactory written evidence that (i) such court or administrative order is no longer in effect or (ii) the child is or will be enrolled in comparable health care coverage through another insurer which will take effect not later than the effective date of such cancellation or elimination.

(2) An employer doing business in this state shall, in any case in which an obligor is required by a court or administrative order to provide health care coverage for a child and the obligor is eligible for family health care coverage through the employer:

(a) Permit an obligor to enroll under such health care coverage any such child who is otherwise eligible for such coverage without regard to any enrollment season restriction;

(b) If an obligor is covered but fails to make application to obtain coverage for such child, enroll such child under such health care coverage upon application by (i) the obligee without regard to any enrollment season restriction, (ii) in any case in which services are provided under Title IV-D of the federal Social Security Act, as such act existed on January 1, 2002, the county attorney or authorized attorney without regard to any enrollment season restriction, or (iii) in any case in which services are not provided under Title IV-D of the federal Social Security Act, as such act existed on January 1, 2002, the department without regard to any enrollment season restriction; and

(c) Not cancel or eliminate health care coverage for any such child unless (i) the employer is provided satisfactory written evidence that (A) such court or administrative order is no longer in effect or (B) the child is or will be enrolled in comparable health care coverage which will take effect not later than the effective date of such cancellation or elimination or (ii) the employer has eliminated family health care coverage for all of its employees.

Upon enrollment pursuant to this subsection, premiums shall be deducted from the obligor's compensation and remitted directly to the insurer. The amount withheld shall not exceed the maximum amount permitted to be withheld under section 303(b) of the federal Consumer Credit Protection Act, as such act existed on January 1, 2002. Amounts withheld pursuant to the Income Withholding for Child Support Act shall have priority over amounts withheld pursuant to this subsection. An employer receiving a national medical support notice shall transmit the notice to the plan administrator within twenty business days after receipt of the notice from the county attorney, authorized attorney, or department.

(3) If an obligor is ordered to provide health care coverage for a child in any case in which services are provided under Title IV-D of the federal Social Security Act, as such act existed on January 1, 2002, the county attorney, authorized attorney, or department shall send a national medical support notice to any employer of the obligor within two business days after receipt of information regarding employment under the New Hire Reporting Act. A national medical support notice sent by the county attorney, authorized attorney, or department to an employer pursuant to this section shall have the same effect as an enrollment application signed by the obligor. The county attorney, authorized attorney, or department shall send a copy of the national medical support notice to the obligor by mail at his or her last-known address stating:

(a) The court or administrative order upon which the enforcement action is being taken;

(b) That if the county attorney, authorized attorney, or department sends a national medical support notice to an employer, the county attorney, authorized attorney, or department will also direct the employer to withhold from the employee's compensation the employee's share of the premium for health care coverage; and

(c) That within fifteen days after receiving the notice the obligor may request a hearing to contest the enforcement action based upon evidence that (i) there is an error in the identity of the obligor, (ii) he or she has enrolled the child in an insurance plan providing coverage required by the order, (iii) the parties have stipulated to, and the court or administrative order specifically provides for, an alternative to employer-based health care coverage, or (iv) evidence that the premium cost to the obligor exceeds the amount stated in subsection (2) of this section or is otherwise unreasonable.

If a hearing is requested, the department shall hold the hearing within fifteen days after the request, and the department shall notify the obligor of its decision within fifteen days after the date the hearing is held. A national medical support notice sent by the county attorney, authorized attorney, or department to the obligor's employer shall not be held in abeyance pending the outcome of the hearing.

(4) The remedy provided in this section shall be in addition to and not in substitution for any other remedy and shall apply without regard to when the order was issued.

(5) An insurer or employer shall, upon request by the county attorney, authorized attorney, or department, provide the county attorney, authorized attorney, or department with the following information regarding an obligor required by a court or administrative order to provide health care coverage for a child: (a) The social security number; (b) the address; (c) whether the obligor has health care coverage and, if so, the policy name and number and the names of the persons covered; and (d) the cost to the obligor of enrolling.

(6) Upon receipt of a copy of a court or administrative order requiring an obligor to provide health care coverage for a child, an insurer or employer shall provide the obligee upon written request the information necessary to file an application pursuant to this section.

(7) A completed national medical support notice issued by the county attorney, authorized attorney, or department that complies with this section is a qualified medical child support order for the purposes of the federal Employee Retirement Income Security Act of 1974, 29 U.S.C. 1169(a), as such section existed on January 1, 2002.

(8) Upon the termination of employment of an obligor subject to this section, the employer shall promptly notify the county attorney, authorized attorney, or department of the termination of employment in the same manner as required for income withholding cases in accordance with subdivision (6) of section 43-1723.

(9) When there is no longer a current child support order in effect for an obligor subject to this section, the county attorney, authorized attorney, or department shall promptly notify the employer that the order is no longer in effect.

Source:Laws 1994, LB 1224, § 74; Laws 2002, LB 1062, § 8.    


Cross References

44-3,147. Health care coverage of children; rules and regulations.

The department shall adopt and promulgate rules and regulations to carry out section 44-3,146.

Source:Laws 1994, LB 1224, § 75.


44-3,148. Health care coverage of children; insurer; discrimination against Department of Health and Human Services prohibited.

An insurer may not impose requirements on the department when the department has been assigned the rights of an individual who is eligible for medical assistance pursuant to the medical assistance program and who is covered for health benefits from the insurer that are different from requirements applicable to an agent or assignee of any other individual so covered.

Source:Laws 1994, LB 1224, § 76.


44-3,149. Health care coverage of children; insurer of obligor; duties.

An insurer shall, in any case in which a child has health care coverage through the insurer of the obligor:

(1) Provide such information to the obligor as may be necessary for the child to obtain benefits through such coverage;

(2) Permit the obligor or the provider, with the obligor's approval, to submit claims for covered services without the approval of the obligor; and

(3) Make payment on claims submitted in accordance with subdivision (2) of this section directly to such obligor, the provider, or the department pursuant to section 68-916.

Source:Laws 1994, LB 1224, § 77; Laws 2002, LB 1062, § 9;    Laws 2006, LB 1248, § 57.    


44-3,150. Health care coverage of children; eligibility for medical assistance; effect.

When enrolling an individual or making any payment for benefits to an individual or on an individual's behalf, an insurer shall not take into account that the individual is eligible for or is provided medical assistance pursuant to the medical assistance program or a medical assistance plan of another state.

Source:Laws 1994, LB 1224, § 78.


44-3,151. Workers' compensation insurance; association authorized to obtain for members.

An association which has a constitution and bylaws and has been organized in this state for not less than two years and is maintained in good faith for purposes other than that of obtaining insurance may obtain individual workers' compensation insurance policies through an insurance producer licensed under the Insurance Producers Licensing Act for any or all of the voting members of the association covering the liability to which each individual employer may be subject under the Nebraska Workers' Compensation Act from an insurer authorized to transact the business of workers' compensation insurance in this state.

Source:Laws 1996, LB 515, § 1; Laws 2001, LB 51, § 24.    


Cross References

44-3,152. Workers' compensation insurance; association; how treated.

An association which obtains insurance policies in compliance with sections 44-3,151 to 44-3,155 is not an insurer and is not transacting the business of insurance under the laws of this state.

Source:Laws 1996, LB 515, § 2.


44-3,153. Workers' compensation insurance; association; powers.

Under insurance policies obtained pursuant to section 44-3,151, an association is entitled to negotiate with the insurer regarding policy terms, including premiums, discounts, dividends, commissions, fees, and costs. If any policy provides for any deductible for any benefits payable under the Nebraska Workers' Compensation Act, it shall be in conformance with section 48-146.03. The insurer shall only enter into arrangements which allow it to report data compatible with the uniform classification system and with experience rating as required by subsections (1) and (2) of section 44-7524.

Source:Laws 1996, LB 515, § 3; Laws 2000, LB 1119, § 36.    


Cross References

44-3,154. Workers' compensation insurance; discount or dividend; how apportioned.

An association may apportion any discount or dividend received on insurance policies obtained pursuant to section 44-3,151 among the covered members according to a formula adopted in the plan of operation of the association.

Source:Laws 1996, LB 515, § 4.


44-3,155. Workers' compensation insurance; plan of operation.

An association shall adopt and maintain a plan of operation that includes the methods for administering insurance policies obtained pursuant to section 44-3,151, including the payment of premiums, the distribution of discounts, and the methods for providing risk management.

Source:Laws 1996, LB 515, § 5.


44-3,156. Workers' compensation insurance; violation; penalty.

Any person who violates sections 44-3,151 to 44-3,155 is guilty of a Class II misdemeanor.

Source:Laws 1996, LB 515, § 6.


44-3,157. Mandated coverages or services; applicability.

If the laws of any other state specify that a policy issued for delivery in that state need not provide the coverages or services mandated by that state to certificate holders who are not residents or not employed in that state, and if such a policy issued for delivery in that state does not provide the coverages or services mandated by that state to certificate holders who are not residents or not employed in that state, then the coverages or services mandated by sections 44-769 to 44-7,101 shall apply to a certificate issued to certificate holders who are residents of or employed in this state.

Source:Laws 2005, LB 119, § 38;    Laws 2006, LB 875, § 1.    


44-3,158. Workers' compensation insurance; assigned risk system; director; powers; certain actions of employer; effect.

(1) For purposes of this section:

(a) Assigned risk employer means a Nebraska employer that is in good faith entitled to, but is unable to obtain, workers' compensation insurance through ordinary methods; and

(b) Director means the Director of Insurance.

(2)(a) The director shall enter into an agreement with one or more workers' compensation insurers to provide workers' compensation insurance to assigned risk employers. In selecting an insurer to become an assigned risk insurer, the director shall consider the cost of coverage to assigned risk employers, the loss control and claims handling services available from the workers' compensation insurer, the financial condition of the workers' compensation insurer, and any other relevant factors. An agreement entered into under this subsection may not exceed five years.

(b) If the director determines that the cost of workers' compensation insurance premiums for an insurer to provide assigned risk coverage pursuant to such an agreement would be unreasonably high, the director may enter into an agreement in which the assigned risk insurer covers a portion of the losses incurred by the assigned risk employer. Any agreement that involves an average rate level of less than two and one-half times the prospective loss costs approved for an advisory organization pursuant to section 44-7511 shall not be considered unreasonably high for the purposes of this section. Pursuant to any such agreement, remaining losses shall be assessed against all workers' compensation insurers writing workers' compensation insurance in this state and risk management pools created under the Intergovernmental Risk Management Act based on their workers' compensation premiums written in this state or contributions made to risk management pools. Assigned risk premiums shall be excluded from the basis for such assessments.

(c) If the assigned risk system described in subdivisions (2)(a) and (b) of this section ceases to be viable because no qualified insurer is willing to provide workers' compensation coverage at an average rate level of two and one-half times the prospective loss costs approved for an advisory organization pursuant to section 44-7511 without also requiring substantial sharing of losses with all other workers' compensation insurers writing workers' compensation insurance in this state and risk management pools created under the Intergovernmental Risk Management Act, then the director may, after consultation with insurers authorized to issue workers' compensation insurance policies in this state, create a reasonable alternative assigned risk system involving the sharing of premiums and losses for assigned risk employers among all such workers' compensation insurers writing workers' compensation insurance in this state and such risk management pools. If established, such alternative assigned risk system shall not utilize an average rate level of less than two and one-half times the prospective loss costs approved for an advisory organization pursuant to section 44-7511.

(3) The director may adopt and promulgate rules and regulations to carry out this section.

(4) An employer shall not be considered to be in good faith entitled to be covered by workers' compensation insurance under this section if:

(a) The employer is required to establish a safety committee pursuant to sections 48-443 to 48-445 and is not in compliance with such sections;

(b) The employer is in default on workers' compensation premiums;

(c) The employer has failed to reimburse an insurer for amounts to be repaid pursuant to workers' compensation insurance written on a policy with a deductible;

(d) The employer has failed to provide an insurer reasonable access to books and records necessary for a premium audit;

(e) The employer has defrauded or attempted to defraud an insurer; or

(f) The employer is found to have been owned or controlled by persons who owned or controlled a prior employer that is or would be ineligible for coverage pursuant to subdivisions (4)(b) through (e) of this section.

Source:Laws 1971, LB 572, § 15; Laws 1986, LB 811, § 72; Laws 1993, LB 757, § 14; Laws 2000, LB 1119, § 39;    Laws 2005, LB 119, § 42;    R.S.Supp.,2006, § 48-146.01; Laws 2007, LB117, § 3.    


Cross References

44-3,159. Health plan; self-funded employee benefit plan; assertion of contractual rights to proceeds; prohibited acts; section; applicability.

(1) No health plan and no self-funded employee benefit plan to the extent not preempted by federal law shall assert any contractual rights to the proceeds of any resources purchased by or on behalf of the policyholder, subscriber, certificate holder, or enrollee, including medical payments coverage under a motor vehicle insurance policy, uninsured or underinsured motorist coverage, accident or disability income coverage, specific disease or illness coverage, or hospital indemnity or other fixed indemnity coverage.

(2) This section shall not (a) affect the coordination of benefits between health plans or self-funded employee benefit plans, (b) prevent the coordination of benefits between a health plan or self-funded employee benefit plan and medical payments coverage under a motor vehicle insurance policy if such coordination of benefits applies medical payments coverage to deductible, copayment, and coinsurance amounts after discounts provided through the health plan or self-funded employee benefit plan, or (c) prevent the application of the medical payments coverage under a motor vehicle insurance policy to items not covered by a health plan or self-funded employee benefit plan.

(3) For purposes of this section, health plan means an individual or group sickness and accident insurance policy or subscriber contract delivered, issued for delivery, or renewed in this state except for (a) policies that provide coverage for specified disease or other limited-benefit coverage or hospital indemnity or other fixed indemnity coverage or (b) self-funded employee benefit plans to the extent preempted by federal law.

Source:Laws 2013, LB479, § 1.    


44-401. Domestic property and casualty insurance companies; valuation; reserves.

In ascertaining the condition of a domestic stock property or casualty insurance company, there shall be allowed as assets only such investments, cash, and accounts as are authorized by the laws of this state at the date of the examination. In ascertaining its liabilities, there shall be charged in addition to the capital stock, all outstanding claims, and a sum equal to one hundred percent of the unearned premiums on the policies in force, after deducting credit for reinsurance authorized by sections 44-416.05 to 44-416.10, calculated on the gross sum without any deductions on any account, charged to the policyholder on each respective risk from the date of the issuance of the policy. In ascertaining the condition of a domestic mutual property or casualty insurance company, other than a company licensed solely to write the line of insurance specified in subdivision (4) of section 44-201, there shall be allowed as assets only such investments, cash, and accounts as are authorized by the laws of this state at the date of examination. In ascertaining its liabilities, there shall be charged all outstanding claims and a reserve in an amount equal to one hundred percent of the total unearned premium on all their policies in force. If the department finds this section to be impractical in ascertaining the condition of certain kinds of insurance companies, the department shall adopt and promulgate such rules and regulations as it deems proper, efficient, and consistent with law. Such rules and regulations shall give due regard to the statutes, rules, regulations, and established industry practices which may be used in other states or which are approved by the National Association of Insurance Commissioners.

Source:Laws 1913, c. 154, § 93, p. 437; R.S.1913, § 3230; Laws 1919, c. 190, tit. V, art. VI, § 1, p. 618; Laws 1921, c. 303, § 1, p. 960; C.S.1922, § 7829; Laws 1927, c. 141, § 1, p. 383; C.S.1929, § 44-501; R.S.1943, § 44-401; Laws 1949, c. 148, § 1, p. 374; Laws 1951, c. 138, § 1, p. 570; Laws 1959, c. 204, § 1, p. 713; Laws 1981, LB 330, § 1; Laws 1985, LB 299, § 7; Laws 1989, LB 92, § 116; Laws 2000, LB 930, § 2;    Laws 2005, LB 119, § 5.    


44-401.01. Domestic property and casualty insurance companies; loss reserves.

Loss reserves for domestic property and casualty insurance companies shall be set at the present value of estimated future payments if (1) a complete settlement between the claimant and the insured or insurer has been agreed upon, (2) all payments due the claimant have not yet been made, and (3) the payments are structured as an annuity.

Source:Laws 1989, LB 92, § 118.


44-402. Repealed. Laws 2014, LB 755, § 19.

44-402.01. Life insurance; reserves; separate accounts; establish; procedure.

Any domestic life insurance company, including, for the purposes of sections 44-402.01 to 44-402.05, all domestic fraternal benefit societies which operate on a legal reserve basis, may, after adoption of a resolution by its board of directors and upon approval of the Director of Insurance, establish one or more separate accounts and may allocate thereto amounts, including without limitation proceeds applied under optional modes of settlement or under dividend options, to provide for life insurance and benefits incidental thereto, payable in fixed or variable amounts or both, and may, upon approval of the director, guarantee the value of the assets allocated to a separate account.

Source:Laws 1972, LB 771, § 1; Laws 1987, LB 17, § 9; Laws 2005, LB 119, § 6;    Laws 2011, LB72, § 2.    


44-402.02. Life insurance; reserves; separate accounts; gains and losses.

The income, gains and losses, realized or unrealized, from assets allocated to a separate account shall be credited to or charged against such account, without regard to other income, gains or losses of such company.

Source:Laws 1972, LB 771, § 2.


44-402.03. Life insurance; reserves; separate accounts; investment; transfer.

(1) Except as may be provided with respect to reserves for guaranteed benefits, amounts allocated to any separate account and accumulations thereon may be invested and reinvested without regard to any requirements or limitations prescribed by the laws of this state governing the investments of life insurance companies and the investments in such separate account or accounts shall not be taken into account in applying investment limitations otherwise applicable to investments of such company.

(2) No investment in such separate accounts or in the domestic life insurance company's general investment account shall be transferred by sale, exchange, substitution, or otherwise from one account to another unless the director approves such transfer or unless the director has not disapproved the application for transfer within thirty days from filing. The application to transfer investments shall be on a form provided by the director.

Source:Laws 1972, LB 771, § 3; Laws 1991, LB 237, § 62.


44-402.04. Life insurance; reserves; separate accounts; ownership by company.

Amounts allocated to a separate account in the exercise of the power granted by sections 44-402.01 to 44-402.05 shall be owned by the company, and the company shall not be, nor hold itself out to be, a trustee with respect to such amounts. If and to the extent so provided under the applicable contracts, that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to such account shall not be chargeable with liabilities arising out of any other business the company may conduct.

Source:Laws 1972, LB 771, § 4.


44-402.05. Variable life contracts; rules and regulations.

Notwithstanding any other provision of law, the Director of Insurance shall have the authority to adopt such reasonable rules and regulations as are appropriate and necessary to regulate the issuance and sale of variable life contracts. Such rules and regulations may relate to, but shall not be limited to, qualifications of foreign and domestic insurance companies and agents, required and prohibited policy provisions, the inapplicability of certain sections of Chapter 44, to variable life contracts, establishment and maintenance of separate accounts, filing of contracts and required reports, and examination of records. Any provision in a variable life contract relating to grace period, loans, reinstatement, and nonforfeiture shall be appropriate to such contract, and reserve liability for variable life contracts shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.

Source:Laws 1972, LB 771, § 5.


44-403. Life insurance; standard of valuation; policies issued prior to operative date of law.

This section shall apply to only those policies and contracts issued prior to the operative date defined in section 44-407.07 (the Standard Nonforfeiture Law for Life Insurance). All such valuations made by the Department of Insurance, or by its authority, shall be according to the standard of valuation adopted by the company, which standard shall be stated in its annual report to the department. Such standard of valuation, whether on the net level premium, preliminary term, any modified preliminary term, or select and ultimate reserve basis, for all such policies issued after July 17, 1913, shall be according to the American Experience or Actuaries' Table of Mortality, with not less than three and not more than four percent compound interest. When the preliminary term basis is used it shall not exceed one year. Insurance against total and permanent mental or physical disability resulting from accident or disease, or against accidental death, combined with a policy of life insurance, shall be valued on the basis of the mean reserve, being one-half of the additional annual premium charged therefor. Except as otherwise provided in subsection (3) of section 44-8907 for all annuities and pure endowments purchased on or after the operative date of such subsection under group annuity and pure endowment contracts, the legal minimum standard for the valuation of annuities shall be McClintock's Table of Mortality Among Annuitants, or the American Experience Table of Mortality, with compound interest at three and one-half percent per annum for individual annuities and five percent per annum for group annuities, but annuities deferred ten or more years, and written in connection with life or term insurance, shall be valued on the same mortality table from which the consideration or premiums were computed, with compound interest not higher than three and one-half percent per annum. The legal standard for the valuation of industrial policies shall be the American Experience Table of Mortality, with compound interest at not less than three nor more than three and one-half percent per annum, except that any life insurance company may voluntarily value its industrial policies written on the weekly payment plan according to the Standard Industrial Mortality Table or the Substandard Industrial Mortality Table. Reserves for all such policies and contracts may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by this section.

Source:Laws 1913, c. 154, § 94, p. 437; R.S.1913, § 3231; Laws 1919, c. 190, tit. V, art. VI, § 2, p. 618; C.S.1922, § 7830; C.S.1929, § 44-502; Laws 1943, c. 106, § 1(2), p. 355; R.S.1943, § 44-403; Laws 1973, LB 309, § 1; Laws 1979, LB 354, § 1; Laws 2014, LB755, § 13.    


44-404. Transferred to section 44-8907.

44-405. Life insurance; loan values.

(1) In the case of those policies issued prior to the operative date defined in section 44-407.07 (the Standard Nonforfeiture Law), the loan value referred to in provision (8) of section 44-502 shall be the reserve at the end of the current policy year on the policy and on any dividend additions thereto, less a sum not more than two and one-half percent of the amount insured by the policy and of any undivided additions thereto. The policy shall specify the mortality table and the rate of interest adopted for computing such reserve and may provide that such loan may be deferred for not exceeding six months after the application therefor is made.

(2) In the case of policies issued on or after the operative date defined in section 44-407.07 (the Standard Nonforfeiture Law), the loan value referred to in provision (8) of section 44-502 shall be the cash surrender value at the end of the current policy year as required by sections 44-407 to 44-407.09. The company shall reserve the right to defer such loan, except when made to pay premiums, for six months after application therefor is made.

(3) This section shall not apply to term insurances.

Source:Laws 1943, c. 106, § 6, p. 367; R.S.1943, § 44-405; Laws 1965, c. 262, § 2, p. 735.


44-406. Life insurance; nonforfeiture benefits.

This section shall apply only to policies of life insurance issued prior to the operative date defined in section 44-407.07 (the Standard Nonforfeiture Law). The nonforfeiture benefit referred to in provision (9) of section 44-502 shall be available to the owner of the policy, in event of default in premium payments after premiums shall have been paid for three years, and shall be a stipulated form of insurance, the net value of which shall be at least equal to the reserve, at the date of default on the policy, and on any dividend additions thereto, less a sum not more than two and one-half percent of the amount insured by the policy, and of any existing dividend additions thereto, and less any existing indebtedness to the company on the policy. The policy shall specify the mortality table and rate of interest adopted for computing such reserves and shall stipulate that it may be surrendered to the company at its home office within one month from date of default, for a specified cash value at least equal to the sum which would otherwise be available for the purchase of insurance as aforesaid, and may provide that the company may defer payment for not more than six months after the application therefor is made.

Source:Laws 1943, c. 106, § 4, p. 362; R.S.1943, § 44-406.


44-407. Standard Nonforfeiture Law for Life Insurance; how cited.

Sections 44-407 to 44-407.09 and 44-407.24 to 44-407.26 shall be known as the Standard Nonforfeiture Law for Life Insurance.

Source:Laws 1943, c. 106, § 5, p. 363; R.S.1943, § 44-407; Laws 1965, c. 262, § 3, p. 736; Laws 1979, LB 354, § 3; Laws 1981, LB 355, § 2.


44-407.01. Policies issued on or after operative date of law; provisions required.

In the case of policies issued on or after the operative date of this section, as defined in section 44-407.07, no policy of life insurance, except as stated in section 44-407.06, shall be delivered or issued for delivery in this state unless it shall contain in substance the following provisions, or corresponding provisions which in the opinion of the Department of Insurance are at least as favorable to the defaulting or surrendering policyholder as are the minimum requirements specified in this section and are essentially in compliance with section 44-407.26: (a) That, in the event of default in any premium payment, the company will grant, upon proper request not later than sixty days after the due date of the premium in default, a paid-up nonforfeiture benefit on a plan stipulated in the policy, effective as of such due date, of such amount as may be hereinafter specified. In lieu of such stipulated paid-up nonforfeiture benefit, the company may substitute, upon proper request not later than sixty days after the due date of the premium in default, an actuarially equivalent alternative paid-up nonforfeiture benefit which provides a greater amount or longer period of death benefits or, if applicable, a greater amount or earlier payment of endowment benefits. (b) That, upon surrender of the policy within sixty days after the due date of any premium payment in default after premiums have been paid for at least three full years in the case of ordinary insurance or five full years in the case of industrial insurance, the company will pay, in lieu of any paid-up nonforfeiture benefit, a cash surrender value of such amount as may be hereinafter specified. (c) That a specified paid-up nonforfeiture benefit shall become effective as specified in the policy unless the person entitled to make such election elects another available option not later than sixty days after the due date of the premium in default. (d) That, if the policy shall have become paid up by completion of all premium payments or if it is continued under any paid-up nonforfeiture benefit which became effective on or after the third policy anniversary in the case of ordinary insurance, or the fifth policy anniversary in the case of industrial insurance, the company will pay, upon surrender of the policy within thirty days after any policy anniversary, a cash surrender value of such amount as may be hereinafter specified. (e) In the case of policies which cause on a basis guaranteed in the policy unscheduled changes in benefits or premiums, or which provide an option for changes in benefits or premiums other than a change to a new policy, a statement of the mortality table, interest rate, and method used in calculating cash surrender values and the paid-up nonforfeiture benefits available under the policy. In the case of all other policies, a statement of the mortality table and interest rate used in calculating the cash surrender values and the paid-up nonforfeiture benefits available under the policy, together with a table showing the cash surrender value, if any, and paid-up nonforfeiture benefit, if any, available under the policy on each policy anniversary either during the first twenty policy years or during the term of the policy, whichever is shorter, such values and benefits to be calculated upon the assumption that there are no dividends or paid-up additions credited to the policy and that there is no indebtedness to the company on the policy. (f) A statement that the cash surrender values and the paid-up nonforfeiture benefits available under the policy are not less than the minimum values and benefits required by or pursuant to the insurance law of the state in which the policy is delivered; an explanation of the manner in which the cash surrender values and the paid-up nonforfeiture benefits are altered by the existence of any paid-up additions credited to the policy or any indebtedness to the company on the policy; if a detailed statement of the method of computation of the values and benefits shown in the policy is not stated therein, a statement that such method of computation has been filed with the insurance supervisory official of the state in which the policy is delivered; and a statement of the method to be used in calculating the cash surrender value and paid-up nonforfeiture benefit available under the policy on any policy anniversary beyond the last anniversary for which such values and benefits are consecutively shown in the policy. Any of the foregoing provisions or portions thereof not applicable by reason of the plan of insurance may, to the extent inapplicable, be omitted from the policy. The company shall reserve the right to defer the payment of any cash surrender value for a period of six months after demand therefor with surrender of the policy.

Source:Laws 1943, c. 106, § 5(1), p. 363; R.S.1943, § 44-407.01; Laws 1961, c. 222, § 1, p. 659; Laws 1981, LB 355, § 3.


44-407.02. Policies issued on or after operative date of law; default in premium payment on policy anniversary; cash surrender value.

Any cash surrender value available under the policy in the event of default in a premium payment due on any policy anniversary, whether or not required by section 44-407.01, shall be an amount not less than the excess, if any, of the present value, on such anniversary, of the future guaranteed benefits which would have been provided for by the policy, including any existing paid-up additions, if there had been no default, over the sum of (a) the then present value of the adjusted premiums as defined in sections 44-407.04, 44-407.08, 44-407.09, and 44-407.24, corresponding to premiums which would have fallen due on and after such anniversary, and (b) the amount of any indebtedness to the company on the policy. For any policy issued on or after the operative date of section 44-407.24 as defined therein, which provides supplemental life insurance or annuity benefits at the option of the insured and for an identifiable additional premium by rider or supplemental policy provision, the cash surrender value referred to in the first paragraph of this section shall be an amount not less than the sum of the cash surrender value as defined in such paragraph for an otherwise similar policy issued at the same age without such rider or supplemental policy provision and the cash surrender value as defined in such paragraph for a policy which provides only the benefits otherwise provided by such rider or supplemental policy provision.

For any family policy issued on or after the operative date of section 44-407.24 as defined therein, which defines a primary insured and provides term insurance on the life of the spouse of the primary insured expiring before the spouse's age seventy-one, the cash surrender value referred to in the first paragraph of this section shall be an amount not less than the sum of the cash surrender value as defined in such paragraph for an otherwise similar policy issued at the same age without such term insurance on the life of the spouse and the cash surrender value as defined in such paragraph for a policy which provides only the benefits otherwise provided by such term insurance on the life of the spouse.

Any cash surrender value available within thirty days after any policy anniversary under any policy paid up by completion of all premium payments or any policy continued under any paid-up nonforfeiture benefit, whether or not required by section 44-407.01, shall be an amount not less than the present value, on such anniversary, of the future guaranteed benefits provided for by the policy, including any existing paid-up additions, decreased by any indebtedness to the company on the policy.

Source:Laws 1943, c. 106, § 5(2), p. 364; R.S.1943, § 44-407.02; Laws 1959, c. 206, § 1, p. 719; Laws 1965, c. 262, § 4, p. 736; Laws 1981, LB 355, § 4.


44-407.03. Policies issued on or after operative date of law; default in premium payment on policy anniversary; paid-up nonforfeiture benefit.

Any paid-up nonforfeiture benefit available under the policy in the event of default in a premium payment due on any policy anniversary shall be such that its present value as of such anniversary shall be at least equal to the cash surrender value then provided for by the policy or, if none is provided for, that cash surrender value which would have been required by sections 44-407 to 44-407.09 and 44-407.24 to 44-407.26 in the absence of the condition that premiums shall have been paid for at least a specified period.

Source:Laws 1943, c. 106, § 5(3), p. 364; R.S.1943, § 44-407.03; Laws 1965, c. 262, § 5, p. 737; Laws 1981, LB 355, § 5.


44-407.04. Policies issued on or after operative date of law; adjusted premiums; basis of calculation; exception.

(a) Except as provided in subsection (c) of this section, the adjusted premiums for any policy shall be calculated on an annual basis and shall be such uniform percentage of the respective premiums specified in the policy for each policy year, excluding any extra premiums charged because of impairments or special hazards, that the present value, at the date of the policy, of all such adjusted premiums shall be equal to the sum of (i) the then present value of the future guaranteed benefits provided for by the policy, (ii) two percent of the amount of insurance, if the insurance be uniform in amount, or of the equivalent uniform amount, as hereinafter defined, if the amount of insurance varies with duration of the policy, (iii) forty percent of the adjusted premium for the first policy year, and (iv) twenty-five percent of either the adjusted premium for the first policy year or the adjusted premium for a whole life policy of the same uniform or equivalent uniform amount with uniform premiums for the whole of life issued at the same age for the same amount of insurance, whichever is less; Provided, that in applying the percentages specified in (iii) and (iv) above, no adjusted premium shall be deemed to exceed four percent of the amount of insurance or uniform amount equivalent thereto. The date of a policy for the purpose of this section shall be the date as of which the rated age of the insured is determined.

(b) In the case of a policy providing an amount of insurance varying with duration of the policy, the equivalent uniform amount thereof for the purpose of this section shall be deemed to be the uniform amount of insurance provided by an otherwise similar policy, containing the same endowment benefit or benefits, if any, issued at the same age and for the same term, the amount of which does not vary with duration and the benefits under which have the same present value at the date of issue as the benefits under the policy; Provided, that in the case of a policy providing a varying amount of insurance issued on the life of a child under age ten, the equivalent uniform amount may be computed as though the amount of insurance provided by the policy prior to the attainment of age ten were the amount provided by such policy at age ten.

(c) The adjusted premiums for any policy providing term insurance benefits by rider or supplemental policy provision shall be equal to (1) the adjusted premiums for an otherwise similar policy issued at the same age without such term insurance benefits, increased, during the period for which premiums for such term insurance benefits are payable, by (2) the adjusted premiums for such term insurance, the foregoing items (1) and (2) being calculated separately and as specified in subsections (a) and (b) of this section except that, for the purposes of (ii), (iii), and (iv) of subsection (a), the amount of insurance or equivalent uniform amount of insurance used in the calculation of the adjusted premiums referred to in (2) shall be equal to the excess of the corresponding amount determined for the entire policy over the amount used in the calculation of the adjusted premiums in subdivision (1) of this subsection.

(d) Except as provided in sections 44-407.08 and 44-407.09, all adjusted premiums and present values referred to in sections 44-407 to 44-407.09 and 44-407.24 to 44-407.26, shall for all policies of ordinary insurance be calculated on the basis of the Commissioners 1941 Standard Ordinary Mortality Table and such calculations for all policies of industrial insurance shall be made on the basis of the 1941 Standard Industrial Mortality Table; Provided, that for any category of ordinary insurance issued on female risks, adjusted premiums and present values may be calculated according to an age not more than three years younger than the actual age of the insured. All calculations shall be made on the basis of the rate of interest, not exceeding three and one-half percent per annum, specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits; Provided, that in calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than one hundred and thirty percent of the rates of mortality according to such applicable table; and provided further, that for insurance issued on a substandard basis, the calculation of any such adjusted premiums and present values may be based on such other table of mortality as may be specified by the company and approved by the Department of Insurance.

This section shall not apply to policies issued on or after the operative date of section 44-407.24 as defined therein.

Source:Laws 1943, c. 106, § 5(4), p. 365; R.S.1943, § 44-407.04; Laws 1959, c. 206, § 2, p. 719; Laws 1961, c. 222, § 2, p. 661; Laws 1965, c. 262, § 6, p. 737; Laws 1981, LB 355, § 6.


Cross References

44-407.05. Policies issued on or after operative date of law; default in premium payment other than on policy anniversary; cash surrender value; paid-up nonforfeiture benefit.

Any cash surrender value and any paid-up nonforfeiture benefit, available under the policy in the event of default in a premium payment due at any time other than on the policy anniversary, shall be calculated with allowance for the lapse of time and the payment of fractional premiums beyond the last preceding policy anniversary. All values referred to in sections 44-407.02 to 44-407.04, 44-407.08, 44-407.09, and 44-407.24, may be calculated upon the assumption that any death benefit is payable at the end of the policy year of death. The net value of any paid-up additions, other than paid-up term additions, shall be not less than the amounts used to provide such additions. Notwithstanding the provisions of section 44-407.02, additional benefits payable (a) in the event of death or dismemberment by accident or accidental means, (b) in the event of total and permanent disability, (c) as reversionary annuity or deferred reversionary annuity benefits, (d) as term insurance benefits provided by a rider or supplemental policy provision to which, if issued as a separate policy, sections 44-407 to 44-407.09 and 44-407.24 to 44-407.26 would not apply, (e) as term insurance on the life of a child or on the lives of children provided in a policy on the life of a parent of the child, if such term insurance expires before the child's age is twenty-six, is uniform in amount after the child's age is one, and has not become paid up by reason of the death of a parent of the child, and (f) as other policy benefits additional to life insurance and endowment benefits, and premiums for all such additional benefits, shall be disregarded in ascertaining cash surrender values and nonforfeiture benefits required by said sections, and no such additional benefits shall be included in any paid-up nonforfeiture benefits unless specifically included by the terms of the policy.

Source:Laws 1943, c. 106, § 5(5), p. 366; R.S.1943, § 44-407.05; Laws 1959, c. 206, § 4, p. 722; Laws 1961, c. 222, § 3, p. 663; Laws 1965, c. 262, § 7, p. 739; Laws 1981, LB 355, § 7.


44-407.06. Law; policies to which applicable.

Sections 44-407 to 44-407.09 and 44-407.24 to 44-407.26 shall not apply to any (1) reinsurance, (2) group insurance, (3) pure endowment, (4) annuity or reversionary annuity contract, (5) term policy of uniform amount which provides no guaranteed nonforfeiture or endowment benefits, or renewal thereof, of twenty years or less expiring before age seventy-one, for which uniform premiums are payable during the entire term of the policy, (6) term policy of decreasing amount which provides no guaranteed nonforfeiture or endowment benefits, on which each adjusted premium, calculated as specified in sections 44-407.04, 44-407.08, 44-407.09, and 44-407.24, is less than the adjusted premium so calculated, on a term policy of uniform amount, or renewal thereof, which provides no guaranteed nonforfeiture or endowment benefits, issued at the same age and for the same initial amount of insurance, and for a term of twenty years or less expiring before age seventy-one, for which uniform premiums are payable during the entire term of the policy, (7) policy which provides no guaranteed nonforfeiture or endowment benefits, for which no cash surrender value, if any, or present value of any paid-up nonforfeiture benefit, at the beginning of any policy year, calculated as specified in sections 44-407.02 to 44-407.04, 44-407.08, 44-407.09, and 44-407.24, exceeds two and one-half percent of the amount of insurance at the beginning of the same policy year, or (8) policy which shall be delivered outside this state through an agent or other representative of the company issuing the policy.

For purposes of determining the applicability of sections 44-407 to 44-407.09 and 44-407.24 to 44-407.26, the age of expiry for a joint term life insurance policy shall be the age at expiry of the oldest life.

Source:Laws 1943, c. 106, § 5(6), p. 367; R.S.1943, § 44-407.06; Laws 1959, c. 206, § 5, p. 722; Laws 1965, c. 262, § 8, p. 740; Laws 1981, LB 355, § 8.


44-407.07. Law; operative date, defined.

After August 27, 1943, any company may file with the Department of Insurance a written notice of its election to comply with the provisions of sections 44-407 to 44-407.07 after a specified date before January 1, 1950. After the filing of such notice, then upon such specified date (which shall be the operative date for such company) said sections shall become operative with respect to the policies thereafter issued by such company. If a company makes no such election, the operative date of said sections for such company shall be January 1, 1950.

Source:Laws 1943, c. 106, § 5(7), p. 367; R.S.1943, § 44-407.07; Laws 1947, c. 163, § 1, p. 451.


44-407.08. Policies issued on or after operative date of law; adjusted premiums; present values; how determined; filing of election; exception.

This section shall not apply to ordinary policies issued on or after the operative date of section 44-407.24 as defined therein.

In the case of ordinary policies issued on or after the operative date of this section as defined herein, all adjusted premiums and present values referred to in sections 44-407 to 44-407.09, shall be calculated on the basis of the Commissioners 1958 Standard Ordinary Mortality Table and the rate of interest, specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits; such rate of interest shall not exceed three and one-half percent per annum except that a rate of interest not exceeding four percent per annum may be used for policies issued on or after September 2, 1973, and prior to August 24, 1979, and a rate of interest not exceeding five and one-half percent per annum may be used for policies issued on or after August 24, 1979; Provided, that for any category of ordinary insurance issued on female risks, adjusted premiums and present values may be calculated according to an age not more than six years younger than the actual age of the insured; provided further, that in calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than those shown in the Commissioners 1958 Extended Term Insurance Table; and provided further, that for insurance issued on a substandard basis, the calculation of any such adjusted premiums and present values may be based on such other table of mortality as may be specified by the company and approved by the Department of Insurance.

After September 28, 1959, any company may file with the Department of Insurance a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1966. After the filing of such notice, then upon such specified date, which shall be the operative date of this section for such company, this section shall become operative with respect to the ordinary policies thereafter issued by such company. If a company makes no such election, the operative date of this section for such company shall be January 1, 1966.

Source:Laws 1959, c. 206, § 3, p. 721; Laws 1965, c. 262, § 9, p. 740; Laws 1973, LB 309, § 3; Laws 1979, LB 354, § 4; Laws 1981, LB 355, § 9.


Cross References

44-407.09. Industrial policies issued on or after operative date of law; premiums and values; how calculated; tables used; written notice filed with department; election; exception.

This section shall not apply to industrial policies issued on or after the operative date of section 44-407.24 as defined therein.

In the case of industrial policies issued on or after the operative date of this section, all adjusted premiums and present values referred to in sections 44-407 to 44-407.09 and 44-407.24 to 44-407.26, shall be calculated on the basis of the Commissioners 1961 Standard Industrial Mortality Table and the rate of interest, specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits; such rate of interest shall not exceed three and one-half percent per annum except that a rate of interest not exceeding four percent per annum may be used for policies issued on or after September 2, 1973, and prior to August 24, 1979, and a rate of interest not exceeding five and one-half percent per annum may be used for policies issued on or after August 24, 1979; Provided, that in calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than those shown in the Commissioners 1961 Industrial Extended Term Insurance Table; and provided further, that for insurance issued on a substandard basis, the calculations of any such adjusted premiums and present values may be based on such other table of mortality as may be specified by the company and approved by the Department of Insurance. After September 18, 1965, any company may file with the Department of Insurance a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1968. After the filing of such notice, then upon such specified date, which shall be the operative date of this section for such company, this section shall become operative with respect to the industrial policies thereafter issued by such company. If a company makes no such election, the operative date of this section for such company shall be January 1, 1968.

Source:Laws 1965, c. 262, § 10, p. 741; Laws 1973, LB 309, § 4; Laws 1979, LB 354, § 5; Laws 1981, LB 355, § 10.


Cross References

44-407.10. Standard Nonforfeiture Law for Individual Deferred Annuities; how cited; applicability.

(1) Sections 44-407.10 to 44-407.23 shall be known as the Standard Nonforfeiture Law for Individual Deferred Annuities.

(2) Such sections shall not apply to any reinsurance, group annuity purchased under a retirement plan or plan of deferred compensation established or maintained by an employer, including a partnership, limited liability company, or sole proprietorship, by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the Internal Revenue Code, premium deposit fund, variable annuity, investment annuity, immediate annuity, any deferred annuity contract after annuity payments have commenced, or reversionary annuity, nor to any contract which shall be delivered outside this state through an agent or other representative of the company issuing the contract.

Source:Laws 1979, LB 354, § 6; Laws 1993, LB 121, § 225; Laws 1995, LB 574, § 44.


44-407.11. Contracts issued on or after operative date of law; provisions required.

In the case of contracts issued on or after the operative date of this act, no contract of annuity, except as stated in subsection (2) of section 44-407.10, shall be delivered or issued for delivery in this state unless it contains in substance the following provisions, or corresponding provisions which in the opinion of the Department of Insurance are at least as favorable to the contract holder, upon cessation of payment of considerations under the contract:

(1) That, upon cessation of payment of considerations under a contract or upon the written request of the contract owner, the company shall grant a paid-up annuity benefit on a plan stipulated in the contract of such value as is specified in sections 44-407.16 to 44-407.19 and 44-407.21;

(2) If a contract provides for a lump-sum settlement at maturity, or at any other time, that, upon surrender of the contract at or prior to the commencement of any annuity payments, the company shall pay in lieu of any paid-up annuity benefit a cash surrender benefit of such amount as is specified in sections 44-407.16, 44-407.17, 44-407.19, and 44-407.21. The company shall reserve the right to defer the payment of such cash surrender benefit for a period not to exceed six months after demand therefor with surrender of the contract after making written request and receiving written approval of the director. The request shall address the necessity and equitability to all policyholders of the deferral;

(3) A statement of the mortality table, if any, and interest rates used in calculating any minimum paid-up annuity, cash surrender, or death benefits that are guaranteed under the contract, together with sufficient information to determine the amounts of such benefits; and

(4) A statement that any paid-up annuity, cash surrender, or death benefits that may be available under the contract are not less than the minimum benefits required by any statute of the state in which the contract is delivered and an explanation of the manner in which such benefits are altered by the existence of any additional amounts credited by the company to the contract, any indebtedness to the company on the contract, or any prior withdrawals from or partial surrenders of the contract.

Source:Laws 1979, LB 354, § 7; Laws 2004, LB 1047, § 3.    


Cross References

44-407.12. Deferred annuity contract; company; terminate; cash payment.

Notwithstanding the requirements of section 44-407.11, any deferred annuity contract may provide that if no considerations have been received under a contract for a period of two full years and the portion of the paid-up annuity benefit at maturity on the plan stipulated in the contract arising from considerations paid prior to such period would be less than twenty dollars monthly, the company may at its option terminate such contract by payment in cash of the then present value of such portion of the paid-up annuity benefit, calculated on the basis of the mortality table, if any, and interest rate specified in the contract for determining the paid-up annuity benefit, and by such payment shall be relieved of any further obligation under such contract.

Source:Laws 1979, LB 354, § 8.


44-407.13. Minimum values; basis.

The minimum values as specified in sections 44-407.16 to 44-407.19 and 44-407.21 of any paid-up annuity, cash surrender, or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in section 44-407.14.

Source:Laws 1979, LB 354, § 9; Laws 2004, LB 1047, § 4.    


44-407.14. Minimum nonforfeiture amount; how computed.

(1)(a) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at rates of interest as set forth in subsection (2) of this section of the net considerations paid prior to such time, decreased by the sum of subdivisions (1)(a)(i) through (iv) of this section:

(i) Any prior withdrawals from or partial surrenders of the contract, accumulated at rates of interest as set forth in subsection (2) of this section;

(ii) An annual contract charge of fifty dollars, accumulated at rates of interest as set forth in subsection (2) of this section;

(iii) Any premium tax paid by the company for the contract, accumulated at rates of interest as set forth in subsection (2) of this section; and

(iv) The amount of any indebtedness to the company on the contract, including interest due and accrued, and increased by any existing additional amounts credited by the company to the contract.

(b) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one-half percent of the gross consideration credited to the contract during that contract year.

(2) The interest rate used in determining the minimum nonforfeiture amount shall be an annual rate of interest determined as the lesser of three percent per annum and the following, which shall be specified in the contract if the interest rate will be reset:

(a) The five-year Constant Maturity Treasury Rate reported by the Federal Reserve as of a date, or average over a period, rounded to the nearest one-twentieth of one percent, specified in the contract no longer than fifteen months prior to the contract issue date or redetermination date under subdivision (2)(d) of this section;

(b) Reduced by one hundred twenty-five basis points;

(c) The resulting interest rate shall not be less than one percent; and

(d) The interest rate shall apply for an initial period and may be redetermined for additional periods. The redetermination date, basis, and period, if any, shall be stated in the contract. The basis is the date or average over a specified period that produces the value of the five-year Constant Maturity Treasury Rate to be used at each redetermination date.

(3) During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described in subdivision (2)(b) of this section by up to an additional one hundred basis points to reflect the value of the equity index benefit. The present value at the contract issue date, and at each redetermination date thereafter, of the additional reduction shall not exceed the market value of the benefit. The director may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. Lacking such a demonstration that is acceptable to the director, the director may disallow or limit the additional reduction.

(4) The director may adopt rules to implement the provisions of subsection (3) of this section and to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts that the director determines adjustments are justified.

Source:Laws 1979, LB 354, § 10; Laws 2003, LB 216, § 4;    Laws 2004, LB 1047, § 5.    


44-407.15. Repealed. Laws 2004, LB 1047 § 25.

44-407.16. Paid-up annuity benefit; present value; how computed.

Any paid-up annuity benefit available under a contract shall be such that its present value on the date annuity payments are to commence is at least equal to the minimum nonforfeiture amount on that date. Such present value shall be computed using the mortality table, if any, and the interest rates specified in the contract for determining the minimum paid-up annuity benefits guaranteed in the contract.

Source:Laws 1979, LB 354, § 12; Laws 2004, LB 1047, § 6.    


44-407.17. Cash surrender benefits; present value; determination.

For contracts which provide cash surrender benefits, such cash surrender benefits available prior to maturity shall not be less than the present value as of the date of surrender of that portion of the maturity value of the paid-up annuity benefit which would be provided under the contract at maturity arising from considerations paid prior to the time of cash surrender reduced by the amount appropriate to reflect any prior withdrawals from or partial surrenders of the contract, such present value being calculated on the basis of an interest rate not more than one percent higher than the interest rate specified in the contract for accumulating the net considerations to determine such maturity value, decreased by the amount of any indebtedness to the company on the contract, including interest due and accrued, and increased by any existing additional amounts credited by the company to the contract. In no event shall any cash surrender benefit be less than the minimum nonforfeiture amount at that time. The death benefit under such contracts shall be at least equal to the cash surrender benefit.

Source:Laws 1979, LB 354, § 13.


44-407.18. Contracts without cash surrender benefits; certain death benefit contracts; present value; determination.

For contracts which do not provide cash surrender benefits, the present value of any paid-up annuity benefit available as a nonforfeiture option at any time prior to maturity shall not be less than the present value of that portion of the maturity value of the paid-up annuity benefit provided under the contract arising from considerations paid prior to the time the contract is surrendered in exchange for, or changed to, a deferred paid-up annuity, such present value being calculated for the period prior to the maturity date on the basis of the interest rate specified in the contract for accumulating the net considerations to determine such maturity value, and increased by any existing additional amounts credited by the company to the contract. For contracts which do not provide any death benefits prior to the commencement of any annuity payments, such present values shall be calculated on the basis of such interest rate and the mortality table specified in the contract for determining the maturity value of the paid-up annuity benefit. In no event shall the present value of paid-up annuity benefit be less than the minimum nonforfeiture amount at that time.

Source:Laws 1979, LB 354, § 14.


44-407.19. Contracts; maturity date; determination.

For the purpose of determining the benefits calculated under sections 44-407.17 and 44-407.18, in the case of annuity contracts under which an election may be made to have annuity payments commence at optional maturity dates, the maturity date shall be deemed to be the latest date for which election shall be permitted by the contract, but shall not be deemed to be later than the anniversary of the contract next following the annuitant's seventieth birthday or the tenth anniversary of the contract, whichever is later.

Source:Laws 1979, LB 354, § 15.


44-407.20. Benefits not equal to minimum nonforfeiture amount; statement; when.

Any contract which does not provide cash surrender benefits or does not provide death benefits at least equal to the minimum nonforfeiture amount prior to the commencement of any annuity payments shall include a statement in a prominent place in the contract that such benefits are not provided.

Source:Laws 1979, LB 354, § 16.


44-407.21. Benefits; available other than on contract anniversary; how calculated.

Any paid-up annuity, cash surrender or death benefits available at any time, other than on the contract anniversary under any contract with fixed scheduled considerations, shall be calculated with allowance for the lapse of time and the payment of any scheduled considerations beyond the beginning of the contract year in which cessation of payment of considerations under the contract occurs.

Source:Laws 1979, LB 354, § 17.


44-407.22. Contract which provides excess benefits; additional benefits; how treated.

For any contract which provides, within the same contract by rider or supplemental contract provision, both annuity benefits and life insurance benefits that are in excess of the greater of cash surrender benefits or a return of the gross considerations with interest, the minimum nonforfeiture benefits shall be equal to the sum of the minimum nonforfeiture benefits for the annuity portion and the minimum nonforfeiture benefits, if any, for the life insurance portion computed as if each portion were a separate contract. Notwithstanding the provisions of sections 44-407.16 to 44-407.19 and 44-407.21, additional benefits payable (1) in the event of total and permanent disability, (2) as reversionary annuity or deferred reversionary annuity benefits, or (3) as other policy benefits additional to life insurance, endowment and annuity benefits, and considerations for all such additional benefits, shall be disregarded in ascertaining the minimum nonforfeiture amounts, paid-up annuity, cash surrender and death benefits that may be required by sections 44-407.10 to 44-407.22. The inclusion of such additional benefits shall not be required in any paid-up benefits, unless such additional benefits separately would require minimum nonforfeiture amounts, paid-up annuity, cash surrender and death benefits.

Source:Laws 1979, LB 354, § 18.


44-407.23. Company; when subject to law.

(1) After August 24, 1979, any company may file with the Department of Insurance a written notice of its election to comply with the provisions of sections 44-403, 44-407.08 to 44-407.23, and 44-8907 after a specified date before the second anniversary of August 24, 1979. After the filing of such notice, such specified date shall be the operative date of this act for such company. Annuity contracts thereafter issued by such company shall comply with such sections. If a company makes no such election, the operative date of this act for such company shall be the second anniversary of August 24, 1979.

(2) After July 16, 2004, a company may elect to apply sections 44-407.08 to 44-407.23 to annuity contracts on a contract-form-by-contract-form basis before the second anniversary of July 16, 2004. In all other instances, sections 44-407.08 to 44-407.23 shall become operative with respect to annuity contracts issued by the company after the second anniversary of July 16, 2004.

(3) The director may adopt and promulgate rules and regulations to carry out sections 44-407.10 to 44-407.23.

Source:Laws 1979, LB 354, § 19; Laws 2004, LB 1047, § 7;    Laws 2014, LB755, § 14.    


44-407.24. Policies issued on or after operative date of law; adjusted premiums; present values; how calculated; filing of election.

(1) This section shall apply to all policies issued on or after the operative date of this section as defined herein. Except as provided in subsection (7) of this section, the adjusted premiums for any policy shall be calculated on an annual basis and shall be such uniform percentage of the respective premiums specified in the policy for each policy year, excluding amounts payable as extra premiums to cover impairments or special hazards and also excluding any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, that the present value, at the date of issue of the policy, of all adjusted premiums shall be equal to the sum of (a) the then present value of the future guaranteed benefits provided for by the policy; (b) one percent of either the amount of insurance, if the insurance be uniform in amount, or the average amount of insurance at the beginning of each of the first ten policy years; and (c) one hundred twenty-five percent of the nonforfeiture net level premium as defined in this section. In applying the percentage specified in (c) above no nonforfeiture net level premium shall be deemed to exceed four percent of either the amount of insurance, if the insurance be uniform in amount, or the average amount of insurance at the beginning of each of the first ten policy years. The date of issue of a policy for the purpose of this section shall be the date as of which the rated age of the insured is determined.

(2) The nonforfeiture net level premium shall be equal to the present value, at the date of issue of the policy, of the guaranteed benefits provided for by the policy divided by the present value, at the date of issue of the policy, of an annuity of one percent per annum payable on the date of issue of the policy and on each anniversary of such policy on which a premium falls due.

(3) In the case of policies which cause on a basis guaranteed in the policy unscheduled changes in benefits or premiums, or which provide an option for changes in benefits or premiums other than a change to a new policy, the adjusted premiums and present values shall initially be calculated on the assumption that future benefits and premiums do not change from those stipulated at the date of issue of the policy. At the time of any such change in the benefits or premiums the future adjusted premium, nonforfeiture net level premiums and present values shall be recalculated on the assumption that future benefits and premiums do not change from those stipulated by the policy immediately after the change.

(4) Except as otherwise provided in subsection (7) of this section, the recalculated future adjusted premiums for any such policy shall be such uniform percentage of the respective future premiums specified in the policy for each policy year, excluding amounts payable as extra premiums to cover impairments and special hazards, and also excluding any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, that the present value, at the time of change to the newly defined benefits or premiums, of all such future adjusted premiums shall be equal to the excess of (a) the sum of (i) the then present value of the then future guaranteed benefits provided for by the policy and (ii) the additional expense allowance, if any, over (b) the then cash surrender value, if any, or present value of any paid-up nonforfeiture benefit under the policy.

(5) The additional expense allowance, at the time of the change to the newly defined benefits or premiums, shall be the sum of (a) one percent of the excess, if positive, of the average amount of insurance at the beginning of each of the first ten policy years subsequent to the change over the average amount of insurance prior to the change at the beginning of each of the first ten policy years subsequent to the time of the most recent previous change, or, if there has been no previous change, the date of issue of the policy; and (b) one hundred twenty-five percent of the increase, if positive, in the nonforfeiture net level premium.

(6) The recalculated nonforfeiture net level premium shall be equal to the result obtained by dividing (a) by (b), where (a) equals the sum of (i) the nonforfeiture net level premium applicable prior to the change times the present value of an annuity of one per annum payable on each anniversary of the policy on or subsequent to the date of the change on which a premium would have fallen due had the change not occurred, and (ii) the present value of the increase in future guaranteed benefits provided for by the policy; and (b) equals the present value of an annuity of one per annum payable on each anniversary of the policy on or subsequent to the date of change on which a premium falls due.

(7) Notwithstanding any other provisions of this section to the contrary, in the case of a policy issued on a substandard basis which provides reduced graded amounts of insurance so that, in each policy year, such policy has the same tabular mortality cost as an otherwise similar policy issued on the standard basis which provides higher uniform amounts of insurance, adjusted premiums and present values for such substandard policy may be calculated as if it were issued to provide such higher uniform amounts of insurance on the standard basis.

(8) All adjusted premiums and present values referred to in sections 44-407 to 44-409 shall for all policies of ordinary insurance be calculated on the basis of (a) the Commissioners 1980 Standard Ordinary Mortality Table or (b) at the election of the company for any one or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; shall for all policies of industrial insurance be calculated on the basis of the Commissioners 1961 Standard Industrial Mortality Table; and shall for all policies issued in a particular calendar year be calculated on the basis of a rate of interest not exceeding the nonforfeiture interest rate as defined in this section for policies issued in that calendar year.

At the option of the company, calculations for all policies issued in a particular calendar year may be made on the basis of a rate of interest not exceeding the nonforfeiture interest rate, as defined in this section, for policies issued in the immediately preceding calendar year. Under any paid-up nonforfeiture benefit, including any paid-up dividend additions, any cash surrender value available whether or not required by section 44-407.01, shall be calculated on the basis of the mortality table and rate of interest used in determining the amount of such paid-up nonforfeiture benefit and paid-up dividend additions, if any. A company may calculate the amount of any guaranteed paid-up nonforfeiture benefit including any paid-up additions under the policy on the basis of an interest rate no lower than that specified in the policy for calculating cash surrender values. In calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than those shown in the Commissioners 1980 Extended Term Insurance Table for policies of ordinary insurance and not more than the Commissioners 1961 Industrial Extended Term Insurance Table for policies of industrial insurance. For insurance issued on a substandard basis, the calculation of any such adjusted premiums and present values may be based on appropriate modifications of such tables. For policies issued prior to the operative date of the valuation manual designated in subsection (2) of section 44-8908, any Commissioners Standard ordinary mortality tables, adopted after 1980 by the National Association of Insurance Commissioners, that are approved by regulation promulgated by the Department of Insurance for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term Insurance Table. For policies issued on or after the operative date of the valuation manual designated in subsection (2) of section 44-8908, the valuation manual shall provide the Commissioners Standard mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term Insurance Table. If the Department of Insurance approves by rule and regulation any commissioners standard ordinary mortality table adopted by the National Association of Insurance Commissioners for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the valuation manual designated in subsection (2) of section 44-8908, then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the valuation manual. For policies issued prior to the operative date of the valuation manual designated in subsection (2) of section 44-8908, any commissioners standard industrial mortality tables, adopted after 1980 by the National Association of Insurance Commissioners, that are approved by regulation promulgated by the Department of Insurance for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners 1961 Standard Industrial Mortality Table or the Commissioners 1961 Industrial Extended Term Insurance Table. For policies issued on or after the operative date of the valuation manual designated in subsection (2) of section 44-8908, the valuation manual shall provide the commissioners standard mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners 1961 Standard Industrial Mortality Table or the Commissioners 1961 Industrial Extended Term Insurance Table. If the Department of Insurance approves by rule and regulation any commissioners standard industrial mortality table adopted by the National Association of Insurance Commissioners for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the valuation manual designated in subsection (2) of section 44-8908, then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the valuation manual.

(9) For policies issued before the operative date of the valuation manual designated in subsection (2) of section 44-8908, the nonforfeiture interest rate per annum for any policy issued in a particular calendar year shall be equal to one hundred and twenty-five percent of the calendar year statutory valuation interest rate for such policy as defined in section 44-8907, rounded to the nearer one-quarter of one percent, except that the nonforfeiture interest rate shall not be less than four percent. For policies issued on and after the operative date of the valuation manual designated in subsection (2) of section 44-8908, the nonforfeiture interest rate per annum for any policy issued in a particular calendar year shall be provided by the valuation manual.

(10) Notwithstanding any other provision in sections 44-407 to 44-407.06, 44-407.08, 44-407.09, 44-407.24 to 44-407.26, and 44-8907 to the contrary, any refiling of nonforfeiture values or their methods of computation for any previously approved policy form which involves only a change in the interest rate or mortality table used to compute nonforfeiture values shall not require refiling of any other provisions of that policy form.

(11) After the effective date of this section any company may file with the Department of Insurance a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1989, which shall be the operative date of this section for such company. If a company makes no such election, the operative date of this section for such company shall be January 1, 1989, except that the Director of Insurance may advance the operative date of this section for such a company after investigating and finding that (a) it is in the best interests of the policyholders of such company to do so, and (b) a majority of states in which such company is doing business have adopted legislation similar to sections 44-407 to 44-407.06, 44-407.08, 44-407.09, 44-407.24 to 44-407.26, and 44-8907.

Source:Laws 1981, LB 355, § 11; Laws 2014, LB755, § 15.    


Cross References

44-407.25. Life insurance; future premiums; benefits; approval of plan by department.

In the case of any plan of life insurance which provides for future premium determination, the amounts of which are to be determined by the insurance company based on then estimates of future experience, or in the case of any plan of life insurance which is of such a nature that minimum values cannot be determined by the methods described in sections 44-407.01 to 44-407.04, 44-407.08, 44-407.09, and 44-407.24, then:

(a) The Department of Insurance must be satisfied that the benefits provided under the plan are substantially as favorable to policyholders and insureds as the minimum benefits otherwise required by sections 44-407.01 to 44-407.04, 44-407.08, 44-407.09, and 44-407.24;

(b) The Department of Insurance must be satisfied that the benefits and the pattern of premiums of that plan are not such as to mislead prospective policyholders or insureds;

(c) The cash surrender values and paid-up nonforfeiture benefits provided by such plan must not be less than the minimum values and benefits required for the plan computed by a method consistent with the principles of the Standard Nonforfeiture Law for Life Insurance, as determined by regulations promulgated by the Department of Insurance;

(d) Notwithstanding any other provision in the laws of this state, any policy, contract, or certificate providing life insurance under any such plan must be affirmatively approved by the Department of Insurance before it can be marketed, issued, delivered, or used in this state.

Source:Laws 1981, LB 355, § 12.


44-407.26. Policies issued on or after January 1, 1985; cash surrender value; nonforfeiture benefits; determination.

This section, in addition to all other applicable provisions of sections 44-407 to 44-407.06, 44-407.08, 44-407.09, 44-407.24 to 44-407.26, and 44-8907, shall apply to all policies issued on or after January 1, 1985. Any cash surrender value available under the policy in the event of default in a premium payment due on any policy anniversary shall be in an amount which does not differ by more than two-tenths of one percent of either the amount of insurance, if the insurance be uniform in amount, or the average amount of insurance at the beginning of each of the first ten policy years, from the sum of (a) the greater of zero and the basic cash value specified in this section and (b) the present value of any existing paid-up additions less the amount of any indebtedness to the company under the policy.

The basic cash value shall be equal to the present value, on such anniversary, of the future guaranteed benefits which would have been provided for by the policy, excluding any existing paid-up additions and before deduction of any indebtedness to the company, if there had been no default, less the then present value of the nonforfeiture factors, as hereinafter defined, corresponding to premiums which would have fallen due on and after such anniversary; Provided, however, that the effects on the basic cash value of supplemental life insurance or annuity benefits or of family coverage, as described in section 44-407.02 or 44-407.04, whichever is applicable, shall be the same as are the effects specified in section 44-407.02 or 44-407.04, whichever is applicable, on the cash surrender values defined in that section.

The nonforfeiture factor for each policy year shall be an amount equal to a percentage of the adjusted premium for the policy year, as defined in section 44-407.04 or 44-407.24, whichever is applicable. Except as is required by the next succeeding sentence of this paragraph, such percentage (a) must be the same percentage for each policy year between the second policy anniversary and the later of (i) the fifth policy anniversary and (ii) the first policy anniversary at which there is available under the policy a cash surrender value in an amount, before including any paid-up additions and before deducting any indebtedness, of at least two-tenths of one percent of either the amount of insurance, if the insurance be uniform in amount, or the average amount of insurance at the beginning of each of the first ten policy years, and (b) must be such that no percentage after the later of the two policy anniversaries specified in the preceding item (a) may apply to fewer than five consecutive policy years. No basic cash value may be less than the value which would be obtained if the adjusted premiums for the policy, as defined in section 44-407.04 or 44-407.24, whichever is applicable, were substituted for the nonforfeiture factors in the calculation of the basic cash value.

All adjusted premiums and present values referred to in this section shall for a particular policy be calculated on the same mortality and interest bases as are used in demonstrating the policy's compliance with the other sections of this Standard Nonforfeiture Law for Life Insurance. The cash surrender values referred to in this section shall include any endowment benefits provided for by the policy.

Any cash surrender value available other than in the event of default in a premium payment due on a policy anniversary, and the amount of any paid-up nonforfeiture benefit available under the policy in the event of default in a premium payment shall be determined in manners consistent with the manners specified for determining the analogous minimum amounts in sections 44-407.01 to 44-407.03, 44-407.05, and 44-407.24. The amounts of any cash surrender values and of any paid-up nonforfeiture benefits granted in connection with additional benefits such as those listed in section 44-407.05 shall conform with the principles of this section.

Source:Laws 1981, LB 355, § 13; Laws 2014, LB755, § 16.    


44-408. Life insurance companies; ascertainment of condition; assets and liabilities; what considered.

In ascertaining the condition of any life insurance company, it shall be allowed as assets only such investments, cash, and accounts as are authorized by the laws of this state or of the state or country in which it is organized at the date of examination. There shall be charged against it as liabilities in addition to the capital stock, all outstanding indebtedness of the company, and the premium reserve on policies and additions thereto in force, computed according to the tables of mortality and rate of interest prescribed in sections 44-402.01 to 44-407.09.

Source:Laws 1913, c. 154, § 95, p. 439; R.S.1913, § 3232; Laws 1919, c. 190, tit. V, art. VI, § 3, p. 619; C.S.1922, § 7831; C.S.1929, § 44-503; R.S.1943, § 44-408; Laws 1965, c. 262, § 11, p. 742; Laws 2014, LB755, § 17.    


44-409. Domestic sickness and accident insurance companies; assets and liabilities.

In ascertaining the condition of a domestic sickness and accident insurance company, it shall be allowed as assets only such investments, cash, and accounts as are authorized by the laws of this state at the date of the examination. In ascertaining its liabilities, there shall be charged, in addition to the capital stock and all outstanding claims, a sum equal to the total unearned premium on the policies in force, after deducting credit for reinsurance authorized by sections 44-416.05 to 44-416.10, calculated on the gross sum without any deductions on any account, charged to the policyholder on each respective risk from the date of the issuance of the policy.

Source:Laws 1913, c. 154, § 96, p. 439; R.S.1913, § 3233; Laws 1919, c. 190, tit. V, art. VI, § 4, p. 619; C.S.1922, § 7832; C.S.1929, § 44-504; R.S.1943, § 44-409; Laws 1949, c. 149, § 1, p. 375; Laws 1965, c. 263, § 1, p. 747; Laws 1981, LB 330, § 2; Laws 1985, LB 299, § 8; Laws 2000, LB 930, § 3;    Laws 2005, LB 119, § 7.    


Annotations

44-410. Repealed. Laws 1989, LB 92, § 278.

44-411. Repealed. Laws 1989, LB 92, § 278.

44-412. Repealed. Laws 1989, LB 92, § 278.

44-413. Repealed. Laws 1989, LB 92, § 278.

44-413.01. Transferred to section 44-1949.

44-414. All other insurance companies; assets and liabilities.

In ascertaining the assets, liabilities and financial condition of all other insurance companies, not otherwise provided for in sections 44-401 to 44-415, the Department of Insurance shall allow as assets only such investments, cash and accounts, as are authorized by the existing laws of this state, or under the existing laws of the state or country under which such company is organized, and which investments it may approve or reject at the date of the investigation. In estimating the liabilities there shall be added, in addition to the capital stock, all outstanding claims, and a sum equal to the unearned premiums on the policies in force, calculated on the gross sum without any deductions on any account, charged to the policyholder on each respective risk from the date of the issuance of the policy. If the department finds this rule to be impracticable in ascertaining the condition of the certain kinds of insurance companies, it shall formulate such rules as it shall deem proper and efficient and consistent with law, having due regard to such rules as may be used in other states or approved by the National Association of Insurance Commissioners; Provided, in relation to the affairs of any foreign company, it may, in lieu of such examination and investigation, accept a certificate of the insurance commissioner or superintendent of such state or district as to its condition.

Source:Laws 1913, c. 154, § 98, p. 443; R.S.1913, § 3235; Laws 1919, c. 190, tit. V, art. VI, § 6, p. 624; C.S.1922, § 7834; C.S.1929, § 44-506; R.S.1943, § 44-414; Laws 1981, LB 330, § 3.


Annotations

44-415. Life insurance company; actual premium less than net premium; separate liability of company.

When the actual premium hereafter charged for an insurance by any life insurance company doing business in this state is less than the net premium for such insurance, computed according to the table of mortality and rate of interest prescribed in section 44-403, such company shall be charged as a separate liability with the value of an annuity, the amount of which shall equal the difference between such premium and the term of which, in years, shall equal the number of future annual payments due on such insurance at the date of the valuation. This section shall apply to policies and contracts issued prior to the operative date defined in section 44-407.07.

Source:Laws 1913, c. 154, § 99, p. 444; R.S.1913, § 3236; Laws 1919, c. 190, tit. V, art. VI, § 7, p. 625; C.S.1922, § 7835; C.S.1929, § 44-507; Laws 1943, c. 106, § 2, p. 358; R.S.1943, § 44-415.


44-416. Repealed. Laws 2005, LB 119, § 44.

44-416.01. Repealed. Laws 2005, LB 119, § 44.

44-416.02. Repealed. Laws 1991, LB 236, § 89.

44-416.03. Repealed. Laws 2005, LB 119, § 44.

44-416.04. Repealed. Laws 2005, LB 119, § 44.

44-416.05. Reinsurance agreements; purpose of sections.

The purpose of sections 44-416.05 to 44-416.10 is to protect the interest of insureds, claimants, ceding insurers, assuming insurers, and the public generally. The Legislature hereby declares its intent is to ensure adequate regulation of insurers and reinsurers and adequate protection for those to whom they owe obligations. In furtherance of that state interest, the Legislature hereby provides a mandate that upon the insolvency of a non-United-States insurer or reinsurer that provides security to fund its United States obligations in accordance with such sections, the assets representing the security shall be maintained in the United States and claims shall be filed with and valued by the state insurance commissioner with regulatory oversight, and the assets shall be distributed, in accordance with the insurance laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic United States insurance companies. The Legislature declares that the matters contained in such sections are fundamental to the business of insurance in accordance with 15 U.S.C. 1011 and 1012.

Source:Laws 2005, LB 119, § 30.    


44-416.06. Credit for reinsurance; when allowed; suspension or revocation of accreditation or certification; director; powers; notice; hearing; insurer duties.

(1) Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of subsection (2), (3), (4), (5), (6), or (7) of this section and any additional requirements contained in rules and regulations adopted and promulgated by the Director of Insurance pursuant to subsection (2) of section 44-416.09 relating to or setting forth (a) the valuation of assets or reserve credits, (b) the amount and form of security supporting reinsurance arrangements, or (c) the circumstances pursuant to which credit will be reduced or eliminated. Except as otherwise provided in section 44-224.11, credit shall be allowed under subsection (2), (3), or (4) of this section only for cessions of those kinds or classes of business which the assuming insurer is licensed or otherwise permitted to write or assume in its state of domicile or, in the case of a United States branch of an alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance. Credit shall be allowed under subsection (4) or (5) of this section only if the applicable requirements of subsection (8) of this section have been satisfied.

(2) Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is licensed to transact insurance in this state.

(3) Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is accredited by the Director of Insurance as a reinsurer in this state. In order to be eligible for accreditation, a reinsurer must:

(a) File with the director evidence of its submission to this state's jurisdiction;

(b) Submit to this state's authority to examine its books and records;

(c) Be licensed to transact insurance or reinsurance in at least one state, or in the case of a United States branch of an alien assuming insurer, be entered through and licensed to transact insurance or reinsurance in at least one state;

(d) File annually with the director a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement; and

(e) Demonstrate to the satisfaction of the director that it has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers. An assuming insurer is deemed to meet this requirement as of the time of its application if it maintains a surplus as regards policyholders in an amount not less than twenty million dollars and its accreditation has not been denied by the director within ninety days after submission of its application.

(4)(a) Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is domiciled in, or in the case of a United States branch of an alien assuming insurer is entered through, a state that employs standards regarding credit for reinsurance substantially similar to those applicable under this section and the assuming insurer or United States branch of an alien assuming insurer:

(i) Maintains a surplus as regards policyholders in an amount not less than twenty million dollars; and

(ii) Submits to the authority of this state to examine its books and records.

(b) The requirement of subdivision (4)(a)(i) of this section does not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system.

(5)(a) Credit shall be allowed when the reinsurance is ceded to an assuming insurer that maintains a trust fund in a qualified United States financial institution for the payment of the valid claims of its United States ceding insurers and their assigns and successors in interest. To enable the director to determine the sufficiency of the trust fund, the assuming insurer shall report annually to the director information substantially the same as that required to be reported on the National Association of Insurance Commissioners Annual Statement form by licensed insurers. The assuming insurer shall submit to examination of its books and records by the director and bear the expense of examination.

(b)(i) Credit for reinsurance shall not be granted under this subsection unless the form of the trust and any amendments to the trust have been approved by:

(A) The commissioner of the state where the trust is domiciled; or

(B) The commissioner of another state who, pursuant to the terms of the trust instrument, has accepted principal regulatory oversight of the trust.

(ii) The form of the trust and any trust amendments also shall be filed with the commissioner of every state in which the ceding insurer beneficiaries of the trust are domiciled. The trust instrument shall provide that contested claims shall be valid and enforceable upon the final order of any court of competent jurisdiction in the United States. The trust shall vest legal title to its assets in its trustees for the benefit of the assuming insurer's United States ceding insurers, their assigns, and successors in interest. The trust and the assuming insurer shall be subject to examination as determined by the director.

(iii) The trust shall remain in effect for as long as the assuming insurer has outstanding obligations due under the reinsurance agreements subject to the trust. No later than February 28 of each year the trustee of the trust shall report to the director in writing the balance of the trust and listing the trust's investments at the preceding year end and shall certify the date of termination of the trust, if so planned, or certify that the trust will not expire prior to the following December 31.

(c) The following requirements apply to the following categories of assuming insurer:

(i) The trust fund for a single assuming insurer shall consist of funds in trust in an amount not less than the assuming insurer's liabilities attributable to reinsurance ceded by United States ceding insurers and, in addition, the assuming insurer shall maintain a trusteed surplus of not less than twenty million dollars except as provided in subdivision (5)(c)(ii) of this section;

(ii) At any time after the assuming insurer has permanently discontinued underwriting new business secured by the trust for at least three full years, the commissioner with principal regulatory oversight of the trust may authorize a reduction in the required trusteed surplus, but only after a finding, based on an assessment of the risk, that the new required surplus level is adequate for the protection of United States ceding insurers, policyholders, and claimants in light of reasonably foreseeable adverse loss development. The risk assessment may involve an actuarial review, including an independent analysis of reserves and cash flows, and shall consider all material risk factors, including when applicable the lines of business involved, the stability of the incurred loss estimates, and the effect of the surplus requirements on the assuming insurer's liquidity or solvency. The minimum required trusteed surplus may not be reduced to an amount less than thirty percent of the assuming insurer's liabilities attributable to reinsurance ceded by United States ceding insurers covered by the trust; and

(iii)(A) In the case of a group including incorporated and individual unincorporated underwriters:

(I) For reinsurance ceded under reinsurance agreements with an inception, amendment, or renewal date on or after January 1, 1993, the trust shall consist of a trusteed account in an amount not less than the respective underwriters' several liabilities attributable to business ceded by United States domiciled ceding insurers to any underwriter of the group;

(II) For reinsurance ceded under reinsurance agreements with an inception date on or before December 31, 1992, and not amended or renewed after that date, notwithstanding the other provisions of sections 44-416.05 to 44-416.10, the trust shall consist of a trusteed account in an amount not less than the respective underwriters' several insurance and reinsurance liabilities attributable to business written in the United States; and

(III) In addition to these trusts, the group shall maintain in trust a trusteed surplus of which one hundred million dollars shall be held jointly for the benefit of the United States domiciled ceding insurers of any member of the group for all years of account;

(B) The incorporated members of the group shall not be engaged in any business other than underwriting as a member of the group and shall be subject to the same level of regulation and solvency control by the group's domiciliary regulator as are the unincorporated members; and

(C) Within ninety days after its financial statements are due to be filed with the group's domiciliary regulator, the group shall provide to the director an annual certification by the group's domiciliary regulator of the solvency of each underwriter member, or if a certification is unavailable, financial statements, prepared by independent public accountants, of each underwriter member of the group.

(6)(a) Credit shall be allowed when the reinsurance is ceded to an assuming insurer that has been certified by the director as a reinsurer in this state and secures its obligations in accordance with the requirements of this subsection.

(b) In order to be eligible for certification, the assuming insurer shall meet the following requirements:

(i) The assuming insurer must be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction, as determined by the director pursuant to subdivision (6)(d) of this section;

(ii) The assuming insurer must maintain minimum capital and surplus, or its equivalent, in an amount to be determined by the director pursuant to rules and regulations;

(iii) The assuming insurer must maintain financial strength ratings from two or more rating agencies deemed acceptable by the director pursuant to rules and regulations;

(iv) The assuming insurer must agree to submit to the jurisdiction of this state, appoint the director as its agent for service of process in this state, and agree to provide security for one hundred percent of the assuming insurer's liabilities attributable to reinsurance ceded by United States ceding insurers if it resists enforcement of a final United States judgment;

(v) The assuming insurer must agree to meet applicable information filing requirements as determined by the director, both with respect to an initial application for certification and on an ongoing basis; and

(vi) The assuming insurer must satisfy any other requirements for certification deemed relevant by the director.

(c) An association including incorporated and individual unincorporated underwriters may be a certified reinsurer. In order to be eligible for certification, in addition to satisfying requirements of subdivision (6)(b) of this section:

(i) The association shall satisfy its minimum capital and surplus requirements through the capital and surplus equivalents, net of liabilities, of the association and its members, which shall include a joint central fund that may be applied to any unsatisfied obligation of the association or any of its members, in an amount determined by the director to provide adequate protection;

(ii) The incorporated members of the association shall not be engaged in any business other than underwriting as a member of the association and shall be subject to the same level of regulation and solvency control by the association's domiciliary regulator as are the unincorporated members; and

(iii) Within ninety days after its financial statements are due to be filed with the association's domiciliary regulator, the association shall provide to the director an annual certification by the association's domiciliary regulator of the solvency of each underwriter member or, if a certification is unavailable, financial statements, prepared by independent public accountants, of each underwriter member of the association.

(d)(i) The director shall create and publish a list of qualified jurisdictions under which an assuming insurer licensed and domiciled in such jurisdiction is eligible to be considered for certification by the director as a certified reinsurer.

(ii) In order to determine whether the domiciliary jurisdiction of a non-United-States assuming insurer is eligible to be recognized as a qualified jurisdiction, the director shall evaluate the appropriateness and effectiveness of the reinsurance supervisory system of the jurisdiction, both initially and on an ongoing basis, and consider the rights, benefits, and the extent of reciprocal recognition afforded by the non-United-States jurisdiction to reinsurers licensed and domiciled in the United States. A qualified jurisdiction must agree to share information and cooperate with the director with respect to all certified reinsurers domiciled within that jurisdiction. A jurisdiction may not be recognized as a qualified jurisdiction if the director has determined that the jurisdiction does not adequately and promptly enforce final United States judgments and arbitration awards. Additional factors may be considered in the discretion of the director.

(iii) A list of qualified jurisdictions shall be published through the National Association of Insurance Commissioners committee process. The director shall consider this list in determining qualified jurisdictions. If the director approves a jurisdiction as qualified that does not appear on the list of qualified jurisdictions, the director shall provide thoroughly documented justification in accordance with criteria to be developed under rules and regulations.

(iv) United States jurisdictions that meet the requirement for accreditation under the National Association of Insurance Commissioners financial standards and accreditation program shall be recognized as qualified jurisdictions.

(v) If a certified reinsurer's domiciliary jurisdiction ceases to be a qualified jurisdiction, the director has the discretion to suspend the reinsurer's certification indefinitely, in lieu of revocation.

(e) The director shall assign a rating to each certified reinsurer, giving due consideration to the financial strength ratings that have been assigned by rating agencies deemed acceptable to the director pursuant to rules and regulations. The director shall publish a list of all certified reinsurers and their ratings.

(f)(i) A certified reinsurer shall secure obligations assumed from United States ceding insurers under this subsection at a level consistent with its rating, as specified in rules and regulations adopted and promulgated by the director.

(ii) In order for a domestic ceding insurer to qualify for full financial statement credit for reinsurance ceded to a certified reinsurer, the certified reinsurer shall maintain security in a form acceptable to the director and consistent with the provisions of section 44-416.07 or in a multibeneficiary trust in accordance with subsection (5) of this section, except as otherwise provided in this subsection.

(iii) If a certified reinsurer maintains a trust to fully secure its obligations subject to subsection (5) of this section and chooses to secure its obligations incurred as a certified reinsurer in the form of a multibeneficiary trust, the certified reinsurer shall maintain separate trust accounts for its obligations incurred under reinsurance agreements issued or renewed as a certified reinsurer with reduced security as permitted by this subsection or comparable laws of other United States jurisdictions and for its obligations subject to subsection (5) of this section. It shall be a condition to the grant of certification under this subsection that the certified reinsurer shall have bound itself, by the language of the trust and agreement with the commissioner with principal regulatory oversight of each such trust account, to fund, upon termination of any such trust account, out of the remaining surplus of such trust any deficiency of any other such trust account.

(iv) The minimum trusteed surplus requirements provided in subsection (5) of this section are not applicable with respect to a multibeneficiary trust maintained by a certified reinsurer for the purpose of securing obligations incurred under this subsection, except that such trust shall maintain a minimum trusteed surplus of ten million dollars.

(v) With respect to obligations incurred by a certified reinsurer under this subsection, if the security is insufficient, the director shall reduce the allowable credit by an amount proportionate to the deficiency and has the discretion to impose further reductions in allowable credit upon finding that there is a material risk that the certified reinsurer's obligations will not be paid in full when due.

(vi)(A) For purposes of this subsection, a certified reinsurer whose certification has been terminated for any reason shall be treated as a certified reinsurer required to secure one hundred percent of its obligations.

(B) As used in subdivision (6)(f)(vi)(A) of this section, the term "terminated" refers to revocation, suspension, voluntary surrender, and inactive status.

(C) If the director continues to assign a higher rating as permitted by other provisions of this section, the requirement in subdivision (6)(f)(vi)(A) of this section does not apply to a certified reinsurer in inactive status or to a reinsurer whose certification has been suspended.

(g) If an applicant for certification has been certified as a reinsurer in a National Association of Insurance Commissioners-accredited jurisdiction, the director has the discretion to defer to that jurisdiction's certification and has the discretion to defer to the rating assigned by that jurisdiction, and such assuming insurer shall be considered to be a certified reinsurer in this state.

(h) A certified reinsurer that ceases to assume new business in this state may request to maintain its certification in inactive status in order to continue to qualify for a reduction in security for its in-force business. An inactive certified reinsurer shall continue to comply with all applicable requirements of this subsection, and the director shall assign a rating that takes into account, if relevant, the reasons why the reinsurer is not assuming new business.

(7) Credit shall be allowed when the reinsurance is ceded to an assuming insurer not meeting the requirements of subsection (2), (3), (4), (5), or (6) of this section, but only as to the insurance of risks located in jurisdictions where the reinsurance is required by applicable law or regulation of that jurisdiction.

(8) If the assuming insurer is not licensed, accredited, or certified to transact insurance or reinsurance in this state, the credit permitted by subsections (4) and (5) of this section shall not be allowed unless the assuming insurer agrees in the reinsurance agreements:

(a)(i) That in the event of the failure of the assuming insurer to perform its obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, will comply with all requirements necessary to give the court jurisdiction, and will abide by the final decision of the court or of any appellate court in the event of an appeal; and

(ii) To designate the director or a designated attorney as its true and lawful attorney upon whom may be served any lawful process in any action, suit, or proceeding instituted by or on behalf of the ceding insurer.

(b) This subsection is not intended to conflict with or override the obligation of the parties to a reinsurance agreement to arbitrate their disputes, if this obligation is created in the agreement.

(9) If the assuming insurer does not meet the requirements of subsection (2), (3), or (4) of this section, the credit permitted by subsection (5) or (6) of this section shall not be allowed unless the assuming insurer agrees in the trust agreements to the following conditions:

(a) Notwithstanding any other provisions in the trust instrument, if the trust fund is inadequate because it contains an amount less than the amount required by subdivision (5)(c) of this section, or if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation, or similar proceedings under the laws of its state or country of domicile, the trustee shall comply with an order of the commissioner with regulatory oversight over the trust or with an order of a court of competent jurisdiction directing the trustee to transfer to the state insurance commissioner with regulatory oversight all of the assets of the trust fund;

(b) The assets shall be distributed by and claims shall be filed with and valued by the state insurance commissioner with regulatory oversight in accordance with the laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic insurance companies;

(c) If the state insurance commissioner with regulatory oversight determines that the assets of the trust fund or any part thereof are not necessary to satisfy the claims of the United States ceding insurers of the grantor of the trust, the assets or part thereof shall be returned by the state insurance commissioner with regulatory oversight to the trustee for distribution in accordance with the trust agreement; and

(d) The grantor shall waive any right otherwise available to it under United States law that is inconsistent with this provision.

(10)(a) If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the director may suspend or revoke the reinsurer's accreditation or certification.

(b) The director must give the reinsurer notice and opportunity for hearing. The suspension or revocation may not take effect until after the director's order on hearing unless:

(i) The reinsurer waives its right to hearing;

(ii) The director's order is based on regulatory action by the reinsurer's domiciliary jurisdiction or the voluntary surrender or termination of the reinsurer's eligibility to transact insurance or reinsurance business in its domiciliary jurisdiction or in the primary certifying state of the reinsurer under subdivision (6)(g) of this section; or

(iii) The director finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the director's action.

(c) While a reinsurer's accreditation or certification is suspended, no reinsurance contract issued or renewed after the effective date of the suspension qualifies for credit except to the extent that the reinsurer's obligations under the contract are secured in accordance with section 44-416.07. If a reinsurer's accreditation or certification is revoked, no credit for reinsurance may be granted after the effective date of the revocation except to the extent that the reinsurer's obligations under the contract are secured in accordance with subdivision (6)(f) of this section or section 44-416.07.

(11)(a) A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business. A domestic ceding insurer shall notify the director within thirty days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceeds fifty percent of the domestic ceding insurer's last reported surplus to policyholders, or after it is determined that reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer.

(b) A ceding insurer shall take steps to diversify its reinsurance program. A domestic ceding insurer shall notify the director within thirty days after ceding to any single assuming insurer, or group of affiliated assuming insurers, more than twenty percent of the ceding insurer's gross written premium in the prior calendar year, or after it has determined that the reinsurance ceded to any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer.

Source:Laws 2005, LB 119, § 31;    Laws 2015, LB298, § 1;    Laws 2018, LB815, § 1.    
Effective Date: July 19, 2018


44-416.07. Asset or reduction from liability for reinsurance; limitations; security required.

An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of section 44-416.06 shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer subject to any additional requirements contained in rules and regulations adopted and promulgated by the Director of Insurance pursuant to subsection (2) of section 44-416.09 relating to or setting forth the valuation of assets or reserve credits, the amount and form of security supporting reinsurance arrangements, or the circumstances pursuant to which credit will be reduced or eliminated. The reduction shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations thereunder, if the security is held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer, or, in the case of a trust, held in a qualified United States financial institution. This security may be in the form of:

(1) Cash;

(2) Securities approved by the Director of Insurance. The director may use the list of securities furnished by the Securities Valuation Office of the National Association of Insurance Commissioners, including those deemed exempt from filing as defined by the Purposes and Procedures Manual of the Securities Valuation Office, and qualifying as admitted assets;

(3)(a) Clean, irrevocable, unconditional letters of credit, issued or confirmed by a qualified United States financial institution effective no later than December 31 of the year for which the filing is being made, and in the possession of, or in trust for, the ceding insurer on or before the filing date of its annual statement; or

(b) Letters of credit meeting applicable standards of issuer acceptability as of the dates of their issuance or confirmation shall, notwithstanding the issuing or confirming institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until their expiration, extension, renewal, modification, or amendment, whichever first occurs; or

(4) Any other form of security acceptable to the director.

Source:Laws 2005, LB 119, § 32;    Laws 2015, LB298, § 2;    Laws 2018, LB815, § 2.    
Effective Date: July 19, 2018


44-416.08. Qualified United States financial institution, defined.

(1) For purposes of subdivision (3) of section 44-416.07, qualified United States financial institution means an institution that:

(a) Is organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or any state thereof;

(b) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and

(c) Has been determined by either the Director of Insurance or the Securities Valuation Office of the National Association of Insurance Commissioners to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the director.

(2) For purposes of those provisions of sections 44-416.05 to 44-416.10 specifying those institutions that are eligible to act as a fiduciary of a trust, qualified United States financial institution means an institution that:

(a) Is organized or, in the case of a United States branch or agency office of a foreign banking organization, licensed under the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers; and

(b) Is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies.

Source:Laws 2005, LB 119, § 33.    


44-416.09. Rules and regulations.

(1) The director may adopt and promulgate rules and regulations to carry out sections 44-416.05 to 44-416.10.

(2)(a) The director may also adopt and promulgate rules and regulations applicable only to reinsurance arrangements described in subdivision (b) of this subsection.

(b) Any rule or regulation adopted and promulgated pursuant to this subsection shall only apply to reinsurance relating to:

(i) Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits;

(ii) Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;

(iii) Variable annuities with guaranteed death or living benefits;

(iv) Long-term care insurance policies; or

(v) Such other life and health insurance and annuity products as determined by the director.

(c) Any rule or regulation adopted and promulgated pursuant to subdivision (b)(i) or (b)(ii) of this subsection may apply to any treaty containing (i) policies issued prior to January 1, 2015, if risk pertaining to such policies is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015, or (ii) policies issued on or after January 1, 2015.

(d) Any rule or regulation adopted and promulgated pursuant to this subsection may require the ceding insurer, in calculating the amounts or forms of security required to be held, to use the valuation manual prescribed by the director pursuant to section 44-8908.

(e) Any rule or regulation adopted and promulgated pursuant to this subsection shall not apply to a cession to an assuming insurer that:

(i) Is a certified reinsurer in this state pursuant to subdivision (6)(a) of section 44-416.06; or

(ii) Maintains at least two hundred fifty million dollars in capital and surplus when determined in accordance with accounting practices and procedures manuals as prescribed by the director in substantial conformity with the Accounting Practices and Procedures Manual adopted by the National Association of Insurance Commissioners and is determined by the director to be:

(A) Licensed to transact insurance or reinsurance in at least twenty-six states; or

(B) Licensed to transact insurance or reinsurance in at least ten states and either licensed to transact insurance or is an accredited reinsurer in a total of at least thirty-five states.

(f) The authority to adopt and promulgate rules and regulations pursuant to this subsection does not limit the director’s general authority to adopt rules and regulations pursuant to subsection (1) of this section.

Source:Laws 2005, LB 119, § 34;    Laws 2018, LB815, § 3.    
Effective Date: July 19, 2018


44-416.10. Applicability of sections.

Sections 44-416.05 to 44-416.10 apply to all cessions after September 4, 2005, under reinsurance agreements that have an inception, anniversary, or renewal date not less than six months after September 4, 2005.

Source:Laws 2005, LB 119, § 35.    


44-417. Credit for reinsurance; conditions.

No credits specified in sections 44-416.05 to 44-416.10 shall be made or allowed as an admitted asset or deduction from liability to any ceding insurer for reinsurance unless the contract of reinsurance provides in substance that, in the event of the insolvency of the ceding insurer, the portion of any risk or obligation assumed by the reinsurer, when such portion is ascertained, shall be payable by the assuming insurer on the basis of the liability of the ceding insurer under the contract or contracts reinsured without diminution because of the insolvency of the ceding insurer. Such payments shall be made directly to the ceding insurer or to its domiciliary liquidator except (1) when the contract or other written agreement specifically provides another payee of such reinsurance in the event of the insolvency of the ceding insurer or (2) when the assuming insurer, with the consent of the direct insured, has assumed such policy obligations of the ceding insurer as direct obligations of the assuming insurer to the payees under such policies and in substitution for the obligations of the ceding insurer to such payees. The reinsurance agreement may provide that the domiciliary liquidator, receiver, or legal successor of an insolvent ceding insurer shall give written notice of the pendency of a claim against the insolvent ceding insurer on the policy or bond reinsured, within a reasonable time after such claim is filed in the insolvency proceeding, and that during the pendency of such claim, any assuming insurer may investigate such claim and interpose, at its own expense, in the proceeding in which such claim is to be adjudicated, any defense or defenses which it may deem available to the ceding insurer or its liquidator, receiver, or legal successor. The expense thus incurred by the assuming insurer may be filed as a claim against the insolvent ceding insurer as part of the expense of liquidation, to the extent of a proportionate share of the benefit which may accrue to the ceding insurer solely as a result of the defense undertaken by the assuming insurer.

When two or more assuming insurers are involved in the same claim and a majority in interest elect to interpose a defense to such claim, the expense shall be apportioned subject to court approval, in accordance with the terms of the reinsurance agreement as though such expense had been incurred by the ceding insurer.

Source:Laws 1951, c. 131, § 2, p. 552; Laws 1985, LB 299, § 9; Laws 1991, LB 236, § 43; Laws 2001, LB 360, § 1;    Laws 2005, LB 119, § 8.    


44-418. Repealed. Laws 1985, LB 299, § 10.

44-419. Repealed. Laws 1990, LB 984, § 10.

44-420. Actuarial opinions; terms, defined.

For purposes of sections 44-420 to 44-427:

(1) Director shall mean the Director of Insurance; and

(2) Qualified actuary shall mean an individual who is a member in good standing of the American Academy of Actuaries and who meets all requirements as determined by the director by rule or regulation.

Source:Laws 1994, LB 978, § 7.


44-421. Actuarial opinions; life insurance company; annual submission.

Every life insurance company doing business in this state shall annually submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the director are computed appropriately, are based on assumptions which satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of this state.

Source:Laws 1994, LB 978, § 8.


44-422. Actuarial opinions; life insurance company; additional requirements.

Every life insurance company, except as exempted by the director by rule or regulation, shall also annually include in the opinion required by section 44-421 an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the director, when considered in light of the assets held by the company with respect to the reserves and related actuarial items, including the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the company's obligations under the policies and contracts, including the benefits under and expenses associated with the policies and contracts.

Source:Laws 1994, LB 978, § 9.


44-423. Actuarial opinions; transition period authorized.

The director may provide for a transition period for establishing any higher reserves which the qualified actuary may deem necessary in order to render the opinion required by section 44-421.

Source:Laws 1994, LB 978, § 10.


44-424. Actuarial opinions; requirements.

Every opinion required by section 44-421 shall be governed by the following provisions:

(1) The opinion shall be submitted with the annual statement reflecting the valuation of such reserve liabilities for each year ending on or after December 31, 1994;

(2) The opinion shall apply to all business in force including individual and group sickness and accident insurance plans, in form and substance acceptable to the director;

(3) The opinion shall be based on standards adopted from time to time by the Actuarial Standards Board and on such additional standards as the director may prescribe;

(4) In the case of an opinion required to be submitted by a foreign or alien company, the director may accept the opinion filed by that company with the insurance supervisory official of another state if the director determines that the opinion reasonably meets the requirements applicable to a domestic company; and

(5) Except in cases of fraud or willful misconduct, the qualified actuary shall not be liable for damages to any person, other than the insurance company and the director, for any act, error, omission, decision, or conduct with respect to the actuary's opinion.

Source:Laws 1994, LB 978, § 11.


44-425. Actuarial opinions; supporting memorandum; confidentiality.

Every opinion required by section 44-421 shall be governed by the following provisions in addition to the provisions of section 44-424:

(1) A memorandum, in form and substance acceptable to the director, shall be prepared to support each actuarial opinion and made available to the director upon request;

(2) If the insurance company fails to provide a supporting memorandum at the request of the director within a period specified by rule or regulation or the director determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed or is otherwise unacceptable to the director, the director may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare such supporting memorandum as is required by the director;

(3) Except as provided in subdivisions (4) and (5) of this section, any memorandum in support of the opinion, and any other material provided by the company to the director in connection with the opinion, shall be kept confidential by the director and shall not be made public and shall not be subject to subpoena, other than for the purpose of defending an action seeking damages from any person by reason of any action required by this section or by rules and regulations adopted and promulgated hereunder, except that the memorandum or other material may otherwise be released by the director (a) with the written consent of the company or (b) to the American Academy of Actuaries upon request stating that the memorandum or other material is required for the purpose of professional disciplinary proceedings and setting forth procedures satisfactory to the director for preserving the confidentiality of the memorandum or other material. Once any portion of the confidential memorandum is released by the company to the news media or other governmental agency other than a state insurance department or is cited by the company in its marketing, all portions of the memorandum become public information and are no longer confidential;

(4) The director may provide the memorandum in support of the opinion, and any other material provided by the company to the director in connection with the opinion, to other state, federal, foreign, and international regulatory and law enforcement agencies and the National Association of Insurance Commissioners and its affiliates and subsidiaries if the recipient agrees in writing to maintain the confidentiality of the information, documents, and copies; and

(5) The director may receive memorandums in support of an opinion, and any other material provided by the company to the director in connection with an opinion, from other state, federal, foreign, or international regulatory and law enforcement agencies and from the National Association of Insurance Commissioners and its affiliates and subsidiaries. The director shall maintain information received pursuant to this subdivision as confidential or privileged if received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the information. Such information shall not be a public record subject to disclosure by the director pursuant to sections 84-712 to 84-712.09, subject to subpoena, subject to discovery, or admissible in evidence in any private civil action, except that the director may use such information in any regulatory or legal action brought by the director. The director, and any other person while acting under the authority of the director who has received information pursuant to this subdivision, may not, and shall not be required to, testify in any private civil action concerning any information subject to this section. Nothing in this section shall constitute a waiver of any applicable privilege or claim of confidentiality in the information received pursuant to this subdivision as a result of information sharing authorized by this section.

Source:Laws 1994, LB 978, § 12; Laws 2001, LB 52, § 45.    


44-426. Actuarial opinions; valuation of sickness and accident policies.

The director may adopt and promulgate rules and regulations containing the minimum standards applicable to the valuation of sickness and accident policies.

Source:Laws 1994, LB 978, § 13.


44-427. Actuarial opinions; rules and regulations.

The director may adopt and promulgate rules and regulations to carry out the provisions of sections 44-420 to 44-427.

Source:Laws 1994, LB 978, § 14.


44-501. Fire insurance policies; form; contents.

No policy or contract of fire and lightning insurance, including a renewal thereof, shall be made, issued, used, or delivered by any insurer or by any insurance producer or representative of an insurer on property within this state other than such as shall conform as nearly as practicable to blanks, size of type, context, provisions, agreements, and conditions with the 1943 Standard Fire Insurance Policy of the State of New York, a copy of which shall be filed in the office of the Director of Insurance as standard policy for this state, and no other or different provision, agreement, condition, or clause shall in any manner be made a part of such contract or policy or be endorsed thereon or delivered therewith except as provided in subdivisions (1) through (11) of this section.

(1) The name of the company, its location and place of business, the date of its incorporation or organization, the state or country under which such company is organized, the amount of paid-up capital stock, whether it is a stock, mutual, reciprocal, or assessment company, the names of its officers, the number and date of the policy, and appropriate company emblems may be printed on policies issued on property in this state. Any insurer organized under special charter provisions may so indicate upon its policy and may add a statement of the plan under which it operates in this state.

In lieu of the facsimile signatures of the president and secretary of the insurer on such policy, there may appear the signature or signatures of such persons as are duly authorized by the insurer to execute the contract. No such policy shall be void if the facsimile signature or signatures of any officer of the company shall not correspond with the actual persons who are such officers at the inception of the contract if such policy is countersigned by a duly authorized agent of the insurer.

(2) Printed or written forms of description and specifications or schedules of the property covered by any particular policy and any other matter necessary to express clearly all the facts and conditions of insurance on any particular risk, which facts or conditions shall in no case be inconsistent with or a waiver of any of the provisions or conditions of the standard policy herein provided for, may be written upon or attached or appended to any policy issued on property in this state. Appropriate forms of supplemental contracts, contracts, or endorsements, whereby the interest in the property described in such policy shall be insured against one or more of the perils which insurer is empowered to assume, may be used in connection with the standard policy. Such forms of contracts, supplemental contracts, or endorsements attached or printed thereon may contain provisions and stipulations inconsistent with the standard policy if applicable only to such other perils. The pages of the standard policy may be renumbered and rearranged for convenience in the preparation of individual contracts and to provide space for the listing of rates and premiums for coverages insured thereunder or under endorsements attached or printed thereon and such other data as may be included for duplication on daily reports for office records.

(3) A company, corporation, or association organized or incorporated under and in pursuance of the laws of this state or elsewhere, if entitled to do business in this state, may with the approval of the Director of Insurance, if the same is not already included in the standard form as filed in the office of the Department of Insurance, print on its policies any provision which it is required by law to insert therein if the provision is not in conflict with the laws of this state or the United States or with the provisions of the standard form provided for in this section, but such provision shall be printed apart from the other provisions, agreements, or conditions of the policy and in type not smaller than the body of the policy and a separate title, as follows: Provisions required by law to be stated in this policy, and be a part of the policy.

(4) There may be endorsed on the outside of any policy provided for in this section for the name, with the words insurance producer and place of business, of any insurance producer, either by writing, printing, stamping, or otherwise. There may also be added, with the approval of the Director of Insurance, a statement of the group of companies with which the company is financially affiliated and the usual company medallion.

(5) When two or more companies, each having previously complied with the laws of this state, unite to issue a joint policy, there may be expressed in the headline of each policy the fact of the severalty of the contract and also the proportion of premiums to be paid to each company and the proportion of liability which each company agrees to assume. In the printed conditions of such policy, the necessary change may be made from the singular to plural number when reference is made to the companies issuing such policy.

(6) This section shall not apply to motor vehicle, inland marine, or ocean marine insurance, reinsurance contracts between insurance companies, or insurance that does not cover risks of a personal nature. An insurer may file with the director, pursuant to the Property and Casualty Insurance Rate and Form Act, any form of policy which includes coverage against the peril of fire and substantial coverage against other perils without complying with the provisions of this section if such policy with respect to the peril of fire includes provisions which are the substantial equivalent of the minimum provisions of the standard policy provided for in this section and if the policy is complete as to all its terms without reference to any other document.

(7) If the policy is made by a mutual assessment or other company having special regulations lawfully applicable to its organization, membership, policies, or contracts of insurance, such regulations shall apply to and form a part of the policy as the same may be written or printed upon or attached or appended thereto.

(8) Assessment associations may issue policies with such modifications as shall be filed with the director pursuant to the Property and Casualty Insurance Rate and Form Act.

(9) Any other coverage which a company is authorized to write under the laws of this state may be written in combination with a fire insurance policy.

(10) The policy shall provide that claims involving total loss situations shall be paid in accordance with section 44-501.02.

(11) Notwithstanding any other provision of this section, an insurer may file, pursuant to the Property and Casualty Insurance Rate and Form Act, any form of policy with variations in terms and conditions from the standard policy provided for in this section.

Source:Laws 1913, c. 154, § 100, p. 444; R.S.1913, § 3237; Laws 1919, c. 190, tit. V, art. VII, § 1, p. 625; C.S.1922, § 7836; C.S.1929, § 44-601; R.S.1943, § 44-501; Laws 1951, c. 139, § 1, p. 572; Laws 1959, c. 207, § 1, p. 724; Laws 1973, LB 51, § 1; Laws 1989, LB 92, § 119; Laws 2003, LB 216, § 5;    Laws 2007, LB117, § 4.    


Cross References

Annotations

44-501.01. Fire insurance policies; statement as to coverage of loss by nuclear reaction, nuclear radiation, or radioactive contamination.

Insurers issuing the standard policy pursuant to section 44-501 are hereby authorized to affix thereto or include therein, subject to the approval of the Director of Insurance, a written statement that the policy does not cover loss or damage caused by nuclear reaction, nuclear radiation or radioactive contamination, all whether directly or indirectly resulting from an insured peril under said policy; Provided, that nothing herein contained shall be construed to prohibit the attachment to any such policy of an endorsement or endorsements specifically assuming coverage for loss or damage caused by nuclear reaction or nuclear radiation or radioactive contamination.

Source:Laws 1959, c. 208, § 1, p. 727.


44-501.02. Fire insurance; valued policies.

Whenever any policy of insurance is written to insure any real property in this state against loss by fire, tornado, windstorm, lightning, or explosion and the property insured is wholly destroyed without criminal fault on the part of the insured or his or her assignee, the amount of the insurance written in such policy shall be taken conclusively to be the true value of the property insured and the true amount of loss and measure of damages.

Source:Laws 1913, c. 154, § 74, p. 424; R.S.1913, § 3210; Laws 1919, c. 190, tit. V, art. IV, § 44, p. 604; C.S.1922, § 7809; C.S.1929, § 44-344; R.S.1943, § 44-380; Laws 1977, LB 260, § 1; R.S.1943, (1988), § 44-380; Laws 1989, LB 92, § 120.


Annotations

44-502. Life or endowment policies; provisions required.

No policy of life or endowment insurance, except policies of industrial insurance, shall be issued or delivered in this state unless it contains in substance the following provisions:

(1) A provision that all premiums shall be payable in advance either at the home office of the company or to any agent of the company upon delivery of a receipt signed by one or more of the officers who shall be named in the policy.

(2) A provision that the insured is entitled to a grace of one month within which the payment of any premium, after the first year, may be made, subject, at the option of the company, to an interest charge not in excess of six percent per annum for the number of days of grace elapsing before the payment of the premium, during which period of grace the policy shall continue in force; but in case the policy becomes a claim during the said period of grace before the overdue premium or the deferred premiums of the current policy year, if any, are paid, the amount of such premiums, with interest on any overdue premium, may be deducted from any amount payable under the policy in settlement.

(3) A provision that the policy shall constitute the entire contract between the parties; but if the company desires to make the application a part of the contract, it may do so; Provided, a copy of such application shall be endorsed upon or attached to the policy when issued, and in such case, the policy shall contain a provision that the policy and the application therefor shall constitute the entire contract between the parties.

(4) A provision that all statements made by the insured shall, in the absence of fraud, be deemed representations and not warranties, and that no such statement shall avoid the policy unless it is contained in a written application, and a copy of such application shall be endorsed upon or attached to the policy when issued.

(5) A provision that the policy shall be incontestable after it shall have been in force during the lifetime of the insured for two years from its date, except for nonpayment of premiums and except with respect to limitations of liability which may be contained in the policy relating to (a) death resulting from war or acts of war, declared or undeclared, where such limitations shall have been found by the Director of Insurance to be in keeping with the interests of the policyholders of the company and to be not unfairly discriminatory, and (b) aeronautics other than as a fare-paying passenger of a commercial airline, and flying on a regularly scheduled route between definitely established airports; and in any such cases the liability of the company may be limited by the terms of the policy to a sum not less than the reserve on the face of the policy and the reserve on any paid-up additions thereto and any dividends standing to the credit of the policy, less any indebtedness to the company on the policy; and, at the option of the company, provisions relative to benefits in the event of total and permanent disability, and provisions which grant additional insurance specifically against death by accident may be excepted from the incontestable clause; Provided, limitations with reference to aeronautics shall not be included in any policy where an extra premium is charged to cover the aeronautic risk, nor shall any such limitations extending beyond the contestable period be included in or attached to any policy where the applicant for insurance has not elected in writing to accept a policy with such limitations, and by such election has agreed to a reduced coverage for the aviation risk.

(6) A provision that if the age of the insured has been misstated, the amount payable under the policy shall be such as the premium paid would have purchased at the correct age.

(7) A provision that the policy shall participate in the surplus of the company, and that, beginning not later than the end of the third policy year, the company shall annually ascertain and apportion the amount of divisible surplus to which all such policies, as a separate class, are entitled, which amount shall be carried as a distinct and separate liability in favor of such policies. The insured, under any annual dividend policy, shall have the right each year to have the dividend arising from such participation paid in cash, and if the policy shall provide other dividend options, it shall further provide that, if the insured shall not elect any such other options, one of such dividend options provided shall become effective as provided in the policy; but such participation and its distribution may, by contract, be deferred to a fixed or specified time, not exceeding twenty years. Upon written request of the insured the company shall furnish him or her with a statement of the amount of the surplus provisionally ascertained or set aside on such policy and held awaiting distribution at the expiration of the deferred dividend period.

(8) A provision that after three full years' premiums have been paid, the company at any time, while the policy is in force, will advance, on proper assignment or pledge of the policy, and on the sole security thereof, at a specified rate of interest determined pursuant to section 44-502.03 a sum equal to, or, at the option of the owner of the policy, less than the amount required by section 44-405, under the conditions specified thereby, and that the company will deduct from such loan value any existing indebtedness on the policy, which has not otherwise entered into the computation of such loan value, together with any unpaid balance of the premium for the current policy year, and may collect interest in advance on the loan to the end of the current policy year. Interest if payable annually in advance shall not exceed an effective rate equivalent to the specified rate of interest determined pursuant to section 44-502.03. It shall be further stipulated in the policy that failure to repay any such advance, or to pay interest, shall not avoid the policy unless the total indebtedness thereon to the company shall equal or exceed such loan value at the time of such failure, nor until one month after notice shall have been mailed by the company to the last-known address of the insured and of the assignee, if any. No condition other than as provided herein, or in section 44-405, shall be exacted as prerequisite to any such advance.

(9) A provision for nonforfeiture benefits and cash surrender values in accordance with the requirements of sections 44-406 to 44-407.09.

(10) A table showing in figures the loan values, if any, and the options available under the policies each year upon default in premium payments, during at least the first twenty years of the policy.

(11) A provision that if, in the event of default in premium payments, the value of the policy shall be applied to the purchase of other insurance, and if such insurance shall be in force and the original policy shall not have been surrendered to the company and canceled, the policy may be reinstated within three years from such default, upon evidence of insurability satisfactory to the company and payment of arrears of premiums with interest and the payment or reinstatement of any other indebtedness to the company upon such policy.

(12) A provision that when a policy shall become a claim by the death of the insured, settlement shall be made upon receipt of due proof of death, or not later than two months after receipt of such proof.

(13) In case the proceeds of a policy are payable in installments, or as an annuity, a table showing the amounts of the installments or annuity payments.

(14) A title on the face of the policy correctly describing the same. Any of the foregoing provisions or portions of this section not applicable by reason of the plan of insurance may, to the extent of inapplicability, be omitted from the policy. Any such policy may be issued or delivered in this state which in the opinion of the Department of Insurance contains provisions on any one or more of the several foregoing requirements more favorable to the policyholder than hereinbefore required.

Source:Laws 1913, c. 154, § 101, p. 446; R.S.1913, § 3238; Laws 1919, c. 190, tit. V, art. VII, § 2, p. 626; C.S.1922, § 7837; Laws 1925, c. 121, § 1, p. 318; C.S.1929, § 44-602; Laws 1941, c. 87, § 1, p. 336; C.S.Supp.,1941, § 44-602; Laws 1943, c. 106, § 3, p. 359; R.S.1943, § 44-502; Laws 1951, c. 140, § 1, p. 575; Laws 1965, c. 262, § 12, p. 742; Laws 1969, c. 371, § 1, p. 1325; Laws 1978, LB 262, § 1; Laws 1981, LB 355, § 18.


Annotations

44-502.01. Policy loans; variable interest rates.

The purpose of sections 44-502.01 to 44-502.04 is to permit and set guidelines for life insurers to include in life insurance policies issued after August 30, 1981, a provision for periodic adjustment of policy loan interest rates.

Source:Laws 1981, LB 355, § 14.


44-502.02. Policy loans; published monthly average, defined.

For purposes of sections 44-502.01 to 44-502.04, published monthly average shall mean a monthly bond yield average which is:

(1) Published by a national financial statistical organization;

(2) Recognized by the National Association of Insurance Commissioners;

(3) In current general use in the insurance industry; and

(4) Designated by the Director of Insurance.

Source:Laws 1981, LB 355, § 15.


44-502.03. Policy loans; interest rates; maximum; adjustments; notice.

(1) Policies issued on or after August 30, 1981, shall provide for policy loan interest rates as follows:

(a) A provision permitting a maximum interest rate of not more than eight percent per annum; or

(b) A provision permitting an adjustable maximum interest rate established from time to time by the life insurers as permitted by law.

(2) The rate of interest charged on a policy loan made under subdivision (1)(b) of this section shall not exceed the higher of the following:

(a) The published monthly average for the calendar month ending two months before the date on which the rate is determined; or

(b) The rate used to compute the cash surrender values under the policy during the applicable period plus one percent per annum.

(3) If the maximum rate of interest is determined pursuant to subdivision (1)(b) of this section, the policy shall contain a provision setting forth the frequency at which the rate is to be determined for that policy.

(4) The maximum rate for each policy must be determined at regular intervals at least once every twelve months, but not more frequently than once in any three-month period. At the intervals specified in the policy, the rate being charged (a) may be increased whenever such increase as determined under subsection (2) of this section would increase that rate by one-half of one percent or more per annum, and (b) must be reduced whenever such reduction as determined under subsection (2) of this section would decrease that rate by one-half of one percent or more per annum.

(5) The life insurer shall:

(a) Notify the policyholder at the time a cash loan is made of the initial rate of interest on the loan;

(b) Notify the policyholder with respect to premium loans of the initial rate of interest on the loan as soon as it is reasonably practical to do so after making the initial loan. Notice need not be given to the policyholder when a further premium loan is added, except as provided in subdivision (5)(c) of this section;

(c) Send to policyholders with loans reasonable advance notice of any increase in the rate; and

(d) Include in the notices required by this subsection the substance of the pertinent provisions of subsections (1) and (3) of this section.

(6) The loan value of the policy shall be determined in accordance with this section, but no policy shall terminate in a policy year as the sole result of a change in the interest rate during that policy year, and the life insurer shall maintain coverage during that policy year until the time at which it would otherwise have terminated if there had been no change during that policy year.

(7) The substance of the pertinent provisions of subsections (1) and (3) of this section shall be set forth in the policies to which they apply.

(8) For purposes of this section:

(a) The rate of interest on policy loans permitted under this section includes the interest rate charged on reinstatement of policy loans for the period during and after any lapse of a policy;

(b) Policy loan includes any premium loan made under a policy to pay one or more premiums that were not paid to the life insurer as they fell due;

(c) Policyholder includes the owner of the policy or the person designated to pay premiums as shown on the records of the life insurer; and

(d) Policy includes certificates issued by a fraternal benefit society and annuity contracts which provide for policy loans.

(9) No other provision of law shall apply to policy loan interest rates unless made specifically applicable to such rates.

Source:Laws 1981, LB 355, § 16.


44-502.04. Policy loans; interest rate provisions; when applicable.

The provisions of sections 44-502.01 to 44-502.04 shall not apply to any insurance contract issued before August 30, 1981, unless the policyholder agrees in writing to the applicability of such provisions. Any such agreement shall be void unless it is entered into by the policyholder voluntarily and following full disclosure of its effects pursuant to the rules and regulations of the Department of Insurance.

Source:Laws 1981, LB 355, § 17; Laws 1989, LB 92, § 121.


44-502.05. Life insurance; annuity policy; return; when.

Every individual life insurance or annuity policy, except a credit life policy, shall have printed on its face or attached to the policy a notice stating in substance that the person to whom the policy is issued shall be permitted to return the policy within ten days of its delivery to the purchaser and to have the premium paid refunded if, after examination of the policy, the purchaser is not satisfied with it for any reason. If a policyholder or a purchaser pursuant to such notice returns the policy to the insurer at its home office or branch office or to the agent or agency through which it was purchased, the policy shall be void from the beginning and the parties shall be in the same position as if no policy had been issued.

Source:Laws 1989, LB 92, § 128.


44-503. Life or endowment policies; provisions prohibited.

No policy of life or endowment insurance shall be issued or delivered in this state (1) if it contains in substance a provision by which the policy shall purport to be issued, or to take effect, more than six months before the original application for the insurance was made, (2) if it contains in substance a provision which excludes or restricts liability in the event of death by suicide if such death occurs more than two years after the policy date, (3) if it contains in substance provision, except such provisions as are authorized or required by section 44-502, by which the settlement at the maturity of any policy after the expiration of the contestable period thereof shall be of less value than the amount promised on the face of the policy plus dividend additions, if any, less any indebtedness to the company on or secured by the policy, and less any premium that may, by the terms of the policy, be deducted, or (4) if there are attached thereto or issued as a part thereof or in connection therewith any coupons or other evidence of indebtedness by whatever name called, which coupons or other evidence of indebtedness are to be used in reducing the premiums on the policies or for the purchase of additional insurance or any benefit whatever or which are to be redeemed by the company in cash under any circumstances in the nature of a rebate on the premium.

Source:Laws 1913, c. 154, § 102, p. 449; R.S.1913, § 3239; Laws 1919, c. 190, tit. V, art. VII, § 3, p. 630; C.S.1922, § 7838; C.S.1929, § 44-603; Laws 1941, c. 87, § 2, p. 340; C.S.Supp.,1941, § 44-603; Laws 1943, c. 106, § 7, p. 368; R.S.1943, § 44-503; Laws 1989, LB 92, § 122.


Annotations

44-503.01. Beneficiary; trustee; named or to be named in a will.

A policy of life insurance may designate as beneficiary a trustee or trustees named or to be named by will, if the designation is made in accordance with the provisions of the policy and the requirements of the insurance company. Immediately after the proving of the will the proceeds of such insurance shall be paid to the trustee or trustees named therein to be held and disposed of under the terms of the will as they exist at the death of the testator, but if no qualified trustee makes claim to the proceeds from the insurance company within one year after the death of the insured, or if satisfactory evidence is furnished the insurance company within such one-year period showing that no trustee can qualify to receive the proceeds, payment shall be made by the insurance company to those thereafter entitled. Any payment of proceeds in accordance with the provisions of this section by an insurance company shall constitute a full discharge of such insurance company's liability for the amount so paid. The proceeds of the insurance as collected by the trustee or trustees shall not be subject to debts of the insured and inheritance tax. Enactment of this section shall not invalidate previous life insurance policy beneficiary designations naming trustees of trusts established by will.

Source:Laws 1969, c. 355, § 1, p. 1235.


44-504. Repealed. Laws 1947, c. 164, § 21.

44-505. Repealed. Laws 1947, c. 164, § 21.

44-506. Repealed. Laws 1947, c. 164, § 21.

44-507. Foreign and domestic companies; policies; contents; reciprocity.

The policies of any insurance company not organized under the laws of this state may, if filed with the director pursuant to the Property and Casualty Insurance Rate and Form Act, contain any provisions which the law of the state, territory, district, or country under which the company is organized prescribes shall be in such policies when issued in this state, and the policies of any insurance company organized under the laws of this state may, when issued or delivered in any other state, territory, district, or country, contain any provision required by the laws of the state, territory, district, or country in which such policies are issued, the provisions of sections 44-501 to 44-510 to the contrary notwithstanding.

Source:Laws 1913, c. 154, § 106, p. 453; R.S.1913, § 3243; Laws 1919, c. 190, tit. V, art. VII, § 7, p. 634; C.S.1922, § 7842; Laws 1925, c. 124, § 4, p. 330; C.S.1929, § 44-607; R.S.1943, § 44-507; Laws 2007, LB117, § 5.    


Cross References

44-508. Liability insurance; automobiles; bankruptcy of insured; policy provisions; reciprocity.

The policies or contracts of insurance covering legal liability for injury to a person or persons caused by the ownership, operation, use, or maintenance of an automobile issued by any domestic or foreign company shall, if filed with the director pursuant to the Property and Casualty Insurance Rate and Form Act, contain a provision that the insolvency or bankruptcy of the assured shall not release the company from the payment of damages for injury sustained or loss occasioned during the life of the policy, and, in case of such insolvency or bankruptcy, an action may be maintained within the terms and limits of the policy by the injured person or his or her heirs against the insurer.

Source:Laws 1925, c. 124, § 4, p. 330; C.S.1929, § 44-607; R.S.1943, § 44-508; Laws 2007, LB117, § 6.    


Cross References

44-509. Policies; invalid provisions; construction.

A policy issued in violation of sections 44-501 to 44-508 shall be held valid, but shall be construed as provided herein, and when any provision in such a policy is in conflict with any provision hereof, the rights, duties and obligations of the company, policyholder and the beneficiary shall be governed by the provisions of such sections.

Source:Laws 1913, c. 154, § 107, p. 453; R.S.1913, § 3244; Laws 1919, c. 190, tit. V, art. VII, § 8, p. 634; C.S.1922, § 7843; C.S.1929, § 44-608; R.S.1943, § 44-509.


Annotations

44-510. Policies; provisions; violations; penalty.

Any company or association, or any officer, agent, or broker thereof, which or who issues or delivers in this state, or to any citizen thereof, any policy in willful violation of the provisions of sections 44-501 to 44-508 shall be punished by a fine not exceeding one hundred dollars for each offense; and the Department of Insurance may revoke the license of any company, association, agent or broker thereof which or who violates any of the provisions of such sections.

Source:Laws 1913, c. 154, § 108, p. 453; R.S.1913, § 3245; Laws 1919, c. 190, tit. V, art. VII, § 9, p. 634; C.S.1922, § 7844; C.S.1929, § 44-609; R.S.1943, § 44-510.


44-511. Life or annuity policy; form; approval; exception; appeal.

Except as otherwise provided by the Director of Insurance, no policy of life insurance or annuity shall be delivered or issued for delivery in this state, nor shall any endorsement, rider, or application which becomes a part of any such policy be used, until a copy of the form has been filed with the director. No such policy, endorsement, rider, or application shall be so used until the expiration of thirty days after the form has been received unless the director shall sooner give his or her written approval thereto. Such thirty-day period may be extended by the director for an additional period not to exceed thirty days. Notice of such extension shall be mailed to the insurer involved. The director shall notify in writing the insurer which has filed any such form if such form or provision or language thereof is unjust, unfair, inequitable, misleading, or deceptive, encourages misrepresentation of the coverage, or contrary to any provision of the statutes of this state or any rule or regulation adopted and promulgated thereunder, specifying the reasons for his or her opinion, and it shall thereafter be unlawful for such insurer to use such form in this state. In such notice, the director shall state that a hearing will be granted within thirty days upon written request of the insurer. In all other cases the director shall give his or her approval. The disapproval may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1963, c. 258, § 1, p. 782; Laws 1969, c. 359, § 19, p. 1275; Laws 1988, LB 352, § 49; Laws 1989, LB 92, § 123.


Cross References

44-512. Life or annuity policy; form; withdrawal of approval; procedure; appeal.

After the expiration of such thirty days from the filing of any such form or at any time after having given written approval thereof, the director may, after a hearing of which at least ten days' written notice has been given to the insurer issuing such form, withdraw approval on any of the grounds stated in section 44-511. Such disapproval shall be effected by written order of the director which shall state the grounds for disapproval and the date, not less than thirty days after such hearing, when the withdrawal of approval shall become effective. The disapproval may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1963, c. 258, § 2, p. 782; Laws 1969, c. 359, § 20, p. 1276; Laws 1988, LB 352, § 50.


Cross References

44-513. Osteopathic medicine and surgery, chiropractic, optometry, psychology, dentistry, podiatry, or mental health service; policy; provisions.

Whenever any insurer provides by contract, policy, certificate, or any other means whatsoever for a service, or for the partial or total reimbursement, payment, or cost of a service, to or on behalf of any of its policyholders, group policyholders, subscribers, or group subscribers or any person or group of persons, which service may be legally performed by a person licensed in this state for the practice of osteopathic medicine and surgery, chiropractic, optometry, psychology, dentistry, podiatry, or mental health practice, the person rendering such service or such policyholder, subscriber, or other person shall be entitled to such partial or total reimbursement, payment, or cost of such service, whether the service is performed by a duly licensed medical doctor or by a duly licensed osteopathic physician, chiropractor, optometrist, psychologist, dentist, podiatrist, or mental health practitioner. This section shall not limit the negotiation of preferred provider policies and contracts under sections 44-4101 to 44-4113.

Source:Laws 1967, c. 258, § 1, p. 681; Laws 1969, c. 372, § 1, p. 1330; Laws 1974, LB 712, § 1; Laws 1975, LB 190, § 1; Laws 1984, LB 902, § 15; Laws 1989, LB 342, § 2; Laws 1994, LB 1222, § 50; Laws 1995, LB 473, § 1.


44-513.01. Repealed. Laws 1994, LB 1210, § 192.

44-513.02. Reimbursement for prescription drugs and other pharmacy services; prohibited provisions.

(1) A medical benefit contract which provides reimbursement for prescription drugs, including contracts by health maintenance organizations and preferred provider organizations, shall not require a person to obtain prescription drugs from a mail-order pharmacy as a condition to obtaining reimbursement for such drugs. This subsection shall apply to contracts delivered, issued for delivery, or renewed in this state on or after July 10, 1990.

(2)(a) A medical benefit contract, including any contract by a preferred provider organization but excluding any contract by a health maintenance organization, which provides reimbursement for prescription drugs and other pharmacy services shall not impose upon any person who is a party to or beneficiary of the contract a fee or copayment not equally imposed upon any party or beneficiary utilizing a mail-order pharmacy, and no such contract shall provide differences in coverage or impose any different conditions upon any person who is a party to or beneficiary of the contract not equally imposed upon any party or beneficiary utilizing a mail-order pharmacy. This subsection shall apply to contracts delivered, issued for delivery, or renewed in this state on or after July 16, 1994.

(b) This subsection shall not apply to reimbursement for long-term maintenance drugs. Long-term maintenance drugs means medications which are dispensed pursuant to a single prescription for a period of no less than one hundred eighty days, exclusive of authorized refills, for the ongoing treatment of a chronic medical condition or disease or congenital condition or disorder.

Source:Laws 1990, LB 1136, § 122; Laws 1994, LB 718, § 1; Laws 1995, LB 531, § 1.


44-514. Automobile liability policy; terms, defined.

For purposes of sections 44-514 to 44-521, unless the context otherwise requires:

(1) Policy shall mean an automobile liability policy providing all or part of the coverage defined in subdivision (2) of this section, delivered or issued for delivery in this state, insuring a natural person as named insured or one or more related individuals resident of the same household, and under which the insured vehicles designated in the policy are of the following types only: (a) A motor vehicle of the private passenger or station wagon type that is not used as a public or livery conveyance for passengers nor rented to others; or (b) any other four-wheel motor vehicle of the pickup, panel, or delivery type which is not used in the occupation, profession, or business of the insured, except that sections 44-514 to 44-521 shall not apply (i) to any policy issued under an automobile assigned risk plan; (ii) to any policy subject to section 44-523; (iii) to any policy covering garage, automobile sales agency, repair shop, service station, or public parking place operation hazards; or (iv) to any policy of insurance issued principally to cover personal or premises liability of an insured even though such insurance may also provide some incidental coverage for liability arising out of the ownership, maintenance, or use of a motor vehicle on the premises of such insured or on the way immediately adjoining such premises;

(2) Automobile liability coverage shall include only coverage of bodily injury and property damage liability, medical payments, uninsured motorist coverage, and underinsured motorist coverage;

(3) Renewal or to renew shall mean the issuance and delivery by an insurer of a policy replacing at the end of the policy period a policy previously issued and delivered by the same insurer or the issuance and delivery of a certificate or notice extending the term of a policy beyond its policy period or term, except that (a) any policy with a policy period or term of less than six months shall be considered as if written for a policy period or term of six months and (b) any policy written for a term longer than one year or any policy with no fixed expiration date shall be considered as if written for successive policy periods or terms of one year, and such policy may be terminated at the expiration of any annual period upon giving twenty days' notice of cancellation prior to such anniversary date, and such cancellation shall not be subject to any other provisions of sections 44-514 to 44-521; and

(4) Nonpayment of premium shall mean failure of the named insured to discharge when due any of his or her obligations in connection with the payment of any premium on a policy or any installment of such premium, whether the premium is payable directly to the insurer or its agent or indirectly under any premium finance plan or extension of credit.

Source:Laws 1972, LB 1396, § 1; Laws 1989, LB 92, § 124; Laws 2007, LB115, § 1.    


Annotations

44-515. Automobile liability policy; notice of cancellation; requirements; exceptions.

(1) A notice of cancellation of a policy shall be effective only if it is based on one or more of the following reasons:

(a) Nonpayment of premium;

(b) Fraud or material misrepresentation affecting the policy or in the presentation of a claim thereunder, or violation of any of the terms or conditions of the policy; or

(c) The named insured or any operator, either resident in the same household or who customarily operates an automobile insured under the policy, (i) has had his or her driver's license suspended or revoked pursuant to law, (ii) has been convicted of larceny of an automobile, or theft of an automobile in violation of section 28-516, (iii) has been convicted of an offense for which such suspension or revocation is mandatory, or (iv) whose driver's license is subject to revocation or suspension pursuant to the provisions of sections 60-4,182 to 60-4,186, by reason of his or her driving record as disclosed by the files of the Director of Motor Vehicles during the policy period or, if the policy is a renewal, during its policy period or the one hundred eighty days immediately preceding its effective date.

(2) This section shall not apply to any policy or coverage which has been in effect less than sixty days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy.

(3) This section shall not apply to nonrenewal.

Source:Laws 1972, LB 1396, § 2; Laws 1978, LB 748, § 29; Laws 1993, LB 370, § 43.


Annotations

44-516. Automobile liability policy; notice of cancellation; reason for cancellation.

(1) No notice of cancellation of a policy to which section 44-515 applies shall be effective unless mailed by registered mail, certified mail, or first-class mail using intelligent mail barcode or another similar tracking method used or approved by the United States Postal Service to the named insured at least thirty days prior to the effective date of cancellation, except that if cancellation is for nonpayment of premium, at least ten days' notice of cancellation accompanied by the reason therefor shall be given. The requirements of this subsection shall apply to a cancellation initiated by a premium finance company for nonpayment of premium.

(2) Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than twenty-five days prior to the effective date of cancellation, the insurer will specify the reason for such cancellation. The insurer shall, upon such written request of the named insured, mailed or delivered to the insurer not less than twenty-five days prior to the effective date of cancellation, specify in writing the reason for such cancellation. Such reason shall be mailed or delivered to the named insured within five days after receipt of such request.

(3) For purposes of sections 44-514 to 44-521:

(a) An insurer's substitution of insurance upon renewal which results in substantially equivalent coverage shall not be considered a cancellation of a policy; and

(b) The transfer of a policyholder between insurers within the same insurance group shall be considered a cancellation only if the transfer results in policy coverage or rates substantially less favorable to the insured.

(4) Subsections (1) and (2) of this section shall not apply to nonrenewal.

Source:Laws 1972, LB 1396, § 3; Laws 1973, LB 390, § 2; Laws 1999, LB 326, § 2;    Laws 2001, LB 360, § 2;    Laws 2017, LB406, § 1.    


Annotations

44-517. Automobile liability policy; notice of intention not to renew; requirements.

(1) No insurer shall refuse to renew a policy unless such insurer or its agent shall mail or deliver to the named insured, at the address shown in the policy, at least twenty days' advance notice of its intention not to renew. This section shall not apply: (a) If the insurer has manifested its willingness to renew; nor (b) in case of nonpayment of premium, except that notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other insurance policy with respect to any automobile designated in both policies.

(2) For purposes of sections 44-514 to 44-521:

(a) An insurer's substitution of insurance upon renewal which results in substantially equivalent coverage shall not be considered a refusal to renew a policy; and

(b) The transfer of a policyholder between insurers within the same insurance group shall be considered a refusal to renew a policy only if the transfer results in policy coverage or rates substantially less favorable to the insured.

(3) Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation that existed before the effective date of such renewal.

Source:Laws 1972, LB 1396, § 4; Laws 2001, LB 360, § 3.    


Annotations

44-518. Automobile liability policy; notice of intention not to renew; reason.

If an insurer shall refuse to renew a policy, as provided for in section 44-517, the insurer shall, upon written request of the named insured, mailed or delivered not less than fifteen days prior to the effective date of such notice of intention not to renew, specify in writing the reason for such refusal to renew. Such reason shall be mailed or delivered to the named insured within five days after receipt of such request.

Source:Laws 1972, LB 1396, § 5.


44-519. Automobile liability policy; notice; proof of receipt.

Evidence of mailing notice of cancellation, of intention not to renew, or of reasons for cancellation to the named insured's last mailing address known to the insurer shall be sufficient proof of receipt of notice.

Source:Laws 1972, LB 1396, § 6; Laws 1989, LB 92, § 125.


44-520. Automobile liability policy; cancellation; notice of other insurance; contents.

When automobile bodily injury and property damage liability coverage is canceled, other than for nonpayment of premium, or in the event of failure to renew automobile bodily injury and property damage liability coverage to which section 44-517 applies, the insurer shall notify the named insured of the insured's possible eligibility for automobile liability insurance through an affiliated insurer or the automobile liability assigned risk plan. Such notice shall accompany or be included in the notice of cancellation or the notice of intent not to renew.

Source:Laws 1972, LB 1396, § 7; Laws 2001, LB 360, § 4.    


44-521. Automobile liability policy; no liability on director or others furnishing information.

There shall be no liability on the part of, and no cause of action of any nature shall arise against, the Director of Insurance or against any insurer, its authorized representative, its agents, its employees, or any firm, person, or corporation furnishing to the insurer information as to reasons for cancellation or intention not to renew, for any statement made by any of them in any written notice of cancellation or intention not to renew, or in any other communication, oral or written, specifying the reasons for cancellation or intention not to renew, or the providing of information pertaining thereto, or for statements made or evidence submitted at any hearings conducted in connection therewith.

Source:Laws 1972, LB 1396, § 8.


44-522. Policies; cancellation requirements.

(1) No insurer may file an insurance policy with the department, as required by the Property and Casualty Insurance Rate and Form Act, which insures against loss or damage to property or against legal liability from any cause unless such policy contains appropriate provisions for cancellation thereof by either the insurer or the insured and for nonrenewal thereof by the insurer.

(2) On any policy or binder of property, marine, or liability insurance, as specified in section 44-201, the insurer shall give the insured sixty days' written notice prior to cancellation or nonrenewal of such policy or binder, except that the insurer may cancel upon ten days' written notice to the insured in the event of nonpayment of premium or if such policy or binder has a specified term of sixty days or less unless the policy or binder has previously been renewed. The requirements of this subsection shall apply to a cancellation initiated by a premium finance company for nonpayment of premium. The provisions of this subsection and subsection (4) of this section shall not apply to nonrenewal of a policy or binder which has a specified term of sixty days or less unless the policy or binder has previously been renewed. Such notice shall state the reason for cancellation or nonrenewal.

(3) Notwithstanding subsection (2) of this section, no policy of property, marine, or liability insurance, as specified in section 44-201, which has been in effect for more than sixty days shall be canceled by the insurer except for one of the following reasons:

(a) Nonpayment of premium;

(b) The policy was obtained through a material misrepresentation;

(c) Any insured has submitted a fraudulent claim;

(d) Any insured has violated any of the terms and conditions of the policy;

(e) The risk originally accepted has substantially increased;

(f) Certification to the Director of Insurance of loss of reinsurance by the insurer which provided coverage to the insurer for all or a substantial part of the underlying risk insured; or

(g) The determination by the director that the continuation of the policy could place the insurer in violation of the insurance laws of this state.

(4) Notice of cancellation or nonrenewal shall be sent by registered mail, certified mail, first-class mail, or first-class mail using intelligent mail barcode or another similar tracking method used or approved by the United States Postal Service to the insured's last mailing address known to the insurer. If sent by first-class mail, a United States Postal Service certificate of mailing shall be sufficient proof of receipt of notice on the third calendar day after the date of the certificate.

(5) For purposes of this section:

(a) An insurer's substitution of insurance upon renewal which results in substantially equivalent coverage shall not be considered a cancellation of or a refusal to renew a policy; and

(b) The transfer of a policyholder between insurers within the same insurance group shall be considered a cancellation or a refusal to renew a policy only if the transfer results in policy coverage or rates substantially less favorable to the insured.

(6) The requirements of subsections (2), (3), and (4) of this section shall not apply to automobile insurance coverage, insurance coverage issued under the Nebraska Workers' Compensation Act, insurance coverage on growing crops, or insurance coverage which is for a specified season or event and which is not subject to renewal or replacement.

(7) All policy forms issued for delivery in Nebraska shall conform to this section.

Source:Laws 1913, c. 154, § 72, p. 424; R.S.1913, § 3208; Laws 1919, c. 190, tit. V, art. IV, § 42, p. 604; C.S.1922, § 7807; C.S.1929, § 44-342; R.S.1943, § 44-379; Laws 1955, c. 176, § 1, p. 505; Laws 1986, LB 1184, § 1; R.S.1943, (1988), § 44-379; Laws 1989, LB 92, § 126; Laws 1991, LB 233, § 45; Laws 1999, LB 326, § 3;    Laws 2000, LB 1119, § 37;    Laws 2001, LB 360, § 5;    Laws 2007, LB117, § 7;    Laws 2017, LB406, § 2.    


Cross References

Annotations

44-523. Automobile liability insurance policy; cancellation; notice; exceptions.

(1)(a) Except as provided in subdivision (1)(b) of this section, a notice of cancellation, given for reasons other than for nonpayment of premium, of a policy of automobile liability insurance issued or delivered in this state shall only be effective if mailed by registered mail, certified mail, or first-class mail using intelligent mail barcode or another similar tracking method used or approved by the United States Postal Service to the named insured at the address shown in the policy at least thirty days prior to the effective date of such cancellation.

(b) A notice of cancellation, initiated by a premium finance company, of a policy of automobile liability insurance issued or delivered in this state shall only be effective if mailed by registered mail, certified mail, or first-class mail using intelligent mail barcode or another similar tracking method used or approved by the United States Postal Service to the named insured at the address shown in the policy at least ten days prior to the effective date of such cancellation.

(2) For purposes of this section:

(a) An insurer's substitution of insurance upon renewal which results in substantially equivalent coverage shall not be considered a cancellation of a policy; and

(b) The transfer of a policyholder between insurers within the same insurance group shall be considered a cancellation of a policy only if the transfer results in policy coverage or rates substantially less favorable to the insured.

(3) This section shall not apply (a) to any policy subject to sections 44-514 to 44-521, (b) to any policy issued under an automobile assigned risk plan or to any policy of insurance issued principally to cover personal or premises liability of an insured even though such insurance may also provide some incidental coverage for liability arising out of the ownership, maintenance, or use of a motor vehicle on the premises of the insured or on the ways adjoining such premises, and (c) to any policy or coverage which has been in effect less than sixty days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy.

(4) Any attempted cancellation in violation of the provisions of this section shall be void.

Source:Laws 1972, LB 481, § 1; Laws 1973, LB 390, § 1; R.S.1943, (1988), § 44-379.01; Laws 1989, LB 92, § 127; Laws 1999, LB 326, § 4;    Laws 2001, LB 360, § 6;    Laws 2017, LB406, § 3.    


Annotations

44-524. Health claim form; act, how cited.

Sections 44-524 to 44-530 shall be known and may be cited as the Standardized Health Claim Form Act.

Source:Laws 1994, LB 1222, § 52.


44-525. Health claim form; purposes of act.

The purposes of the Standardized Health Claim Form Act are to standardize the forms used in the billing and reimbursement of health care, reduce the number of forms utilized and increase efficiency in the reimbursement of health care through standardization, and encourage the use of electronic data interchange of health care expenses and reimbursement.

Source:Laws 1994, LB 1222, § 53.


44-526. Health claim form; terms, defined.

For purposes of the Standardized Health Claim Form Act:

(1) Ambulatory surgical facility shall mean a facility, not a part of a hospital, which provides surgical treatment to patients not requiring hospitalization and which is licensed as a health clinic as defined by section 71-416 but shall not include the offices of private physicians or dentists whether for individual or group practice;

(2) Health care shall mean any treatment, procedure, or intervention to diagnose, cure, care for, or treat the effects of disease or injury or congenital or degenerative condition;

(3) Health care practitioner shall mean an individual or group of individuals in the form of a partnership, limited liability company, or corporation licensed, certified, or otherwise authorized or permitted by law to administer health care in the course of professional practice and shall include the health care professions and occupations which are regulated in the Uniform Credentialing Act;

(4) Hospital shall mean a hospital as defined by section 71-419 except state hospitals administered by the Department of Health and Human Services;

(5) Institutional care providers shall mean all facilities licensed or otherwise authorized or permitted by law to administer health care in the ordinary course of business and shall include all health care facilities defined in the Health Care Facility Licensure Act;

(6) Issuer shall mean an insurance company, fraternal benefit society, health maintenance organization, third-party administrator, or other entity reimbursing the costs of health care expenses;

(7) Medicaid shall mean the medical assistance program pursuant to the Medical Assistance Act;

(8) Medicare shall mean Title XVIII of the federal Social Security Act, 42 U.S.C. 1395 et seq., as amended; and

(9) Uniform claim form shall mean the claim forms and electronic transfer procedures developed pursuant to section 44-527.

Source:Laws 1994, LB 1222, § 54; Laws 1996, LB 1044, § 235; Laws 2000, LB 819, § 68;    Laws 2006, LB 1248, § 58;    Laws 2007, LB463, § 1134.    


Cross References

44-527. Health claim form; director; duties.

The Director of Insurance shall develop uniform claim forms and uniform electronic transfer procedures for issuers, institutional care providers, and health care practitioners. The director shall consult with interested individuals and associations who have expertise in the development and maintenance of uniform claim forms and procedures. The director shall utilize forms available from state and federal sources and may modify such forms to meet the specific needs for health care in this state.

Source:Laws 1994, LB 1222, § 55.


44-528. Health claim form; acceptance and utilization required.

No issuer, institutional care provider, or health care practitioner shall contract with any person or employer, union, or other organization under which health care services or benefits are provided unless such person or organization accepts and utilizes or agrees to accept and utilize the uniform claim form for claims for health care services and benefits provided to employees or members.

Source:Laws 1994, LB 1222, § 56.


44-529. Health claim form; hospital and ambulatory surgical facility; billing invoice; duty.

Each hospital and ambulatory surgical facility shall issue and complete a billing invoice on the uniform claim form for outpatient and inpatient services provided by the hospital or ambulatory surgical facility as a condition of reimbursement by medicaid, medicare, and issuers.

Source:Laws 1994, LB 1222, § 57.


44-530. Health claim form; violation; penalty; license revocation.

Any person who knowingly violates or knowingly aids or abets in the violation of the Standardized Health Claim Form Act or who fails to perform any duty under such act shall be guilty of a Class III misdemeanor. Any issuer who violates the act shall be subject to license revocation by the Department of Insurance.

Source:Laws 1994, LB 1222, § 58.


44-531. Reduction or elimination of coverage; restrictive condition; notice required; right of parties to amend contract.

(1) If an insurer reduces or eliminates any coverage in or introduces a more restrictive condition as part of a policy in force delivered or issued for delivery in this state and subject to sections 44-514 to 44-521 or section 44-522 or 44-523 prior to renewal of the policy and other than at the request of the named insured or as required by law, the insurer shall send to the named insured a notice explaining clearly what coverage has been reduced or eliminated or what condition has been restricted. The notice may be in a printed or electronic form if the named insured requested the electronic form and there was an agreement to that effect with the insurer prior to such request. If the named insured does not receive the notice, the reduction or elimination of coverage or restrictive condition shall not become part of the policy. It shall be a rebuttable presumption that all insureds received the notice if it was sent by email or first-class mail to the named insured's last-known email address or mailing address contained in the policy.

(2) Notice of any reduction or elimination of coverage or restrictive condition as part of a policy in force delivered or issued for delivery in this state and subject to sections 44-514 to 44-521 or section 44-522 or 44-523 and other than at the request of the named insured or as required by law shall be sent to each agency that holds an agency contract with the insurer prior to the introduction into the marketplace of a policy containing the reduction or elimination of coverage or restrictive condition.

(3) Nothing in this section shall restrict the right of the parties to an insurance contract to amend the contract, during the policy term but not during the renewal process, pursuant to an endorsement attached to the policy if requested by a named insured under the policy. An endorsement attached to a policy pursuant to this subsection requires no further notice beyond such endorsement.

Source:Laws 2008, LB1045, § 1.    


44-601. Over-insurance; policies for more than five years prohibited.

It shall be unlawful for any insurance company or any agent to knowingly issue any fire insurance policy upon property within this state for an amount which, with any existing insurance, exceeds the fair value of the property or of the interest of the insured therein, or for a longer time than for five years, except as provided in section 44-812.

Source:Laws 1913, c. 154, § 109, p. 454; R.S.1913, § 3246; Laws 1919, c. 190, tit. V, art. VIII, § 1, p. 634; C.S.1922, § 7845; C.S.1929, § 44-701; R.S.1943, § 44-601.


Annotations

44-602. Over-insurance; procurement unlawful.

It shall be unlawful for any party having an insurable interest in property located in this state to knowingly procure any fire insurance policy upon his interest in such property, for an amount in excess of the fair value of his interest in the property, or for an amount which, with any existing insurance thereon, exceeds the fair value of his interest in the property.

Source:Laws 1913, c. 154, § 110, p. 454; R.S.1913, § 3247; Laws 1919, c. 190, tit. V, art. VIII, § 2, p. 635; C.S.1922, § 7846; C.S.1929, § 44-702; R.S.1943, § 44-602.


Annotations

44-603. Over-insurance; penalties.

Every insurer who makes insurance upon any building or property or interest therein against loss or damage by fire, and every agent who issues a fire insurance policy covering any building or property or interest therein, and every insured who procures a policy of fire insurance upon any building or property or interest therein owned by him, is presumed to know the insurable value of such building or property or interest therein at the time such insurance is effected. Any insurer who knowingly makes insurance on any building or property or interest therein against loss or damage by fire in excess of the insurable value thereof, shall be fined in a sum not less than fifty dollars nor more than one hundred dollars. Any agent who knowingly effects insurance on a building or property or interest therein in excess of the insurable value thereof shall be fined in a sum not less than fifteen nor more than twenty-five dollars.

Source:Laws 1913, c. 154, § 111, p. 454; R.S.1913, § 3248; Laws 1919, c. 190, tit. V, art. VIII, § 3, p. 635; C.S.1922, § 7847; C.S.1929, § 44-703; R.S.1943, § 44-603.


44-604. Repealed. Laws 1989, LB 92, § 278.

44-605. Repealed. Laws 1951, c. 141, § 1.

44-606. Fire insurance; premium; policy must state.

Every fire insurance policy must state on its face the amount of the premium.

Source:Laws 1913, c. 154, § 113, p. 455; R.S.1913, § 3250; Laws 1919, c. 190, tit. V, art. VIII, § 5, p. 635; C.S.1922, § 7849; C.S.1929, § 44-705; R.S.1943, § 44-606.


44-607. Repealed. Laws 1957, c. 186, § 1.

44-608. Repealed. Laws 1957, c. 186, § 1.

44-609. Repealed. Laws 1957, c. 186, § 1.

44-610. Repealed. Laws 1957, c. 186, § 1.

44-611. Repealed. Laws 1957, c. 186, § 1.

44-612. Repealed. Laws 1957, c. 186, § 1.

44-613. Repealed. Laws 1957, c. 186, § 1.

44-614. Repealed. Laws 1957, c. 186, § 1.

44-615. Repealed. Laws 1957, c. 186, § 1.

44-616. Repealed. Laws 1957, c. 186, § 1.

44-617. Repealed. Laws 1957, c. 186, § 1.

44-618. Repealed. Laws 1957, c. 186, § 1.

44-619. Repealed. Laws 1957, c. 186, § 1.

44-620. Repealed. Laws 1957, c. 186, § 1.

44-621. Repealed. Laws 1957, c. 186, § 1.

44-622. Repealed. Laws 1957, c. 186, § 1.

44-623. Repealed. Laws 1957, c. 186, § 1.

44-624. Repealed. Laws 1989, LB 92, § 278.

44-625. Repealed. Laws 1989, LB 92, § 278.

44-626. Repealed. Laws 1989, LB 92, § 278.

44-627. Repealed. Laws 1989, LB 92, § 278.

44-701. Life insurance; policies; how signed.

All life insurance policies except industrial policies delivered in this state shall be signed by the secretary or assistant secretary; in their absence, by a secretary pro tempore and by the president or vice president, or, in their absence, by two directors, of the company issuing the same.

Source:Laws 1913, c. 154, § 118, p. 460; R.S.1913, § 3255; Laws 1919, c. 190, tit. V, art. IX, § 1, p. 641; C.S.1922, § 7854; C.S.1929, § 44-801; R.S.1943, § 44-701.


44-702. Repealed. Laws 1951, c. 142, § 1.

44-703. Life insurance; claims; false statements in application; effect.

In any claim arising under a policy which has been issued in this state by any life insurance company without previous medical examination, or without the knowledge and consent of the insured, or if said insured is under ten years of age, without the consent of the parent, guardian or other person having legal custody of said minor, the statements made in the application as to age, physical condition and family history of the insured, shall be valid and binding upon the company, but the company shall not be debarred from proving as a defense to such claim that said statements were willfully false, fraudulent or misleading.

Source:Laws 1913, c. 154, § 120, p. 460; R.S.1913, § 3257; Laws 1919, c. 190, tit. V, art. IX, § 3, p. 641; C.S.1922, § 7856; C.S.1929, § 44-803; R.S.1943, § 44-703; Laws 1969, c. 373, § 1, p. 1330.


Annotations

44-704. Life, sickness, or accident insurance; annuities; who may apply or own; restrictions.

(1) Except as provided in subsection (2) of this section, no policy of insurance shall be issued upon the person of any individual except upon the application of the individual insured or with the written consent of the individual insured. Nothing in this section shall be deemed to prohibit the immediate transfer or assignment of a life insurance policy or annuity contract so issued.

(2) Notwithstanding the provisions of subsection (1) of this section, (a) a husband or wife may effectuate a policy of insurance upon the person of the other and (b) any person may effectuate a policy of insurance upon the person of a child.

(3) The term policy of insurance as used in this section shall include any life insurance policy, annuity contract, and contract of sickness and accident insurance but shall not include a contract of group life insurance or a contract of blanket or group sickness and accident insurance.

(4) Nothing in Chapter 44 shall prohibit an organization or entity described in section 501(c)(3) of the Internal Revenue Code or to whom a charitable contribution could be made under section 170(c) of the code or a trust all of whose beneficiaries are organizations or entities described in section 501(c)(3) of the code or to whom a charitable contribution could be made under section 170(c) of the code from procuring, effectuating, or causing to be procured or effectuated the ownership of any life insurance policy or annuity contract upon the life of an individual if such individual gives written consent to the issuance of such policy or contract when such organization, entity, or trust is the owner of such policy or contract. Nothing in Chapter 44 shall require such organization, entity, or trust to have an insurable interest as defined in section 44-103 in the life of such individual in order for a policy or contract to be procured or effectuated pursuant to this subsection. This subsection shall apply to all policies and contracts in force on or after April 16, 1992. The changes made to this subsection by Laws 2004, LB 980, shall apply to all policies and contracts in force on or after July 16, 2004.

(5) Except as provided in subsection (4) of this section, nothing in this section shall be construed to permit a person to procure, effectuate, or cause to be procured or effectuated, directly or by assignment or otherwise, any policy of insurance upon the person of a child or other individual unless the benefits under such policy are payable to the child or other individual insured, to his or her personal representative, or to a person having, at the time such policy is issued, an insurable interest in the child or other individual insured.

Source:Laws 1913, c. 154, § 121, p. 460; R.S.1913, § 3258; Laws 1919, c. 190, tit. V, art. IX, § 4, p. 641; C.S.1922, § 7857; Laws 1925, c. 118, § 1, p. 313; C.S.1929, § 44-804; Laws 1933, c. 77, § 1, p. 319; Laws 1937, c. 102, § 1, p. 358; Laws 1941, c. 85, § 1, p. 333; C.S.Supp.,1941, § 44-804; R.S.1943, § 44-704; Laws 1957, c. 187, § 1, p. 641; Laws 1992, LB 1006, § 15; Laws 1995, LB 574, § 45; Laws 2004, LB 980, § 1.    


Annotations

44-705. Life, sickness, or accident insurance; annuities; minors; competency.

A minor not less than ten years of age, as determined by nearest birthday, shall not be deemed incompetent by reason of such minority to contract for or with respect to insurance or annuities upon his life or against bodily injury or death by accident or disability from sickness, for the benefit of himself or his estate, or for the benefit of the father, mother, husband, wife, brother or sister of such minor; nor shall such minor be deemed incompetent by reason of such minority to surrender such insurance or give a valid discharge on account of any benefit accruing or for money payable under the contract; Provided, such surrender or discharge shall be approved in writing by the parent of such minor or person liable for his support.

Source:Laws 1913, c. 154, § 121, p. 462; R.S.1913, § 3258; Laws 1919, c. 190, tit. V, art. IX, § 4, p. 643; C.S.1922, § 7857; Laws 1925, c. 118, § 1, p. 314; C.S.1929, § 44-804; Laws 1933, c. 77, § 1, p. 319; Laws 1937, c. 102, § 1, p. 358; Laws 1941, c. 85, § 1, p. 333; C.S.Supp.,1941, § 44-804; R.S.1943, § 44-705; Laws 1969, c. 373, § 2, p. 1331.


44-706. Life insurance; minors; policy options; applicant may exercise.

Subject to the rights of any person other than the minor whose life is insured, the applicant for a policy upon the life of a minor may during the lifetime of said minor and prior to the time such minor shall be ten years of age at nearest birthday, exercise any option contained in said policy in all respects the same as though such applicant were the person insured by or the owner of said policy, and, under like circumstances, shall be entitled to collect and receive all sums payable upon or on account of such policy.

Source:Laws 1937, c. 102, § 1, p. 359; Laws 1941, c. 85, § 1, p. 333; C.S.Supp.,1941, § 44-804; R.S.1943, § 44-706; Laws 1969, c. 373, § 3, p. 1331.


44-706.01. Life insurance; minor; payments; competency.

Any minor domiciled in this state, who shall have attained the age of eighteen years, shall be deemed competent to receive, and to give full acquittance and discharge for a single sum or for periodical payments, not exceeding three thousand dollars in any one year, payable by a life insurance company under the maturity, death or settlement agreement provisions in effect or elected by such minor under a life insurance policy or annuity contract, if such policy, contract or agreement shall provide for the payment or payments to such minor and if prior to such payment the company had not received written notice of the appointment of a duly qualified guardian of the estate of such minor; but no such minor shall be deemed competent to alienate the right to such payment or payments or to anticipate the same.

The provisions of this section shall not be construed as requiring any insurance company making such payment to determine whether any other insurance company may be effecting a similar payment to the same minor.

Source:Laws 1969, c. 373, § 4, p. 1332.


44-707. Domestic company; contingency reserve.

Any domestic life insurance company may accumulate and maintain, in addition to the net value of its policies and all accumulations held on account of existing or future dividends, policies, or groups of such policies, a contingency reserve of not more than twenty percent of said net value, or the sum of one hundred thousand dollars, whichever is the greater. For cause shown, the Department of Insurance may, at any time, and from time to time, permit any company to accumulate and maintain a larger contingency reserve, not exceeding one year under any one permission, by filing in the office of the department a written request stating the reasons therefor.

Source:Laws 1913, c. 154, § 122, p. 462; R.S.1913, § 3259; Laws 1919, c. 190, tit. V, art. IX, § 5, p. 643; C.S.1922, § 7858; C.S.1929, § 44-805; R.S.1943, § 44-707; Laws 1947, c. 165, § 1, p. 472.


44-707.01. Repealed. Laws 2000, LB 930, § 12.

44-707.02. Repealed. Laws 2000, LB 930, § 12.

44-707.03. Repealed. Laws 2000, LB 930, § 12.

44-707.04. Repealed. Laws 2000, LB 930, § 12.

44-708. Life insurers; funding agreements; authorized.

(1) Insurers authorized to deliver or issue for delivery life insurance policies in this state may deliver or issue for delivery one or more funding agreements, but the delivery or issuance for delivery of funding agreements shall not be deemed the business of insurance, life insurance or an annuity or other line of business as set forth in section 44-201, a security as defined in subdivision (15) of section 8-1101, or receipt of gross premiums as set forth in section 77-908. The delivery or issuance for delivery of a funding agreement by an admitted life insurer in this state shall constitute a lawful activity of that insurer that is reasonably related to and incidental to its insurance activities as provided in this section. However, this section shall not authorize any insurer to transact, under the guise of funding agreements, any line of insurance not authorized by its certificate of authority.

(2) No amounts shall be guaranteed or credited under any funding agreement except upon reasonable assumptions as to investment income and expenses and on a basis equitable to all holders of funding agreements of a given class.

(3) Amounts paid to the insurer, and proceeds applied under optional modes of settlement, under funding agreements may be allocated by the insurer to one or more separate accounts.

(4) The Director of Insurance may adopt and promulgate rules and regulations to implement this section, including rules and regulations setting forth the terms and conditions under which an insurer may issue funding agreements.

(5) Notwithstanding any other provision of law, the director shall have sole authority to regulate the issuance and sale of funding agreements, including the persons selling funding agreements on behalf of insurers.

(6) Nothing in this section is intended to affect the order in which allowed claims shall be given preference under section 44-4842. Holders of funding agreements shall retain the priority in allowance of claims described in subdivision (2) of section 44-4842.

(7) For purposes of this section, funding agreement means an agreement that authorizes an admitted life insurer to accept funds and that provides for an accumulation of those funds for the purpose of making one or more payments at future dates in amounts that are not based on mortality or morbidity contingencies. Funding agreement does not include any agreement in connection with the funding of one or more payments that are excludable from the gross income of the recipient under section 104(a)(2) of the Internal Revenue Code.

Source:Laws 2004, LB 1047, § 21.    


44-708.01. Life insurers; synthetic guaranteed investment contracts; authorized.

(1) Insurers authorized to deliver or issue for delivery life insurance policies in this state may deliver or issue for delivery synthetic guaranteed investment contracts if the following requirements are met:

(a) The insurer is authorized to deliver, or issue for delivery, life insurance policies in this state; and

(b) The insurer has at least one billion dollars in admitted assets or one hundred million dollars in capital and surplus, as reflected by the most recent financial statements on file with the Director of Insurance.

(2) Synthetic guaranteed investment contracts, that are not otherwise subject to filing under applicable law and regulation, shall be filed, before being marketed or issued in this state, by the insurer with the director. If the director finds that the synthetic guaranteed investment contracts contemplate practices that are unfair or unreasonable or otherwise inconsistent with the provisions of Chapter 44, the director may disapprove of the forms of synthetic guaranteed investment contracts specifying in what regard the synthetic guaranteed investment contracts are unfair or unreasonable or otherwise inconsistent with the provisions of Chapter 44.

(3) The director may adopt and promulgate rules and regulations to implement this section, including rules and regulations setting forth the terms and conditions under which an insurer may issue synthetic guaranteed investment contracts.

(4) For purposes of this section, synthetic guaranteed investment contract means a policy, contract, or agreement that establishes the insurer's obligations under the policy, contract, or agreement by reference to a portfolio of assets that is not owned or possessed by the insurer.

Source:Laws 2004, LB 1047, § 22.    


44-709. Sickness and accident insurance, defined.

The term sickness and accident insurance as used in sections 44-710 to 44-767 shall mean insurance against loss or expense resulting from the sickness of the insured, from the bodily injury or death of the insured by accident, or both.

Source:Laws 1947, c. 164, § 1, p. 452; Laws 1957, c. 188, § 1, p. 642; Laws 1989, LB 92, § 129.


44-709.01. Repealed. Laws 1957, c. 188, § 22.

44-710. Sickness and accident insurance policy; form; approval; exception; premium rates and classification of risks; filing requirements.

(1) Except as otherwise provided by the Director of Insurance and subsection (2) of this section, no policy of sickness and accident insurance shall be delivered or issued for delivery in this state, nor shall any endorsement, rider, or application which becomes a part of any such policy be used, until a copy of the form and of the premium rates and of the classification of risks pertaining thereto has been filed with the Director of Insurance. No policy, endorsement, rider, or application shall be used until the expiration of thirty days after the form has been received by the director unless the director gives his or her written approval thereto prior to the expiration of the thirty-day period. The thirty-day period may be extended by the director for an additional period not to exceed thirty days. Notice of such extension shall be sent to the insurer involved. The director shall notify in writing the insurer which has filed any such form if it contains benefits that are unreasonable in relation to the premium charged or any provision which is unjust, unfair, inequitable, misleading, or contrary to the law of this state, specifying the reasons for his or her opinion, and it shall thereafter be unlawful for such insurer to use such form in this state. In such notice, the director shall state that a hearing will be granted within thirty days upon written request of the insurer. In all other cases the director shall give his or her approval. The decision of the director may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.

(2) No sickness and accident insurance policy subject to the federal Patient Protection and Affordable Care Act, Public Law 111-148, shall be delivered or issued for delivery in this state, including any policy or certificate of sickness and accident insurance issued to or for associations not domiciled in this state other than a certificate issued to an employee under an employee benefit plan of an employer headquartered in another state where the policy is lawfully issued in that state, nor shall any endorsement, rider, certificate, or application which becomes a part of any such policy be used until a copy of the form and of the premium rates and of the classification of risks pertaining thereto has been filed with and approved by the Director of Insurance. No policy, endorsement, rider, or application shall be used until the expiration of thirty days after the form has been received by the director unless the director gives his or her written approval thereto prior to the expiration of the thirty-day period. The thirty-day period may be extended by the director for an additional period not to exceed thirty days. Notice of such extension shall be sent to the insurer involved. The director shall notify in writing the insurer which has filed any such form if it contains benefits that are unreasonable in relation to the premium charged or any provision which is unjust, unfair, inequitable, misleading, or contrary to the law of this state, specifying the reasons for his or her opinion, and it shall thereafter be unlawful for such insurer to use such form in this state. In such notice, the director shall state that a hearing will be granted within thirty days upon written request of the insurer. In all other cases the director shall give his or her approval. The decision of the director may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1947, c. 164, § 2(1), p. 452; Laws 1951, c. 143, § 1, p. 581; Laws 1959, c. 209, § 1, p. 728; Laws 1969, c. 359, § 21, p. 1276; Laws 1989, LB 6, § 5; Laws 1989, LB 92, § 130; Laws 2013, LB336, § 1.    


Cross References

44-710.01. Sickness and accident insurance; standard policy provisions; requirements; enumeration.

No policy of sickness and accident insurance shall be delivered or issued for delivery to any person in this state unless (1) the entire money and other considerations therefor are expressed therein, (2) the time at which the insurance takes effect and terminates is expressed therein, (3) it purports to insure only one person, except that a policy may insure, originally or by subsequent amendment, upon the application of an adult member of a family who shall be deemed the policyholder, any two or more eligible members of that family, including husband, wife, dependent children, any children enrolled on a full-time basis in any college, university, or trade school, or any children under a specified age which shall not exceed thirty years and any other person dependent upon the policyholder; any individual policy hereinafter delivered or issued for delivery in this state which provides that coverage of a dependent child shall terminate upon the attainment of the limiting age for dependent children specified in the policy shall also provide in substance that attainment of such limiting age shall not operate to terminate the coverage of such child during the continuance of such policy and while the child is and continues to be both (a) incapable of self-sustaining employment by reason of an intellectual disability or a physical disability and (b) chiefly dependent upon the policyholder for support and maintenance, if proof of such incapacity and dependency is furnished to the insurer by the policyholder within thirty-one days of the child's attainment of the limiting age and subsequently as may be required by the insurer but not more frequently than annually after the two-year period following the child's attainment of the limiting age; such insurer may charge an additional premium for and with respect to any such continuation of coverage beyond the limiting age of the policy with respect to such child, which premium shall be determined by the insurer on the basis of the class of risks applicable to such child, (4) it contains a title on the face of the policy correctly describing the policy, (5) the exceptions and reductions of indemnity are set forth in the policy and, except those which are set forth in sections 44-710.03 and 44-710.04, are printed, at the insurer's option, either included with the benefit provision to which they apply or under an appropriate caption such as EXCEPTIONS, or EXCEPTIONS AND REDUCTIONS; if an exception or reduction specifically applies only to a particular benefit of the policy, a statement of such exception or reduction shall be included with the benefit provision to which it applies, (6) each such form, including riders and endorsements, shall be identified by a form number in the lower left-hand corner of the first page thereof, (7) it contains no provision purporting to make any portion of the charter, rules, constitution, or bylaws of the insurer a part of the policy unless such portion is set forth in full in the policy, except in the case of the incorporation of, or reference to, a statement of rates or classification of risks, or short-rate table filed with the Director of Insurance, and (8) on or after January 1, 1999, any restrictive rider contains a notice of the existence of the Comprehensive Health Insurance Pool if the policy provides health insurance as defined in section 44-4209.

Source:Laws 1957, c. 188, § 2, p. 643; Laws 1969, c. 374, § 1, p. 1333; Laws 1989, LB 92, § 131; Laws 1998, LB 1063, § 1; Laws 2009, LB551, § 1;    Laws 2013, LB23, § 11.    


44-710.02. Sickness and accident insurance; insurer domiciled in state; delivery in another state; approval.

If any policy of sickness and accident insurance is issued by an insurer domiciled in this state for delivery to a person residing in another state and if the official having responsibility for the administration of the insurance laws of such other state has advised the Director of Insurance that any such policy is not subject to approval or disapproval by such official, the Director of Insurance may by ruling require that such policy meet the standards set forth in sections 44-710.01 and 44-710.03 to 44-710.09.

Source:Laws 1957, c. 188, § 3, p. 644; Laws 1989, LB 92, § 132.


44-710.03. Sickness and accident insurance; standard policy form; mandatory provisions.

Except as provided in section 44-710.05, each policy of sickness and accident insurance delivered or issued for delivery to any person in this state shall contain the provisions specified in this section in the words in which the provisions appear in this section, except that the insurer may, at its option, substitute for one or more of such provisions corresponding provisions of different wording approved by the Director of Insurance which are in each instance not less favorable in any respect to the insured or the beneficiary. Such provisions shall be preceded individually by the caption appearing in this section or, at the option of the insurer, by such appropriate individual or group captions or subcaptions as the Director of Insurance may approve.

(1) A provision as follows: ENTIRE CONTRACT: CHANGES: This policy, including the endorsements and the attached papers, if any, constitutes the entire contract of insurance. No change in this policy shall be valid until approved by an executive officer of the insurer and unless such approval be endorsed hereon or attached hereto. No agent has authority to change this policy or to waive any of its provisions.

(2) A provision as follows: TIME LIMIT ON CERTAIN DEFENSES: (a) After two years from the date of issue of this policy no misstatements, except fraudulent misstatements, made by the applicant in the application for such policy shall be used to void the policy or to deny a claim for loss incurred or disability, as defined in the policy, commencing after the expiration of such two-year period. The foregoing policy provision shall not be so construed as to affect any legal requirement for avoidance of a policy or denial of a claim during such initial two-year period nor to limit the application of subdivisions (1) through (5) of section 44-710.04 in the event of misstatement with respect to age or occupation or other insurance. A policy which the insured has the right to continue in force subject to its terms by the timely payment of premium until at least age fifty or, in the case of a policy issued after age forty-four, for at least five years from its date of issue, may contain in lieu of the foregoing the following provision, from which the clause "as defined in the policy" may be omitted at the insurer's option, under the caption INCONTESTABLE: After this policy has been in force for a period of two years during the lifetime of the insured, excluding any period during which the insured is disabled, it shall become incontestable as to the statements contained in the application. (b) No claim for loss incurred or disability, as defined in the policy, commencing after two years from the date of issue of this policy shall be reduced or denied on the ground that disease or physical condition not excluded from coverage by name or specific description effective on the date of loss had existed prior to the effective date of coverage of this policy.

(3) A provision as follows: GRACE PERIOD: A grace period of ......... (insert a number not less than 7 for weekly premium policies, 10 for monthly premium policies, and 31 for all other policies) days will be granted for the payment of each premium falling due after the first premium, during which grace period the policy shall continue in force. A policy which contains a cancellation provision may add, at the end of the above provision: Subject to the right of the insurer to cancel in accordance with the cancellation provision hereof. A policy in which the insurer reserves the right to refuse any renewal shall have, at the beginning of the above provision: Unless not less than thirty days prior to the premium due date the insurer has delivered to the insured or has mailed to his or her last address as shown by the records of the insurer written notice of its intention not to renew this policy beyond the period for which the premium has been accepted.

(4) A provision as follows: REINSTATEMENT: If any renewal premium be not paid within the time granted the insured for payment, a subsequent acceptance of premium by the insurer or by any agent duly authorized by the insurer to accept such premium, without requiring in connection therewith an application for reinstatement, shall reinstate the policy, except that if the insurer or such agent requires an application for reinstatement and issues a conditional receipt for the premium tendered, the policy will be reinstated upon approval of such application by the insurer or, lacking such approval, upon the forty-fifth day following the date of such conditional receipt unless the insurer has previously notified the insured in writing of its disapproval of such application. The reinstated policy shall cover only loss resulting from such accidental injury as may be sustained after the date of reinstatement and loss due to such sickness as may begin more than ten days after such date. In all other respects the insured and insurer shall have the same rights thereunder as they had under the policy immediately before the due date of the defaulted premium, subject to any provisions endorsed hereon or attached hereto in connection with the reinstatement. Any premium accepted in connection with a reinstatement shall be applied to a period for which premium has not been previously paid but not to any period more than sixty days prior to the date of reinstatement. (The last sentence of the above provision may be omitted from any policy which the insured has the right to continue in force subject to its terms by the timely payment of premiums (a) until at least age fifty or (b) in the case of a policy issued after age forty-four, for at least five years from its date of issue.)

(5) A provision as follows: NOTICE OF CLAIM: Written notice of claim must be given to the insurer within twenty days after the occurrence or commencement of any loss covered by the policy or as soon thereafter as is reasonably possible. Notice given by or on behalf of the insured or the beneficiary to the insurer at ........... (insert the location of such office as the insurer may designate for the purpose), or to any authorized agent of the insurer, with information sufficient to identify the insured, shall be deemed notice to the insurer. In a policy providing a loss-of-time benefit which may be payable for at least two years, an insurer may at its option insert the following between the first and second sentences of the above provision: Subject to the qualifications set forth below, if the insured suffers loss of time on account of disability for which indemnity may be payable for at least two years, he or she shall, at least once in every six months after having given notice of claim, give to the insurer notice of continuance of such disability, except in the event of legal incapacity. The period of six months following any filing of proof by the insured or any payment by the insurer on account of such claim or any denial of liability in whole or in part by the insurer shall be excluded in applying this provision. Delay in the giving of such notice shall not impair the insured's right to any indemnity which would otherwise have accrued during the period of six months preceding the date on which such notice is actually given.

(6) A provision as follows: CLAIM FORMS: The insurer, upon receipt of a notice of claim, will furnish to the claimant such forms as are usually furnished by it for filing proofs of loss. If such forms are not furnished within fifteen days after the giving of such notice, the claimant shall be deemed to have complied with the requirements of this policy as to proof of loss upon submitting, within the time fixed in the policy for filing proofs of loss, written proof covering the occurrence, the character, and the extent of the loss for which claim is made.

(7) A provision as follows: PROOFS OF LOSS: Written proof of loss must be furnished to the insurer at its office in case of claim for loss for which the policy provides any periodic payment contingent upon continuing loss within ninety days after the termination of the period for which the insurer is liable and in case of claim for any other loss within ninety days after the date of such loss. Failure to furnish such proof within the time required shall not invalidate nor reduce any claim if it was not reasonably possible to give proof within such time and if such proof is furnished as soon as reasonably possible and in no event, except in the absence of legal capacity, later than one year from the time proof is otherwise required.

(8) A provision as follows: TIME OF PAYMENT OF CLAIMS: Indemnities payable under this policy for any loss other than loss for which this policy provides any periodic payment will be paid immediately upon receipt of due written proof of such loss. Subject to due written proof of loss, all accrued indemnities for loss for which this policy provides periodic payment will be paid ................ (insert period for payment which must not be less frequently than monthly) and any balance remaining unpaid upon the termination of liability will be paid immediately upon receipt of due written proof.

(9) A provision as follows: PAYMENT OF CLAIMS: Indemnity for loss of life will be payable in accordance with the beneficiary designation and the provisions respecting such payment which may be prescribed herein and effective at the time of payment. If no such designation or provision is then effective, such indemnity shall be payable to the estate of the insured. Any other accrued indemnities unpaid at the insured's death may, at the option of the insurer, be paid either to such beneficiary or to such estate. All other indemnities will be payable to the insured. The following provisions, or either of them, may be included with the foregoing provision at the option of the insurer: (a) If any indemnity of this policy shall be payable to the estate of the insured, or to an insured or beneficiary who is a minor or otherwise not competent to give a valid release, the insurer may pay such indemnity, up to an amount not exceeding $.......... (insert an amount which shall not exceed five thousand dollars), to any relative by blood or connection by marriage of the insured or beneficiary who is deemed by the insurer to be equitably entitled thereto. Any payment made by the insurer in good faith pursuant to this provision shall fully discharge the insurer to the extent of such payment. (b) Subject to any written direction of the insured in the application or otherwise all or a portion of any indemnities provided by this policy on account of hospital, nursing, medical, or surgical services may, at the insurer's option and unless the insured requests otherwise in writing not later than the time of filing proofs of such loss, be paid directly to the hospital or person rendering such services; but it is not required that the service be rendered by a particular hospital or person.

(10) A provision as follows: PHYSICAL EXAMINATIONS AND AUTOPSY: The insurer at its own expense shall have the right and opportunity to examine the person of the insured when and as often as it may reasonably require during the pendency of a claim hereunder and to make an autopsy in case of death where it is not forbidden by law.

(11) A provision as follows: LEGAL ACTIONS: No action at law or in equity shall be brought to recover on this policy prior to the expiration of sixty days after written proof of loss has been furnished in accordance with the requirements of this policy. No such action shall be brought after the expiration of three years after the time written proof of loss is required to be furnished.

(12) A provision as follows: CHANGE OF BENEFICIARY: Unless the insured makes an irrevocable designation of beneficiary, the right to change of beneficiary is reserved to the insured and the consent of the beneficiary or beneficiaries shall not be requisite to surrender or assignment of this policy, to any change of beneficiary or beneficiaries, or to any other changes in this policy. The first clause of this provision, relating to the irrevocable designation of beneficiary, may be omitted at the insurer's option.

(13) A provision as follows: CONFORMITY WITH STATE AND FEDERAL LAW: Any provision of this policy which, on its effective date, is in conflict with the law of the federal government or the state in which the insured resides on such date is hereby amended to conform to the minimum requirements of such law.

Source:Laws 1957, c. 188, § 4, p. 644; Laws 1989, LB 92, § 133; Laws 2011, LB72, § 3.    


Annotations

44-710.04. Sickness and accident insurance; permissive provisions; standard policy form; requirements.

Except as provided in sections 44-710.05 and 44-787, no policy of sickness and accident insurance delivered or issued for delivery to any person in this state shall contain provisions respecting the matters set forth below unless such provisions are in the words in which the provisions appear in this section, except that the insurer may, at its option, use in lieu of any such provision a corresponding provision of different wording approved by the Director of Insurance which is not less favorable in any respect to the insured or the beneficiary. Any such provision contained in the policy shall be preceded individually by the appropriate caption appearing in this section or, at the option of the insurer, by such appropriate individual or group captions or subcaptions as the Director of Insurance may approve.

(1) A provision as follows: CHANGE OF OCCUPATION: If the insured be injured or contract sickness after having changed his or her occupation to one classified by the insurer as more hazardous than that stated in this policy or while doing for compensation anything pertaining to an occupation so classified, the insurer will pay only such portion of the indemnities provided in this policy as the premium paid would have purchased at the rates and within the limits fixed by the insurer for such more hazardous occupation. If the insured changes his or her occupation to one classified by the insurer as less hazardous than that stated in this policy, the insurer, upon receipt of proof of such change of occupation, will reduce the premium rate accordingly and will return the excess pro rata unearned premium from the date of change of occupation or from the policy anniversary date immediately preceding receipt of such proof, whichever is the more recent. In applying this provision, the classification of occupational risk and the premium rates shall be such as have been last filed by the insurer prior to the occurrence of the loss for which the insurer is liable or prior to date of proof of change in occupation with the state official having supervision of insurance in the state where the insured resided at the time this policy was issued; but if such filing was not required, then the classification of occupational risk and the premium rates shall be those last made effective by the insurer in such state prior to the occurrence of the loss or prior to the date of proof of change of occupation.

(2) A provision as follows: MISSTATEMENT OF AGE: If the age of the insured has been misstated, all amounts payable under this policy shall be such as the premium paid would have purchased at the correct age.

(3) Except as provided in subdivision (6) of this section, a provision as follows: OTHER INSURANCE IN THIS INSURER: If an accident or sickness or accident and sickness policy or policies previously issued by the insurer to the insured be in force concurrently herewith, making the aggregate indemnity for ................ (insert type of coverage or coverages) in excess of $................ (insert maximum limit of indemnity or indemnities), the excess insurance shall be void and all premiums paid for such excess shall be returned to the insured or to his or her estate; or in lieu thereof: Insurance effective at any one time on the insured under a like policy or policies in this insurer is limited to the one such policy elected by the insured, his or her beneficiary, or his or her estate, as the case may be, and the insurer will return all premiums paid for all other such policies.

(4) Except as provided in subdivision (6) of this section, a provision as follows: INSURANCE WITH OTHER INSURERS: If there be other valid coverage, not with this insurer, providing benefits for the same loss on a provision-of-service basis or on an expense-incurred basis and of which this insurer has not been given written notice prior to the occurrence or commencement of loss, the only liability under any expense-incurred coverage of this policy shall be for such proportion of the loss as the amount which would otherwise have been payable hereunder plus the total of the like amounts under all such other valid coverages for the same loss of which this insurer had notice bears to the total like amounts under all valid coverages for such loss and for the return of such portion of the premiums paid as shall exceed the pro rata portion for the amount so determined. For the purpose of applying this provision when other coverage is on a provision-of-service basis, the like amount of such other coverage shall be taken as the amount which the services rendered would have cost in the absence of such coverage. If the foregoing policy provision is included in a policy which also contains the next following policy provision there shall be added to the caption of the foregoing provision the phrase .... EXPENSE-INCURRED BENEFITS. The insurer may, at its option, include in this provision a definition of other valid coverage, approved as to form by the Director of Insurance, which definition shall be limited in subject matter to coverage provided by organizations subject to regulation by insurance law or by insurance authorities of this or any other state of the United States or any province of Canada and by hospital or medical service organizations and to any other coverage the inclusion of which may be approved by the Director of Insurance. In the absence of such definition such term shall not include group insurance, automobile medical payments insurance, or coverage provided by hospital or medical service organizations or by union welfare plans or employer or employee benefit organizations. For the purpose of applying the foregoing policy provision with respect to any insured, any amount of benefit provided for such insured pursuant to any compulsory benefit statute, including any workers' compensation or employers liability statute, whether provided by a governmental agency or otherwise shall in all cases be deemed to be other valid coverage of which the insurer has had notice. In applying the foregoing policy provision no third-party liability coverage shall be included as other valid coverage.

(5) Except as provided in subdivision (6) of this section, a provision as follows: INSURANCE WITH OTHER INSURERS: If there be other valid coverage, not with this insurer, providing benefits for the same loss on other than an expense-incurred basis and of which this insurer has not been given written notice prior to the occurrence or commencement of loss, the only liability for such benefits under this policy shall be for such proportion of the indemnities otherwise provided hereunder for such loss as the like indemnities of which the insurer had notice (including the indemnities under this policy) bear to the total amount of all like indemnities for such loss, and for the return of such portion of the premium paid as shall exceed the pro rata portion for the indemnities thus determined. If the foregoing policy provision is included in a policy which also contains the next preceding policy provision, there shall be added to the caption of the foregoing provision the phrase .... OTHER BENEFITS. The insurer may, at its option, include in this provision a definition of other valid coverage, approved as to form by the Director of Insurance, which definition shall be limited in subject matter to coverage provided by organizations subject to regulation by insurance law or by insurance authorities of this or any other state of the United States or any province of Canada and to any other coverage the inclusion of which may be approved by the Director of Insurance. In the absence of such definition such term shall not include group insurance or benefits provided by union welfare plans or by employer or employee benefit organizations. For the purpose of applying the foregoing policy provision with respect to any insured, any amount of benefit provided for such insured pursuant to any compulsory benefit statute, including any workers' compensation or employers liability statute, whether provided by a governmental agency or otherwise shall in all cases be deemed to be other valid coverage of which the insurer has had notice. In applying the foregoing policy provision no third-party liability coverage shall be included as other valid coverage.

(6) In lieu of the provisions set forth in subdivisions (3) through (5) of this section but subject to section 44-3,159, the insurer may at its option include a provision entitled COORDINATION OF BENEFITS which provides for nonduplication and coordination between two or more coverages based on rules and regulations adopted and promulgated by the director.

(7) A provision as follows: RELATION OF EARNINGS TO INSURANCE: If the total monthly amount of loss-of-time benefits promised for the same loss under all valid loss-of-time coverage upon the insured, whether payable on a weekly or monthly basis, shall exceed the monthly earnings of the insured at the time disability commenced or his or her average monthly earnings for the period of two years immediately preceding a disability for which claim is made, whichever is the greater, the insurer will be liable only for such proportionate amount of such benefits under this policy as the amount of such monthly earnings or such average monthly earnings of the insured bears to the total amount of monthly benefits for the same loss under all such coverage upon the insured at the time such disability commences and for the return of such part of the premiums paid during such two years as shall exceed the pro rata amount of the premiums for the benefits actually paid hereunder; but this shall not operate to reduce the total monthly amount of benefits payable under all such coverage upon the insured below the sum of two hundred dollars or the sum of the monthly benefits specified in such coverages, whichever is the lesser, nor shall it operate to reduce benefits other than those payable for loss of time. The foregoing policy provision may be inserted only in a policy which the insured has the right to continue in force subject to its terms by the timely payment of premiums (a) until at least age fifty or (b) in the case of a policy issued after age forty-four for at least five years from its date of issue. The insurer may, at its option, include in this provision a definition of valid loss-of-time coverage, approved as to form by the Director of Insurance, which definition shall be limited in subject matter to coverage provided by governmental agencies or by organizations subject to regulation by insurance law or by insurance authorities of this or any other state of the United States or any province of Canada or to any other coverage the inclusion of which may be approved by the Director of Insurance or any combination of such coverages. In the absence of such definition such term shall not include any coverage provided for such insured pursuant to any compulsory benefit statute, including any workers' compensation or employers liability statute, or benefits provided by union welfare plans or by employer or employee benefit organizations.

(8) A provision as follows: UNPAID PREMIUM: Upon the payment of a claim under this policy, any premium then due and unpaid or covered by any note or written order may be deducted therefrom.

(9) A provision as follows: CANCELLATION: The insurer may cancel this policy at any time by written notice delivered to the insured which shall be effective only if mailed by certified or registered mail to the named insured at his or her last-known address, as shown by the records of the insurer, at least thirty days prior to the effective date of cancellation, except that cancellation due to failure to pay the premium or in cases of fraud or misrepresentation shall not require that such notice be given at least thirty days prior to cancellation. Subject to any provisions in the policy or a grace period, cancellation for failure to pay a premium shall be effective as of midnight of the last day for which the premium has been paid. In cases of fraud or misrepresentation, coverage shall be canceled upon the date of the notice or any later date designated by the insurer. After the policy has been continued beyond its original term the insured may cancel this policy at any time by written notice delivered or mailed to the insurer, effective upon receipt or on such later date as may be specified in such notice. In the event of cancellation, the insurer will return promptly the unearned portion of any premium paid. If the insured cancels, the earned premium shall be computed by the use of the short-rate table last filed with the state official having supervision of insurance in the state where the insured resided when the policy was issued. If the insurer cancels, the earned premium shall be computed pro rata. Cancellation shall be without prejudice to any claim originating prior to the effective date of cancellation.

(10) A provision as follows: ILLEGAL OCCUPATION: The insurer shall not be liable for any loss to which a contributing cause was the insured's commission of or attempt to commit a felony or to which a contributing cause was the insured's being engaged in an illegal occupation.

(11) A provision as follows: INTOXICANTS AND NARCOTICS: The insurer shall not be liable for any loss sustained or contracted in consequence of the insured's being intoxicated or under the influence of any narcotic unless administered on the advice of a physician.

Source:Laws 1957, c. 188, § 5, p. 650; Laws 1985, LB 76, § 1; Laws 1989, LB 92, § 134; Laws 1997, LB 55, § 2; Laws 2011, LB72, § 4;    Laws 2013, LB479, § 2.    


44-710.05. Sickness and accident insurance; standard policy form; inapplicable; omission or modification.

If any provision of sections 44-710.03 and 44-710.04 is in whole or in part inapplicable to or inconsistent with the coverage provided by a particular form of policy of sickness and accident insurance, the insurer, with the approval of the Director of Insurance, shall omit from such policy any inapplicable provision or part of a provision and shall modify any inconsistent provision or part of the provision in such manner as to make the provision as contained in the policy consistent with the coverage provided by the policy.

Source:Laws 1957, c. 188, § 6, p. 655; Laws 1989, LB 92, § 135.


44-710.06. Sickness and accident insurance; standard policy form; provisions; order of arrangement.

The provisions which are the subject of sections 44-710.03 and 44-710.04 or any corresponding provisions which are used in lieu thereof in accordance with such sections shall be printed in the consecutive order of the provisions in such sections, or at the option of the insurer, any such provision may appear as a unit in any part of the policy of sickness and accident insurance with other provisions to which it may be logically related if the resulting policy is not in whole or in part unintelligible, uncertain, ambiguous, abstruse, or likely to mislead a person to whom the policy is offered, delivered, or issued.

Source:Laws 1957, c. 188, § 7, p. 656; Laws 1989, LB 92, § 136.


44-710.07. Sickness and accident insurance; term insured; construction.

The word insured, as used in sections 44-709 to 44-767, shall not be construed as preventing a person other than the insured with a proper insurable interest from making application for and owning a policy of sickness and accident insurance covering the insured or from being entitled under such a policy to any indemnities, benefits, and rights provided therein.

Source:Laws 1957, c. 188, § 8, p. 656; Laws 1989, LB 92, § 137.


44-710.08. Sickness and accident insurance; foreign or alien insurer; provisions required by laws of domicile of insurer.

(1) Any policy of sickness and accident insurance of a foreign or alien insurer, when delivered or issued for delivery to any person in this state, may contain any provision which is not less favorable to the insured or the beneficiary than the provisions of sections 44-709 to 44-767 and which is prescribed or required by the law of the state under which the insurer is organized.

(2) Any policy of sickness and accident insurance of a domestic insurer may, when issued for delivery in any other state or country, contain any provision permitted or required by the laws of such other state or country.

Source:Laws 1957, c. 188, § 9, p. 656; Laws 1989, LB 92, § 138.


44-710.09. Sickness and accident insurance; rules and regulations.

The Director of Insurance may adopt and promulgate such reasonable rules and regulations concerning the procedure for the filing or submission of policies of sickness and accident insurance subject to sections 44-709 to 44-767 as are necessary, proper, or advisable to the administration of such sections. This provision shall not abridge any other authority granted the Director of Insurance by law.

Source:Laws 1957, c. 188, § 10, p. 656; Laws 1989, LB 92, § 139.


44-710.10. Sickness and accident insurance; nonstandard provisions; requirements.

No policy provision which is not subject to sections 44-710.03 and 44-710.04 shall make a policy of sickness and accident insurance, or any portion thereof, less favorable in any respect to the insured or the beneficiary than the provisions thereof which are subject to sections 44-709 to 44-767.

Source:Laws 1957, c. 188, § 11, p. 657; Laws 1989, LB 92, § 140.


44-710.11. Sickness and accident insurance; construction of policies.

A policy of sickness and accident insurance delivered or issued for delivery to any person in this state in violation of sections 44-709 to 44-767 shall be held valid but shall be construed as provided in such sections. When any provision in a policy subject to such sections is in conflict with any provision of such sections, the rights, duties, and obligations of the insurer, the insured, and the beneficiary shall be governed by the provisions of such sections.

Source:Laws 1957, c. 188, § 12, p. 657; Laws 1989, LB 92, § 141.


44-710.12. Sickness and accident insurance; copy of application attached to policy; request for reinstatement or renewal; copy attached to policy.

The insured shall not be bound by any statement made in an application for a policy of sickness and accident insurance unless a copy of such application is attached to or endorsed on the policy when issued as a part thereof. If any such policy delivered or issued for delivery to any person in this state is reinstated or renewed and the insured or the beneficiary or assignee of such policy makes written request to the insurer for a copy of the application, if any, for such reinstatement or renewal, the insurer shall, within fifteen days after the receipt of such request at its home office or any branch office of the insurer, deliver or mail to the person making such request a copy of such application. If such copy is not so delivered or mailed, the insurer shall be precluded from introducing such application as evidence in any action or proceeding based upon or involving such policy or its reinstatement or renewal.

Source:Laws 1957, c. 188, § 13, p. 657; Laws 1989, LB 92, § 142.


44-710.13. Sickness and accident insurance; alteration of application.

No alteration of any written application for any policy of sickness and accident insurance shall be made by any person other than the applicant without his or her written consent, except that insertions may be made by the insurer, for administrative purposes only, in such manner as to indicate clearly that such insertions are not to be ascribed to the applicant.

Source:Laws 1957, c. 188, § 14, p. 657; Laws 1989, LB 92, § 143.


44-710.14. Sickness and accident insurance; falsity of application; effect.

The falsity of any statement in the application for any policy of sickness and accident insurance covered by sections 44-709 to 44-767 may not bar the right to recovery thereunder unless such false statement materially affected either the acceptance of the risk or the hazard assumed by the insurer.

Source:Laws 1957, c. 188, § 15, p. 658; Laws 1989, LB 92, § 144.


Annotations

44-710.15. Sickness and accident insurance; acts of insurer; no waiver.

The acknowledgment by an insurer of the receipt of notice given under any policy of sickness and accident insurance, the furnishing of forms for filing proofs of loss, the acceptance of such proofs, or the investigation of any claim thereunder shall not operate as a waiver of any of the rights of the insurer in defense of any claim arising under such policy.

Source:Laws 1957, c. 188, § 16, p. 658; Laws 1969, c. 375, § 1, p. 1335; Laws 1989, LB 92, § 145.


44-710.16. Sickness and accident insurance; age limit; acceptance of premium, effect; misstatement of age, effect.

If any policy of sickness and accident insurance contains a provision establishing, as an age limit or otherwise, a date after which the coverage provided by the policy will not be effective, and if such date falls within a period for which premium is accepted by the insurer or if the insurer accepts a premium after such date, the coverage provided by the policy will continue in force subject to any right of cancellation until the end of the period for which premium has been accepted. In the event the age of the insured has been misstated and if, according to the correct age of the insured, the coverage provided by the policy would not have become effective or would have ceased prior to the acceptance of such premium or premiums, then the liability of the insurer shall be limited to the refund, upon request, of all premiums paid for the period not covered by the policy.

Source:Laws 1957, c. 188, § 17, p. 658; Laws 1989, LB 92, § 146.


44-710.17. Sickness and accident insurance; individual and franchise policies; riders and endorsements; requirements.

No restrictive rider or endorsement which is attached to or is to become a part of any individual or franchise policy of sickness and accident insurance delivered or issued for delivery to any person in this state shall be effective unless each such restrictive rider or endorsement or specific request therefor is signed by the applicant, except that the signature of the applicant shall not be required on any endorsement applied to a policy by means of printing or stamping on the policy at the time of original issuance of the policy if notice of the endorsement is affixed on the face and filing back in contrasting color, in not less than twelve-point type. The term restrictive rider or endorsement as used in this section shall mean any rider or endorsement which reduces, restricts, or eliminates coverage of the policy of which the rider or endorsement is a part.

Source:Laws 1963, c. 260, § 1, p. 785; Laws 1965, c. 264, § 1, p. 748.


44-710.18. Sickness and accident insurance; return of policy; notice; effect.

Except as provided in section 44-3608, every individual policy of sickness and accident insurance, except single-premium nonrenewable policies, shall have printed on its face or attached thereto a notice stating in substance that the person to whom the policy is issued shall be permitted to return the policy within ten days of its delivery to the purchaser and to have the premium paid refunded if, after examination of the policy, the purchaser is not satisfied with it for any reason. If a policyholder or a purchaser pursuant to such notice returns the policy to the insurer at its home office or branch office or to the agent or agency through which it was purchased, it shall be void from the beginning and the parties shall be in the same position as if no policy had been issued.

Source:Laws 1969, c. 374, § 2, p. 1334; Laws 1980, LB 877, § 12; Laws 1988, LB 998, § 1; Laws 1989, LB 92, § 147.


44-710.19. Individual and group sickness and accident insurance; health maintenance organization contract; newly born child; coverage; when.

(1) All individual and group policies of sickness and accident insurance providing coverage on an expense-incurred basis and health maintenance organization contracts shall provide benefits for newly born children of the insured or subscriber from the moment of birth.

(2) The coverage for newly born children shall consist of coverage of injury or sickness including the necessary care and treatment of medically diagnosed congenital defects and birth abnormalities.

(3) A policy or contract may require that notification of birth of a newly born child and payment of the required premium or fees shall be furnished to the insurer or health maintenance organization within thirty-one days after the date of birth in order to have the coverage continue beyond such thirty-one-day period.

(4) The requirements of this section shall apply to all insurance policies and subscriber contracts delivered or issued for delivery in this state on or after January 1, 1995.

Source:Laws 1975, LB 28, § 1; Laws 1989, LB 92, § 148; Laws 1994, LB 978, § 20.


Annotations

44-711. Sickness and accident insurance; hearing on policy form; disapproval; appeal.

After the expiration of such thirty days from the filing of any such form, as provided in section 44-710, or at any time after having given written approval thereof, the director may, after a hearing of which at least ten days' written notice has been given to the insurer issuing such form, withdraw approval on any of the grounds stated in section 44-710. Such disapproval shall be effected by written order of the director which shall state the grounds for disapproval and the date, not less than thirty days after such hearing, when the withdrawal of approval shall become effective. An appeal from the decision of the Director of Insurance may be taken, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1947, c. 164, § 2(2), p. 453; Laws 1969, c. 359, § 22, p. 1277; Laws 1972, LB 1059, § 4; Laws 1988, LB 352, § 52.


Cross References

44-712. Sickness and accident insurance; good faith estimate; requirements; effect.

(1) Any individual or group sickness and accident insurance policy or subscriber contract, any hospital, medical, or surgical expense-incurred policy, and any prepaid dental service plan that is issued for delivery, delivered, or renewed in this state, except policies that provide coverage for a specified disease or other limited-benefit coverage and health maintenance organization contracts, that provides for payment of claims based upon a specific methodology including, but not limited to, usual and customary charges, reasonable and customary charges, maximum benefit allowance, or charges based upon the prevailing rate in the community, shall provide that, upon request, a policyholder, certificate holder, covered dependent, or authorized representative shall be provided a written statement that includes a good faith estimate of the dollar amount of the allowable benefit for a service or procedure if the request includes information regarding any service or procedure to be performed by a nonpreferred provider, including any service or procedure code number or diagnosis related group provided by the health care provider and the health care provider's estimated charge.

(2) A statement requested pursuant to this section shall be sent to the policyholder, certificate holder, covered dependent, or authorized representative within ten business days after receipt of the request from the policyholder, certificate holder, covered dependent, or authorized representative.

(3) The insurer or other entity that provides a statement pursuant to and in compliance with this section shall not be bound by a good faith estimate, except that a pattern of providing estimates that vary significantly from the ultimate payment shall be an unfair claims settlement practice subject to the Unfair Insurance Claims Settlement Practices Act.

Source:Laws 1999, LB 326, § 5.    


Cross References

44-712.01. Repealed. Laws 1957, c. 188, § 22.

44-713. Insured in temporary custody; health insurance policy; insurer; duties; powers; incarceration; notice; refusal to credential health care provider; notice; applicability of section.

(1) For purposes of this section:

(a) Notwithstanding section 44-3,131, health insurance policy means (i) any individual or group sickness and accident insurance policy or subscriber contract delivered, issued for delivery, or renewed in this state and any hospital, medical, or surgical expense-incurred policy, except for a policy that provides coverage for a specified disease or other limited-benefit coverage, and (ii) any self-funded employee benefit plan to the extent not preempted by federal law;

(b) Jail means a city or county correctional or jail facility operated by a political subdivision of the state;

(c) Pending disposition of charges means up until the time of sentencing and shall not include any time after sentencing as may occur due to appeals; and

(d) Temporary custody means in the custody of a jail pending disposition of charges.

(2) Except as provided in subsection (4) of this section, an insurer offering a health insurance policy may not (i) cancel the coverage of an insured while the insured is in temporary custody on the basis of such custody or (ii) deny coverage for any medical services or supplies covered by the policy and received while the insured is in temporary custody if such services or supplies were provided to the insured by an employee or contractor of a jail who meets the credentialing criteria of the health insurance policy.

(3) Except as set forth under section 47-704, an insurer offering a health insurance policy shall pay claims for covered medical services or supplies provided by an out-of-network health care provider to an insured who is in temporary custody in an amount that is not less than one hundred percent of the medicare rate for such services or supplies. The political subdivision acting as an out-of-network provider shall notify the insurer of the cost incurred by the insured while in temporary custody.

(4) An insurer offering a health insurance policy may:

(a) Deny coverage for the treatment of injuries resulting from a violation of law by the insured;

(b) Exclude from any requirements for reporting quality outcomes or performance any covered medical services provided to an insured in temporary custody;

(c) Impose the same contractual provisions, including requirements for billing and medical coding, under the policy for medical services provided to insureds who are in temporary custody as imposed for medical services provided to insureds who are not in such custody;

(d) Deny coverage of diagnostic tests or health evaluations required as a matter of course for all individuals who are in temporary custody;

(e) Limit coverage of hospital and ambulatory surgical center services provided to an insured in temporary custody to medical services provided by in-network hospitals and ambulatory surgical centers;

(f) Deny coverage for costs of medical services made necessary by the negligence, recklessness, or intentional misconduct of the jail or its employees as set forth in section 47-705; and

(g) If an insured is incarcerated after the disposition of charges or is committed to the custody or supervision of the Department of Correctional Services, cancel coverage or deny coverage for any medical services or supplies covered by the plan and provided during such incarceration or while in the custody or supervision of the department.

(5) If an insured is incarcerated after the disposition of charges or is committed to the custody or supervision of the Department of Correctional Services, a jail which has sought reimbursement for medical services under this section shall notify the insurer that the insured has been subsequently incarcerated or placed in such custody.

(6)(a) An insurer may not refuse to credential a health care provider who is an employee or a contractor of a political subdivision on the basis that the employee or contractor provides medical services in a jail.

(b) If an insurer refuses to credential a health care provider who is an employee or a contractor of a political subdivision who provides medical services in a jail, the insurer must give written notice to the provider explaining the reasons for the refusal.

(7) This section shall not:

(a) Apply to coverage for an insured in custody following the disposition of charges;

(b) Impair any right of an employer to remove an employee from coverage under a health insurance plan;

(c) Release an insurer from the requirement to coordinate benefits for persons who are insured by more than one insurer; or

(d) Limit an insurer's right to rescind coverage in accordance with law.

(8) A political subdivision shall not pay health insurance policy premiums on behalf of a person who is in temporary custody.

(9) This section applies to health insurance policies issued or renewed on or after January 1, 2019, and to claims for reimbursement based on such policies for costs incurred on or after January 1, 2019.

Source:Laws 2018, LB480, § 1.    
Effective Date: July 19, 2018


44-714. Repealed. Laws 1957, c. 188, § 22.

44-715. Repealed. Laws 1957, c. 188, § 22.

44-716. Repealed. Laws 1957, c. 188, § 22.

44-717. Repealed. Laws 1957, c. 188, § 22.

44-718. Repealed. Laws 1957, c. 188, § 22.

44-719. Repealed. Laws 1957, c. 188, § 22.

44-720. Repealed. Laws 1957, c. 188, § 22.

44-721. Repealed. Laws 1957, c. 188, § 22.

44-722. Repealed. Laws 1957, c. 188, § 22.

44-723. Repealed. Laws 1957, c. 188, § 22.

44-724. Repealed. Laws 1957, c. 188, § 22.

44-725. Repealed. Laws 1957, c. 188, § 22.

44-726. Repealed. Laws 1957, c. 188, § 22.

44-727. Repealed. Laws 1957, c. 188, § 22.

44-728. Repealed. Laws 1957, c. 188, § 22.

44-729. Repealed. Laws 1957, c. 188, § 22.

44-729.01. Repealed. Laws 1957, c. 188, § 22.

44-730. Repealed. Laws 1957, c. 188, § 22.

44-731. Repealed. Laws 1957, c. 188, § 22.

44-732. Repealed. Laws 1957, c. 188, § 22.

44-733. Repealed. Laws 1957, c. 188, § 22.

44-734. Repealed. Laws 1957, c. 188, § 22.

44-735. Repealed. Laws 1957, c. 188, § 22.

44-736. Sickness and accident insurance; extended disability benefit; how construed.

Any policy of sickness and accident insurance may contain a provision for paying an extended disability benefit upon the insured's death from any cause, which benefit shall not be construed as life insurance.

Source:Laws 1947, c. 164, § 5(3), p. 462; Laws 1957, c. 188, § 18, p. 658; Laws 1989, LB 92, § 149.


44-737. Repealed. Laws 1957, c. 188, § 22.

44-738. Repealed. Laws 1957, c. 188, § 22.

44-739. Repealed. Laws 1957, c. 188, § 22.

44-740. Repealed. Laws 1957, c. 188, § 22.

44-741. Repealed. Laws 1957, c. 188, § 22.

44-742. Repealed. Laws 1957, c. 188, § 22.

44-742.01. Repealed. Laws 1957, c. 188, § 22.

44-742.02. Repealed. Laws 1957, c. 188, § 22.

44-742.03. Repealed. Laws 1957, c. 188, § 22.

44-742.04. Repealed. Laws 1957, c. 188, § 22.

44-743. Repealed. Laws 1957, c. 188, § 22.

44-744. Repealed. Laws 1957, c. 188, § 22.

44-745. Repealed. Laws 1957, c. 188, § 22.

44-746. Repealed. Laws 1957, c. 188, § 22.

44-747. Repealed. Laws 1957, c. 188, § 22.

44-748. Repealed. Laws 1957, c. 188, § 22.

44-749. Sickness and accident insurance; discrimination prohibited; differences permitted.

No sickness and accident insurer shall make or permit any unfair discrimination between individuals of substantially the same hazard in the amount of premium rates charged for any policy or contract of such insurance or in the benefits payable thereunder. This section shall not prohibit different premium rates, different benefits, or different underwriting procedure for individuals insured under group, family expense, franchise, or blanket plans of insurance. This section shall not limit the negotiation of preferred provider policies and contracts under sections 44-4101 to 44-4113.

Source:Laws 1947, c. 164, § 10, p. 465; Laws 1984, LB 902, § 16; Laws 1989, LB 92, § 150; Laws 1995, LB 473, § 2.


Annotations

44-750. Repealed. Laws 1989, LB 92, § 278.

44-751. Repealed. Laws 1989, LB 92, § 278.

44-752. Repealed. Laws 1989, LB 92, § 278.

44-753. Repealed. Laws 1957, c. 188, § 22.

44-754. Repealed. Laws 1989, LB 92, § 278.

44-755. Industrial sickness and accident insurance, defined.

The term industrial sickness and accident insurance as used herein means sickness and accident insurance under individual policies for which the premium is payable weekly, and includes any such policy which covers sickness only or accident only.

Source:Laws 1947, c. 164, § 14(1), p. 467.


44-756. Industrial sickness and accident insurance; insurers authorized to write.

Any insurer authorized to write sickness and accident insurance in this state shall have power to issue policies of industrial sickness and accident insurance.

Source:Laws 1947, c. 164, § 14(2), p. 467; Laws 1989, LB 92, § 151.


44-757. Industrial sickness and accident insurance; required statement on policy.

No policy of industrial sickness and accident insurance may be delivered or issued for delivery in this state unless it has printed thereon the words industrial policy.

Source:Laws 1947, c. 164, § 14(3), p. 467.


44-758. Industrial sickness and accident insurance; standard provisions applicable; provisions prohibited; permissive provisions.

Each policy of industrial sickness and accident insurance shall be subject to the provisions of sections 44-709 to 44-767, except that no such policy shall be required to contain any of the provisions set forth in sections 44-710.03 and 44-710.04. No such policy shall contain any provision relative to notice of proof of loss, the time for paying benefits, or the time within which suit may be brought upon the policy, which in the opinion of the Director of Insurance is less favorable to the insured than would be permitted by such standard provisions. Such policy may contain a provision that upon proper written request a named beneficiary shall be designated in or by endorsement on the policy to receive the proceeds thereof on the death of the insured, and there shall be reserved to the insured the power to change the beneficiary at any time by written notice to the insurer at its home office, accompanied by the policy for endorsement of the change thereon by the insurer. The insurer shall have the right to refuse to designate a beneficiary if evidence satisfactory to the company of such beneficiary's insurable interest in the life of the insured is not furnished on request. Any such policy may provide in substance that any payment thereunder may be made to the insured or to the insured's estate or to any relative by blood or connection by marriage of the insured or, to the extent of such portion of any payment under the policy as may reasonably appear to the insurer to be due to such person, to any other person equitably entitled thereto by reason of having incurred expense occasioned by the maintenance or illness or burial of the insured, except that if the policy is in force at the death of the insured, the proceeds thereof shall be payable to the named beneficiary if living, but upon the expiration of fifteen days after the death of the insured, unless proof of claim in the manner and form required by the policy, accompanied by the policy for surrender, has theretofore been made by such beneficiary, the insurer may pay to any other person permitted by the policy.

Source:Laws 1947, c. 164, § 14(4), p. 467; Laws 1957, c. 188, § 19, p. 659; Laws 1989, LB 92, § 152.


44-759. Sickness and accident insurance on a franchise plan, defined.

Sickness and accident insurance on a franchise plan is hereby declared to be that form of sickness and accident insurance issued to (1) five or more employees of any corporation, partnership, limited liability company, individual employer, or governmental corporation or agency or department thereof or (2) ten or more members of any trade or professional association or of a labor union or of any other association having had an active existence for at least two years where such association or union has a constitution or bylaws and is formed in good faith for purposes other than that of obtaining insurance, if such persons, with or without their dependents, are issued the same form of an individual policy varying only as to amounts and kinds of coverage applied for by such persons.

Source:Laws 1947, c. 164, § 15, p. 468; Laws 1993, LB 121, § 226.


44-760. Group sickness and accident insurance, defined.

Group sickness and accident insurance is hereby declared to be that form of sickness and accident insurance covering groups of persons, with or without their dependents, and issued upon the following basis:

(1) Under a policy issued to an employer, who shall be deemed the policyholder, insuring at least two employees of such employer, for the benefit of persons other than the employer. The term employees shall be deemed to include the officers, managers, and employees of the employer, the partners if the employer is a partnership, the members if the employer is a limited liability company, the officers, managers, and employees of subsidiary or affiliated corporations of a corporate employer, and the individual proprietors, partners, and employees of individuals and firms, the business of which is controlled by the insured employer through stock ownership, contract, or otherwise. The policy may provide that the term employees shall include retired employees. The term employer may be deemed to include any municipal or governmental corporation, unit, agency, or department thereof and the proper officers, as such, of any unincorporated municipality or department thereof, as well as private individuals, partnerships, limited liability companies, and corporations;

(2) Under a policy issued to an association, including a labor union, which has a constitution and bylaws and which has been organized and is maintained in good faith for purposes other than that of obtaining insurance, insuring at least twenty-five members of the association for the benefit of persons other than the association or its officers or trustees, as such;

(3) Under a policy issued to any other substantially similar group which, in the discretion of the director, may be subject to the issuance of a group sickness and accident policy or contract;

(4) Under a policy issued to any other group as authorized by Chapter 44, article 16; or

(5) Under a health benefit policy issued to an association consisting solely of Nebraska residents which has a constitution and bylaws and which insures at least twenty-five or more of the members of the association. For purposes of this subdivision, policy shall not include accident-only, credit, dental, vision, medicare supplement, long-term care, or disability income insurance, coverage issued as a supplement to liability insurance, workers' compensation or similar insurance, specified disease insurance, hospital confinement indemnity insurance, or limited-benefit health insurance.

Source:Laws 1947, c. 164, § 16(1), p. 468; Laws 1951, c. 144, § 1, p. 585; Laws 1959, c. 210, § 1, p. 730; Laws 1993, LB 121, § 227; Laws 1994, LB 1222, § 51; Laws 1997, LB 862, § 19.


Annotations

44-761. Group sickness and accident insurance; required provisions.

Each group policy of sickness and accident insurance shall contain in substance the following provisions:

(1) A provision that the policy, the application of the policyholder if such application or copy thereof is attached to such policy, and the individual applications, if any, submitted in connection with such policy by the employees or members, shall constitute the entire contract between the parties, that all statements, in the absence of fraud, made by any applicant or applicants shall be deemed representations and not warranties, and that no such statement shall avoid the insurance or reduce benefits thereunder unless contained in a written application of which a copy is attached to the policy;

(2) A provision that the insurer will furnish to the policyholder, for delivery to each employee or member of the insured group, an individual certificate setting forth in summary form a statement of the essential features of the insurance coverage of such employee or member and to whom benefits thereunder are payable. If dependents are included in the coverage, only one certificate need be issued for each family unit;

(3) A provision that to the group originally insured may be added from time to time eligible new employees or members or dependents, as the case may be, in accordance with the terms of the policy; and

(4) A provision that the insurance coverage of the employee or member may include, originally or by subsequent amendment, upon the application of the employee or member, any two or more eligible members of his or her family, including husband, wife, dependent children, any children enrolled on a full-time basis in any college, university, or trade school, or any children under a specified age which shall not exceed thirty years, and any other person dependent upon the policyholder. Any policy which provides that coverage of an unmarried dependent child shall terminate upon the attainment of the limiting age for unmarried dependent children specified in the policy shall also provide that attainment of such limiting age shall not operate to terminate the coverage of such child during the continuance of the insurance coverage of the employee or member under such policy and while such child is and continues to be (a) incapable of self-sustaining employment by reason of mental or physical handicap and (b) chiefly dependent upon the policyholder for support and maintenance, if proof of such incapacity and dependency is furnished to the insurer by the policyholder within thirty-one days of such child's attainment of the limiting age and subsequently as may be required by the insurer but not more frequently than annually after the two-year period following such child's attainment of the limiting age. The insurer may charge an additional premium for and with respect to any such continuation of coverage beyond the limiting age of the policy, which premium shall be determined by the insurer on the basis of the class of risks applicable to such child. The provisions of this subdivision shall be contained in all new policies of group sickness and accident insurance delivered or issued for delivery to any person in this state. No group policy of sickness and accident insurance shall contain any provisions which are in conflict with sections 44-3,144 to 44-3,150.

Source:Laws 1947, c. 164, § 16(2), p. 469; Laws 1976, LB 649, § 1; Laws 1989, LB 92, § 153; Laws 1994, LB 1224, § 79; Laws 2009, LB551, § 2.    


Annotations

44-762. Blanket sickness and accident insurance, defined.

Blanket sickness and accident insurance is hereby declared to be that form of sickness and accident insurance covering special groups of persons as enumerated in one of the following subsections (1) to (5):

(1) Under a policy or contract issued to any common carrier, which shall be deemed the policyholder, covering a group defined as all persons who may become passengers on such common carrier.

(2) Under a policy or contract issued to an employer, who shall be deemed the policyholder, covering any group of employees defined by reference to exceptional hazards incident to such employment.

(3) Under a policy or contract issued to a college, school, or other institution of learning or to the head or principal thereof, who or which shall be deemed the policyholder, covering students or teachers.

(4) Under a policy or contract issued in the name of any volunteer fire department, first-aid, or other such volunteer group, which shall be deemed the policyholder, covering all of the members of such department or group.

(5) Under a policy or contract issued to any other substantially similar group which, in the discretion of the Director of Insurance, may be subject to the issuance of a blanket sickness and accident policy or contract.

Source:Laws 1947, c. 164, § 17(1), p. 470.


44-763. Blanket sickness and accident insurance; individual application not required; individual certificate unnecessary.

An individual application shall not be required from a person covered under a blanket policy or contract of sickness and accident insurance nor shall it be necessary for the insurer to furnish each person a certificate.

Source:Laws 1947, c. 164, § 17(2), p. 470; Laws 1989, LB 92, § 154.


44-764. Blanket sickness and accident insurance; benefits, how payable.

All benefits under any blanket policy of sickness and accident insurance shall be payable to the person insured, to his or her designated beneficiary or beneficiaries, or to his or her estate, except that if the person insured is minor, such benefits may be made payable to his or her parent, guardian, or other person actually supporting him or her. All or a portion of any benefits payable under such a policy on account of hospital, nursing, medical, or surgical services may, at the insurer's option, be paid directly to the hospital or person rendering such services, but it shall not be required that the services be rendered by a particular hospital or person.

Source:Laws 1947, c. 164, § 17(3), p. 471; Laws 1989, LB 92, § 155.


44-765. Blanket sickness and accident insurance; legal liability of policyholders not affected.

Nothing contained in sections 44-762 to 44-765 shall be deemed to affect the legal liability of policyholders for the death of or injury to, any such member of such group.

Source:Laws 1947, c. 164, § 17(4), p. 471.


44-766. Sickness and accident insurance; wrongful delivery of policy; violations; penalties; appeal.

Any person, partnership, limited liability company, or corporation who or which willfully delivers or issues for delivery in this state any policy of sickness and accident insurance on a form which has been disapproved by the Director of Insurance or willfully violates any provision of sections 44-709 to 44-767 or an order of the director made in accordance with sections 44-710 to 44-767 shall forfeit to the people of the state a sum not to exceed one hundred dollars for each such violation which may be recovered by a civil action. The director may after notice and hearing revoke the license of an insurer or agent for any such willful violation. Any person aggrieved by any action of the Director of Insurance may appeal. The appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1947, c. 164, § 18, p. 471; Laws 1957, c. 188, § 20, p. 660; Laws 1969, c. 359, § 25, p. 1278; Laws 1988, LB 352, § 55; Laws 1989, LB 92, § 156; Laws 1993, LB 121, § 228.


Cross References

44-767. Sickness and accident insurance; other insurance not affected.

Nothing in sections 44-709 to 44-767 shall apply to or affect (1) any policy of workers' compensation insurance or any policy of liability insurance with or without supplementary coverage therein, (2) any policy or contract of reinsurance, or (3) life insurance, endowment or annuity contracts, or contracts supplemental thereto which contain only such provisions relating to sickness and accident insurance as (a) provide additional benefits in case of death, dismemberment, or loss of sight by accident and (b) operate to safeguard such contracts against lapse, or to give a special surrender value or special benefit or annuity in the event that the insured or annuitant shall become totally and permanently disabled, as defined by the contract or supplemental contract. Sections 44-710.03 to 44-710.09, 44-710.12, and 44-710.16 shall not apply to those forms of sickness and accident policies enumerated in section 44-758 or sections 44-760 to 44-765, except that no such policy shall contain any provision relative to notice or proof of loss, the time for paying benefits, or the time within which suit may be brought upon the policy, which in the opinion of the Director of Insurance is less favorable to the insured than would be permitted by the policy provisions set forth in sections 44-710.03 and 44-710.04.

Source:Laws 1947, c. 164, § 19, p. 471; Laws 1957, c. 188, § 21, p. 660; Laws 1969, c. 359, § 26, p. 1278; Laws 1986, LB 811, § 18; Laws 1989, LB 92, § 157.


Annotations

44-768. Repealed. Laws 1969, c. 359, § 33.

44-769. Legislative findings; alcoholism insurance.

The Legislature hereby declares and finds that alcoholism is a disease which, if untreated, is highly disruptive of family life and employment and costs the state, its political subdivisions, insurers, employers, and taxpayers millions of dollars annually because of highway deaths and injuries, lost wages, lower productivity, welfare and unemployment compensation, greater utilization of health insurance benefits and premature death, alcohol-related crimes, and the corresponding costs to the criminal justice and penal systems. The Legislature further finds that while most health benefit plans pay the high cost of treating the symptoms, injuries, and diseases associated with alcoholism many exclude coverage for treatment of the disease itself or limit coverage to acute portions of hospitals which do not generally treat the disease. The Legislature therefor declares that group subscribers and insureds should have information concerning the scope of alcoholism benefits being offered and access to coverage for treatment of the disease on such terms and conditions as may be agreed upon between the subscriber or insured and the insurer or health maintenance organization.

Source:Laws 1980, LB 646, § 1; Laws 1989, LB 92, § 158.


44-770. Definitions, sections found.

For purposes of sections 44-769 to 44-781, unless the context otherwise requires, the definitions found in sections 44-771 to 44-778 shall be used.

Source:Laws 1980, LB 646, § 2.


44-771. Hospital, defined.

Hospital shall mean an institution licensed as a hospital by the Department of Health and Human Services and defined in section 71-419.

Source:Laws 1980, LB 646, § 3; Laws 1996, LB 1044, § 236; Laws 2000, LB 819, § 69;    Laws 2007, LB296, § 173.    


44-772. Substance abuse treatment center, defined.

Substance abuse treatment center shall mean an institution licensed as a substance abuse treatment center by the Department of Health and Human Services, which provides a program for the inpatient or outpatient treatment of alcoholism pursuant to a written treatment plan approved and monitored by a physician and which is affiliated with a hospital under a contractual agreement with an established system for patient referral.

Source:Laws 1980, LB 646, § 4; Laws 1985, LB 209, § 1; Laws 1985, LB 253, § 1; Laws 1996, LB 1044, § 237; Laws 1996, LB 1155, § 17; Laws 2000, LB 819, § 70;    Laws 2007, LB296, § 174;    Laws 2018, LB1034, § 47.    
Effective Date: July 19, 2018


44-773. Outpatient program, defined.

Outpatient program shall refer to a program which is licensed or certified by the Department of Health and Human Services or the Division of Behavioral Health of the Department of Health and Human Services to provide specified services to persons suffering from the disease of alcoholism.

Source:Laws 1980, LB 646, § 5; Laws 1995, LB 275, § 3; Laws 1996, LB 1044, § 238; Laws 1996, LB 1155, § 18; Laws 2004, LB 1083, § 96;    Laws 2007, LB296, § 175.    


44-774. Certified, defined.

Certified shall mean approved by the Division of Behavioral Health of the Department of Health and Human Services to render specific types or levels of care to the person suffering from the disease of alcoholism.

Source:Laws 1980, LB 646, § 6; Laws 1995, LB 275, § 4; Laws 1996, LB 1044, § 239; Laws 2004, LB 1083, § 97;    Laws 2007, LB296, § 176.    


44-775. Accredited, defined.

Accredited shall mean accredited to render specific types or levels of care according to the Accreditation Manual for Alcoholism Programs of the Joint Commission of Accreditation of Hospitals.

Source:Laws 1980, LB 646, § 7.


44-776. Primary treatment, defined.

Primary treatment shall mean inpatient treatment rendered in a structured and scheduled setting to prevent further ingestion of alcoholic beverages, to relieve the pain of the withdrawal syndrome, and to provide intensive therapy or rehabilitation, when such treatment is rendered in a hospital or a substance abuse treatment center which is certified or accredited to render such care.

Source:Laws 1980, LB 646, § 8; Laws 1996, LB 1155, § 19.


44-777. Outpatient treatment, defined.

Outpatient treatment shall mean counseling and therapy provided on a nonresidential basis when such treatment is rendered in or through a hospital, a substance abuse treatment center, or an outpatient program which is certified or accredited to render such care.

Source:Laws 1980, LB 646, § 9; Laws 1996, LB 1155, § 20.


44-778. Basic coverage for treatment of alcoholism, defined.

Basic coverage for treatment of alcoholism shall mean coverage for primary and outpatient treatment consisting of not less than (1) thirty days of inpatient coverage for the primary treatment of alcoholism in any three-hundred-sixty-five-day benefit period with at least two such inpatient treatment periods available during the lifetime of the policy, and (2) sixty outpatient treatment visits during the lifetime of the policy.

Source:Laws 1980, LB 646, § 10.


44-779. Group sickness and accident insurance; coverage for the treatment of alcoholism; requirements.

After January 1, 1981, all policies or contracts of group sickness and accident insurance written or issued by insurance companies and all group contracts or certificates written or issued by a health maintenance organization as to which there is a premium change or which are delivered or issued for delivery in this state, which do not provide at least basic coverage for the treatment of alcoholism, shall be subject to the following:

(1) The written sales and advertising literature, the descriptive brochures, and the exclusion sections of such policy, contract, or certificate shall contain a notice in all capital letters in the following language or in words of similar effect as approved by the Director of Insurance: This agreement does not provide basic coverage for the treatment of alcoholism. Coverage for treatment of alcoholism is available if you specifically request it and then only upon such terms and conditions as you and the company agree;

(2) The written sales and advertising literature, the descriptive brochures, and such policy, contract, or subscription agreement itself shall not, in describing the plan, contract, coverage, or benefits, use the words comprehensive;

(3) The definition of a facility, program, or agency in or through which covered alcoholism services may be rendered contained in any optional coverage shall not be more restrictive than the definitions contained in sections 44-771 to 44-775 if the effect of such definitions would be to limit, deny, or withhold benefits which would be available if the definitions used in sections 44-769 to 44-781 were applied;

(4) Such policy, contract, or subscription agreement shall provide benefits to any person covered thereunder for the treatment of alcoholism under such terms and conditions as may be agreed upon between the subscriber or insured and the insurer or health maintenance organization; and

(5) In the case of policies, contracts, and subscription agreements issued before January 1, 1981, as to which there is a premium change after January 1, 1981, the notification requirements of this section may be met by written endorsement to such policy, contract, or subscription agreement.

Source:Laws 1980, LB 646, § 11; Laws 1989, LB 92, § 159.


44-780. Basic coverage for treatment of alcoholism; when considered available.

An insurance company or health maintenance organization will be considered to be providing basic coverage for treatment of alcoholism if it makes benefits available for the treatment described in section 44-778 on terms involving durational limits, dollar limits, deductibles, and coinsurance which are no less favorable than the terms on which it makes benefits available for the treatment of physical illness generally.

Source:Laws 1980, LB 646, § 12; Laws 1989, LB 92, § 160.


44-781. Coverage for treatment of alcoholism; benefits available.

An insurance company or health maintenance organization which does not provide basic coverage for treatment of alcoholism may nevertheless provide different or lesser benefits. Nothing in sections 44-769 to 44-781 is intended to limit any insurance company or health maintenance organization from providing more coverage for the treatment of alcoholism than is described in section 44-778.

Source:Laws 1980, LB 646, § 13; Laws 1989, LB 92, § 161.


44-782. Health insurance provider; coverage of mental or nervous disorders; requirements.

No insurance company, health maintenance organization, or other health insurance provider shall deny payment for treatment of mental or nervous disorders under a policy, contract, certificate, or other evidence of coverage issued or delivered in Nebraska on the basis that the hospital or state institution licensed as a hospital by the Department of Health and Human Services and defined in section 71-419 providing such treatment is publicly funded and charges are reduced or no fee is charged depending on the patient's ability to pay.

Source:Laws 1985, LB 487, § 1; Laws 1989, LB 92, § 162; Laws 1996, LB 1044, § 240; Laws 2000, LB 819, § 71;    Laws 2007, LB296, § 177.    


44-783. Health insurance insurer; choice of pharmacy; limitation; when.

(1) If any insurer authorized to transact the business of health insurance in this state reasonably determines that an insured's utilization of prescription medications has been excessive and has not been medically necessary as defined by the insured's coverage, the insurer may reserve the right to limit such insured to a pharmacy of the insured's choice for obtaining prescription drug benefits. If the insured's coverage is through a preferred provider organization, the insurer or preferred provider organization may limit the insured to a preferred provider pharmacy of the insured's choice. If an insured has been so limited, the insurer or preferred provider organization shall not be required to provide benefits for prescriptions obtained from any other pharmacy. The insurer or preferred provider organization may require that the insured provide written notification to the insurer or preferred provider organization of the insured's choice of pharmacy.

(2) The action by the insurer or preferred provider organization limiting an insured to one pharmacy of the insured's choice may be effective as of the date specified in a written notice to the insured. Such written notice shall be sent to the insured at his or her last-known address as shown by the records of the insurer or preferred provider organization by certified or registered mail and shall inform the insured that he or she is required to select one pharmacy for obtaining prescription drug benefits. The terms of the written notice shall allow the insured at least seven days to notify the insurer or preferred provider organization of his or her choice of pharmacy.

Source:Laws 1993, LB 536, § 19.


44-784. Coverage for childhood immunizations; requirements.

Notwithstanding section 44-3,131, any expense-incurred group sickness and accident insurance policy, certificate, or subscriber contract delivered, issued for delivery, or renewed after January 1, 1995, or any expense-incurred individual sickness and accident insurance policy, certificate, or subscriber contract delivered or issued for delivery after such date that provides coverage for a dependent child under six years of age shall provide coverage for childhood immunizations. Benefits for childhood immunizations shall be exempt from any deductible provision contained in the applicable policy. Copayment, coinsurance, and dollar-limit provisions applicable to other medical services may be applied to the childhood immunization benefits. This section shall not apply to any individual or group policies that provide coverage for a specified disease, accident-only coverage, hospital indemnity coverage, medicare supplement coverage, long-term care coverage, or other limited-benefit coverage.

For purposes of this section, childhood immunizations shall mean the complete set of vaccinations for children from birth to six years of age for immunization against measles, mumps, rubella, poliomyelitis, diphtheria, pertussis, tetanus, and haemophilus influenzae type B.

Source:Laws 1994, LB 1222, § 46; Laws 2007, LB63, § 1.    


44-785. Coverage for screening mammography; requirements.

(1) Notwithstanding section 44-3,131, (a) any individual or group sickness and accident insurance policy or subscriber contract delivered, issued for delivery, or renewed in this state and any hospital, medical, or surgical expense-incurred policy, except for policies that provide coverage for a specified disease or other limited-benefit coverage, and (b) any self-funded employee benefit plan to the extent not preempted by federal law shall include coverage for screening mammography as follows:

(i) For women who are thirty-five years of age and older but younger than forty years of age, one base-line mammogram between thirty-five and forty years of age;

(ii) For women who are forty years of age and older but younger than fifty years of age, one mammogram every two years or more frequently based on the patient's physician's recommendation; and

(iii) For women who are fifty years of age or older, one mammogram every year.

(2) This section does not prevent application of deductible or copayment provisions contained in the policy or health benefit plan or require that coverage under an individual or group policy or health benefit plan be extended to any other procedures. The coverage provided by this section shall not be less favorable than for other radiological examinations. This section does not apply if the covered individuals are provided an ongoing screening mammography program which at a minimum meets the requirements of this section as a separate benefit.

(3) For purposes of this section, screening mammography shall mean radiological examination of the breast of asymptomatic women for the early detection of breast cancer, which examination shall include (a) a cranio-caudal and a medial lateral oblique view of each breast and (b) a licensed radiologist's interpretation of the results of the procedure. Screening mammography shall not include diagnostic mammography, additional projections required for lesion definition, breast ultrasound, or any breast interventional procedure. Screening mammography shall be performed by a mammogram supplier who meets the standards of the federal Mammography Quality Standards Act of 1992.

Source:Laws 1995, LB 68, § 1.


44-786. Obstetricians/gynecologists as primary care physicians; requirements.

On or after July 1, 1996, any entity which offers any individual or group sickness and accident insurance policy, subscriber contract, health maintenance organization contract, or hospital, medical, or surgical expense-incurred policy which is delivered, issued for delivery, or renewed in this state shall include obstetricians/gynecologists as primary care physicians if they otherwise qualify as a primary care physician pursuant to the credentialing or recredentialing standards of that entity and they perform all of the functions of a primary care physician according to the terms and conditions of such entity's primary care physician contract.

Source:Laws 1996, LB 532, § 1.


44-787. Individual health insurance policies and contracts; renewal; exceptions; failure to renew; effect; certificate of creditable coverage.

(1) All individual health insurance policies and contracts issued by health carriers providing benefits consisting of medical care, which are provided directly, through insurance or reimbursement, under any hospital or medical service policy, hospital or medical service plan contract, or health maintenance organization contract shall be renewable at the option of the covered individual, except in any of the following cases:

(a) The covered individual has failed to pay premiums or contributions in accordance with the terms of the individual policy or contract or the health carrier has not received timely premium payments;

(b) The covered individual has performed an act or practice that constitutes fraud or made an intentional misrepresentation of material fact under the terms of the coverage;

(c) A health carrier decides to discontinue offering a particular type of individual policy or contract in this state. A health carrier discontinuing such individual policy or contract shall:

(i) Provide advance notice of its decision to the commissioner of insurance in each state in which it is licensed;

(ii) Provide notice of the decision not to renew coverage to all covered individuals, and to the commissioner of insurance in each state in which a covered individual is known to reside, at least ninety days prior to the nonrenewal of any individual policies or contracts by the health carrier. Notice to the director shall be provided at least three working days prior to the notice to the covered individuals;

(iii) Offer to each covered individual provided the type of individual policy or contract the option to purchase all other individual policies or contracts currently being offered by the health carrier to individuals in this state; and

(iv) In exercising the option to discontinue the particular type of individual policy or contract and in offering the option of coverage under subdivision (1)(c)(iii) of this section, act uniformly without regard to any health-status-related factor relating to any covered individual who may become eligible for such coverage;

(d) A health carrier decides to discontinue offering and nonrenews all its individual policies and contracts delivered or issued for delivery to individuals in this state. A health carrier that discontinues such individual policies and contracts shall:

(i) Provide advance notice of its decision to the commissioner of insurance in each state in which it is licensed;

(ii) Provide notice of the decision not to renew coverage to all covered individuals, and to the commissioner of insurance in each state in which a covered individual is known to reside, at least one hundred eighty days prior to the nonrenewal of any individual policies or contracts by the health carrier. Notice to the director shall be provided at least three working days prior to the notice to the covered individuals; and

(iii) Discontinue all health insurance issued or delivered for issuance in the state's individual market and not renew coverage under any individual policy or contract issued to an individual; and

(e) The director finds that the continuation of the coverage would:

(i) Not be in the best interests of the covered individuals; or

(ii) Impair the health carrier's ability to meet its contractual obligations.

(2) A health carrier that elects not to renew all of its individual policies or contracts in the state under subdivision (1)(d) of this section shall be prohibited from writing new business in the individual market in this state for a period of five years after the date of notice to the director.

(3) A health carrier offering coverage through a network plan shall not be required to offer coverage or accept applications pursuant to subsection (1) of this section in the case of an individual who no longer resides, lives, or works in the service area of the health carrier or in an area for which the health carrier is authorized to do business, but only if coverage is terminated under this section uniformly without regard to any health-status-related factor of covered individuals.

(4)(a) Health carriers shall provide written certification of creditable coverage to individuals covered under an individual health insurance policy or contract at the time:

(i) An individual ceases to be covered under the health insurance policy or contract; and

(ii) A request is made on behalf of an individual if the request is made not later than twenty-four months after the date of cessation of coverage.

(b) The certificate of creditable coverage shall contain:

(i) Written certification of the period of creditable coverage of the individual under the health insurance policy or contract; and

(ii) The waiting period, if any, and, if applicable, affiliation period imposed with respect to the individual for any coverage under the health insurance policy or contract.

(c) The entity providing the information pursuant to subdivision (4)(a) of this section may charge the requesting group health plan the reasonable cost of disclosing the information.

(5) For purposes of this section:

(a) Director means the Director of Insurance;

(b) Health carrier means any entity that issues a health insurance policy or contract, including an insurance company, a fraternal benefit society, a health maintenance organization, and any other entity providing a plan of health insurance or health benefits subject to state insurance regulation;

(c) Health-status-related factor means any of the following factors:

(i) Health status;

(ii) Medical condition, including both physical and mental illnesses;

(iii) Claims experience;

(iv) Receipt of health care;

(v) Medical history;

(vi) Genetic information;

(vii) Evidence of insurability, including conditions arising out of acts of domestic violence; and

(viii) Disability;

(d)(i) Individual policy or contract does not include one or more, or any combination, of the following:

(A) Coverage only for accident or disability income insurance, or any combination thereof;

(B) Coverage issued as a supplement to liability insurance;

(C) Liability insurance, including general liability insurance and automobile liability insurance;

(D) Workers' compensation or similar insurance;

(E) Automobile medical payment insurance;

(F) Credit-only insurance;

(G) Coverage for onsite medical clinics; and

(H) Other similar insurance coverage, specified in federal regulations, under which benefits for medical care are secondary or incidental to other insurance benefits.

(ii) Individual policy or contract does not include the following benefits if they are provided under a separate policy, certificate, or contract of insurance or are otherwise not an integral part of the policy or contract:

(A) Limited-scope dental or vision benefits;

(B) Benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof; and

(C) Such other similar, limited benefits as are specified in federal regulations.

(iii) Individual policy or contract does not include the following benefits if the benefits are provided under a separate policy, certificate, or contract of insurance:

(A) Coverage only for a specified disease or illness; and

(B) Hospital indemnity or other fixed indemnity insurance.

(iv) Individual policy or contract does not include the following if it is offered as a separate policy, certificate, or contract of insurance:

(A) Medicare supplemental health insurance as defined under section 1882(g)(1) of the Social Security Act, 42 U.S.C. 1395ss, as such section existed on January 1, 2002;

(B) Coverage supplemental to the coverage provided under 10 U.S.C. chapter 55, as such chapter existed on January 1, 2002;

(C) Similar supplemental coverage provided to coverage under a group health plan; and

(D) Short-term limited duration insurance that has an expiration date specified in the contract that is within twelve months of the effective date of the contract; and

(e) Network plan means health insurance coverage offered by a health carrier under which the financing and delivery of medical care including items and services paid for as medical care are provided, in whole or in part, through a defined set of providers under contract with the health carrier.

Source:Laws 1997, LB 55, § 1; Laws 1998, LB 1035, § 3; Laws 1999, LB 259, § 3;    Laws 2002, LB 1139, § 18.    


44-788. Coverage for cancer, human immunodeficiency virus, or acquired immunodeficiency syndrome treatment; requirements.

(1) Notwithstanding section 44-3,131, any individual or group sickness and accident insurance policy or subscriber contract delivered, issued for delivery, or renewed in this state and any hospital, medical, or surgical expense-incurred policy, except for policies that provide coverage for a specified disease or other limited-benefit coverage, and any self-funded employee benefit plan to the extent not preempted by federal law, which provides reimbursement for prescription drugs approved by the federal Food and Drug Administration for the treatment of a specific type of cancer shall not exclude coverage of any drug or combination of drugs on the basis that the drug or combination of drugs has not been approved by the federal Food and Drug Administration for the treatment of another specific type of cancer if (a) the drug or combination of drugs is recognized for treatment of the other specific type of cancer in the United States Pharmacopeia-Drug Information and the drug or combination of drugs is approved for sale by the federal Food and Drug Administration or (b) the drug or combination of drugs is recognized for treatment of the other specific type of cancer in medical literature and the drug or combination of drugs is approved for sale by the federal Food and Drug Administration.

(2) Notwithstanding section 44-3,131, any individual or group sickness and accident insurance policy or subscriber contract delivered, issued for delivery, or renewed in this state and any hospital, medical, or surgical expense-incurred policy, except for policies that provide coverage for a specified disease or other limited-benefit coverage, and any self-funded employee benefit plan to the extent not preempted by federal law, which provides reimbursement for prescription drugs approved by the federal Food and Drug Administration for the treatment of human immunodeficiency virus or acquired immunodeficiency syndrome shall not exclude coverage of any drug or combination of drugs on the basis that the drug or combination of drugs has not been approved by the federal Food and Drug Administration for the treatment of human immunodeficiency virus or acquired immunodeficiency syndrome if (a) the drug or combination of drugs is recognized for treatment of human immunodeficiency virus or acquired immunodeficiency syndrome in the United States Pharmacopeia-Drug Information and the drug or combination of drugs is approved for sale by the federal Food and Drug Administration or (b) the drug or combination of drugs is recognized for treatment of human immunodeficiency virus or acquired immunodeficiency syndrome in medical literature and the drug or combination of drugs is approved for sale by the federal Food and Drug Administration.

(3) Any coverage of a drug or combination of drugs required by this section shall include medically necessary services associated with the administration of the drug if such services are covered by the insurance policy, contract, or plan.

(4) Nothing in this section shall be construed to require coverage for any experimental or investigational drug not approved by the federal Food and Drug Administration.

(5) For purposes of this section, medical literature means two articles from major peer-reviewed professional medical journals that have recognized, based on scientific or medical criteria, the safety and effectiveness of the drug or combination of drugs for treatment of the indication for which it has been prescribed unless two articles from major peer-reviewed professional medical journals have concluded, based on scientific or medical criteria, that the drug or combination of drugs is unsafe or ineffective or that the safety and effectiveness of the drug or combination of drugs cannot be determined for the treatment of the indication for which the drug or combination of drugs has been prescribed. Each article shall meet the uniform requirements for manuscripts submitted to biomedical journals established by the International Committee of Medical Journal Editors or shall have been published in a journal specified by the United States Department of Health and Human Services pursuant to 42 U.S.C. 1395x(t)(2)(B), as amended, as acceptable peer-reviewed medical literature. Peer-reviewed medical literature shall not include publications or supplements that are sponsored to a significant extent by a pharmaceutical manufacturing company or health carrier.

(6) This section shall apply to policies, plans, or contracts for insurance as provided in subsections (1) and (2) of this section which are delivered, issued for delivery, or renewed in this state on or after July 15, 1998.

Source:Laws 1998, LB 1162, § 81; Laws 2002, LB 93, § 3.    


44-789. Coverage for bone or joint treatment; requirements.

Notwithstanding section 44-3,131, no group policy of accident or health insurance, health services plan, or health maintenance organization subscription shall be offered for sale in this state on or after January 1, 2009, unless such policy, plan, subscription, or contract which specifically provides coverage for surgical and nonsurgical treatment involving a bone or joint of the skeletal structure includes the option to provide coverage, for an additional premium and subject to the insurer's standard of insurability, for the reasonable and necessary medical treatment of temporomandibular joint disorder and craniomandibular disorder. The purchaser of the group policy of accident or health insurance, health services plan, or health maintenance organization subscription shall accept or reject the coverage in writing on the application or an amendment thereto for the master group policy of accident or health insurance, health services plan, or health maintenance organization subscription. Benefits may be subject to the same preexisting conditions, limitations, deductibles, copayments, and coinsurance that generally apply to any other sickness. The maximum lifetime benefits for temporomandibular joint disorder and craniomandibular disorder treatment shall be no less than two thousand five hundred dollars. Nothing in this section shall prevent an insurer from including such coverage for temporomandibular joint disorder and craniomandibular disorder as part of a policy's basic coverage instead of offering optional coverage.

Source:Laws 1998, LB 1162, § 82; Laws 2008, LB855, § 5.    


44-790. Coverage for diabetes; requirements.

(1) Notwithstanding section 44-3,131, (a) any individual or group sickness and accident insurance policy or subscriber contract delivered, issued for delivery, or renewed in this state and any hospital, medical, or surgical expense-incurred policy, except for policies that provide coverage for a specified disease or other limited-benefit coverage, and (b) any self-funded employee benefit plan to the extent not preempted by federal law shall include coverage for the equipment, supplies, medication, and outpatient self-management training and patient management, including medical nutrition therapy, for the treatment of insulin-dependent diabetes, insulin-using diabetes, gestational diabetes, and non-insulin-using diabetes if prescribed by a health care professional legally authorized by law to prescribe such items.

(2) The equipment, supplies, medication, and patient management for the use of the equipment, supplies, and medication listed in this subsection shall be included in the coverage required by this section: Blood glucose monitors; blood glucose monitors for the legally blind; test strips for glucose monitors; urine testing strips; insulin; injection aids; lancet and lancet devices; syringes; insulin pumps and all supplies for the pump; insulin infusion devices; oral agents for controlling blood sugars; glucose agents and glucagon kits; insulin measurement and administration aids for the visually impaired; patient management materials that provide essential diabetes self-management information; and podiatric appliances for the prevention of complications associated with diabetes.

(3) The benefits under this section shall be provided for the patient upon the diagnosis of diabetes, when a significant change occurs in the patient's symptoms or condition that necessitates changes in a patient's self-management, or when refresher patient management is necessary. The benefits shall cover home visits when medically necessary and prescribed by a health care professional legally authorized by law to prescribe such items. Patient management may be conducted individually or in a group setting as long as there is medical necessity.

(4) Diabetes self-management training and patient management, including medical nutrition therapy, shall be provided by an American Diabetes Association Recognized Diabetes Self-Management Education Program or a health care professional that is a diabetes educator certified by the National Certification Board for Diabetes Educators.

(5) Physician-prescribed diabetes self-management training and patient management shall be covered at diagnosis, when symptoms or conditions change, and when new medications or treatments are prescribed. Diabetes self-management education must be deemed to be medically necessary by a physician to be eligible for coverage and such coverage shall not exceed five hundred dollars in a two-year period.

(6) This section does not prevent application of (a) deductible or copayment provisions or network incentives contained in the policy or health benefit plan or (b) outpatient care provisions in policies or health benefit plans that extend coverage primarily in relation to hospital confinement or surgery. This section does not require that coverage under an individual or group policy or health benefit plan be extended to any other procedures. Private third-party payors may not reduce or eliminate coverage due to this section.

(7) For purposes of this section, patient management means educational and training services furnished to an individual with diabetes in an outpatient setting by an individual or entity with experience in diabetes, in consultation with the physician who is managing the patient's condition, which physician certifies that such services are needed under a comprehensive plan of care related to the individual's condition to ensure therapy or compliance or to provide the individual with necessary skills and knowledge, including skills related to the self-administration of injectable drugs which participate in the management of the individual's condition.

(8) Reimbursement for coverage shall be in amounts reasonably negotiated by the health care professional and the private third-party payor.

Source:Laws 1999, LB 99, § 1.    


44-791. Mental health conditions; legislative findings.

The Legislature finds that mental health conditions affect a significant number of Nebraskans. Mental health conditions, like severe physical injuries or illness, can be life-altering and debilitating in nature. If properly treated and managed by mental health professionals, persons with mental health conditions can and do lead full and productive lives. However, without such treatment or management, many mental health conditions will progressively deteriorate and negatively impact upon a person's livelihood, social relationships, and physical health.

The Legislature also finds that many persons with mental health conditions either do not seek treatment or do not complete or maintain such treatment programs. Treatment options are not underutilized due to the scarcity of professional resources or the lack of desire on the part of persons with mental health conditions, but rather treatment has become unaffordable as the result of the rising health care costs combined with a lack of insurance coverage for mental health conditions. The associated societal and monetary costs of providing no treatment or untimely treatment to persons with mental health conditions are great. It is the intent of sections 44-791 to 44-795 that persons with group health insurance plans providing coverage for mental health conditions be provided with a minimum level of coverage.

Source:Laws 1999, LB 355, § 1.    


44-792. Mental health conditions; terms, defined.

For purposes of sections 44-791 to 44-795:

(1) Health insurance plan means (a) any group sickness and accident insurance policy, group health maintenance organization contract, or group subscriber contract delivered, issued for delivery, or renewed in this state and (b) any self-funded employee benefit plan to the extent not preempted by federal law. Health insurance plan includes any group policy, group contract, or group plan offered or administered by the state or its political subdivisions. Health insurance plan does not include group policies providing coverage for a specified disease, accident-only coverage, hospital indemnity coverage, disability income coverage, medicare supplement coverage, long-term care coverage, or other limited-benefit coverage. Health insurance plan does not include any policy, contract, or plan covering an employer group that covers fewer than fifteen employees;

(2) Mental health condition means any condition or disorder involving mental illness that falls under any of the diagnostic categories listed in the Mental Disorders Section of the International Classification of Disease;

(3) Mental health professional means (a) a practicing physician licensed to practice medicine in this state under the Medicine and Surgery Practice Act, (b) a practicing psychologist licensed to engage in the practice of psychology in this state as provided in section 38-3111 or as provided in similar provisions of the Psychology Interjurisdictional Compact, or (c) a practicing mental health professional licensed or certified in this state as provided in the Mental Health Practice Act;

(4) Rate, term, or condition means lifetime limits, annual payment limits, and inpatient or outpatient service limits. Rate, term, or condition does not include any deductibles, copayments, or coinsurance; and

(5)(a) Serious mental illness means, prior to January 1, 2002, (i) schizophrenia, (ii) schizoaffective disorder, (iii) delusional disorder, (iv) bipolar affective disorder, (v) major depression, and (vi) obsessive compulsive disorder; and

(b) Serious mental illness means, on and after January 1, 2002, any mental health condition that current medical science affirms is caused by a biological disorder of the brain and that substantially limits the life activities of the person with the serious mental illness. Serious mental illness includes, but is not limited to (i) schizophrenia, (ii) schizoaffective disorder, (iii) delusional disorder, (iv) bipolar affective disorder, (v) major depression, and (vi) obsessive compulsive disorder.

Source:Laws 1999, LB 355, § 2;    Laws 2007, LB463, § 1135;    Laws 2018, LB1034, § 48.    
Effective Date: July 19, 2018


Cross References

44-793. Mental health conditions; coverage; requirements.

(1) On or after January 1, 2000, notwithstanding section 44-3,131, any health insurance plan delivered, issued, or renewed in this state (a) if coverage is provided for treatment of mental health conditions other than alcohol or substance abuse, (i) shall not establish any rate, term, or condition that places a greater financial burden on an insured for access to treatment for a serious mental illness than for access to treatment for a physical health condition and (ii) if an out-of-pocket limit is established for physical health conditions, shall apply such out-of-pocket limit as a single comprehensive out-of-pocket limit for both physical health conditions and mental health conditions, or (b) if no coverage is to be provided for treatment of mental health conditions, shall provide clear and prominent notice of such noncoverage in the plan.

(2) If a health insurance plan provides coverage for serious mental illness, the health insurance plan shall cover health care rendered for treatment of serious mental illness (a) by a mental health professional, (b) by a person authorized by the rules and regulations of the Department of Health and Human Services to provide treatment for mental illness, (c) in a mental health center as defined in section 71-423, or (d) in any other health care facility licensed under the Health Care Facility Licensure Act that provides a program for the treatment of a mental health condition pursuant to a written plan. The issuer of a health insurance plan may require a health care provider under this subsection to enter into a contract as a condition of providing benefits.

(3) The Director of Insurance may disapprove any plan that the director determines to be inconsistent with the purposes of this section.

Source:Laws 1999, LB 355, § 3;    Laws 2000, LB 819, § 72;    Laws 2007, LB296, § 178.    


Cross References

44-794. Mental health conditions; sections; how construed.

(1) Sections 44-791 to 44-795 shall not be construed to:

(a) Require a health insurance plan to provide coverage for mental health conditions or serious mental illnesses;

(b) Require a health insurance plan to provide the same rates, terms, or conditions between treatments for serious mental illnesses and preventative care;

(c) Prohibit a health insurance plan from providing separate reimbursement rates and service delivery systems, including, but not limited to, mental health carve-out programs even if the plan does not provide similar options for the treatment of physical health conditions. A health insurance plan provided in compliance with section 44-793 shall not be construed to violate the Managed Care Plan Network Adequacy Act; or

(d) Prohibit a health insurance plan from managing the provision of benefits through common methods, including, but not limited to, preadmission screening, prior authorization of services, or other mechanisms designed to limit coverage to services for mental health conditions that are deemed to be medically necessary and clinically appropriate.

(2) A health insurance plan does not violate section 44-793 if the plan applies different rates, terms, and conditions or excludes entirely from coverage the following:

(a) Marital, family, educational, developmental, or training services;

(b) Care that is substantially custodial in nature;

(c) Services and supplies that are not medically necessary or clinically appropriate; or

(d) Experimental treatments.

(3) A health insurance plan may use a case management program or managed care organization to evaluate, determine, and provide or arrange for medically necessary and clinically appropriate care and treatment of each person with a mental health condition or serious mental illness who is covered by the plan.

(4) A health insurance plan shall not be required to offer coverage for nonemergency services rendered outside its network of contracted providers.

Source:Laws 1999, LB 355, § 4.    


Cross References

44-795. Mental health conditions; rules and regulations.

The Director of Insurance may adopt and promulgate rules and regulations to carry out sections 44-791 to 44-795.

Source:Laws 1999, LB 355, § 5.    


44-796. Coverage for certain hearing screening tests; requirements.

(1) Notwithstanding section 44-3,131:

(a) Under a health insurance plan which provides coverage for hearing screening tests for newborns and infants, such coverage shall be subject to copayment, coinsurance, deductible, and dollar-limit provisions to the extent that other medical services covered by the health insurance plan are subject to such provisions; and

(b) This section applies to health insurance plans delivered, issued for delivery, or which become effective on or after April 11, 2000, and also applies to all renewals or changes which are effective on or after April 11, 2000.

(2) For purposes of this section, health insurance plan means a plan which includes dependent coverage for children which is delivered, issued for delivery, renewed, extended, or modified in this state. A health insurance plan includes any such group or individual sickness and accident insurance policy, health maintenance organization contract, subscriber contract, employee medical, surgical, or hospital care benefit plan, or self-funded employee benefit plan to the extent not preempted by federal law. Health insurance plan includes any policy, contract, or plan offered or administered by the state or its political subdivisions. Health insurance plan does not include policies providing coverage for a specified disease, accident-only coverage, hospital indemnity coverage, disability income coverage, medicare supplement coverage, long-term care coverage, or other limited-benefit coverage.

(3) The Department of Insurance shall adopt and promulgate rules and regulations necessary to implement this section.

Source:Laws 2000, LB 950, § 13.    


44-797. Coverage for breast reconstruction; requirements; exceptions.

(1)(a) Any individual or group sickness and accident insurance policy, subscriber contract, or group health maintenance organization contract that provides medical and surgical benefits with respect to a mastectomy shall provide, in a case of a participant or beneficiary who is receiving benefits in connection with a mastectomy and who elects breast reconstruction in connection with such mastectomy, coverage for all stages of reconstruction of the breast on which the mastectomy has been performed, surgery and reconstruction of the other breast to produce a symmetrical appearance, and prostheses and physical complications of mastectomy, including lymphedemas in a manner determined in consultation with the attending physician and the patient. Such coverage may be subject to annual deductibles and coinsurance provisions as may be deemed appropriate and as are consistent with those established for other benefits under the individual or group sickness and accident insurance policy, subscriber contract, or group health maintenance organization contract. Written notice of the availability of such coverage shall be delivered to the participant upon enrollment and annually thereafter.

(b) Each individual or group sickness and accident insurance policy, subscriber contract, or group health maintenance organization contract shall provide notice to each policyholder and certificate holder of the coverage required by this section. Such notice shall be in writing and prominently positioned in any literature or correspondence made available or distributed by the plan or issuer. For group policies, such notice shall be sent to the policyholder or certificate holder by the plan or to the participant or beneficiary by the issuer. For individual policies, such notice shall be sent to the policyholder by the issuer no later than December 31, 2006.

(2) No individual or group sickness and accident insurance policy, subscriber contract, or group health maintenance organization contract may deny to a patient eligibility, or continued eligibility, to enroll or to renew coverage under the terms of the plan, solely for the purpose of avoiding the requirements of this section, or penalize or otherwise reduce or limit the reimbursement of an attending provider, or provide monetary or other incentives to an attending provider, to induce such provider to provide care to an individual participant or beneficiary in a manner inconsistent with this section. Nothing in this section shall be construed to prohibit normal underwriting.

(3) Nothing in this section shall be construed to prevent an individual or group sickness and accident insurance policy, subscriber contract, or group health maintenance organization contract offering health insurance coverage from negotiating the level and type of reimbursement with a provider for care provided in accordance with this section.

(4) The provisions of this section shall not apply to any individual or group policy or certificate which provides:

(a) Coverage only for accident or disability income insurance, or any combination thereof;

(b) Coverage issued as a supplement to liability insurance;

(c) Liability insurance, including general liability insurance and automobile liability insurance;

(d) Workers' compensation or similar insurance;

(e) Automobile medical payment insurance;

(f) Credit-only insurance;

(g) Coverage for onsite medical clinics;

(h) Other similar insurance coverage, specified in federal regulations, under which benefits for medical care are secondary or incidental to other insurance benefits;

(i) Limited-scope dental or vision benefits;

(j) Benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof;

(k) Such other similar, limited benefits as are specified in federal regulations;

(l) Coverage only for a specified disease or illness;

(m) Hospital indemnity or other fixed indemnity insurance;

(n) Medicare supplemental health insurance as defined under section 1882(g)(1) of the Social Security Act, as such section existed on January 1, 2005;

(o) Coverage supplemental to the coverage provided under 10 U.S.C. chapter 55, as such chapter existed on January 1, 2005; and

(p) Similar supplemental coverage provided to coverage under a group health plan.

Source:Laws 2000, LB 930, § 4;    Laws 2005, LB 119, § 9.    


44-798. Coverage for dental care requiring hospitalization and general anesthesia; requirements.

(1) Notwithstanding section 44-3,131, (a) any employer group sickness and accident insurance policy or subscriber contract delivered, issued for delivery, or renewed in this state and any employer group hospital, medical, or surgical expense-incurred policy, except for policies that provide coverage for a specified disease or other limited-benefit coverage, and (b) any self-funded employee benefit plan to the extent not preempted by federal law shall include coverage for the reasonable cost of hospitalization and general anesthesia in order for a covered person to safely receive dental care if he or she is under eight years of age or is developmentally disabled.

(2)(a) This section does not prevent application of deductible or copayment provisions contained in the group policy, contract, or benefit plan or require that coverage under a group policy, contract, or benefit plan be extended to any other procedures, including dental care.

(b) This section does not prevent application of prior authorization requirements or other requirements of a managed care plan as established by the group policy, contract, or benefit plan, including a requirement that coverage under subsection (1) of this section shall be provided only through a contracted network of providers.

(3) For purposes of this section, the reasonable determination that hospitalization and general anesthesia are necessary for safe dental care shall be made by the entity providing coverage under subsection (1) of this section. Medical necessity shall be as defined by the group policy, contract, or benefit plan.

(4) For purposes of this section, hospital and hospitalization includes ambulatory surgical center and care at an ambulatory surgical center.

Source:Laws 2000, LB 1253, § 1.    


44-799. Coverage for newly adopted children; requirements.

(1)(a) Any individual or group sickness and accident insurance policy or subscriber contract delivered, issued for delivery, or renewed in this state and any hospital, medical, or surgical expense-incurred policy, except for policies that provide coverage for a specified disease or other limited-benefit coverage, and (b) any self-funded employee benefit plan to the extent not preempted by federal law shall cover newly adopted children of the insured or enrollee. The coverage for newly adopted children shall be the same as for other dependents. No policy or health benefit plan provision concerning preexisting condition limitations, insurability, eligibility, or health underwriting approval may be applied to newly adopted children when they are enrolled in accordance with this section.

(2) The coverage required by this section:

(a) Is effective upon the earlier of (i) the date of placement for the purpose of adoption or (ii) the date of the entry of an order granting the adoptive parent custody of the child for purposes of adoption;

(b) Continues unless the placement is disrupted prior to legal adoption and the child is removed from placement; and

(c) Continues unless required action as described in subsection (3) of this section is not taken.

(3) If the payment of a specific premium or subscription fee is required to provide coverage for an adopted child, the policy or health benefit plan may require that notification of the adoption of the child and the payment of the required premium or fee be furnished to the insurer or health benefit plan within thirty-one days after the adoption of the child in order to have the coverage continue beyond the thirty-one-day period.

Source:Laws 2000, LB 1253, § 43.    


44-7,100. Genetic testing; prohibited acts.

(1)(a) Any hospital, medical, or surgical expense-incurred policy or certificate delivered, issued for delivery, or renewed in this state and (b) any self-funded employee benefit plan to the extent not preempted by federal law shall not require a covered person or his or her dependent or an asymptomatic applicant for coverage or his or her asymptomatic dependent to undergo any genetic test before issuing, renewing, or continuing the policy or certificate in this state.

(2) This section does not prohibit requiring an applicant for coverage to answer questions concerning family history.

(3) For purposes of this section:

(a) Clinical purposes includes:

(i) Predicting the risk of diseases;

(ii) Identifying carriers for single-gene disorders;

(iii) Establishing prenatal and clinical diagnosis or prognosis;

(iv) Prenatal, newborn, and other carrier screening, as well as testing in high-risk families;

(v) Testing for metabolites if undertaken with high probability that an excess or deficiency of the metabolite indicates or suggests the presence of heritable mutations in single genes; and

(vi) Other testing if the intended purpose is diagnosis of a presymptomatic genetic condition; and

(b) Genetic test means the analysis of human DNA, RNA, and chromosomes and those proteins and metabolites used to detect heritable or somatic disease-related genotypes or karyotypes for clinical purposes. A genetic test must be generally accepted in the scientific and medical communities as being specifically determinative for the presence, absence, or mutation of a gene or chromosome in order to qualify under this definition. Genetic test does not include a routine physical examination or a routine analysis, including a chemical analysis, of body fluids unless conducted specifically to determine the presence, absence, or mutation of a gene or chromosome.

Source:Laws 2001, LB 432, § 2.    


44-7,101. Prescription drug information card or other technology; requirements; use.

(1) All insurers delivering, issuing for delivery, or renewing in this state a health benefit plan which provides coverage for prescription drugs and devices and that issues, uses, or requires a card or other technology for prescription claims submission, or the insurer's agents or contractors that issue such cards or other technology, shall issue to each insured a prescription drug information card or other technology that:

(a) Conforms to the standards and format of the National Council for Prescription Drug Programs Pharmacy ID Card Implementation Guide by including all of the standard information adopted by the implementation guide and required by the health benefit plan for submission and adjudication of claims for prescription drugs or devices; or

(b) Contains at a minimum the following appropriately labeled information:

(i) The card issuer name or logo on the front of the card;

(ii) The cardholder's name and identification number on the front of the card;

(iii) Complete information for electronic transaction claims routing, including:

(A) The international identification number, labeled as RxBIN;

(B) The processor control number, labeled as RxPCN, if required for proper routing of electronic claim transactions for prescription benefits; and

(C) The group number, labeled as RxGrp, if required for proper routing of electronic claim transactions for prescription benefits;

(iv) The name and address of the health benefit plan benefits administrator or the entity responsible for prescription benefits claims submission or adjudication or pharmacy provider correspondence for prescription benefits claims; and

(v) A help desk telephone number that pharmacy providers may call for prescription benefits claims assistance.

(2) All information required by subsection (1) of this section that is necessary for submission and adjudication of claims for prescription drug or device benefits, exclusive of information that can be derived from the prescription, shall be included in a clear, readable, and understandable manner on the card or other technology issued by the insurer or its agents or contractors. The content and format of all information required by such subsection shall be in the content and format required by the health benefit plan for electronic claims routing, submission, and adjudication.

(3) A prescription drug information card or technology required under subsection (1) of this section shall be issued by an insurer upon enrollment in a health benefit plan and reissued within a reasonable time upon any change in the insured's coverage that impacts data contained on the card or technology, except that the insurer or its agents or contractors shall not be required to issue a new prescription drug information card more than once in a calendar year and nothing in this section prevents the insurer or its agents or contractors from issuing stickers or other methodologies to the insureds to update the cards or other technology temporarily until the cards or other technology are reissued or from reissuing updated new cards or other technology on a more frequent basis. Cards or technology shall be updated with the latest coverage information and shall comply with the format as approved in subsection (1) of this section.

(4) The card or other technology may be used for any and all health insurance coverage. Nothing in this section requires any person issuing, using, or requiring the card or other technology to issue, use, or require a separate card for prescription coverage if the card or other technology can accommodate the information necessary to process the claim as required by subsection (1) of this section.

(5) For purposes of this section, health benefit plan means any individual or group sickness and accident insurance policy or subscriber contract, nonprofit hospital or medical service policy or plan contract, or health maintenance organization contract and any self-funded employee benefit plan to the extent not preempted by federal law or exempted by state law. Health benefit plan does not mean one or more, or any combination, of the following:

(a) Coverage only for accident or disability income insurance, or any combination thereof;

(b) Credit-only insurance;

(c) Coverage for specified disease or illness;

(d) Limited-scope dental or vision benefits;

(e) Coverage issued as a supplement to liability insurance;

(f) Automobile medical payment insurance or homeowners medical payment insurance;

(g) Insurance under which benefits are payable with or without regard to fault and which is statutorily required to be contained in any liability policy or equivalent self-insurance coverage; or

(h) Hospital indemnity or other fixed indemnity insurance.

(6) This section shall apply to all health benefit plans delivered or issued for delivery on or after January 1, 2004, and to all health benefit plans renewed on or after January 1, 2005.

(7) The Department of Insurance shall enforce this section. The department may adopt and promulgate rules and regulations to carry out the purposes of this section.

Source:Laws 2003, LB 73, § 10.    


44-7,102. Coverage for screening for colorectal cancer.

(1) Notwithstanding section 44-3,131, (a) any individual or group sickness and accident insurance policy, certificate, or subscriber contract delivered, issued for delivery, or renewed in this state and any hospital, medical, or surgical expense-incurred policy, except for short-term major medical policies of six months or less duration and policies that provide coverage for a specified disease or other limited-benefit coverage, and (b) any self-funded employee benefit plan to the extent not preempted by federal law shall include screening coverage for a colorectal cancer examination and laboratory tests for cancer for any nonsymptomatic person fifty years of age and older covered under such policy, certificate, contract, or plan. Such screening coverage shall include a maximum of one screening fecal occult blood test annually and a flexible sigmoidoscopy every five years, a colonoscopy every ten years, or a barium enema every five to ten years, or any combination, or the most reliable, medically recognized screening test available. The screenings selected shall be as deemed appropriate by a health care provider and the patient.

(2) This section does not prevent application of deductible or copayment provisions contained in the policy, certificate, contract, or employee benefit plan or require that such coverage be extended to any other procedures.

Source:Laws 2007, LB247, § 86.    


44-7,103. Continuing coverage for children to age thirty; requirements.

(1) For purposes of this section, health benefit plan means any expense-incurred individual or group sickness and accident insurance policy, health maintenance organization contract, subscriber contract, or self-funded employee benefit plan to the extent not preempted by federal law, except for any policy or contract that provides coverage only for excepted benefits as defined in the federal Health Insurance Portability and Accountability Act of 1996, 29 U.S.C. 1191b, and regulations adopted pursuant to the act, as such act and regulations existed on January 1, 2009, or any policy or contract that provides coverage for a specified disease or other limited-benefit coverage.

(2) Notwithstanding section 44-3,131, any health benefit plan that provides coverage for children shall provide for continuing coverage for such children as follows:

(a) If coverage under the health benefit plan would otherwise terminate because a covered child ceases to be a dependent, ceases to be a full-time student, or attains an age which exceeds the specified age at which coverage ceases pursuant to the plan, the health benefit plan shall provide the option to the insured to continue coverage for such child through the end of the month in which the child (i) marries, (ii) ceases to be a resident of the state, unless the child is under nineteen years of age or is enrolled on a full-time basis in any college, university, or trade school, (iii) receives coverage under another health benefit plan or a self-funded employee benefit plan that is not included in the definition of a health benefit plan under subsection (1) of this section but provides similar coverage, or (iv) attains thirty years of age; and

(b) The health benefit plan may require:

(i) A written election from the insured; and

(ii) An additional premium for the child. Such premium shall not vary based upon the health status of the child and shall not exceed the amount the health benefit plan would receive for an identical individual for a single adult insured. No employer shall be required to contribute to any additional premium under this subdivision.

Source:Laws 2009, LB551, § 3.    


44-7,104. Coverage for orally administered anticancer medication; requirements; applicability.

(1) Notwithstanding section 44-3,131, (a) any individual or group sickness and accident insurance policy, certificate, or subscriber contract delivered, issued for delivery, or renewed in this state and any hospital, medical, or surgical expense-incurred policy, except for policies that provide coverage for a specified disease or other limited-benefit coverage, and (b) any self-funded employee benefit plan to the extent not preempted by federal law that provides coverage for cancer treatment shall provide coverage for a prescribed, orally administered anticancer medication that is used to kill or slow the growth of cancerous cells on a basis no less favorable than intravenously administered or injected anticancer medications that are covered as medical benefits by the policy, certificate, contract, or plan.

(2) This section does not prohibit such policy, certificate, contract, or plan from requiring prior authorization for a prescribed, orally administered anticancer medication. If such medication is authorized, the cost to the covered individual shall not exceed the coinsurance or copayment that would be applied to any other cancer treatment involving intravenously administered or injected anticancer medications.

(3) A policy, certificate, contract, or plan provider shall not reclassify any anticancer medication or increase a coinsurance, copayment, deductible, or other out-of-pocket expense imposed on any anticancer medication to achieve compliance with this section. Any change that otherwise increases an out-of-pocket expense applied to any anticancer medication shall also be applied to the majority of comparable medical or pharmaceutical benefits under the policy, certificate, contract, or plan.

(4) This section does not prohibit a policy, certificate, contract, or plan provider from increasing cost-sharing for all benefits, including cancer treatments.

(5) This section shall apply to any policy, certificate, contract, or plan that is delivered, issued for delivery, or renewed in this state on or after October 1, 2012.

Source:Laws 2012, LB882, § 1;    Laws 2014, LB254, § 1.    


44-7,105. Fees charged for dental services; prohibited acts.

Notwithstanding section 44-3,131, (1) an individual or group sickness or accident policy, certificate, or subscriber contract delivered, issued for delivery, or renewed in this state and a hospital, medical, or surgical expense-incurred policy, (2) a self-funded employee benefit plan to the extent not preempted by federal law, and (3) a certificate, agreement, or contract to provide limited health services issued by a prepaid limited health service organization as defined in section 44-4702 shall not include a provision, stipulation, or agreement establishing or limiting any fees charged for dental services that are not covered by the policy, certificate, contract, agreement, or plan.

Source:Laws 2012, LB810, § 1.    


44-7,106. Coverage for screening, diagnosis, and treatment of autism spectrum disorder; requirements.

(1) For purposes of this section:

(a) Applied behavior analysis means the design, implementation, and evaluation of environmental modifications, using behavioral stimuli and consequences, to produce socially significant improvement in human behavior, including the use of direct observation, measurement, and functional analysis of the relationship between environment and behavior;

(b) Autism spectrum disorder means any of the pervasive developmental disorders or autism spectrum disorder as defined by the Diagnostic and Statistical Manual of Mental Disorders, as the most recent edition of such manual existed on July 18, 2014;

(c) Behavioral health treatment means counseling and treatment programs, including applied behavior analysis, that are: (i) Necessary to develop, maintain, or restore, to the maximum extent practicable, the functioning of an individual; and (ii) provided or supervised, either in person or by telehealth, by a behavior analyst certified by a national certifying organization or a licensed psychologist if the services performed are within the boundaries of the psychologist's competency;

(d) Diagnosis means a medically necessary assessment, evaluation, or test to diagnose if an individual has an autism spectrum disorder;

(e) Pharmacy care means a medication that is prescribed by a licensed physician and any health-related service deemed medically necessary to determine the need or effectiveness of the medication;

(f) Psychiatric care means a direct or consultative service provided by a psychiatrist licensed in the state in which he or she practices;

(g) Psychological care means a direct or consultative service provided by a psychologist licensed in the state in which he or she practices;

(h) Therapeutic care means a service provided by a licensed speech-language pathologist, occupational therapist, or physical therapist; and

(i) Treatment means evidence-based care, including related equipment, that is prescribed or ordered for an individual diagnosed with an autism spectrum disorder by a licensed physician or a licensed psychologist, including:

(i) Behavioral health treatment;

(ii) Pharmacy care;

(iii) Psychiatric care;

(iv) Psychological care; and

(v) Therapeutic care.

(2) Notwithstanding section 44-3,131, (a) any individual or group sickness and accident insurance policy or subscriber contract delivered, issued for delivery, or renewed in this state and any hospital, medical, or surgical expense-incurred policy, except for policies that provide coverage for a specified disease or other limited-benefit coverage, and (b) any self-funded employee benefit plan to the extent not preempted by federal law, including any such plan provided for employees of the State of Nebraska, shall provide coverage for the screening, diagnosis, and treatment of an autism spectrum disorder in an individual under twenty-one years of age. To the extent that the screening, diagnosis, and treatment of autism spectrum disorder are not already covered by such policy or contract, coverage under this section shall be included in such policies or contracts that are delivered, issued for delivery, amended, or renewed in this state or outside this state if the policy or contract insures a resident of Nebraska on or after January 1, 2015. No insurer shall terminate coverage or refuse to deliver, issue for delivery, amend, or renew coverage of the insured as a result of an autism spectrum disorder diagnosis or treatment. Nothing in this subsection applies to non-grandfathered plans in the individual and small group markets that are required to include essential health benefits under the federal Patient Protection and Affordable Care Act or to medicare supplement, accident-only, specified disease, hospital indemnity, disability income, long-term care, or other limited benefit hospital insurance policies.

(3) Except as provided in subsection (4) of this section, coverage for an autism spectrum disorder shall not be subject to any limits on the number of visits an individual may make for treatment of an autism spectrum disorder, nor shall such coverage be subject to dollar limits, deductibles, copayments, or coinsurance provisions that are less favorable to an insured than the equivalent provisions that apply to a general physical illness under the policy.

(4) Coverage for behavioral health treatment, including applied behavior analysis, shall be subject to a maximum benefit of twenty-five hours per week until the insured reaches twenty-one years of age. Payments made by an insurer on behalf of a covered individual for treatment other than behavioral health treatment, including applied behavior analysis, shall not be applied to any maximum benefit established under this section.

(5) Except in the case of inpatient service, if an individual is receiving treatment for an autism spectrum disorder, an insurer shall have the right to request a review of that treatment not more than once every six months unless the insurer and the individual's licensed physician or licensed psychologist execute an agreement that a more frequent review is necessary. Any such agreement regarding the right to review a treatment plan more frequently shall apply only to a particular individual being treated for an autism spectrum disorder and shall not apply to all individuals being treated for autism spectrum disorder by a licensed physician or licensed psychologist. The cost of obtaining a review under this subsection shall be borne by the insurer.

(6) This section shall not be construed as limiting any benefit that is otherwise available to an individual under a hospital, surgical, or medical expense-incurred policy or health maintenance organization contract. This section shall not be construed as affecting any obligation to provide services to an individual under an individualized family service plan, individualized education program, or individualized service plan.

Source:Laws 2014, LB254, § 2.    


44-7,107. Telehealth; coverage.

Any insurer offering (1) any individual or group sickness and accident insurance policy, certificate, or subscriber contract delivered, issued for delivery, or renewed in this state, (2) any hospital, medical, or surgical expense-incurred policy, or (3) any self-funded employee benefit plan to the extent not preempted by federal law, shall not exclude, in any policy, certificate, contract, or plan offered or renewed on or after August 24, 2017, a service from coverage solely because the service is delivered through telehealth as defined in section 44-312 and is not provided through in-person consultation or contact between a licensed health care provider and a patient. This section does not apply to any policy, certificate, contract, or plan that provides coverage for a specified disease or other limited-benefit coverage.

Source:Laws 2017, LB92, § 1.    


44-801. Domestic associations; special and additional requirements; amendments to bylaws; approval of department required.

No domestic assessment association shall begin to transact the business of insurance until (1) its bylaws, stating in detail its scheme and method of doing business, shall have been approved by the Department of Insurance; and (2) it has received one hundred or more applications for membership, and shall have received in cash the proceeds of one assessment, unless formed to insure grain elevators and contents, warehouses, coal sheds, lumber yards and flour mills, in which case there shall be not less than fifty applications for membership.

Every amendment to a bylaw, which in any manner changes the scheme or method of doing business, must be approved by the Department of Insurance before it shall take effect.

Source:Laws 1913, c. 154, § 124, p. 463; R.S.1913, § 3261; Laws 1919, c. 190, tit. V, art. X, § 1, p. 644; C.S.1922, § 7860; C.S.1929, § 44-901; R.S.1943, § 44-801; Laws 1957, c. 178, § 13, p. 617.


Annotations

44-802. Assessments; how determined; by whom made.

All assessments shall be determined by proper classification and rating of the risks which an assessment association may assume, so that every member may be assessed in a proper proportion to his risk. The method of estimating the pro rata amount of each member's liability for losses and his share of the expenses shall be fixed in the bylaws, which may provide for assessments for not more than one year in advance in accordance with the amount estimated by the board of directors to be necessary to meet the losses and expenses of the association for such period; Provided, any assessment association maintaining the same reserves, surplus, and contingency funds as are required of a stock or mutual company licensed to transact the same kind or kinds of business, may make advance assessments for periods longer than one year at the discretion of its board of directors.

Source:Laws 1913, c. 154, § 125, p. 463; R.S.1913, § 3262; Laws 1919, c. 190, tit. V, art. X, § 2, p. 644; C.S.1922, § 7861; C.S.1929, § 44-902; Laws 1935, c. 95, § 1, p. 318; Laws 1939, c. 51, § 1, p. 220; C.S.Supp.,1941, § 44-902; R.S.1943, § 44-802; Laws 1951, c. 145, § 1, p. 587.


Annotations

44-803. Assessments; limitations.

Any assessment association which has accumulated and maintains the same reserve for liabilities that is required of a stock or mutual company organized to transact the same business, and either a surplus or a contingency fund equal to the surplus required to be maintained by a stock or mutual company organized to transact the same business, may, in its bylaws or policies, limit the liability of its members for future assessments, but such limitation shall not be less than the amount of one assessment equal to the regular assessment specified in the policy. All assessments shall be made by the board of directors unless otherwise provided in the articles of association or the bylaws.

Source:Laws 1913, c. 154, § 125, p. 463; R.S.1913, § 3262; Laws 1919, c. 190, tit. V, art. X, § 2, p. 644; C.S.1922, § 7861; C.S.1929, § 44-902; Laws 1935, c. 95, § 1, p. 318; C.S.Supp.,1941, § 44-902; R.S.1943, § 44-803.


44-804. Assessments; when authorized.

No assessment shall be made on a member for liability occurring prior to his membership. A member may be excluded from all benefits during the time he is in default of payment of any assessment.

Source:Laws 1913, c. 154, § 126, p. 463; R.S.1913, § 3263; Laws 1919, c. 190, tit. V, art. X, § 3, p. 644; C.S.1922, § 7862; C.S.1929, § 44-903; R.S.1943, § 44-804.


44-805. Membership; withdrawal.

Any member may withdraw by surrendering his or her policy for cancellation at any time by giving notice in writing to the secretary of the association and paying the amount of his or her share of all claims then existing against the company in accordance with the bylaws of the company.

Source:Laws 1913, c. 154, § 127, p. 463; R.S.1913, § 3264; Laws 1919, c. 190, tit. V, art. X, § 4, p. 645; C.S.1922, § 7863; C.S.1929, § 44-904; R.S.1943, § 44-805; Laws 1989, LB 92, § 163.


Annotations

44-806. Losses; notice; adjustment.

Every member of such association who may sustain loss or damage shall, as soon as practicable thereafter, notify the secretary thereof, stating the amount of damage or loss claimed. The person or persons authorized by such company to adjust losses shall proceed to ascertain the amount of such loss or damage, and adjust the same.

Source:Laws 1913, c. 154, § 128, p. 464; R.S.1913, § 3265; Laws 1919, c. 190, tit. V, art. X, § 5, p. 645; C.S.1922, § 7864; C.S.1929, § 44-905; R.S.1943, § 44-806.


Annotations

44-807. Assessments and losses; actions to recover.

Suits at law may be brought against any member who shall neglect or refuse to pay any assessment made against him, in the same manner as for the collection of any other debt; and a member may bring an action against the company for any loss sustained.

Source:Laws 1913, c. 154, § 129, p. 464; R.S.1913, § 3266; Laws 1919, c. 190, tit. V, art. X, § 6, p. 645; C.S.1922, § 7865; C.S.1929, § 44-906; R.S.1943, § 44-807.


44-808. Losses; officers; liability.

If the officers and directors of an assessment association fail or refuse, after receiving notice of a loss, to act upon the notice of loss, they shall render themselves individually liable therefor, and an action may be maintained against them to collect such amount.

Source:Laws 1913, c. 154, § 130, p. 464; R.S.1913, § 3267; Laws 1919, c. 190, tit. V, art. X, § 7, p. 645; C.S.1922, § 7866; C.S.1929, § 44-907; R.S.1943, § 44-808; Laws 1989, LB 92, § 164.


Annotations

44-809. Membership fees; amount; purpose.

Every such association may collect, at the time of the issuing of a policy, a membership fee not exceeding five dollars, and, if insuring property, a percentage of the amount insured not exceeding two and one-half percent, as an advance assessment, as the bylaws may provide. From the amount so collected, a contingency fund may be created, and such fund may be maintained and added to from any other funds collected by the company in the manner provided in the bylaws.

Source:Laws 1913, c. 154, § 131, p. 464; R.S.1913, § 3268; Laws 1919, c. 190, tit. V, art. X, § 8, p. 645; C.S.1922, § 7867; C.S.1929, § 44-908; Laws 1931, c. 88, § 1, p. 249; C.S.Supp.,1941, § 44-908; R.S.1943, § 44-809.


Annotations

44-810. Claims; payment; power to borrow.

Whenever the cash on hand, not including the contingency fund, shall be insufficient to pay all claims, then such deficiency may be taken from the contingency fund. If this fund is insufficient to meet all claims, then the company may borrow money for such purposes. Any diminution of the contingency fund shall be a liability to be provided for by the next assessment.

Source:Laws 1913, c. 154, § 132, p. 464; R.S.1913, § 3269; Laws 1919, c. 190, tit. V, art. X, § 9, p. 645; C.S.1922, § 7868; C.S.1929, § 44-909; R.S.1943, § 44-810.


44-811. Losses; arbitration of claims; copy of award furnished.

Any such association may provide in its bylaws for arbitrating any claim for loss or damage, where a member and the association fail to agree thereon. A copy of any adjustment or arbitration award on any claim for loss or damage shall be furnished the policyholder by the adjuster immediately when signed by the loss claimant.

Source:Laws 1913, c. 154, § 133, p. 465; R.S.1913, § 3270; Laws 1919, c. 190, tit. V, art. X, § 10, p. 646; C.S.1922, § 7869; C.S.1929, § 44-910; R.S.1943, § 44-811; Laws 1947, c. 166, § 1, p. 474.


44-812. Policies; maximum coverage; exceptions.

No certificate or policy of an assessment association, insuring property, shall cover a longer period than five years from its date, unless such assessment association shall provide in its bylaws for readjustment or reappraisement of such property insured at least once in five years.

Source:Laws 1913, c. 154, § 134, p. 465; R.S.1913, § 3271; Laws 1919, c. 190, tit. V, art. X, § 11, p. 646; C.S.1922, § 7870; C.S.1929, § 44-911; R.S.1943, § 44-812.


44-813. Repealed. Laws 1989, LB 92, § 278.

44-813.01. Repealed. Laws 1989, LB 92, § 278.

44-814. Repealed. Laws 1989, LB 92, § 278.

44-815. Repealed. Laws 1989, LB 92, § 278.

44-816. Repealed. Laws 1989, LB 92, § 278.

44-817. Repealed. Laws 1989, LB 92, § 278.

44-818. Repealed. Laws 1989, LB 92, § 278.

44-819. Repealed. Laws 1989, LB 92, § 278.

44-820. Repealed. Laws 1989, LB 92, § 278.

44-821. Domestic health and accident associations; deposit required.

No domestic assessment association organized after August 24, 1941, shall be authorized to transact the business of health or accident insurance until it has deposited with the Department of Insurance the sum of ten thousand dollars in cash or securities as described in subdivision (4) of section 44-319.01.

Source:Laws 1941, c. 89, § 1, p. 342; C.S.Supp.,1941, § 44-807; R.S.1943, § 44-821; Laws 1957, c. 189, § 4, p. 663; Laws 1959, c. 211, § 1, p. 731; Laws 1991, LB 237, § 63.


44-822. Domestic health and accident associations; deposit; use; restoration.

The deposit required in section 44-821 shall be used only for the payment of indemnities provided in policies issued by the depositor, and only upon a showing of necessity therefor made to the Department of Insurance, and after the approval thereof by the department. Such deposit shall be restored within such time and under such conditions as the department may direct by order.

Source:Laws 1941, c. 89, § 2, p. 342; C.S.Supp.,1941, § 44-808; R.S.1943, § 44-822.


44-823. Domestic health and accident associations; reserves; creation.

Nothing in sections 44-821 to 44-825, or in any law enacted before August 24, 1941, shall be construed to place any limitation upon the right of any assessment association to create reserves for expenses, unearned premiums or claims, or to create a surplus or contingency fund in such amount as may in the opinion of its board of directors be deemed prudent for the future protection of its policyholders.

Source:Laws 1941, c. 89, § 3, p. 342; C.S.Supp.,1941, § 44-809; R.S.1943, § 44-823.


44-824. Repealed. Laws 1991, LB 237, § 72.

44-825. Foreign health and accident associations; deposit in state of domicile.

After August 24, 1941, no foreign assessment association shall be authorized to transact the business of accident or health insurance in this state unless it shall have assets on deposit with the insurance department of the state of its domicile in an amount at least equal to the requirements herein made applicable to like domestic associations.

Source:Laws 1941, c. 89, § 6, p. 343; C.S.Supp.,1941, § 44-812; R.S.1943, § 44-825.


44-826. Financial plans with other insurers to pool losses; conditions.

Any assessment association insuring property against fire, windstorm, cyclone, tornado, or other hazard which may be catastrophic, may participate with other insurers in financial plans or pools to protect the participants against excessive losses due to such catastrophes. For such purposes association funds may be deposited with or promised to trustees for the participants and loaned by such trustees to participants sustaining such excessive losses with provision for repayment over a reasonable period of years; Provided, that not more than twenty cents for each hundred dollars of insurance in force may be deposited or committed under such plan; and provided further, that participation in such plan must be approved by the Director of Insurance.

Source:Laws 1951, c. 134, § 1, p. 557.


44-901. Act, how cited.

Sections 44-901 to 44-925 shall be known and may be cited as the Privacy of Insurance Consumer Information Act.

Source:Laws 2001, LB 52, § 1.    


44-902. Act; applicability.

(1) The Privacy of Insurance Consumer Information Act governs the treatment of nonpublic personal health information and nonpublic personal financial information about individuals by all licensees of the Department of Insurance. The act:

(a) Requires a licensee to provide notice to individuals about its privacy policies and practices;

(b) Describes the conditions under which a licensee may disclose nonpublic personal health information and nonpublic personal financial information about individuals to affiliates and nonaffiliated third parties; and

(c) Provides methods for individuals to prevent a licensee from disclosing that information.

(2) The act applies to:

(a) Nonpublic personal financial information about individuals who obtain or are claimants or beneficiaries of products or services primarily for personal, family, or household purposes from licensees. The act does not apply to information about companies or about individuals who obtain products or services for business, commercial, or agricultural purposes; and

(b) All nonpublic personal health information.

(3) A licensee domiciled in this state that is in compliance with the act in a state that has not enacted laws or regulations that meet the requirements of Title V of the Gramm-Leach-Bliley Act, as the federal law existed on April 5, 2001, may nonetheless be deemed to be in compliance with Title V of the Gramm-Leach-Bliley Act, as such federal law existed on April 5, 2001, in such other state.

Source:Laws 2001, LB 52, § 2.    


44-903. Terms, defined.

For purposes of the Privacy of Insurance Consumer Information Act:

(1) Affiliate means any company that controls, is controlled by, or is under common control with another company;

(2) Clear and conspicuous means that a notice is reasonably understandable and designed to call attention to the nature and significance of the information in the notice;

(3) Collect means to obtain information that the licensee organizes or can retrieve by the name of an individual or by identifying number, symbol, or other identifying particular assigned to the individual, irrespective of the source of the underlying information;

(4) Company means any corporation, limited liability company, business trust, general or limited partnership, association, sole proprietorship, or similar organization;

(5)(a) Consumer means an individual who seeks to obtain, obtains, or has obtained an insurance product or service from a licensee that is to be used primarily for personal, family, or household purposes, and about whom the licensee has nonpublic personal information, or that individual's legal representative;

(b) Consumer includes:

(i) An individual who provides nonpublic personal information to a licensee in connection with obtaining or seeking to obtain financial, investment, or economic advisory services relating to an insurance product or service whether or not the licensee establishes an ongoing advisory relationship;

(ii) An applicant for insurance prior to the inception of insurance coverage; and

(iii) An individual who is a beneficiary of a life insurance policy underwritten by the licensee, who is a claimant under an insurance policy issued by the licensee, who is an insured or an annuitant under an insurance policy or an annuity issued by the licensee, or who is a mortgagor of a mortgage covered under a mortgage insurance policy, if the licensee discloses nonpublic personal financial information about such individual to a nonaffiliated third party other than as permitted under sections 44-913 to 44-915;

(c) Consumer does not include an individual:

(i) Who is a consumer of another financial institution solely because the licensee is acting as agent for, or provides processing or other services to, that financial institution;

(ii) Solely because such individual is a participant or a beneficiary of an employee benefit plan that the licensee administers or sponsors or for which the licensee acts as a trustee, insurer, or fiduciary, covered under a group or blanket insurance policy or group annuity contract issued by the licensee, or a beneficiary in a workers' compensation plan if:

(A) The licensee provides the initial, annual, and revised notices under sections 44-904, 44-905, and 44-908 to the plan sponsor, group or blanket insurance policyholder, group annuity contract holder, or workers' compensation plan participant; and

(B) The licensee does not disclose to a nonaffiliated third party nonpublic personal financial information about such an individual other than as permitted under sections 44-913 to 44-915;

(iii) Solely because he or she is a beneficiary of a trust for which the licensee is a trustee; or

(iv) Solely because he or she has designated the licensee as a trustee for a trust;

(6) Consumer reporting agency has the same meaning as in 15 U.S.C. 1681a(f), as such section existed on April 5, 2001;

(7) Control means:

(a) Ownership, control, or power to vote twenty-five percent or more of the outstanding shares of any class of voting security of the company, directly or indirectly, or acting through one or more other persons;

(b) Control in any manner over the election of a majority of the directors, trustees, or general partners, or individuals exercising similar functions, of the company; or

(c) The power to exercise, directly or indirectly, a controlling influence over the management or policies of the company, as the director determines;

(8) Customer means a consumer who has a customer relationship with a licensee;

(9)(a) Customer relationship means a continuing relationship between a consumer and a licensee under which the licensee provides one or more insurance products or services to the consumer that are to be used primarily for personal, family, or household purposes.

(b) Customer relationship includes a continuing relationship between a consumer and a licensee if:

(i) The consumer is a current policyholder of an insurance product issued by or through the licensee; or

(ii) The consumer obtains financial, investment, or economic advisory services relating to an insurance product or service from the licensee for a fee;

(10) Director means the Director of Insurance;

(11)(a) Financial institution means any institution the business of which is engaging in activities that are financial in nature or incidental to such financial activities as described in 12 U.S.C. 1843(k), as such section existed on April 5, 2001.

(b) Financial institution does not include:

(i) Any person or entity with respect to any financial activity that is subject to the jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act, 7 U.S.C. 1 et seq., as the act existed on April 5, 2001;

(ii) The Federal Agricultural Mortgage Corporation or any entity charged and operating under the Farm Credit Act of 1971, 12 U.S.C. 2001 et seq., as the act existed on April 5, 2001; or

(iii) Institutions chartered by Congress specifically to engage in securitizations, secondary market sales, including sales of servicing rights, or similar transactions related to a transaction of a consumer, as long as the institutions do not sell or transfer nonpublic personal information to a nonaffiliated third party;

(12)(a) Financial product or service means any product or service that a financial holding company could offer by engaging in an activity that is financial in nature or incidental to such a financial activity under 12 U.S.C. 1843(k), as such section existed on April 5, 2001.

(b) Financial service includes a financial institution's evaluation or brokerage of information that the financial institution collects in connection with a request or an application from a consumer for a financial product or service;

(13) Health care means:

(a) Preventive, diagnostic, therapeutic, rehabilitative, maintenance, or palliative care, services, procedures, tests, or counseling that:

(i) Relates to the physical, mental, or behavioral condition of an individual; or

(ii) Affects the structure or function of the human body or any part of the human body, including the banking of blood, sperm, organs, or any other tissue; or

(b) Prescribing, dispensing, or furnishing to an individual drugs, biologicals, medical devices, or health care equipment and supplies;

(14) Health care provider means a physician or other health care practitioner licensed, accredited, or certified to perform specified health services consistent with state law or a health care facility;

(15) Health information means any information or data except age or gender, whether oral or recorded in any form or medium, created by or derived from a health care provider or the consumer that relates to:

(a) The past, present, or future physical, mental, or behavioral health or condition of an individual;

(b) The provision of health care to an individual; or

(c) Payment for the provision of health care to an individual;

(16)(a) Insurance product or service means any product or service that is offered by a licensee pursuant to the insurance laws of this state.

(b) Insurance service includes a licensee's evaluation, brokerage, or distribution of information that the licensee collects in connection with a request or an application from a consumer for an insurance product or service;

(17)(a) Licensee means all licensed insurers, including fraternal benefit societies, producers, and other persons licensed or required to be licensed, authorized or required to be authorized, or registered or required to be registered pursuant to the insurance laws of this state.

(b) A licensee is not subject to the notice and opt out requirements for nonpublic personal financial information set forth in the Privacy of Insurance Consumer Information Act if the licensee is an employee, agent, or other representative of another licensee acting as principal and:

(i) The principal otherwise complies with, and provides the notices required by, the act; and

(ii) The licensee does not disclose any nonpublic personal information to any person other than the principal or its affiliates in a manner permitted by the act.

(c)(i) Subject to subdivision (17)(c)(ii) of this section, licensee also includes an unauthorized insurer that accepts business placed through a licensed excess lines broker in this state, but only in regard to the excess lines placements placed pursuant to the Surplus Lines Insurance Act.

(ii) An excess lines broker or excess lines insurer shall be deemed to be in compliance with the notice and opt out requirements for nonpublic personal financial information set forth in the Privacy of Insurance Consumer Information Act if:

(A) The broker or insurer does not disclose nonpublic personal information of a consumer or a customer to nonaffiliated third parties for any purpose, including joint servicing or marketing under section 44-913, except as permitted by section 44-914 or 44-915; and

(B) The broker or insurer delivers a notice to the consumer at the time a customer relationship is established on which the following is printed in sixteen-point type:

PRIVACY NOTICE

NEITHER THE UNITED STATES BROKERS THAT HANDLED THIS INSURANCE NOR THE INSURERS THAT HAVE UNDERWRITTEN THIS INSURANCE WILL DISCLOSE NONPUBLIC PERSONAL INFORMATION CONCERNING THE BUYER TO NONAFFILIATES OF THE BROKERS OR INSURERS EXCEPT AS PERMITTED BY LAW;

(18)(a) Nonaffiliated third party means any person except:

(i) A licensee's affiliate; or

(ii) A person employed jointly by a licensee and any company that is not the licensee's affiliate, but nonaffiliated third party includes the other company that jointly employs the person.

(b) Nonaffiliated third party includes any company that is an affiliate solely by virtue of the direct or indirect ownership or control of the company by the licensee or its affiliate in conducting merchant banking or investment banking activities of the type described in 12 U.S.C. 1843(k)(4)(H), as such section existed on April 5, 2001, or insurance company investment activities of the type described in 12 U.S.C. 1843(k)(4)(H) and (I), as such section existed on April 5, 2001;

(19) Nonpublic personal information means nonpublic personal financial information and nonpublic personal health information;

(20)(a) Nonpublic personal financial information means:

(i) Personally identifiable financial information; and

(ii) Any list, description, or other grouping of consumers, and publicly available information pertaining to them, that is derived using any personally identifiable financial information that is not publicly available.

(b) Nonpublic personal financial information includes any list of individuals' names and street addresses that is derived in whole or in part using personally identifiable financial information that is not publicly available, such as account numbers.

(c) Nonpublic personal financial information does not include:

(i) Health information;

(ii) Publicly available information, except as included on a list described in subdivision (20)(a)(ii) of this section;

(iii) Any list, description, or other grouping of consumers, and publicly available information pertaining to them, that is derived without using any personally identifiable financial information that is not publicly available; or

(iv) Any list of individuals' names and addresses that contains only publicly available information, is not derived in whole or in part using personally identifiable financial information that is not publicly available, and is not disclosed in a manner that indicates that any of the individuals on the list is a consumer of a financial institution;

(21) Nonpublic personal health information means health information:

(a) That identifies an individual who is the subject of the information; or

(b) With respect to which there is a reasonable basis to believe that the information could be used to identify an individual;

(22) Personally identifiable financial information means any information:

(a) A consumer provides to a licensee to obtain an insurance product or service from the licensee;

(b) About a consumer resulting from a transaction involving an insurance product or service between a licensee and a consumer; or

(c) The licensee otherwise obtains about a consumer in connection with providing an insurance product or service to that consumer; and

(23)(a) Publicly available information means any information that a licensee has a reasonable basis to believe is lawfully made available to the general public from:

(i) Federal, state, or local government records;

(ii) Widely distributed media; or

(iii) Disclosures to the general public that are required to be made by federal, state, or local law.

(b) For purposes of this definition, a licensee has a reasonable basis to believe that information is lawfully made available to the general public if the licensee has taken steps to determine:

(i) That the information is of the type that is available to the general public; and

(ii) Whether an individual can direct that the information not be made available to the general public and, if so, that the licensee's consumer has not done so.

Source:Laws 2001, LB 52, § 3.    


Cross References

44-904. Initial privacy notice to consumers; when required.

(1) A licensee shall provide a clear and conspicuous notice that accurately reflects its privacy policies and practices to:

(a) An individual who becomes the licensee's customer, not later than when the licensee establishes a customer relationship, except as provided in subsection (5) of this section; and

(b) A consumer, before the licensee discloses any nonpublic personal financial information about the consumer to any nonaffiliated third party, if the licensee makes a disclosure other than as authorized by sections 44-914 and 44-915.

(2) A licensee is not required to provide an initial notice to a consumer under subdivision (1)(b) of this section if:

(a) The licensee does not disclose any nonpublic personal financial information about the consumer to any nonaffiliated third party, other than as authorized by sections 44-914 and 44-915, and the licensee does not have a customer relationship with the consumer; or

(b) A notice has been provided by an affiliated licensee, as long as the notice clearly identifies all licensees to whom the notice applies and is accurate with respect to the licensee and the other institutions.

(3)(a) A licensee establishes a customer relationship at the time the licensee and the consumer enter into a continuing relationship.

(b) A licensee establishes a customer relationship when the consumer:

(i) Becomes a policyholder of a licensee that is an insurer when the insurer delivers an insurance policy or contract to the consumer, or in the case of a licensee that is an insurance producer obtains insurance through that licensee; or

(ii) Agrees to obtain financial, economic, or investment advisory services relating to insurance products or services for a fee from the licensee.

(4) When an existing customer obtains a new insurance product or service from a licensee that is to be used primarily for personal, family, or household purposes, the licensee satisfies the initial notice requirements of subsection (1) of this section as follows:

(a) The licensee may provide a revised policy notice, under section 44-908, that covers the customer's new insurance product or service; or

(b) If the initial, revised, or annual notice that the licensee most recently provided to that customer was accurate with respect to the new insurance product or service, the licensee does not need to provide a new privacy notice under subsection (1) of this section.

(5)(a) A licensee may provide the initial notice required by subdivision (1)(a) of this section within a reasonable time after the licensee establishes a customer relationship if establishing the customer relationship is not at the customer's election. Establishing a customer relationship is not at the customer's election if a licensee acquires or is assigned a customer's policy from another financial institution or residual market mechanism and the customer does not have a choice about the licensee's acquisition or assignment.

(b) A licensee may provide the initial notice required by subdivision (1)(a) of this section within a reasonable time after the licensee establishes a customer relationship if providing notice not later than when the licensee establishes a customer relationship would substantially delay the customer's transaction and the customer agrees to receive the notice at a later time. Providing notice not later than when a licensee establishes a customer relationship substantially delays the customer's transaction when the licensee and the individual agree over the telephone to enter into a customer relationship involving prompt delivery of the insurance product or service. Providing notice not later than when a licensee establishes a customer relationship does not substantially delay the customer's transaction when the relationship is initiated in person at the licensee's office or through other means by which the customer may view the notice, such as on a web site.

(6) When a licensee is required to deliver an initial privacy notice by this section, the licensee shall deliver it according to section 44-909. If the licensee uses a short form initial notice for noncustomers according to subsection (4) of section 44-906, the licensee may deliver its privacy notice according to subdivision (4)(c) of section 44-906.

Source:Laws 2001, LB 52, § 4.    


44-905. Annual privacy notice to consumers; when required.

(1) A licensee shall provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices not less than annually during the continuation of the customer relationship. For purposes of this subsection, annually means at least once in any period of twelve consecutive months during which that relationship exists. A licensee may define the twelve-consecutive-month period, but the licensee shall apply it to the customer on a consistent basis.

(2) A licensee is not required to provide an annual notice under subsection (1) of this section if the licensee:

(a) Provides nonpublic personal information to nonaffiliated third parties only in accordance with sections 44-913 to 44-915; and

(b) Has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the most recent disclosure sent to consumers in accordance with section 44-904 or subsection (1) of this section.

(3)(a) A licensee is not required to provide an annual notice to a former customer.

(b) For purposes of this subsection, a former customer is an individual with whom a licensee no longer has a continuing relationship. A former customer includes:

(i) An individual who is no longer a current policyholder of an insurance product or no longer obtains insurance services with or through the licensee;

(ii) An individual whose policy is lapsed, expired, or otherwise inactive or dormant under the licensee's business practices, and the licensee has not communicated with the customer about the relationship for a period of twelve consecutive months, other than to provide annual privacy notices, material required by law or regulation, or promotional materials;

(iii) An individual whose last-known address according to the licensee's records is deemed invalid. An address of record is deemed invalid if mail sent to that address by the licensee has been returned by the postal authorities as undeliverable and if subsequent attempts by the licensee to obtain a current valid address for the individual have been unsuccessful; and

(iv) In the case of providing real estate settlement services, the customer has completed execution of all documents related to the real estate closing, payment for those services has been received, or the licensee has completed all of its responsibilities with respect to the settlement, including filing documents on the public record, whichever is later.

(4) When a licensee is required by this section to deliver an annual privacy notice, the licensee shall deliver it according to section 44-909.

Source:Laws 2001, LB 52, § 5;    Laws 2017, LB241, § 1.    


44-906. Privacy notices; requirements.

(1) The initial, annual, and revised privacy notices that a licensee provides under sections 44-904, 44-905, and 44-908 shall include each of the following items of information, in addition to any other information the licensee wishes to provide, that applies to the licensee and to the consumers to whom the licensee sends its privacy notice:

(a) The categories of nonpublic personal financial information that the licensee collects;

(b) The categories of nonpublic personal financial information that the licensee discloses;

(c) The categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information, other than those parties to whom the licensee discloses information under sections 44-914 and 44-915;

(d) The categories of nonpublic personal financial information about the licensee's former customers that the licensee discloses and the categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information about the licensee's former customers, other than those parties to whom the licensee discloses information under sections 44-914 and 44-915;

(e) If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under section 44-913, and no other exception in sections 44-914 and 44-915 applies to that disclosure, a separate description of the categories of information the licensee discloses and the categories of third parties with whom the licensee has contracted;

(f) An explanation of the consumer's right under subsection (1) of section 44-910 to opt out of the disclosure of nonpublic personal financial information to nonaffiliated third parties, including the methods by which the consumer may exercise that right at that time;

(g) Any disclosures that the licensee makes under 15 U.S.C. 1681a(d)(2)(A)(iii), as such section existed on April 5, 2001;

(h) The licensee's policies and practices with respect to protecting the confidentiality and security of nonpublic personal financial information; and

(i) Any disclosure that the licensee makes under subsection (2) of this section.

(2) If a licensee discloses nonpublic personal financial information as authorized under sections 44-914 and 44-915, the licensee is not required to list those exceptions in the initial or annual privacy notices required by sections 44-904 and 44-905. When describing the categories of parties to whom disclosure is made, the licensee is required to state only that it makes disclosures to other affiliated or nonaffiliated third parties, as applicable, as permitted by law.

(3) If a licensee does not disclose, and does not wish to reserve the right to disclose, nonpublic personal financial information about customers or former customers to affiliates or nonaffiliated third parties except as authorized under sections 44-914 and 44-915, the licensee may simply state that fact, in addition to the information it shall provide under subdivisions (1)(a), (1)(h), and (1)(i) of this section and subsection (2) of this section.

(4)(a) A licensee may satisfy the initial notice requirements in subdivision (1)(b) of section 44-904 and subsection (3) of section 44-907 for a consumer who is not a customer by providing a short form initial notice at the same time as the licensee delivers an opt out notice as required in section 44-907.

(b) A short form initial notice shall:

(i) Be clear and conspicuous;

(ii) State that the licensee's privacy notice is available upon request; and

(iii) Explain a reasonable means by which the consumer may obtain that notice. Such reasonable means include provision of a toll-free telephone number that the consumer may call to request the notice or, for a consumer who conducts business in person at the licensee's office, maintenance of copies of the notice on hand that the licensee provides to the consumer immediately upon request.

(c) The licensee shall deliver its short form initial notice according to section 44-909. The licensee is not required to deliver its privacy notice with its short form initial notice. The licensee instead may simply provide the consumer a reasonable means to obtain its privacy notice. If a consumer who receives the licensee's short form notice requests the licensee's privacy notice, the licensee shall deliver its privacy notice according to section 44-909.

(5) The licensee's notice may include:

(a) Categories of nonpublic personal financial information that the licensee reserves the right to disclose in the future, but does not currently disclose; and

(b) Categories of affiliates or nonaffiliated third parties to whom the licensee reserves the right in the future to disclose, but to whom the licensee does not currently disclose, nonpublic personal financial information.

Source:Laws 2001, LB 52, § 6.    


44-907. Opt out notice and methods.

(1) If a licensee is required to provide an opt out notice under subsection (1) of section 44-910, it shall provide a clear and conspicuous notice to each of its consumers that accurately explains the right to opt out under that section. The notice shall state:

(a) That the licensee discloses or reserves the right to disclose nonpublic personal financial information about its consumer to a nonaffiliated third party;

(b) That the consumer has the right to opt out of that disclosure; and

(c)(i) A reasonable means by which the consumer may exercise the opt out right.

(ii) A licensee provides a reasonable means to exercise an opt out right pursuant to subdivision (1)(c) of this section if the licensee:

(A) Designates check-off boxes in a prominent position on the relevant forms with the opt out notice;

(B) Includes a reply form together with the opt out notice;

(C) Provides an electronic means to opt out, such as a form that can be sent via electronic mail or a process at the licensee's web site, if the consumer agrees to the electronic delivery of information; or

(D) Provides a toll-free telephone number that consumers may call to opt out.

(2) A licensee may provide the opt out notice together with or on the same written or electronic form as the initial notice the licensee provides in accordance with section 44-904.

(3) If a licensee provides the opt out notice later than required for the initial notice in accordance with section 44-904, the licensee shall also include a copy of the initial notice with the opt out notice in writing or, if the consumer agrees, electronically.

(4)(a) If two or more consumers jointly obtain an insurance product or service from a licensee, the licensee may provide a single opt out notice. The licensee's opt out notice shall explain how the licensee will treat an opt out direction by a joint consumer.

(b) Any of the joint consumers may exercise the right to opt out. The licensee may either:

(i) Treat an opt out direction by a joint consumer as applying to all of the associated joint consumers; or

(ii) Permit each joint consumer to opt out separately.

(c) If a licensee permits each joint consumer to opt out separately, the licensee shall permit one of the joint consumers to opt out on behalf of all of the joint consumers.

(d) A licensee may not require all joint consumers to opt out before it implements any opt out direction.

(5) A licensee shall comply with a consumer's opt out direction as soon as reasonably practicable after the licensee receives it.

(6) A consumer may exercise the right to opt out at any time.

(7)(a) A consumer's direction to opt out under this section is effective until the consumer revokes it in writing or, if the consumer agrees, electronically.

(b) When a customer relationship terminates, the customer's opt out direction continues to apply to the nonpublic personal financial information that the licensee collected during or related to that relationship. If the individual subsequently establishes a new customer relationship with the licensee, the opt out direction that applied to the former relationship does not apply to the new relationship.

(8) When a licensee is required to deliver an opt out notice by this section, the licensee shall deliver it according to section 44-909.

Source:Laws 2001, LB 52, § 7.    


44-908. Revised privacy notice; when required.

(1) Except as otherwise authorized in the Privacy of Insurance Consumer Information Act, a licensee shall not, directly or through an affiliate, disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party other than as described in the initial notice that the licensee provided to that consumer under section 44-904 unless:

(a) The licensee has provided to the consumer a clear and conspicuous revised notice that accurately describes its policies and practices;

(b) The licensee has provided to the consumer a new opt out notice;

(c) The licensee has given the consumer a reasonable opportunity, before the licensee discloses the information to the nonaffiliated third party, to opt out of the disclosure; and

(d) The consumer does not opt out.

(2) When a licensee is required to deliver a revised privacy notice by this section, the licensee shall deliver it according to section 44-909.

Source:Laws 2001, LB 52, § 8.    


44-909. Delivery; actual notice; when.

(1) A licensee shall provide any notices that the Privacy of Insurance Consumer Information Act requires so that each consumer can reasonably be expected to receive actual notice in writing or, if the consumer agrees, electronically.

(2)(a) A licensee may reasonably expect that a consumer will receive actual notice if the licensee:

(i) Hand delivers a printed copy of the notice to the consumer;

(ii) Mails a printed copy of the notice to the last-known address of the consumer separately or in a policy, billing, or other written communication;

(iii) For a consumer who conducts transactions electronically, posts the notice on the electronic site and requires the consumer to acknowledge receipt of the notice as a necessary step to obtaining a particular insurance product or service; and

(iv) For an isolated transaction with a consumer, such as the licensee providing an insurance quote or selling the consumer travel insurance, posts the notice and requires the consumer to acknowledge receipt of the notice as a necessary step to obtaining the particular insurance product or service.

(b) A licensee may not reasonably expect that a consumer will receive actual notice of its privacy policies and practices if it:

(i) Only posts a sign in its office or generally publishes advertisements of its privacy policies and practices; or

(ii) Sends the notice via electronic mail to a consumer who does not obtain an insurance product or service from the licensee electronically.

(3) A licensee may reasonably expect that a customer will receive actual notice of the licensee's annual privacy notice if:

(a) The customer uses the licensee's web site to access insurance products and services electronically and agrees to receive notices at the web site and the licensee posts its current privacy notice continuously in a clear and conspicuous manner on the web site; or

(b) The customer has requested that the licensee refrain from sending any information regarding the customer relationship, and the licensee's current privacy notice remains available to the customer upon request.

(4) A licensee may not provide any notice required by the act solely by orally explaining the notice, either in person or over the telephone.

(5)(a) For customers only, a licensee shall provide the initial notice required by subdivision (1)(a) of section 44-904, the annual notice required by subsection (1) of section 44-905, and the revised notice required by section 44-908 so that the customer can retain them or obtain them later in writing or, if the customer agrees, electronically.

(b) A licensee shall be deemed to comply with the provisions of this subsection if the licensee:

(i) Hand delivers a printed copy of the notice to the customer;

(ii) Mails a printed copy of the notice to the last-known address of the customer; or

(iii) Makes its current privacy notice available on a web site, or a link to another web site, for the customer who obtains an insurance product or service electronically and agrees to receive the notice at the web site.

(6) A licensee may provide a joint notice from the licensee and one or more of its affiliates or other financial institutions, as identified in the notice, as long as the notice is accurate with respect to the licensee and the other institutions. A licensee also may provide a notice on behalf of another financial institution.

(7) If two or more consumers jointly obtain an insurance product or service from a licensee, the licensee may satisfy the initial, annual, and revised notice requirements of subsection (1) of section 44-904, subsection (1) of section 44-905, and subsection (1) of section 44-908, respectively, by providing one notice to those consumers jointly.

Source:Laws 2001, LB 52, § 9.    


44-910. Disclosure of financial information to nonaffiliated third party; when.

(1)(a) Except as otherwise authorized in the Privacy of Insurance Consumer Information Act, a licensee may not, directly or through any affiliate, disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party unless:

(i) The licensee has provided to the consumer an initial notice as required under section 44-904;

(ii) The licensee has provided to the consumer an opt out notice as required in section 44-907;

(iii) The licensee has given the consumer a reasonable opportunity, before it discloses the information to the nonaffiliated third party to opt out of the disclosure; and

(iv) The consumer does not opt out.

(b) A licensee shall be deemed to provide a consumer with a reasonable opportunity to opt out pursuant to subdivision (1)(a)(iii) of this section if:

(i) The licensee mails the notices required in subdivision (1)(a) of this section to the consumer and allows the consumer to opt out by mailing a form, calling a toll-free telephone number, or any other reasonable means within thirty days from the date the licensee mailed the notices;

(ii) A customer opens an online account with a licensee and agrees to receive the notices required in subdivision (1)(a) of this section electronically, and the licensee allows the customer to opt out by any reasonable means within thirty days after the date that the customer acknowledges receipt of the notices in conjunction with opening the account; or

(iii) For an isolated transaction such as providing the consumer with an insurance quote, a licensee provides the consumer with a reasonable opportunity to opt out if the licensee provides the notices required in subdivision (1)(a) of this section at the time of the transaction and requests that the consumer decide, as a necessary part of the transaction, whether to opt out before completing the transaction.

(c) For purposes of this section, opt out means a direction by the consumer that the licensee not disclose nonpublic personal financial information about that consumer to a nonaffiliated third party other than as permitted by sections 44-913 to 44-915.

(2) A licensee shall comply with this section, regardless of whether the licensee and the consumer have established a customer relationship. Unless a licensee complies with this section, the licensee may not, directly or through any affiliate, disclose any nonpublic personal financial information about a consumer that the licensee has collected, regardless of whether the licensee collected it before or after receiving the direction to opt out from the consumer.

(3) A licensee may allow a consumer to select certain nonpublic personal financial information or certain nonaffiliated third parties with respect to which the consumer wishes to opt out.

Source:Laws 2001, LB 52, § 10.    


44-911. Redisclosure and reuse of financial information; when.

(1) If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution under an exception in section 44-914 or 44-915, the licensee's disclosure and use of that information is limited as follows:

(a) The licensee may disclose the information to the affiliates of the financial institution from which the licensee received the information;

(b) The licensee may disclose the information to its affiliates, but the licensee's affiliates may, in turn, disclose and use the information only to the extent that the licensee may disclose and use the information; and

(c) The licensee may disclose and use the information pursuant to an exception in section 44-914 or 44-915 in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information.

(2) If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution other than under an exception in section 44-914 or 44-915, the licensee may disclose the information only:

(a) To the affiliates of the financial institution from which the licensee received the information;

(b) To its affiliates, but its affiliates may, in turn, disclose the information only to the extent that the licensee may disclose the information; and

(c) To any other person, if the disclosure would be lawful if made directly to that person by the financial institution from which the licensee received the information.

(3) If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under an exception in section 44-914 or 44-915, the third party may disclose and use that information only as follows:

(a) The third party may disclose the information to the licensee's affiliates;

(b) The third party may disclose the information to its affiliates, but its affiliates may, in turn, disclose and use the information only to the extent that the third party may disclose and use the information; and

(c) The third party may disclose and use the information pursuant to an exception in section 44-914 or 44-915 in the ordinary course of business to carry out the activity covered by the exception under which it received the information.

(4) If a licensee discloses nonpublic personal financial information to a nonaffiliated third party other than under an exception in section 44-914 or 44-915, the third party may disclose the information only:

(a) To the licensee's affiliates;

(b) To the third party's affiliates, but the third party's affiliates, in turn, may disclose the information only to the extent the third party can disclose the information; and

(c) To any other person, if the disclosure would be lawful if the licensee made it directly to that person.

Source:Laws 2001, LB 52, § 11.    


44-912. Policy number; disclosure; when.

(1) A licensee shall not, directly or through an affiliate, disclose, other than to a consumer reporting agency, a policy number or similar form of access number or access code for a consumer's policy or transaction account to any nonaffiliated third party for use in telemarketing, direct mail marketing, or other marketing through electronic mail to the consumer.

(2) Subsection (1) of this section does not apply if a licensee discloses a policy number or similar form of access number or access code:

(a) To the licensee's service provider solely in order to perform marketing for the licensee's own products or services, as long as the service provider is not authorized to directly initiate charges to the account;

(b) To a licensee who is a producer solely in order to perform marketing for the licensee's own products or services; or

(c) To a participant in an affinity or similar program where the participants in the program are identified to the customer when the customer enters into the program.

(3)(a) For purposes of this section, a policy or transaction account is an account other than a deposit account or a credit card account. A policy or transaction account does not include an account to which third parties cannot initiate charges.

(b) A policy number, or similar form of access number or access code, does not include a number or code in an encrypted form, if the licensee does not provide the recipient with a means to decode the number or code.

Source:Laws 2001, LB 52, § 12.    


44-913. Opt out exception for service providers and joint marketing.

(1)(a) The opt out requirements in sections 44-907 and 44-910 do not apply when a licensee provides nonpublic personal financial information to a nonaffiliated third party to perform services for the licensee or functions on the licensee's behalf, if the licensee:

(i) Provides the initial notice in accordance with section 44-904; and

(ii) Enters into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which the licensee disclosed the information, including use under an exception in section 44-914 or 44-915 in the ordinary course of business to carry out those purposes.

(b) If a licensee discloses nonpublic personal financial information under this section to a financial institution with which the licensee performs joint marketing, the licensee's contractual agreement with that institution meets the requirements of subdivision (1)(a)(ii) of this section if it prohibits the institution from disclosing or using the nonpublic personal financial information except as necessary to carry out the joint marketing or under an exception in section 44-914 or 44-915 in the ordinary course of business to carry out that joint marketing.

(2) The services a nonaffiliated third party performs for a licensee under subsection (1) of this section may include marketing of the licensee's own products or services or marketing of financial products or services offered pursuant to joint agreements between the licensee and one or more financial institutions.

(3) For purposes of this section, joint agreement means a written contract pursuant to which a licensee and one or more financial institutions jointly offer, endorse, or sponsor a financial product or service.

Source:Laws 2001, LB 52, § 13.    


44-914. Notice and opt out exception for processing and servicing transactions.

(1) The requirements for initial notice in subdivision (1)(b) of section 44-904, the opt out in sections 44-907 and 44-910, and service providers and joint marketing in section 44-913 do not apply if the licensee discloses nonpublic personal financial information as necessary to effect, administer, or enforce a transaction that a consumer requests or authorizes, or in connection with:

(a) Servicing or processing an insurance product or service that a consumer requests or authorizes;

(b) Maintaining or servicing the consumer's account with a licensee, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity;

(c) A proposed or actual securitization, secondary market sale, including sales of servicing rights, or similar transaction related to a transaction of the consumer; or

(d) Reinsurance or stop-loss or excess-loss insurance.

(2) For purposes of this section, necessary to effect, administer, or enforce a transaction means that the disclosure is:

(a) Required, or is one of the lawful or appropriate methods, to enforce the licensee's rights or the rights of other persons engaged in carrying out the financial transaction or providing the product or service; or

(b) Required, or is an usual, appropriate, or acceptable method:

(i) To carry out the transaction or the product or service business of which the transaction is a part, and record, service, or maintain the consumer's account in the ordinary course of providing the insurance product or service;

(ii) To administer or service benefits or claims relating to the transaction or the product or service business of which it is a part;

(iii) To provide a confirmation, statement, or other record of the transaction, or information on the status or value of the insurance product or service to the consumer or the consumer's agent or broker;

(iv) To accrue or recognize incentives or bonuses associated with the transaction that are provided by a licensee or any other party;

(v) To underwrite insurance at the consumer's request or for any of the following purposes as they relate to a consumer's insurance: Account administration, reporting, investigating or preventing fraud or material misrepresentation, processing premium payments, processing insurance claims, administering insurance benefits, including utilization review activities, participating in research projects, or as otherwise required or specifically permitted by federal or state law; or

(vi) In connection with:

(A) The authorization, settlement, billing, processing, clearing, transferring, reconciling, or collection of amounts charged, debited, or otherwise paid using a debit, credit, or other payment card, check, or account number, or by other payment means;

(B) The transfer of receivables, accounts, or interests therein; or

(C) The audit of debit, credit, or other payment information.

Source:Laws 2001, LB 52, § 14.    


44-915. Notice and opt out requirements; additional exceptions.

The requirements for initial notice to consumers in subdivision (1)(b) of section 44-904, the opt out in sections 44-907 and 44-910, and service providers and joint marketing in section 44-913 do not apply when a licensee discloses nonpublic personal financial information:

(1) With the consent or at the direction of the consumer if the consumer has not revoked the consent or direction;

(2)(a) To protect the confidentiality or security of a licensee's records pertaining to the consumer, service, product, or transaction;

(b) To protect against or prevent actual or potential fraud or unauthorized transactions;

(c) For required institutional risk control or for resolving consumer disputes or inquiries;

(d) To persons holding a legal or beneficial interest relating to the consumer; or

(e) To persons acting in a fiduciary or representative capacity on behalf of the consumer;

(3) To provide information to insurance rate advisory organizations, guaranty funds or agencies, agencies that are rating a licensee, persons that are assessing the licensee's compliance with industry standards, and the licensee's attorneys, accountants, and auditors;

(4) To the extent specifically permitted or required under other provisions of law and in accordance with 12 U.S.C. 3401 et seq., as such federal law existed on April 5, 2001, to law enforcement agencies, including the Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Office of Thrift Supervision, National Credit Union Administration, the Securities and Exchange Commission, the Secretary of the Treasury, with respect to 31 U.S.C. Chapter 53, Subchapter II, and 12 U.S.C. Chapter 21, as such federal laws existed on April 5, 2001, a state insurance authority, a state banking and state securities authority, and the Federal Trade Commission, to self-regulatory organizations, or for an investigation on a matter related to public safety;

(5)(a) To a consumer reporting agency in accordance with 15 U.S.C. 1681 et seq., as such section existed on April 5, 2001; or

(b) From a consumer report reported by a consumer reporting agency;

(6) In connection with a proposed or actual sale, merger, transfer, or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal financial information concerns solely consumers of the business or unit;

(7)(a) To comply with federal, state, or local laws, rules, and other applicable legal requirements;

(b) To comply with a properly authorized civil, criminal, or regulatory investigation, or subpoena or summons by federal, state, or local authorities;

(c) To respond to judicial process or government regulatory authorities having jurisdiction over a licensee for examination, compliance, or other purposes as authorized by law; or

(8) For purposes related to the replacement of a group benefit plan, a group health plan, a group welfare plan, or a workers' compensation plan.

Source:Laws 2001, LB 52, § 15.    


44-916. Disclosure of health information; authorization required; when.

(1) On and after January 1, 2003, a licensee shall not disclose nonpublic personal health information about a consumer or customer unless an authorization is obtained from the consumer or customer whose nonpublic personal health information is sought to be disclosed.

(2) Nothing in this section shall prohibit, restrict, or require an authorization for the disclosure of nonpublic personal health information by a licensee for the performance of the following insurance functions by or on behalf of the licensee: (a) Claims administration; (b) claims adjustment and management; (c) detection, investigation, or reporting of actual or potential fraud, misrepresentation, or criminal activity; (d) underwriting; (e) policy placement or issuance; (f) loss control; (g) ratemaking and guaranty fund functions; (h) reinsurance and excess loss insurance; (i) risk management; (j) case management; (k) disease management; (l) quality assurance; (m) quality improvement; (n) performance evaluation; (o) provider credentialing verification; (p) utilization review; (q) peer review activities; (r) actuarial, scientific, medical, or public policy research; (s) grievance procedures; (t) internal administration of compliance, managerial, and information systems; (u) policyholder service functions; (v) auditing; (w) reporting; (x) data base security; (y) administration of consumer disputes and inquiries; (z) external accreditation standards; (aa) the replacement of a group benefit plan or workers' compensation policy or program; (bb) activities in connection with a sale, merger, transfer, or exchange of all or part of a business or operating unit; (cc) any activity that permits disclosure without authorization pursuant to the federal Health Insurance Portability and Accountability Act privacy rules promulgated by the United States Department of Health and Human Services; (dd) disclosure that is required, or is one of the lawful or appropriate methods, to enforce the licensee's rights or the rights of other persons engaged in carrying out a transaction or providing a product or service that a consumer requests or authorizes; (ee) any activity otherwise permitted by law, required pursuant to governmental reporting authority, or to comply with legal process; and (ff) additional insurance functions as may be approved by adoption and promulgation of rules and regulations of the director to the extent they are necessary for appropriate performance of insurance functions and are fair and reasonable to the interest of consumers.

Source:Laws 2001, LB 52, § 16.    


44-917. Authorization; requirements.

(1) A valid authorization to disclose nonpublic personal health information pursuant to sections 44-916 to 44-920 shall be in written or electronic form and shall contain all of the following:

(a) The identity of the consumer or customer who is the subject of the nonpublic personal health information;

(b) A general description of the types of nonpublic personal health information to be disclosed;

(c) General descriptions of the parties to whom the licensee discloses nonpublic personal health information, the purpose of the disclosure, and how the information will be used;

(d) The signature of the consumer or customer who is the subject of the nonpublic personal health information or the individual who is legally empowered to grant authority and the date signed; and

(e) Notice of the length of time for which the authorization is valid and that the consumer or customer may revoke the authorization at any time and the procedure for making a revocation.

(2) An authorization for the purposes of sections 44-916 to 44-920 shall specify a length of time for which the authorization shall remain valid, which in no event shall be for more than twenty-four months.

(3) A consumer or customer who is the subject of nonpublic personal health information may revoke an authorization provided pursuant to sections 44-916 to 44-920 at any time, subject to the rights of an individual who acted in reliance on the authorization prior to notice of the revocation.

(4) A licensee shall retain the authorization or a copy thereof in the record of the individual who is the subject of nonpublic personal health information.

Source:Laws 2001, LB 52, § 17.    


44-918. Authorization request; delivery requirements.

A request for authorization and an authorization form may be delivered to a consumer or a customer as part of an opt out notice pursuant to section 44-909 if the request and the authorization form are clear and conspicuous. An authorization form is not required to be delivered to the consumer or customer or included in any other notices unless the licensee intends to disclose protected health information pursuant to subsection (1) of section 44-916.

Source:Laws 2001, LB 52, § 18.    


44-919. Relationship to federal rules.

Irrespective of whether a licensee is subject to the federal Health Insurance Portability and Accountability Act privacy rule as promulgated by the United States Department of Health and Human Services, if a licensee complies with all requirements of the federal rule except for its effective date provision, the licensee shall not be subject to the provisions of sections 44-916 to 44-920.

Source:Laws 2001, LB 52, § 19.    


44-920. Relationship to state laws.

Nothing in sections 44-916 to 44-920 shall preempt or supersede existing state law related to medical records or health or insurance information privacy.

Source:Laws 2001, LB 52, § 20.    


44-921. Relationship to federal Fair Credit Reporting Act.

Nothing in the Privacy of Insurance Consumer Information Act shall be construed to modify, limit, or supersede the operation of 15 U.S.C. 1681 et seq., as such section existed on April 5, 2001, and no inference shall be drawn on the basis of the provisions of the act regarding whether information is transaction or experience information under 15 U.S.C. 1681a, as such section existed on April 5, 2001.

Source:Laws 2001, LB 52, § 21.    


44-922. Discrimination; prohibited.

(1) A licensee shall not unfairly discriminate against any consumer or customer because that consumer or customer has opted out from the disclosure of his or her nonpublic personal financial information pursuant to the Privacy of Insurance Consumer Information Act.

(2) A licensee shall not unfairly discriminate against a consumer or customer because that consumer or customer has not granted authorization for the disclosure of his or her nonpublic personal health information pursuant to the act.

Source:Laws 2001, LB 52, § 22.    


44-923. Unfair trade practice.

In addition to any other remedies available under the laws of this state, each violation of the Privacy of Insurance Consumer Information Act and any rules and regulations adopted and promulgated under the act shall be an unfair trade practice in the business of insurance subject to the Unfair Insurance Trade Practices Act.

Source:Laws 2001, LB 52, § 23.    


Cross References

44-924. Rules and regulations.

(1) The director may adopt and promulgate rules and regulations to carry out the Privacy of Insurance Consumer Information Act.

(2) The director may adopt and promulgate rules and regulations to establish standards that licensees must meet in the development and implementation of administrative, technical, and physical safeguards to protect the security, confidentiality, and integrity of consumer and customer information.

Source:Laws 2001, LB 52, § 24;    Laws 2003, LB 216, § 6.