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.
The definition of insurance contains the following elements: (1) The existence of a contract whereby, (2) for a consideration, (3) one party (the insurer) promises to pay money or perform a valuable act for the benefit of the other party (the insured), (4) upon the happening of a stated hazard or peril that results in a loss to the insured. Norwest Corp. v. State, Dept. of Insurance, 253 Neb. 574, 571 N.W.2d 628 (1997).
Insurance is defined. Bankers Life Ins. Co. v. Laughlin, 160 Neb. 480, 70 N.W.2d 474 (1955).
An application for hail insurance which contained all necessary elements of policy was effective as a policy. Schnell v. United Hail Ins. Co., 145 Neb. 768, 18 N.W.2d 112 (1945).
Any insurance company, requiring the payment of fixed premiums in advance, which provide benefits not dependent upon the collection of assessments from other members, and which does not provide for extra assessments if necessary, is not an assessment association. Western Life & Accident Co. v. State Ins. Board, 101 Neb. 152, 162 N.W. 530 (1917).