2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4062 - Business relationship; termination; requirements; procedure; administrative fine.

44-4062.
Business relationship; termination; requirements; procedure; administrative fine.
(1) An insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with an insurance producer shall notify the director within thirty days following the effective date of the termination, if the reason for termination is one of the reasons set forth in section 44-4059 or the insurer has knowledge the producer was found by a court, government body, or self-regulatory organization authorized by law to have engaged in any of the activities in such section. Upon the written request of the director, the insurer shall provide additional information, documents, records, or other data pertaining to the termination or activity of the producer.
(2) An insurer or authorized representative of the insurer that terminates the appointment, employment, or contract with an insurance producer for any reason not set forth in section 44-4059, shall notify the director within thirty days following the effective date of the termination. Upon written request of the director, the insurer shall provide additional information, documents, records, or other data pertaining to the termination.
(3) If an insurance producer terminates an appointment, employment, contract, or other insurance business relationship with an insurer or authorized representative of the insurer and the insurer or authorized representative has knowledge that the insurance producer has engaged in any of the activities set forth in section 44-4059, the insurer or authorized representative shall notify the director of such activities within thirty days following the effective date of the termination. If an insurance producer terminates an appointment, employment, contract, or other insurance business relationship with an insurer or authorized representative and the insurer or authorized representative has knowledge that the insurance producer was found by a court, government body, or self-regulatory organization to have engaged in any of the activities set forth in section 44-4059, the insurer or authorized representative shall notify the director within thirty days following the effective date of the termination. Upon the written request of the director, the insurer shall provide additional information, documents, records, or other data pertaining to the termination or activity of the producer.
(4) The insurer or the authorized representative of the insurer shall promptly notify the director if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the director in accordance with subsection (1) or (2) of this section had the insurer then known of its existence.
(5) Notifications made pursuant to subsection (1), (2), (3), or (4) of this section shall be made in a format acceptable to the director.
(6)(a) Within fifteen days after making the notification required by subsection (1), (2), (3), or (4) of this section, the insurer shall mail a copy of the notification to the insurance producer at his or her last-known address. If the producer is terminated pursuant to subsection (1) or (3) of this section, the insurer shall provide a copy of the notification to the producer at the producer's last-known address by certified mail, return receipt requested, postage prepaid or by overnight delivery using a nationally recognized carrier.
(b) Within thirty days after the insurance producer has received the original or additional notification, the producer may file written comments concerning the substance of the notification with the director. The producer shall, by the same means, simultaneously send a copy of the comments to the reporting insurer. The comments shall become a part of the director's file and accompany every copy of a report distributed or disclosed for any reason about the producer as permitted under subsection (8) of this section.
(7)(a) In the absence of actual malice:
(i) No insurer, authorized representative of an insurer, insurance producer, director, or organization of which the director is a member that compiles information and makes it available to other insurance commissioners or regulatory or law enforcement agencies shall be subject to civil liability;
(ii) No civil cause of action of any nature shall arise against the entities set forth in subdivision (7)(a)(i) of this section, or their respective agents or employees, as a result of any statement or information provided pursuant to this section;
(iii) No civil cause of action of any nature shall arise against the entities set forth in subdivision (7)(a)(i) of this section, or their respective agents or employees, as a result of any information relating to any statement provided by an insurer or insurance producer at the written request of the director; and
(iv) No civil cause of action of any nature shall arise against the entities set forth in subdivision (7)(a)(i) of this section, or their respective agents or employees, as a result of any statement by a terminating insurer or insurance producer to an insurer or producer, limited solely and exclusively to whether a termination for cause under subsection (1) of this section or a report made pursuant to subsection (3) of this section was reported to the director if the propriety of any termination for cause under subsection (1) of this section or a report made pursuant to subsection (3) of this section is certified in writing by an officer or authorized representative of the insurer or producer terminating the relationship.
(b) In any action brought against a person that may have immunity under subdivision (7)(a) of this section, the party bringing the action shall plead specifically in any allegation that subdivision (7)(a) of this section does not apply because such person did so with actual malice.
(c) This subsection shall not abrogate or modify any existing statutory or common-law privileges or immunities.
(8)(a) Any documents, materials, or other information in the control or possession of the director furnished by an insurer, insurance producer, or employee or agent acting on behalf of the insurer or producer, or obtained by the director in an investigation pursuant to this section shall be confidential and privileged. Such documents, materials, or other information shall not be public records subject to public inspection pursuant to sections 84-712 to 84-712.09, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action, except that the director is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the director's duties.
(b) Neither the director nor any person who receives documents, materials, or other information while acting under the authority of the director, shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subdivision (8)(a) of this section.
(c) In order to assist in the performance of the director's duties under the Insurance Producers Licensing Act, the director:
(i) May share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to subdivision (8)(a) of this section, with the National Association of Insurance Commissioners, its affiliates or subsidiaries, and state, federal, and international law enforcement authorities and regulatory agencies if the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information;
(ii) May receive documents, materials, or other information, including otherwise confidential and privileged documents, materials, or information, from the National Association of Insurance Commissioners, its affiliates or subsidiaries, and state, federal, and international law enforcement authorities and regulatory agencies. The director shall maintain as confidential and privileged any document, material, or other information received with notice or the understanding that it is confidential or privileged under the laws of the source jurisdiction; and
(iii) May enter into agreements governing sharing and use of information consistent with this subsection.
(d) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the director under this section or as a result of sharing as authorized in subdivision (8)(c) of this section.
(e) Nothing in the act shall prohibit the director from releasing final, adjudicated actions, including for cause terminations or reports made pursuant to subsection (3) of this section that are open to public inspection pursuant to sections 84-712 to 84-712.09, to a database or other clearinghouse service maintained by the National Association of Insurance Commissioners or its affiliates or subsidiaries.
(9)(a) An insurer or authorized representative of the insurer that fails to report as required under this section, or that is found to have reported with actual malice by a court of competent jurisdiction, may, after notice and hearing, have its license or certificate of authority suspended or revoked and may be fined in accordance with section 44-1529.
(b) An insurance producer that fails to report as required by this section, or that is found to have reported with actual malice by a court of competent jurisdiction, may, after notice and hearing, have its license suspended or revoked, or may be subject to an administrative fine in accordance with section 44-4059.
Source
Laws 2001, LB 51, § 16.