reglab/statecodes huggingface dataset:
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5105 - Authorization and approval; investment records; board of directors; duties.

44-5105.
Authorization and approval; investment records; board of directors; duties.
(1) An insurer shall not make any investment, sale, loan, or exchange, except loans on its own policies or contracts, unless authorized, approved, or ratified by a majority of the members of the board of directors or by a committee of its members charged by the board of directors or bylaws with the duty of making such investment, sale, loan, or exchange. The board of directors shall further determine by formal resolution at least annually whether all investments have been made in accordance with the delegations, standards, limitations, and investment objectives prescribed by the board of directors or a committee of the board of directors charged with the responsibility to direct its investments.
(2) The board of directors, after reviewing and assessing the insurer's technical investment and administrative capabilities and expertise, shall adopt a written plan for making investments and for engaging in investment practices. The plan shall specify, unless otherwise authorized by the Director of Insurance, the quality, maturity, and diversification of investments, including investment strategies intended to assure that the investments and investment practices are appropriate for the business conducted by the insurer, its liquidity needs, and its capital and surplus. At least annually, the board of directors or a committee of the board of directors shall review and revise, as appropriate, the written plan.
(3) On no less than a quarterly basis, and more often if deemed appropriate, the board of directors or committee of the board of directors shall receive and review a summary report on the insurer's investment portfolio, investment activities, and investment practices engaged in under delegated authority, in order to determine whether the investment activity of the insurer is consistent with its written plan.
(4) The board of directors shall require that records of authorizations, approvals or other documentation as the board of directors may require, and reports of any action taken under authority delegated under the written plan shall be made available on a regular basis to the board of directors.
(5) The board of directors shall perform its duties in good faith and with that degree of care that ordinarily prudent individuals in like positions would use under similar circumstances.
(6) Each insurer shall maintain a record of its investments in a form and manner as prescribed by the Director of Insurance. Such record shall include an indication by the insurer of the provision of law under which an investment is held.
(7) For purposes of this section, board of directors includes the governing body of an insurer having authority equivalent to that of a board of directors.
Source
Laws 1991, LB 237, § 5;
Laws 1997, LB 273, § 4;
Laws 2022, LB863, § 26.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5108 - Convertible securities.

44-5108.
Convertible securities.
An insurer may invest in securities which are convertible into other securities if:
(1) The convertible securities are authorized under the Insurers Investment Act at the time of acquisition; and
(2) The securities into which such securities are convertible are authorized under the act at the time of conversion.
Source
Laws 1991, LB 237, § 8.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5109 - Investments in name of insurer.

44-5109.
Investments in name of insurer.
An insurer's investments shall be held in its own name or the name of its nominee, except that:
(1) Investments may be held in the name of a clearing corporation, a custodian, or the nominee of either on the following conditions:
(a) The clearing corporation, custodian, or nominee shall be legally authorized to hold the particular investment for the account of others;
(b) Security certificates held by the custodian shall be held separate from the security certificates of the custodian and of all its other customers; and
(c) Securities held indirectly by the custodian and securities in a clearing corporation shall be separately identified on the custodian's official records as being owned by the insurer. The records shall identify which securities are held by the custodian or by its agent and which securities are in a clearing corporation. If the securities are in a clearing corporation, the records shall also identify where the securities are and if in a clearing corporation, the name of the clearing corporation, and if through an agent, the name of the agent; and
(2) An insurer may participate through a member bank in the Federal Reserve book-entry system. The records of the member bank shall at all times show that the investments are held for the insurer or for specific accounts of the insurer.
Source
Laws 1991, LB 237, § 9;
Laws 2005, LB 119, § 14.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5110 - Participation.

44-5110.
Participation.
(1) An insurer may invest in an individual interest of a pool of obligations or a fractional interest of a single obligation if:
(a) The certificate of participation or interest or the confirmation of participation or interest in the investment is issued in the name of the insurer, a custodian bank, or the nominee of either; and
(b) The certificate or confirmation, if held by a custodian bank, is kept separate and apart from the investment of others so that at all times the participation or interest may be identified as belonging solely to the insurer making the investment.
(2) If an investment is not evidenced by a certificate, adequate evidence of the insurer's investment shall be obtained from the issuer or its transfer or recording agent and retained by the insurer, custodian bank, or clearing corporation except as provided in subdivision (2) of section 44-5109. For purposes of this subsection, adequate evidence shall mean a written receipt or other verification issued by the depository, issuer, or custodian bank which shows that the investment is held for the insurer. Transfers of ownership or investments held as described in subdivisions (1)(c) and (2) of section 44-5109 and this section may be evidenced by a bookkeeping entry on the books of the issuer of the investment, its transfer or recording agent, or the clearing corporation without physical delivery of certificates, if any, evidencing the insurer's investment.
(3) Any investment made pursuant to this section shall also conform with the following:
(a) The investment in which the interest is purchased shall be authorized under the Insurers Investment Act; and
(b) The insurer's pro rata interest in the investment shall be in the same percentage as the par amount of its interest bears to the outstanding par amount of the investment at the time of purchase.
(4) An investment may be authorized under this section although its interest does not include the right to exercise the investor's rights or enforce the investor's remedies according to the provisions of the issue.
(5) Any investment made pursuant to this section shall be purchased pursuant to a written participation agreement.
Source
Laws 1991, LB 237, § 10;
Laws 1997, LB 273, § 5;
Laws 2003, LB 216, § 13;
Laws 2007, LB117, § 13.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5111 - Computation of investment limitations.

44-5111.
Computation of investment limitations.
Any investment limitation in the Insurers Investment Act based upon the amount of the insurer's admitted assets or policyholders surplus shall relate to admitted assets or policyholders surplus as shown by the most recent financial statement filed by the insurer pursuant to section 44-322 unless the insurer's admitted assets or policyholders surplus is revised as a result of an examination conducted pursuant to the Insurers Examination Act, in which case the results of the examination shall control. Except as otherwise provided by law, an investment shall be measured by the lesser of actual cost or admitted value at the time of acquisition. If there is no actual cost at the time of acquisition, the investment shall be measured at the lesser of fair value or admitted value.
For purposes of this section, actual cost means the total amount invested, expended, or which should be reasonably anticipated to be invested or expended in the acquisition or organization of any investment, insurer, or subsidiary, including all organizational expenses or contributions to capital and surplus whether or not represented by the purchase of capital stock or issuance of other securities.
Source
Laws 1991, LB 237, § 11;
Laws 1993, LB 583, § 111;
Laws 2007, LB117, § 14.
Cross References
Insurers Examination Act, see section 44-5901.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5112 - Minimum quality ratings.

44-5112.
Minimum quality ratings.
Any investment required to meet minimum quality ratings by the Insurers Investment Act shall be subject to the following categories:
(1) Category 1. Any investment subject to this subdivision shall have a 1 designation from the Securities Valuation Office. If the Securities Valuation Office does not rate the investment in question but does rate an obligation of the obligor having a priority equal to or lower than the investment in question, the insurer may apply such rating to the investment. If the Securities Valuation Office does not rate the investment in question or an outstanding obligation of the obligor having a priority equal to or lower than the investment in question, the investment shall have a minimum quality rating of A3 by Moody's Investors Services, Inc., A- by Standard and Poor's Corporation, or the corresponding investment grade rating from any nationally recognized statistical rating organization recognized by the Securities Valuation Office; and
(2) Category 2. Any investment subject to this subdivision shall have a 1 or 2 designation from the Securities Valuation Office. If the Securities Valuation Office does not rate the investment in question but does rate an obligation of the obligor having a priority equal to or lower than the investment in question, the insurer may apply such rating to the investment. If the Securities Valuation Office does not rate the investment in question or an outstanding obligation of the obligor having a priority equal to or lower than the investment in question, the investment shall have a minimum quality rating of Baa3 by Moody's Investors Services, Inc., BBB- by Standard and Poor's Corporation, or the corresponding investment grade rating from any nationally recognized statistical rating organization recognized by the Securities Valuation Office. If the obligor of an investment is authorized by, established by, or incorporated under the laws of Canada or any province thereof and the Securities Valuation Office does not rate the investment in question, the minimum quality rating shall be BBB (low) by the Dominion Bond Rating Service, B++ by the Canadian Bond Rating Service, or the corresponding rating of any successor organization approved by the director.
Source
Laws 1991, LB 237, § 12;
Laws 1997, LB 273, § 6.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5113 - Valuation of investments.

44-5113.
Valuation of investments.
For purposes of the Insurers Investment Act, investments shall be valued in accordance with the valuation procedures established by the National Association of Insurance Commissioners unless the director requires a different valuation method or finds another valuation method reasonable under the circumstances.
Source
Laws 1991, LB 237, § 13.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5114 - Prohibited investments.

44-5114.
Prohibited investments.
An insurer shall not invest in:
(1) Issued shares of its own capital stock except with the written permission of the director. Such permission may be granted if the purpose of the acquisition is:
(a) In connection with the lawful plan for mutualization of the insurer;
(b) In furtherance of a retirement, pension, or incentive program for officers or employees of the insurer which has been approved by the shareholders; or
(c) Shown to be for the benefit of all shareholders.
Any share acquired pursuant to this subdivision shall not be considered an admitted asset; and
(2) Any investment which is found by the director to be designed to evade any provision of the Insurers Investment Act.
Source
Laws 1991, LB 237, § 14.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5115 - Limitation in any one person.

44-5115.
Limitation in any one person.
(1) Except as provided in subsections (2) through (4) of this section, an insurer's investments authorized under the Insurers Investment Act in any one person shall not exceed five percent of the insurer's admitted assets.
(2) Subsection (1) of this section shall not apply to:
(a) Investments authorized under sections 44-5123, 44-5125, 44-5142, and 44-5153;
(b) Investments authorized under sections 44-5124, 44-5126 to 44-5129, and 44-5132 if collateralized by obligations or mortgages for which the full faith and credit of the United States or Canada is pledged for the payment of all principal and interest;
(c) Loans made pursuant to section 44-5106; and
(d) Real estate held pursuant to subsection (2) or (3) of section 44-5144.
(3)(a) An insurer's investments authorized under section 44-5124 or 44-5126 in any one agency or instrumentality of the United States or Canada shall not exceed twenty-five percent of the insurer's admitted assets, and (b) an insurer's investments authorized under section 44-5132 in any one person if collateralized by mortgages for which the full faith and credit of an agency or instrumentality of the United States or Canada is pledged for the payment of all principal and interest shall not exceed twenty-five percent of the insurer's admitted assets. An insurer's investments authorized under section 44-5124 or 44-5126 in any one agency or instrumentality of the United States or Canada and the insurer's investments authorized under section 44-5132 collateralized by mortgages for which the full faith and credit of such agency or instrumentality of the United States or Canada is pledged for the payment of all principal and interest, in the aggregate, shall not exceed twenty-five percent of the insurer's admitted assets.
(4)(a) An insurer's investments in any one person whose senior obligations have a 3 designation from the Securities Valuation Office, in the aggregate, shall not exceed three percent of the insurer's admitted assets.
(b) An insurer's investments in any one person whose senior obligations have a 4 designation from the Securities Valuation Office, in the aggregate, shall not exceed two percent of the insurer's admitted assets.
(c) An insurer's investments in any one person whose senior obligations have a 5 designation from the Securities Valuation Office, in the aggregate, shall not exceed one percent of the insurer's admitted assets.
(d) An insurer's investments in any one person whose senior obligations have a 6 designation from the Securities Valuation Office, in the aggregate, shall not exceed one-half percent of the insurer's admitted assets.
(5) For purposes of this section, person shall mean an individual or entity or group of individuals or entities so related as in fact to constitute a single venture, institution, corporation, association, company, partnership, limited liability company, syndicate, trust, society, or other legal entity.
Source
Laws 1991, LB 237, § 15;
Laws 1993, LB 121, § 259;
Laws 1997, LB 273, § 7;
Laws 1998, LB 1035, § 10.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5116 - Several obligors.

44-5116.
Several obligors.
The amount of any obligation issued, assumed, or guaranteed by more than one obligor and authorized under more than one provision of the Insurers Investment Act shall be allocated to those provisions on a basis proportional to the obligations of each obligor.
Source
Laws 1991, LB 237, § 16.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5117 - Investments authorized under more than one provision.

44-5117.
Investments authorized under more than one provision.
An insurer may hold an investment authorized under more than one provision of the Insurers Investment Act under the provision of its choice except as otherwise expressly provided by law. Nothing in the act shall prevent an insurer from holding an investment under a provision different from the one under which it previously held the investment except as otherwise expressly provided by law.
Source
Laws 1991, LB 237, § 17;
Laws 1997, LB 273, § 8.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5118 - Legal tender.

44-5118.
Legal tender.
All cash payments of principal, interest, premiums, dividends, and other cash consideration received on any investment authorized under the Insurers Investment Act shall be payable in lawful money of the United States except as provided in section 44-5137.
Source
Laws 1991, LB 237, § 18;
Laws 1997, LB 273, § 9.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5119 - Director's authority.

44-5119.
Director's authority.
(1) The director may impose reasonable and temporary restrictions upon the investments of an insurer, including prohibition or divestment of a particular investment, if the director finds that the interests of insureds, creditors, or the general public are or may be endangered.
(2) If any insurer desires to exceed any investment limitation contained in the Insurers Investment Act, the insurer shall file an application with the director requesting written approval to exceed the investment limitation. The application shall set out all pertinent information regarding the proposed investment, including a full description of the investment, its actual cost, its market value, any appraisals, any encumbrances, the interest rate, the maturity dates, as appropriate, and any other relevant information requested by the director. The application shall be a public record open to public inspection from the date of filing. If the application is not approved or disapproved by the director within thirty days from the date of filing, the application shall be deemed disapproved. The disapproval in whole or in part shall be in the sole discretion of the director and shall not be subject to judicial review.
In determining whether to approve or disapprove the application, the director shall consider the following factors:
(a) The credit risk quality of the proposed investment;
(b) The liquidity of the proposed investment and of the insurer's entire investment portfolio;
(c) The extent of the diversification of the insurer's investment portfolio;
(d) The yield of the proposed investment;
(e) The reasonableness of the insurer's policyholders surplus in relation to the insurer's outstanding liabilities and financial needs as evaluated in accordance with the factors set forth in section 44-2136; and
(f) Any other relevant considerations.
If the director approves the application in whole or in part, the proposed investment shall be deemed to be an authorized investment to the extent of the director's approval. Whenever an insurer makes application pursuant to this subsection, the director may retain, at the insurer's expense, such attorneys, actuaries, accountants, and other experts not otherwise a part of the director's staff as are reasonably necessary to assist the director in determining whether such application should be approved. Any individual or organization so retained shall be under the direction and control of the director and shall serve in a purely advisory capacity.
Source
Laws 1991, LB 237, § 19.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5121 - Applicability of act.

44-5121.
Applicability of act.
An insurer's investments shall be subject to the Insurers Investment Act notwithstanding anything in 15 U.S.C. 77r-1 to the contrary.
Source
Laws 1991, LB 237, § 21.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5122 - Investments held on September 13, 1997.

44-5122.
Investments held on September 13, 1997.
Any investment held by an insurer on September 13, 1997, which was an authorized investment immediately prior to such date shall be deemed an authorized investment under the Insurers Investment Act.
Source
Laws 1991, LB 237, § 22;
Laws 1997, LB 273, § 11.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5123 - United States Government and government-guaranteed obligations.

44-5123.
United States Government and government-guaranteed obligations.
An insurer may invest in direct obligations of the United States or obligations for which the full faith and credit of the United States is pledged for the payment of all principal and interest.
Source
Laws 1991, LB 237, § 23.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5124 - United States agency and instrumentality obligations.

44-5124.
United States agency and instrumentality obligations.
An insurer may invest in direct obligations of any agency or instrumentality of the United States or obligations for which the full faith and credit of any agency or instrumentality of the United States is pledged for the payment of all principal and interest.
Source
Laws 1991, LB 237, § 24.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5125 - Canadian Government and government-guaranteed obligations.

44-5125.
Canadian Government and government-guaranteed obligations.
An insurer may invest in direct obligations of the government of Canada or obligations for which the full faith and credit of the government of Canada is pledged for the payment of all principal and interest.
Source
Laws 1991, LB 237, § 25.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5126 - Canadian agency and instrumentality obligations.

44-5126.
Canadian agency and instrumentality obligations.
An insurer may invest in direct obligations of any agency or instrumentality of the government of Canada or obligations for which the full faith and credit of any agency or instrumentality of the government of Canada is pledged for the payment of all principal and interest.
Source
Laws 1991, LB 237, § 26.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5127 - Canadian provincial and municipal obligations.

44-5127.
Canadian provincial and municipal obligations.
An insurer may invest in direct obligations of any province or municipality of Canada or obligations for which the full faith and credit of any province or municipality of Canada is pledged for the payment of all principal and interest. Any investment authorized under this section shall have a minimum quality rating as described in subdivision (2) of section 44-5112.
Source
Laws 1991, LB 237, § 27;
Laws 1997, LB 273, § 12.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5128 - Other governmental and related obligations.

44-5128.
Other governmental and related obligations.
An insurer may invest in obligations issued, assumed, or guaranteed by the United States, an agency or instrumentality of the United States, a state, a municipality, a political subdivision, the government of Canada, an agency or instrumentality of the government of Canada, any province or municipality of Canada, or any municipal utility, corporate authority, nonprofit corporation, or institution authorized or established by an act of Congress or by the laws of any state, Canada, or any province of Canada if, by statutory or other legal requirements applicable to those obligations, they are payable as to both principal and interest:
(1) From taxes levied or required to be levied upon all taxable property or all taxable income within the jurisdiction of the borrowing entity;
(2) From adequate special revenue pledged or otherwise appropriated or required by law to be provided for the purpose of the payment, excluding any obligation payable solely out of special assessments on properties benefited by local improvements;
(3) From and secured by a pledge of rentals from leases or subleases on property owned or leased by the obligor if:
(a) Such underlying lease has an unexpired term of not less than the term of the lease or sublease whose rentals are pledged by the issuer; and
(b) The fixed rentals reserved under such lease or sublease will be sufficient to pay all of the expenses of the lessor in connection with the lease or sublease and the operation of the property and to pay principal and interest so as to retire the bonds during the fixed term of such lease or sublease or, if such fixed rentals are not sufficient, a governmental subdivision agrees to pay such required amounts;
(4) From revenue specifically pledged therefor of a public service operated by the borrowing entity if the entity is legally authorized and does obligate itself that rates of service will be fixed, maintained, and collected so as to produce revenue or earnings sufficient to pay all operating and maintenance charges and all principal and interest of such obligations in accordance with their terms; or
(5) From revenue specifically pledged therefor from excise taxes levied.
Any investment authorized under this section shall have a minimum quality rating as described in subdivision (2) of section 44-5112.
Source
Laws 1991, LB 237, § 28;
Laws 1997, LB 273, § 13.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5129 - Business entity obligations.

44-5129.
Business entity obligations.
An insurer may invest in obligations of a business entity created or existing under the laws of the United States or Canada or any state or province thereof. Any investment authorized under this section shall have a minimum quality rating as described in subdivision (2) of section 44-5112.
Source
Laws 1991, LB 237, § 29;
Laws 1997, LB 273, § 14.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5131 - International development bank obligations.

44-5131.
International development bank obligations.
An insurer may invest in obligations of an international development bank of which the United States is a member. Any investment authorized under this section shall have a minimum quality rating as described in subdivision (1) of section 44-5112. An insurer's investments authorized under this section shall not exceed twenty percent of its admitted assets.
Source
Laws 1991, LB 237, § 31;
Laws 1997, LB 273, § 15.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5132 - Bankruptcy-remote business entity securities.

44-5132.
Bankruptcy-remote business entity securities.
(1) An insurer may invest in a security or other instrument, excluding a mutual fund, evidencing an interest in or the right to receive payments from, or payable from distributions on, an asset, a pool of assets, or specifically divisible cash flows which are legally transferred to a special purpose bankruptcy-remote business entity on the following conditions:
(a) The business entity is established solely for the purpose of acquiring specific types of assets or rights to cash flows, issuing securities and other instruments representing an interest in or right to receive cash flows from those assets or rights, and engaging in activities required to service the assets or rights and any credit enhancement or support features held by the business entity; and
(b) The assets of the business entity consist solely of interest-bearing obligations or other contractual obligations representing the right to receive payment from the cash flows from the assets or rights. However, the existence of credit enhancements, such as letters of credit or guarantees, or other support features, shall not cause a security or other instrument to be an unauthorized investment under this section.
(2) Investments in interest-only securities, other than those with a 1 designation from the Securities Valuation Office, or other instruments shall not be authorized under this section.
(3) Any investment authorized under this section shall have a minimum quality rating as described in subdivision (2) of section 44-5112.
Source
Laws 1991, LB 237, § 32;
Laws 1997, LB 273, § 16;
Laws 2022, LB863, § 29.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5134 - Collateral loans.

44-5134.
Collateral loans.
(1) An insurer may, in addition to any investment authorized under section 44-5132, invest in obligations secured by pledged securities if:
(a) The market value of such pledged securities or the fair value if the securities have no recognized market value will at all times of holding the investment be equal to at least one hundred ten percent of the investment in the notes or other evidence of indebtedness; and
(b) The pledged securities are of the kind authorized for investment under the Insurers Investment Act.
(2) For purposes of this section, pledged securities shall mean notes, mortgages, bonds, debentures, and preferred or common stock. Pledged securities shall not be valued at an amount greater than the value at which they could be shown on the insurer's financial statements filed with the director pursuant to section 44-322 if owned directly by the insurer.
(3) An insurer's investments authorized under this section shall not exceed twenty percent of its admitted assets.
Source
Laws 1991, LB 237, § 34;
Laws 1997, LB 273, § 17.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5135 - Leased property.

44-5135.
Leased property.
An insurer may invest in obligations secured by an assignment of a lease to or for the benefit of the insurer and the rents payable under the lease if:
(1) The lessee or ultimate guarantor of any lease securing the obligation is an entity the obligations of which are authorized for investment under sections 44-5123 to 44-5131;
(2) The rentals assigned are sufficient to repay not less than ninety percent of the obligation within the unexpired term of the lease excluding any term that may be provided by an enforceable option of renewal; and
(3) A first lien on the lessor's interest in the unencumbered leased property is obtained as additional security for the obligation for which the rentals described in subdivision (2) of this section are not sufficient to repay the obligation.
Source
Laws 1991, LB 237, § 35.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5138 - Short-term investments.

44-5138.
Short-term investments.
(1) An insurer may invest in:
(a) Bank certificates of deposit, banker's acceptances, or corporate promissory notes with a remaining term of no more than one year; and
(b) Shares, interests, or participation certificates in any management type of investment trust, corporate or otherwise, registered under the Investment Company Act of 1940, as amended, as a diversified open-end investment company, that invests solely in such investments as described in subdivision (1)(a) of this section.
(2) Any investment in corporate promissory notes authorized under subdivision (1)(a) of this section shall have a 1 or 2 designation from the Securities Valuation Office. If the Securities Valuation Office does not rate the investment in question but does rate an obligation of the obligor having a priority equal to or lower than the investment in question, the insurer may apply such rating to the investment. If the Securities Valuation Office does not rate the investment in question or an outstanding obligation of the obligor having a priority equal to or lower than the investment in question, the investment shall have a minimum short-term quality rating of P-2 by Moody's Investors Service, Inc., A-2 by Standard and Poor's Corporation, or the corresponding investment grade rating from any nationally recognized statistical rating organization recognized by the Securities Valuation Office. If the obligor of an investment is authorized by, established by, or incorporated under the laws of Canada or any province thereof and the Securities Valuation Office does not rate the investment in question, the minimum quality rating shall be R-2 by the Dominion Bond Rating Service, A-1 by the Canadian Bond Rating Service, or the corresponding rating of any successor organization approved by the director.
Source
Laws 1991, LB 237, § 38;
Laws 1997, LB 273, § 19;
Laws 2003, LB 216, § 16.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5139 - Investment trusts and investment companies.

44-5139.
Investment trusts and investment companies.
(1) An insurer may invest in shares of a fund registered under the Investment Company Act of 1940, as amended, as a diversified open-end investment company and in shares, interests, or participation certificates in any management type of investment trust, corporate or otherwise, subject to the following restrictions:
(a) The investment restrictions and policies relating to the investment of the assets of the trust and its activities shall be limited to the same kinds, classes, and investment grades as those authorized for investment under the Insurers Investment Act; and
(b) The assets of such investment trust shall not be less than twenty million dollars at the date of purchase.
An insurer's investments authorized under this subsection shall not exceed ten percent of its admitted assets.
(2) An insurer may invest in the shares of a fund registered under the Investment Company Act of 1940, as amended, as a diversified open-end investment company when the investment restrictions and policies relating to the investment of the assets of the fund and its activities are limited solely to (a) obligations, (b) commitments to purchase obligations, or (c) assignments of interest in obligations issued or guaranteed by the United States or its agencies or instrumentalities. An insurer's investments authorized under this subsection shall not exceed twenty-five percent of its admitted assets.
Source
Laws 1991, LB 237, § 39;
Laws 2022, LB863, § 31.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5140 - Preferred stock.

44-5140.
Preferred stock.
(1) An insurer may invest in the preferred stock of any corporation which:
(a) Has earned and paid regular dividends at the regular prescribed rate each year upon its preferred stock, if any is or has been outstanding, for not less than five years immediately preceding the purchase of such preferred stock or during such part of such five-year period as it has had preferred stock outstanding; and
(b) Has had no material defaults in principal payments of or interest on any obligations of such corporation and its subsidiaries having a priority equal to or higher than those purchased during the period of five years immediately preceding the date of acquisition or, if outstanding for less than five years, at any time since such obligations were issued.
The earnings of and the regular dividends paid by all predecessor, merged, consolidated, or purchased corporations may be included through the use of consolidated or pro forma statements.
(2) Except as authorized under the Insurance Holding Company System Act, an insurer shall not own more than five percent of the total issued shares of stock of any corporation other than an insurer.
(3) A life insurer's investments authorized under this section shall not exceed the greater of twenty-five percent of its admitted assets or one hundred percent of its policyholders surplus, nor shall a life insurer's investments authorized under this section that are not rated P-1 or P-2 by the Securities Valuation Office exceed ten percent of its admitted assets.
Source
Laws 1991, LB 237, § 40;
Laws 2007, LB117, § 17;
Laws 2023, LB92, § 65.
Operative Date: September 2, 2023
Cross References
Insurance Holding Company System Act, see section 44-2120.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5141 - Common stock; equity interests.

44-5141.
Common stock; equity interests.
(1) An insurer may invest in the common stock or rights to purchase or sell common stock of any corporation.
(2)(a) An insurer may invest in equity interests or rights to purchase or sell equity interests in business entities other than general partnerships unless the general partnership is wholly owned by the insurer.
(b) A life insurer shall not invest under this subsection in any investment which the life insurer may invest in under section 44-5140 or 44-5144 or subsection (1) of this section.
(3) A life insurer's investments authorized under this section shall not exceed the greater of one hundred percent of its policyholders surplus or twenty percent of its admitted assets.
Source
Laws 1991, LB 237, § 41;
Laws 1997, LB 273, § 20;
Laws 2007, LB117, § 18;
Laws 2022, LB863, § 32;
Laws 2023, LB92, § 66.
Operative Date: September 2, 2023
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5142 - Insurance company stock.

44-5142.
Insurance company stock.
(1) Stock insurers which maintain capital stock required by section 44-214 and nonstock insurers which maintain surplus required by section 44-219 may invest in the common and preferred stock of other insurers.
(2) An insurer's investments authorized under this section shall not exceed the lesser of (a) the amount by which such insurer's admitted assets exceed its required capital and liabilities if a stock insurer or its required surplus and liabilities if a nonstock insurer or (b) fifty percent of its policyholders surplus.
(3) In calculating the admitted assets of the insurer acquiring the stock of another insurer pursuant to this section, the value of any investment in such common or preferred stock shall be the cost of such stock to the acquiring insurer.
Source
Laws 1991, LB 237, § 42.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5145 - Equipment.

44-5145.
Equipment.
An insurer may invest in equipment or interests in equipment wholly situated or maintained in the United States and Canada which are mortgaged or otherwise encumbered by the insurer as security for a nonrecourse debt and which are leased under a lease contract if:
(1) The annual lease payments to the lessor are sufficient to repay the full cost of the financing thereof within the unexpired term of the lease; and
(2) The lessee or ultimate guarantor of any lease securing the obligation is an entity the obligations of which are authorized investments under sections 44-5123 to 44-5131.
An insurer's investments authorized under this section shall not exceed five percent of its admitted assets.
Source
Laws 1991, LB 237, § 45.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5151 - Other investment grade obligations.

44-5151.
Other investment grade obligations.
(1) An insurer may hold investments not otherwise authorized under the Insurers Investment Act if such investments:
(a) Have minimum quality ratings as described in subdivision (2) of section 44-5112; and
(b) In the aggregate do not exceed one hundred percent of the insurer's policyholders surplus.
(2) Investments authorized under any other section of the Insurers Investment Act, except section 44-5153, shall not be authorized investments under this section.
Source
Laws 1991, LB 237, § 51;
Laws 1997, LB 273, § 23.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5152 - Securities Valuation Office; designated obligations; limitation.

44-5152.
Securities Valuation Office; designated obligations; limitation.
(1) In addition to investments otherwise authorized under the Insurers Investment Act and subject to the limitations in subsections (2) and (3) of this section, an insurer may invest in obligations having 3, 4, 5, and 6 designations from the Securities Valuation Office.
(2) Subject to the limitation in subsection (3) of this section, an insurer shall not acquire, directly or indirectly through an investment subsidiary, investments in obligations:
(a) Having a 4 designation from the Securities Valuation Office if, as a result of and giving effect to the investment, the aggregate amount of such investments would exceed four percent of the insurer's admitted assets;
(b) Having a 5 designation from the Securities Valuation Office if, as a result of and giving effect to the investment, the aggregate amount of such investments would exceed two percent of the insurer's admitted assets; and
(c) Having a 6 designation from the Securities Valuation Office if, as a result of and giving effect to the investment, the aggregate amount of such investments would exceed one percent of the insurer's admitted assets.
(3) An insurer shall not acquire, directly or indirectly through an investment subsidiary, investments under this section if, as a result of and giving effect to the investment, the aggregate amount would exceed fifteen percent of the insurer's admitted assets.
Source
Laws 1991, LB 237, § 52;
Laws 1997, LB 273, § 24;
Laws 2007, LB117, § 19.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5153 - Additional authorized investments.

44-5153.
Additional authorized investments.
(1)(a)(i) A life insurer may make investments not otherwise authorized under the Insurers Investment Act in an amount, in the aggregate, not exceeding the lesser of five percent of the first five hundred million dollars of its admitted assets plus ten percent of its admitted assets exceeding five hundred million dollars or one hundred percent of its policyholders surplus.
(ii) An insurer other than a life insurer may make investments not otherwise authorized under the act in an amount, in the aggregate, not exceeding the lesser of twenty-five percent of the amount by which its admitted assets exceed its total liabilities, excluding capital, or five percent of the first five hundred million dollars of its admitted assets plus ten percent of its admitted assets exceeding five hundred million dollars.
(b) Investments authorized under this subsection shall not include obligations having 3, 4, 5, and 6 designations from the Securities Valuation Office.
(2)(a) In addition to the provisions of subdivision (1)(a)(i) of this section, a life insurer may make investments not otherwise authorized under the act in an amount not exceeding that portion of its policyholders surplus which is in excess of ten percent of its admitted assets.
(b) In addition to the provisions of subdivisions (1)(a)(ii) and (b) of this section, an insurer other than a life insurer may make investments not otherwise authorized under the act in an amount not exceeding that portion of its policyholders surplus which is in excess of fifty percent of its annual net written premiums as shown by the most recent annual financial statement filed by the insurer pursuant to section 44-322.
(3) Investments authorized under subsection (1) or (2) of this section shall not include assets held by a ceding insurer as security supporting reinsurance arrangements through which credit for reinsurance has been allowed.
(4) Investments authorized under subsection (1) or (2) of this section shall not include insurance agents' balances or amounts advanced to or owing by insurance agents.
(5) The limitations set forth in this section shall be applied at the time the investment in question is made and at the end of each calendar quarter. An insurer's investment, which at the time of its acquisition was authorized only under the provisions of this section but which has subsequently and while held by such insurer become of such character as to be authorized elsewhere under the act, shall not be included in determining the amount of such insurer's investments, in the aggregate, authorized under this section, and investments otherwise authorized under the act at the time of their acquisition shall not be included in making such determination.
(6) Derivative instruments described in subsections (1), (2), and (3) of section 44-5149 shall not be authorized investments under this section.
Source
Laws 1991, LB 237, § 53;
Laws 1997, LB 273, § 25;
Laws 2005, LB 119, § 18;
Laws 2007, LB117, § 20;
Laws 2022, LB863, § 36.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5154 - Rules and regulations.

44-5154.
Rules and regulations.
The director may adopt and promulgate rules and regulations to carry out the Insurers Investment Act, including, but not limited to, establishing standards for qualification as custodians for insurer investments and establishing requirements for custody agreements.
Source
Laws 1991, LB 237, § 54;
Laws 2005, LB 119, § 19.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5223 - Act, how cited.

44-5223.
Act, how cited.
Sections 44-5223 to 44-5267 shall be known and may be cited as the Small Employer Health Insurance Availability Act.
Source
Laws 1994, LB 1222, § 1;
Laws 1997, LB 862, § 30;
Laws 2000, LB 1253, § 33;
Laws 2002, LB 1139, § 29;
Laws 2009, LB192, § 5.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5224 - Purposes of act.

44-5224.
Purposes of act.
The purposes of the Small Employer Health Insurance Availability Act are to promote the availability of health insurance coverage to small employers regardless of their health status or claims experience, to prevent abusive rating practices, to require disclosure of rating practices to purchasers, to establish rules regarding renewability of coverage, to establish limitations on the use of preexisting condition exclusions, to provide for development of basic and standard health benefit plans to be offered to all small employers, and to improve the overall fairness and efficiency of the small group health insurance market. The act is not intended to provide a comprehensive solution to the problem of affordability of health care or health insurance.
Source
Laws 1994, LB 1222, § 2;
Laws 2017, LB644, § 6.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5225 - Definitions, where found.

44-5225.
Definitions, where found.
For purposes of the Small Employer Health Insurance Availability Act, the definitions found in sections 44-5226 to 44-5255.01 shall be used.
Source
Laws 1994, LB 1222, § 3;
Laws 1997, LB 862, § 31;
Laws 2000, LB 1253, § 34;
Laws 2002, LB 1139, § 30;
Laws 2009, LB192, § 6.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5226 - Actuarial certification, defined.

44-5226.
Actuarial certification, defined.
Actuarial certification shall mean a written statement by a member of the American Academy of Actuaries or other individual acceptable to the director that a small employer carrier is in compliance with the provisions of section 44-5258 based upon the person's examination and including a review of the appropriate records and the actuarial assumptions and methods used by the small employer carrier in establishing premium rates for applicable health benefit plans.
Source
Laws 1994, LB 1222, § 4.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5227 - Affiliate or affiliated, defined.

44-5227.
Affiliate or affiliated, defined.
Affiliate or affiliated shall mean any entity or person who directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, a specified entity or person.
Source
Laws 1994, LB 1222, § 5.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5227.01 - Affiliation period, defined.

44-5227.01.
Affiliation period, defined.
Affiliation period means a period of time that must expire before health insurance coverage provided by a carrier becomes effective and during which the carrier is not required to provide benefits.
Source
Laws 2002, LB 1139, § 31.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5229 - Base premium rate, defined.

44-5229.
Base premium rate, defined.
Base premium rate shall mean for each class of business as to a rating period, the lowest premium rate charged or that could have been charged under a rating system for that class of business by the small employer carrier to small employers with similar case characteristics for health benefit plans with the same or similar coverage.
Source
Laws 1994, LB 1222, § 7.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5230 - Basic health benefit plan, defined.

44-5230.
Basic health benefit plan, defined.
Basic health benefit plan shall mean a lower cost health benefit plan regulated by the Department of Insurance.
Source
Laws 1994, LB 1222, § 8;
Laws 2009, LB154, § 9;
Laws 2017, LB644, § 7.