reglab/statecodes huggingface dataset:
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4804 - Jurisdiction; venue.

44-4804.
Jurisdiction; venue.
(1) No delinquency proceeding shall be commenced under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act by anyone other than the director, and no court shall have jurisdiction to entertain, hear, or determine any proceeding commenced by any other person.
(2) No court of this state shall have jurisdiction to entertain, hear, or determine any complaint praying for the dissolution, liquidation, rehabilitation, sequestration, conservation, or receivership of any insurer or praying for an injunction or restraining order or other relief preliminary to, incidental to, or relating to such proceedings other than in accordance with the act.
(3) In addition to other grounds for jurisdiction provided by the law of this state, a court of this state having jurisdiction of the subject matter has jurisdiction over a person served pursuant to sections 25-505.01 to 25-530.08 or other applicable provisions of law in an action brought by the receiver of a domestic insurer or an alien insurer domiciled in this state:
(a) If the person served is an agent, broker, or other person who has at any time written policies of insurance for or has acted in any manner whatsoever on behalf of an insurer against which a delinquency proceeding has been instituted, in any action resulting from or incident to such a relationship with the insurer;
(b) If the person served is a reinsurer who has at any time entered into a contract of reinsurance with an insurer against which a delinquency proceeding has been instituted or is an agent or broker of or for the reinsurer, in any action on or incident to the reinsurance contract;
(c) If the person served is or has been an officer, manager, trustee, organizer, promoter, or person in a position of comparable authority or influence in an insurer against which a rehabilitation or liquidation order is in effect when the action is commenced, in any action resulting from such a relationship with the insurer;
(d) If the person served is or was at the time of the institution of the delinquency proceeding against the insurer holding assets in which the receiver claims an interest on behalf of the insurer, in any action concerning the assets; or
(e) If the person served is obligated to the insurer in any way whatsoever, in any action on or incident to the obligation.
(4) If the court on motion of any party finds that any action should as a matter of substantial justice be tried in a forum outside this state, the court may enter an appropriate order to stay further proceedings on the action in this state.
(5) All actions authorized by the act shall be brought in the district court of Lancaster County.
Source
Laws 1989, LB 319, § 4;
Laws 1991, LB 236, § 61.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4805 - Injunctions and orders.

44-4805.
Injunctions and orders.
(1) Except as provided in subsection (3) of this section, any receiver appointed in a proceeding under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act may at any time apply for, and the court may grant, such restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to prevent:
(a) The transaction of further business;
(b) The transfer of property;
(c) Interference with the receiver or with a proceeding under the act;
(d) Waste of the insurer's assets;
(e) Dissipation and transfer of bank accounts;
(f) The institution or further prosecution of any actions or proceedings;
(g) The obtaining of preferences, judgments, attachments, garnishments, or liens against the insurer, its assets, or its insureds;
(h) The levying of execution against the insurer, its assets, or its insureds;
(i) The making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer;
(j) The withholding from the receiver of books, accounts, documents, or other records relating to the business of the insurer; or
(k) Any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of insureds, creditors, or shareholders or the administration of any proceeding under the act.
(2) Except as provided in subsection (3) of this section, the receiver may apply to any court outside of the state for the relief described in subsection (1) of this section.
(3) A Federal Home Loan Bank shall not be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under any security agreement, or any pledge, security, collateral or guarantee agreement or any other similar arrangement or credit enhancement relating to such Federal Home Loan Bank security agreement.
Source
Laws 1989, LB 319, § 5;
Laws 1991, LB 236, § 62;
Laws 2013, LB337, § 1.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4806 - Cooperation of officers, owners, and employees; violation; penalty.

44-4806.
Cooperation of officers, owners, and employees; violation; penalty.
(1) Any officer, manager, director, trustee, owner, employee, or agent of any insurer or any other persons with authority over or in charge of any segment of the insurer's affairs shall cooperate with the director in any proceeding under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act or any investigation preliminary to the proceeding. For purposes of this section, the term person shall include any person who exercises control directly or indirectly over activities of the insurer through a management contract or any holding company or other affiliate of the insurer. To cooperate shall include, but shall not be limited to, the following:
(a) To reply promptly in writing to any inquiry from the director requesting such a reply; and
(b) To make available to the director any books, accounts, documents, or other records or information or property of or pertaining to the insurer and in his or her possession, custody, or control.
(2) No person shall obstruct or interfere with the director in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto.
(3) This section shall not be construed to abridge otherwise existing legal rights, including the right to resist a petition for liquidation or other delinquency proceedings, or other orders.
(4) Any person included within subsection (1) of this section who fails to cooperate with the director or any person who obstructs or interferes with the director in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto or who violates any order the director issued validly under the act shall be guilty of a Class I misdemeanor or may, after a hearing, be subject to the imposition by the director of a civil penalty not to exceed ten thousand dollars and shall be subject further to the revocation or suspension of any insurance licenses issued by the director.
Source
Laws 1989, LB 319, § 6;
Laws 1990, LB 984, § 5.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4807 - Bonds.

44-4807.
Bonds.
In any proceeding under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, the director and his or her deputies shall be responsible on their official bonds for the faithful performance of their duties. If the court deems it desirable for the protection of the assets, it may at any time require an additional bond from the director or his or her deputies, and such bond shall be paid for out of the assets of the insurer as a cost of administration.
Source
Laws 1989, LB 319, § 7.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4808 - Insurer subject to delinquency proceedings; restrictions.

44-4808.
Insurer subject to delinquency proceedings; restrictions.
No insurer that is subject to any delinquency proceedings, whether formal, informal, administrative, or judicial, shall (1) be released from such proceeding unless such proceeding is converted into a judicial rehabilitation or liquidation proceeding, (2) be permitted to solicit or accept new business or request or accept the restoration of any suspended or revoked license or certificate of authority, (3) be returned to the control of its shareholders or private management, or (4) have any of its assets returned to the control of its shareholders or private management, until all payments of or on account of the insurer's contractual obligations by all guaranty associations, along with all expenses thereof and interest on all such payments and expenses, have been repaid to the guaranty associations or a plan of repayment by the insurer has been approved by the guaranty association.
Source
Laws 1989, LB 319, § 8;
Laws 1991, LB 236, § 63.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4810 - Court; seizure order.

44-4810.
Court; seizure order.
(1) The director may file in the district court of Lancaster County a petition alleging, with respect to a domestic insurer:
(a) That there exist any grounds that would justify a court order for a formal delinquency proceeding against an insurer under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act;
(b) That the interests of insureds, creditors, or the public will be endangered by delay; and
(c) The contents of an order deemed necessary by the director.
(2) Upon a filing under subsection (1) of this section, the court may issue, forthwith, ex parte, and without a hearing, the requested order which shall direct the director to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer and of the premises occupied by it for transaction of its business and until further order of the court enjoin the insurer and its officers, managers, agents, and employees from disposition of its property and from the transaction of its business except with the written consent of the director.
(3) The court shall specify in the order what its duration shall be, which shall be such time as the court deems necessary for the director to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may from time to time hold such hearings as it deems desirable after such notice as it deems appropriate and may extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the director fails to commence a formal delinquency proceeding under the act after having had a reasonable opportunity to do so. An order of the court pursuant to a formal delinquency proceeding under the act shall ipso facto vacate the seizure order.
(4) Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the insurer.
(5) An insurer subject to an ex parte order under this section may petition the court at any time after the issuance of such order for a hearing and review of the order. The court shall hold such a hearing and review not more than fifteen days after the request. A hearing under this subsection may be held privately in chambers, and it shall be so held if the insurer proceeded against so requests.
(6) If, at any time after the issuance of such an order, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given to such person. An order that notice be given shall not stay the effect of any order previously issued by the court.
Source
Laws 1989, LB 319, § 10;
Laws 1990, LB 984, § 7;
Laws 1991, LB 236, § 65.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4811 - Confidentiality of hearings.

44-4811.
Confidentiality of hearings.
(1) In all proceedings and judicial review thereof under section 44-4810, all records of the insurer, other documents, all department files, and court records and papers, so far as they pertain to or are a part of the record of the proceedings, shall be and remain confidential except as is necessary to obtain compliance therewith unless and until the court, after hearing arguments from the parties in chambers, orders otherwise or unless the insurer requests that the matter be made public. Until such court order, all papers filed with the clerk of the district court shall be held by him or her in a confidential file.
(2)(a) The records described in subsection (1) of this section may be provided 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 records.
(b) The director may receive supervision, rehabilitation, and liquidation records 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 as confidential or privileged records received pursuant to this subdivision with notice or the understanding that they are 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 1989, LB 319, § 11;
Laws 1991, LB 236, § 66;
Laws 2001, LB 52, § 49.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4813 - Rehabilitation orders.

44-4813.
Rehabilitation orders.
(1) An order to rehabilitate the business of a domestic insurer or an alien insurer domiciled in this state shall appoint the director and his or her successors in office the rehabilitator and shall direct the rehabilitator forthwith to take possession of the assets of the insurer and to administer them under the general supervision of the court. The filing or recording of the order with the clerk of the district court of Lancaster County or register of deeds of the county in which the principal business of the company is conducted or in which its principal office or place of business is located shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that register of deeds would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator.
(2) Any order issued under this section shall require accounting to the court by the rehabilitator. Accountings shall be at such intervals as the court specifies in the order but no less frequently than semiannually. Each accounting shall include a report concerning the rehabilitator's opinion as to the likelihood that a plan under subsection (4) of section 44-4814 will be prepared by the rehabilitator and the timetable for doing so.
(3) Entry of an order of rehabilitation shall not constitute an anticipatory breach of any contracts of the insurer and shall not be grounds for retroactive revocation or retroactive cancellation of any contracts of the insurer unless such revocation or cancellation is done by the rehabilitator pursuant to section 44-4814.
Source
Laws 1989, LB 319, § 13;
Laws 1991, LB 236, § 68.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4815 - Actions; effect of rehabilitation.

44-4815.
Actions; effect of rehabilitation.
(1) Except as provided in subsection (4) of this section, any court in this state before which any action or proceeding in which the insurer is a party or is obligated to defend a party is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for ninety days and such additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take such action respecting the pending litigation as he or she deems necessary in the interests of justice and for the protection of insureds, creditors, and the public. The rehabilitator shall immediately consider all litigation pending outside this state and shall petition the courts having jurisdiction over that litigation for stays whenever necessary to protect the estate of the insurer.
(2) No statute of limitations or defense of laches shall run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. Any action by or against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty days after the order of rehabilitation is entered or the petition is denied. The rehabilitator may, upon an order for rehabilitation, within one year or such other longer time as applicable law may permit, institute an action or proceeding on behalf of the insurer upon any cause of action against which the period of limitation fixed by applicable law has not expired at the time of the filing of the petition upon which such order is entered.
(3) Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if such association is or may become liable to act as a result of the rehabilitation.
(4) A Federal Home Loan Bank shall not be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under any security agreement, or any pledge, security, collateral or guarantee agreement or any other similar arrangement or credit enhancement relating to such Federal Home Loan Bank security agreement.
Source
Laws 1989, LB 319, § 15;
Laws 1991, LB 236, § 70;
Laws 2013, LB337, § 2.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4816 - Liquidation; termination of rehabilitation.

44-4816.
Liquidation; termination of rehabilitation.
(1) Whenever the director believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to insureds, creditors, or the public or would be futile, the director may petition the district court of Lancaster County for an order of liquidation. A petition under this subsection shall have the same effect as a petition under section 44-4817. The court shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of such costs and other expenses of defense as justice may require.
(2) The protection of the interests of insureds, claimants, and the public requires the timely performance of all insurance policy obligations. If the payment of policy obligations is suspended in substantial part for a period of six months at any time after the appointment of the rehabilitator and the rehabilitator has not filed an application for approval of a plan under subsection (4) of section 44-4814, the rehabilitator shall petition the court for an order of liquidation on grounds of insolvency.
(3) The rehabilitator may at any time petition the district court of Lancaster County for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of such costs and other expenses of such petition as justice may require. If upon the petition of the rehabilitator or the directors of the insurer or upon its own motion at any time the court finds that rehabilitation has been accomplished and that grounds for rehabilitation under section 44-4812 no longer exist, it shall order that the insurer be restored to possession of its property and the control of the business.
Source
Laws 1989, LB 319, § 16;
Laws 1991, LB 236, § 71.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4817 - Grounds for liquidation.

44-4817.
Grounds for liquidation.
The director may petition the district court of Lancaster County for an order directing him or her to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis:
(1) Of any ground for an order of rehabilitation as specified in section 44-4812 whether or not there has been a prior order directing the rehabilitation of the insurer;
(2) That the insurer is insolvent; or
(3) That the insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its insureds or creditors or the public.
Source
Laws 1989, LB 319, § 17;
Laws 1991, LB 236, § 72.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4819 - Termination and continuation of coverage.

44-4819.
Termination and continuation of coverage.
(1) All policies including bonds and other noncancelable business, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force until the earliest of:
(a) Thirty days from the date of entry of the liquidation order;
(b) The expiration of the policy coverage;
(c) The date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy;
(d) The liquidator has effected a transfer of the policy obligation pursuant to subdivision (1)(j) of section 44-4821; or
(e) The date proposed by the liquidator and approved by the court to cancel coverage.
(2) An order of liquidation under section 44-4818 shall terminate coverages at the time specified in subsection (1) of this section for purposes of any other statute.
(3) Policies of life or health insurance or annuities shall continue in force for such period and under such terms as is provided for by any applicable guaranty association or foreign guaranty association.
(4) Policies of life or health insurance or annuities or any period or coverage of such policies not covered by a guaranty association or foreign guaranty association shall terminate under subsections (1) and (2) of this section.
Source
Laws 1989, LB 319, § 19;
Laws 1991, LB 236, § 74.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4820 - Dissolution of insurer; court-ordered transfer of control and ownership.

44-4820.
Dissolution of insurer; court-ordered transfer of control and ownership.
(1) The director may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time he or she applies for a liquidation order. The court shall order dissolution of the corporation upon petition by the director upon or after the granting of a liquidation order. If the dissolution has not previously been ordered and if control and ownership of the insurer has not been transferred pursuant to subsection (2) of this section, dissolution shall be effected by operation of law upon the discharge of the liquidator if the insurer is insolvent but may be ordered by the court upon the discharge of the liquidator if the insurer is under a liquidation order for some other reason.
(2) Notwithstanding the entry of a liquidation order, on the motion of the liquidator and following such notice and hearing and on such terms as the court deems appropriate, the court may approve the liquidator's cancellation of all outstanding stock and other securities of, and other equity interests in, the insurer and the court may approve the issuance and sale of new stock or other securities for the purpose of transferring to one or more buyers control and ownership of the insurer together with any or all of its licenses and certificates to do business and such other assets as the liquidator deems appropriate to the transaction. The proceeds of such sale shall be assets of the liquidation estate of the insurer. The order of the court approving such a sale may provide that the sale is free and clear of all claims and interests of the insurer's insureds, creditors, shareholders, and members and all other persons interested in the insurer's estate and may discharge the insurer and all property which is the subject of the sale from all claims and interests of the insurer's insureds, creditors, shareholders, and members and all other persons interested in the insurer's estate, except that such a discharge shall not affect the rights of the insurer's insureds, creditors, shareholders, and members and all other persons interested in the insurer's estate to participate in distributions from the estate as otherwise provided in the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act.
Source
Laws 1989, LB 319, § 20;
Laws 1995, LB 616, § 1.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4823 - Duties of agents; violation; penalty.

44-4823.
Duties of agents; violation; penalty.
(1) Every person who receives notice in the form prescribed in section 44-4822 that an insurer which he or she represents as an agent is the subject of a liquidation order shall, within fifteen days of such notice, give notice of the liquidation order. The notice shall be sent by first-class mail to the last address contained in the agent's records to each policyholder or other person named in any policy issued through the agent by the insurer if he or she has a record of the address of the policyholder or other person. A policy shall be deemed issued through an agent if the agent has a property interest in the expiration of the policy or if the agent has had in his or her possession a copy of the declarations of the policy at any time during the life of the policy except when the ownership of the expiration of the policy has been transferred to another. The written notice shall include the name and address of the insurer, the name and address of the agent, identification of the policy impaired, and the nature of the impairment, including termination of coverage as described in section 44-4819. Notice by a general agent satisfies the notice requirement for any agents under contract to him or her. Each agent obligated to give notice under this section shall file a report of compliance with the liquidator.
(2) Any agent failing to give notice or file a report of compliance as required in subsection (1) of this section may be subject to payment of a civil penalty of not more than one thousand dollars and may have his or her license suspended. The penalty shall be imposed after a hearing held by the director.
(3) The liquidator may waive the duties imposed by this section if he or she determines that other notice to the policyholders of the insurer under liquidation is adequate.
Source
Laws 1989, LB 319, § 23.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4824 - Actions by and against liquidator.

44-4824.
Actions by and against liquidator.
(1) Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, no action at law or equity or in arbitration shall be brought against the insurer or liquidator, whether in this state or elsewhere, nor shall any such existing actions be maintained or further presented after issuance of such order. The courts of this state shall give full faith and credit to injunctions against the liquidator or the company or the continuation of existing actions against the liquidator or the company when such injunctions are included in an order to liquidate an insurer issued pursuant to corresponding provisions in other states. Whenever, in the liquidator's judgment, protection of the estate of the insurer necessitates intervention in an action against the insurer that is pending outside this state, he or she may intervene in the action. The liquidator may defend any action in which he or she intervenes under this section at the expense of the estate of the insurer.
(2) The liquidator may, upon or after an order for liquidation, within two years or such time in addition to two years as applicable law may permit, institute an action or proceeding on behalf of the estate of the insurer upon any cause of action against which the period of limitation fixed by applicable law has not expired at the time of the filing of the petition upon which such order is entered. In any agreement, when a period of limitation is fixed for instituting a suit or proceeding upon any claim or for filing any claim, proof of claim, proof of loss, demand, notice, or the like or in any proceeding, judicial or otherwise, when a period of limitation is fixed either in the proceeding or by applicable law for taking any action, filing any claim or pleading, or doing any act, and when in any such case the period had not expired at the date of the filing of the petition, the liquidator may, for the benefit of the estate, take any such action or do any such act required of or permitted to the insurer within a period of one hundred eighty days subsequent to the entry of an order for liquidation or within such further period as is shown to the satisfaction of the court not to be unfairly prejudicial to the other party.
(3) No statute of limitations or defense of laches shall run with respect to any action against an insurer between the filing of a petition for liquidation against an insurer and the denial of the petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty days after the petition is denied.
(4) Any guaranty association or foreign guaranty association shall have standing to appear in any court proceeding concerning the liquidation of an insurer if such association is or may become liable to act as a result of the liquidation.
Source
Laws 1989, LB 319, § 24;
Laws 1991, LB 236, § 77.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4825 - Collection and list of assets.

44-4825.
Collection and list of assets.
(1) As soon as practicable after the liquidation order but not later than one hundred twenty days thereafter, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented from time to time as the liquidator may determine. One copy shall be filed in the office of the clerk of the district court of Lancaster County and one copy shall be retained for the liquidator's files. All amendments and supplements shall be similarly filed.
(2) The liquidator shall reduce the assets to a degree of liquidity that is consistent with the effective execution of the liquidation.
(3) The submission of an application to the court for disbursement of assets in accordance with section 44-4834 shall fulfill the requirements of subsection (1) of this section.
Source
Laws 1989, LB 319, § 25.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4829 - Claims of holders of void or voidable rights.

44-4829.
Claims of holders of void or voidable rights.
(1) No claims of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance voidable under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act shall be allowed unless he or she surrenders the preference, lien, conveyance, transfer, assignment, or encumbrance. If the avoidance is effected by a proceeding in which a final judgment has been entered, the claim shall not be allowed unless the money is paid or the property is delivered to the liquidator within thirty days from the date of the entering of the final judgment, except that the court having jurisdiction over the liquidation may allow further time if there is an appeal or other continuation of the proceeding.
(2) A claim allowable under subsection (1) of this section by reason of the avoidance, whether voluntary or involuntary, of a preference, lien, conveyance, transfer, assignment, or encumbrance may be filed as an excused late filing under section 44-4835 if filed within thirty days from the date of the avoidance or within the further time allowed by the court under subsection (1) of this section.
Source
Laws 1989, LB 319, § 29.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4830 - Setoffs.

44-4830.
Setoffs.
(1) Mutual debts or mutual credits whether arising out of one or more contracts between the insurer and another person in connection with any action or proceeding under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act shall be set off and the balance only shall be allowed or paid except as provided in subsections (2) and (3) of this section and in section 44-4833.
(2) No setoff shall be allowed in favor of any person when:
(a) The obligation of the insurer to the person would not at the date of the filing of a petition for rehabilitation or liquidation entitle the person to share as a claimant in the assets of the insurer;
(b) The obligation of the insurer to the person was purchased by or transferred to the person with a view to its being used as a setoff;
(c) The obligation of the insurer is owed to an affiliate of such person or any other entity or association other than the person;
(d) The obligation of the person is owed to an affiliate of the insurer or any other entity or association other than the insurer;
(e) The obligation of the person is to pay an assessment levied against the members or subscribers of the insurer, is to pay a balance upon a subscription to the capital stock of the insurer, or is in any other way in the nature of a capital contribution; or
(f) The obligations between the person and the insurer arise out of transactions by which either the person or the insurer has assumed risks and obligations from the other party and then has ceded back to that party substantially the same risks and obligations. Notwithstanding the provisions of this subdivision, the rehabilitator or liquidator may permit setoffs if in his or her discretion a setoff is appropriate because of specific circumstances relating to a transaction.
(3) The rehabilitator or liquidator shall provide persons with accounting statements identifying debts which are currently due and payable. When a person owes to the insurer amounts which are currently due and payable, against which the person asserts setoff of mutual credits which may become due and payable from the insurer in the future, the person shall promptly pay to the rehabilitator or liquidator the amounts currently due and payable, except that, notwithstanding section 44-4842, the rehabilitator or liquidator shall promptly and fully refund, to the extent of the person's prior payments, any mutual credits that become due and payable to the person by the insurer.
(4) The provisions of subdivision (2)(f) and subsection (3) of this section shall apply to all contracts entered into, renewed, extended, or amended on or after October 1, 1995, and to debts or credits arising from any business written after such date pursuant to any such contract. For purposes of this subsection, any change in the terms of or consideration for any such contract shall be deemed an amendment of the contract.
Source
Laws 1989, LB 319, § 30;
Laws 1991, LB 236, § 80;
Laws 1991, LB 237, § 71;
Laws 1995, LB 616, § 3.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4831 - Assessments.

44-4831.
Assessments.
(1) As soon as practicable, but not more than two years from the date of an order of liquidation under section 44-4818 of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth:
(a) The reasonable value of the assets of the insurer;
(b) The insurer's probable total liabilities;
(c) The probable aggregate amount of the assessment necessary to pay all claims of creditors and expenses in full, including expenses of administration and costs of collecting the assessment; and
(d) A recommendation as to whether or not an assessment should be made and in what amount.
(2)(a) Upon the basis of the report provided in subsection (1) of this section, including any supplements and amendments thereto, the district court of Lancaster County may levy one or more assessments against all members of the insurer who are subject to assessment.
(b) Subject to any applicable legal limits on assessability, the aggregate assessment shall be for the amount that the sum of the probable liabilities, the expenses of administration, and the estimated cost of collection of the assessment, exceeds the value of existing assets, with due regard being given to assessments that cannot be collected economically.
(3) After levy of assessment under subsection (2) of this section, the liquidator shall issue an order directing each member who has not paid the assessment pursuant to the order to show cause why the liquidator should not pursue a judgment therefor.
(4) The liquidator shall give notice of the order to show cause by publication and by first-class mail to each member liable thereunder mailed to his or her last-known address as it appears on the insurer's records at least twenty days before the return day of the order to show cause.
(5)(a) If a member does not appear and serve duly verified objections upon the liquidator on or before the return day of the order to show cause under subsection (3) of this section, the court shall make an order adjudging the member liable for the amount of the assessment against him or her pursuant to subsection (3) of this section, together with costs, and the liquidator shall have a judgment against the member therefor.
(b) If on or before such return day the member appears and serves duly verified objections upon the liquidator, the director may hear and determine the matter or may appoint a referee to hear it and make such order as the facts warrant. In the event that the director determines that such objections do not warrant relief from assessment, the member may request the court to review the matter and vacate the order to show cause.
(6) The liquidator may enforce any order or collect any judgment under subsection (5) of this section by any lawful means.
Source
Laws 1989, LB 319, § 31.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4832 - Reinsurer's liability.

44-4832.
Reinsurer's liability.
The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement. Payment made directly to an insured or other creditor shall not diminish the reinsurer's obligation to the insurer's estate except when the reinsurance contract provided for direct coverage of a named insured and the payment was made in discharge of that obligation.
Source
Laws 1989, LB 319, § 32.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4833 - Recovery of premiums owed; violation; penalty; appeal.

44-4833.
Recovery of premiums owed; violation; penalty; appeal.
(1)(a) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency as shown on the records of the insurer. The liquidator shall also have the right to recover from such person any part of an unearned commission of such person. An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall not be obligated to pay the unpaid unearned premium due the insurer at the time of the declaration of insolvency as shown on the records of the insurer, and any such unearned premium in the possession of such agent, broker, premium finance company, or other person at such time shall be returned promptly by such agent, broker, premium finance company, or other person to the insured or other person from whom it was received. Credits or setoffs or both shall not be allowed to an agent, broker, or premium finance company for any amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured.
(b) An insured shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency as shown on the records of the insurer.
(2) Upon satisfactory evidence of a violation of this section, the director may pursue either one or both of the following courses of action:
(a) Suspend, revoke, or refuse to renew the licenses of such offending party or parties; or
(b) Impose a civil penalty of not more than one thousand dollars for each and every act in violation of this section by the party or parties.
(3) Before the director takes any action as set forth in subsection (2) of this section, he or she shall give written notice to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation and fixing a time and place, at least ten days thereafter, when a hearing on the matter shall be held. After such hearing or upon failure of the accused to appear at such hearing, the director, if he or she finds such violation, shall impose the penalties under subsection (2) of this section as he or she deems advisable.
(4) When the director takes action in any or all of the ways set out in subsection (2) of this section, the party aggrieved may appeal from the action to the district court of Lancaster County.
Source
Laws 1989, LB 319, § 33.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4835 - Filing of claims.

44-4835.
Filing of claims.
(1) Proof of all claims shall be filed with the liquidator in the form required by section 44-4836 on or before the last day for filing specified in the notice required under section 44-4822, except that proof of claims for cash surrender values or other investment values in life insurance and annuities need not be filed unless the liquidator expressly so requires.
(2) The liquidator may permit a claimant making a late filing to share in distributions, whether past or future, as if he or she were not late, to the extent that any such payment will not prejudice the orderly administration of the liquidation, under the following circumstances:
(a) The existence of the claim was not known to the claimant and he or she filed his or her claim as promptly thereafter as reasonably possible after learning of it;
(b) A transfer to a creditor was avoided under sections 44-4826 to 44-4828 or was voluntarily surrendered under section 44-4829 and the filing satisfies the conditions of such section; or
(c) The valuation under section 44-4841 of security held by a secured creditor shows a deficiency, which is filed within thirty days after the valuation.
(3) The liquidator shall permit late filing claims to share in distributions, whether past or future, as if they were not late if such claims are claims of a guaranty association or foreign guaranty association for reimbursement of covered claims paid or expenses incurred, or both, subsequent to the last day for filing when such payments were made and expenses incurred as provided by law.
(4) The liquidator may consider any claim filed late which is not covered by subsection (2) of this section and permit it to receive distributions which are subsequently declared on any claims of the same or lower priority if the payment does not prejudice the orderly administration of the liquidation. The late-filing claimant shall receive at each distribution the same percentage of the amount allowed on his or her claim as is then being paid to claimants of any lower priority. This shall continue until his or her claim has been paid in full.
Source
Laws 1989, LB 319, § 35.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4836 - Proof of claim.

44-4836.
Proof of claim.
(1) Proof of claim shall consist of a statement signed by the claimant that includes all of the following that are applicable:
(a) The particulars of the claim, including the consideration given for it;
(b) The identity and amount of the security on the claim;
(c) The payments made on the debt, if any;
(d) That the sum claimed is justly owing and that there is no setoff, counterclaim, or defense to the claim;
(e) Any right of priority of payment or other specific right asserted by the claimants;
(f) A copy of the written instrument which is the foundation of the claim; and
(g) The name and address of the claimant and the attorney who represents him or her, if any.
(2) No claim need be considered or allowed if it does not contain all the information in subsection (1) of this section which may be applicable. The liquidator may require that a prescribed form be used and may require that other information and documents be included.
(3) At any time the liquidator may request the claimant to present information or evidence supplementary to that required under subsection (1) of this section and may take testimony under oath or affirmation, require production of affidavits or depositions, or otherwise obtain additional information or evidence.
(4) No judgment or order against an insured or the insurer entered after the date of filing of a successful petition for liquidation and no judgment or order against an insured or the insurer entered at any time by default or by collusion need be considered as evidence of liability or of quantum of damages. No judgment or order against an insured or the insurer entered within four months before the filing of the petition need be considered as evidence of liability or of the quantum of damages.
(5) All claims of a guaranty association or foreign guaranty association shall be in such form and contain such substantiation as may be agreed to by the association and the liquidator.
Source
Laws 1989, LB 319, § 36.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4837 - Special claims.

44-4837.
Special claims.
(1) The claim of a third party which is contingent only on his or her first obtaining a judgment against the insured shall be considered and allowed as if there were no such contingency.
(2) A claim may be allowed even if contingent if it is filed in accordance with section 44-4835. It may be allowed and may participate in all distributions declared after it is filed to the extent that it does not prejudice the orderly administration of the liquidation.
(3) Claims that are due except for the passage of time shall be treated as absolute claims are treated, except that such claims may be discounted at the legal rate of interest.
(4) Claims made under employment contracts by directors, principal officers, or persons in fact performing similar functions or having similar powers shall be limited to payment for services rendered prior to the issuance of any order of rehabilitation or liquidation under section 44-4813 or 44-4818.
Source
Laws 1989, LB 319, § 37.