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2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6121 - Violation; penalty; enforcement.

44-6121.
Violation; penalty; enforcement.
Whenever it appears to the director that any person or any director, officer, employee, or agent of the person has committed or is about to commit a violation of the Insurers Demutualization Act or of any rule, regulation, or order of the director, the director may apply to the district court of Lancaster County for an order enjoining such person, director, officer, employee, or agent from violating or continuing to violate the act or any such rule, regulation, or order and for such other equitable relief as the nature of the case and the interest of the insurer's policyholders, creditors, and shareholders or the public may require.
Source
Laws 1997, LB 52, § 17.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6122 - Act, how cited.

44-6122.
Act, how cited.
Sections 44-6122 to 44-6143 shall be known and may be cited as the Mutual Insurance Holding Company Act.
Source
Laws 1997, LB 740, § 1;
Laws 1999, LB 259, § 13;
Laws 2005, LB 119, § 22.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6123 - Legislative findings and declarations.

44-6123.
Legislative findings and declarations.
The Legislature finds and declares that it is in the public interest that a domestic mutual insurer be permitted to reorganize in a manner that preserves attributes of its mutuality while facilitating capital raising abilities and corporate affiliations on terms and conditions that are fair and equitable to the mutual insurer's policyholders. The Legislature further finds that because policyholders of a mutual insurer have membership interests in the mutual insurer, the director should have broad authority in reviewing a reorganization and the procedures and criteria to be applied by the director should be flexible within the parameters of the Mutual Insurance Holding Company Act. The act shall be liberally construed to effect the legislative intent set forth in this section and shall not be interpreted to limit the powers granted to the director by other provisions of the law.
Source
Laws 1997, LB 740, § 2.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6124 - Terms, defined.

44-6124.
Terms, defined.
For purposes of the Mutual Insurance Holding Company Act:
(1) Director means the Director of Insurance;
(2) Intermediate stock holding company means a holding company of which at least a majority of the voting securities are owned by a mutual insurance holding company and which, directly or indirectly, owns all of the voting securities of a reorganized stock insurer;
(3) Mutual insurance holding company means a holding company based on a mutual plan which at all times owns, directly or indirectly, a majority of the voting securities of one or more intermediate stock holding companies or, if no such intermediate stock holding company exists, which owns a majority of the voting securities of a reorganized stock insurer;
(4) Reorganized stock insurer means a stock insurer subsidiary which results from a reorganization of a domestic mutual insurer pursuant to subsection (1) or (2) of section 44-6125 and in compliance with the act; and
(5) Voting securities means securities of any class or any ownership interest having voting power for the election of directors, trustees, or management, other than securities having voting power only because of the occurrence of a contingency.
Source
Laws 1997, LB 740, § 3;
Laws 2004, LB 1047, § 19.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6126 - Plan of reorganization; contents.

44-6126.
Plan of reorganization; contents.
A domestic mutual insurer shall file a proposed plan of reorganization approved by a vote of not less than two-thirds of the members of its board of directors for review and approval with the director. The proposed plan of reorganization shall be accompanied by a nonrefundable fee of one thousand dollars. A plan of reorganization shall include the following at a minimum:
(1) An analysis of the benefits and risks attendant to the proposed reorganization, including the rationale and comparative benefits and risks of a demutualization;
(2) A statement of how the plan is fair and equitable to the policyholders;
(3) Information sufficient to demonstrate that the financial condition of the mutual insurer will not be diminished upon reorganization;
(4) Provisions to ensure immediate membership in the mutual insurance holding company for all existing policyholders of the mutual insurer;
(5) Provisions for membership interests for future policyholders of the reorganized stock insurer;
(6) Provisions to ensure that, in the event of proceedings for rehabilitation or liquidation involving a stock insurer subsidiary of the mutual insurance holding company, the assets of the mutual insurance holding company will be available to satisfy the policyholder obligations of the stock insurer subsidiary;
(7) Provisions for periodic distribution of accumulated mutual insurance holding company earnings;
(8) Certified copies of the proposed articles of incorporation and bylaws of the mutual insurance holding company, intermediate stock holding company, and reorganized stock insurer or proposed amendments thereto as necessary to effectuate reorganization;
(9) A certification that the plan of reorganization has been duly adopted by a vote of not less than two-thirds of the members of the board of directors of the mutual insurer;
(10) A certification adopted by not less than two-thirds of the members of the board of directors of the mutual insurer that the plan of reorganization is fair and equitable to the policyholders;
(11) The names, addresses, and occupational information of all corporate officers and all members of the board of directors of the proposed mutual insurance holding company in the case of a reorganization described in subsection (1) of section 44-6125;
(12) A description of the nature and content of the annual report and financial statement to be sent by the mutual insurance holding company to each member;
(13) A description of the number of members of the board of directors of the mutual insurance holding company required to be policyholders;
(14) A description of any plans for the initial sale of stock of the intermediate stock holding company or reorganized stock insurer;
(15) A form of the proposed notice to be mailed by the mutual insurer to its policyholders as required in section 44-6129; and
(16) Any other information requested by the director.
Source
Laws 1997, LB 740, § 5.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6127 - Plan of reorganization; public hearing; notice.

44-6127.
Plan of reorganization; public hearing; notice.
The director shall conduct a public hearing regarding a proposed plan of reorganization within one hundred twenty days after the date the completed proposed plan of reorganization is filed pursuant to section 44-6126 unless extended by the director for good cause. Any interested person may appear or otherwise be heard at the public hearing. The director may in his or her discretion continue the public hearing for a reasonable period of time not to exceed sixty days. The mutual insurer shall give such reasonable notice of the public hearing as the director in his or her discretion may require.
Source
Laws 1997, LB 740, § 6.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6128 - Plan of reorganization; approval; director; order.

44-6128.
Plan of reorganization; approval; director; order.
(1) The director shall issue an order approving or disapproving a proposed plan of reorganization within thirty days after the close of the public hearing as required by section 44-6127.
(2) The director shall not approve a proposed plan of reorganization unless he or she finds that:
(a) The plan of reorganization is fair and equitable to the policyholders;
(b) The plan of reorganization does not deprive the policyholders of their property rights or due process of law; and
(c) The reorganized stock insurer would meet the minimum requirements to be issued a certificate of authority by the director to transact the business of insurance in this state and the continued operations of the reorganized stock insurer would not be hazardous to future policyholders and the public.
(3) If the director approves a plan of reorganization, the director shall also publish notification of the issuance of the order in a legal newspaper in Lancaster County and in the county of domicile of the mutual insurer if different than Lancaster County.
(4) If the director approves a plan of reorganization, the approval shall expire if the reorganization is not completed within one hundred eighty days after the date of approval unless extended by the director for good cause.
(5) If the director disapproves a plan of reorganization, the director shall issue an order setting forth specific findings for the disapproval.
Source
Laws 1997, LB 740, § 7.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6129 - Plan of reorganization; policyholders vote.

44-6129.
Plan of reorganization; policyholders vote.
(1) Within forty-five days after the date of the director's approval of a plan of reorganization pursuant to section 44-6128, unless extended by the director for good cause, the mutual insurer shall hold a meeting of its policyholders at a reasonable time and place to vote upon the plan of reorganization. The mutual insurer shall give notice at least thirty days before the time fixed for the meeting, by first-class mail to the last-known address of each policyholder, that the plan of reorganization will be voted upon at a regular or special meeting of the policyholders. The notice shall include a brief description of the plan of reorganization and a statement that the director has approved the plan of reorganization. The notice to each policyholder shall also include a written proxy permitting the policyholder to vote for or against the plan of reorganization. The entity to which any group insurance policy is issued, and not any person covered under the group insurance policy, shall be considered the policyholder for purposes of voting. A plan of reorganization shall be approved only if not less than two-thirds of the policyholders voting in person or by proxy at the meeting vote in favor of such plan of reorganization. Each policyholder shall be entitled to only one vote regardless of the number of policies owned by the policyholder. The director shall supervise and direct the conduct of the vote on the plan of reorganization as necessary to ensure that the vote is fair and consistent with the requirements of this section.
(2) If a mutual insurer complies substantially and in good faith with the notice requirements of this section, the mutual insurer's failure to give any policyholder any required notice does not impair the validity of any action taken under this section.
(3) If the meeting of policyholders to vote upon the plan of reorganization is held coincident with the mutual insurer's annual meeting of the policyholders, only one combined notice of meeting is required.
(4) The form of any proxy shall be filed with and approved by the director.
(5) For purposes of voting, policyholders means the policyholders of the mutual insurer on the day the plan of reorganization is initially approved by the board of directors of the mutual insurer.
Source
Laws 1997, LB 740, § 8.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6130 - Certificate of authority; issuance.

44-6130.
Certificate of authority; issuance.
The director shall issue a certificate of authority to a reorganized stock insurer when the mutual insurer files with the director (1) a certificate stating that all of the conditions set forth in the plan of reorganization have been satisfied so long as the board of directors of the mutual insurer has not abandoned the plan of reorganization pursuant to section 44-6133 and (2) a certificate from the mutual insurer setting forth the vote and certifying that the plan of reorganization was approved by not less than two-thirds of the policyholders voting in person or by proxy on the plan of reorganization. The reorganization shall be effective upon the issuance of a certificate of authority by the director. Upon issuance of the certificate of authority, the insurer's articles of incorporation shall be treated as amended in compliance with section 44-231.
Source
Laws 1997, LB 740, § 9.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6131 - Appeal; procedure.

44-6131.
Appeal; procedure.
Any person affected by a final order issued pursuant to the Mutual Insurance Holding Company Act shall have the right to appeal such order to the district court of Lancaster County. The appeal shall be in accordance with the Administrative Procedure Act.
Source
Laws 1997, LB 740, § 10.
Cross References
Administrative Procedure Act, see section 84-920.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6132 - Corporate existence; continuation.

44-6132.
Corporate existence; continuation.
Corporate existence of a mutual insurer reorganizing pursuant to the Mutual Insurance Holding Company Act shall not terminate, but the reorganized stock insurer shall be deemed to be a continuation of the mutual insurer and to have been organized on the date the mutual insurer was originally organized.
Source
Laws 1997, LB 740, § 11.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6132.01 - Name.

44-6132.01.
Name.
If the name of a mutual insurer reorganizing as a reorganized stock insurer pursuant to the Mutual Insurance Holding Company Act includes the word mutual, the reorganized stock insurer may continue to use the word mutual in its name if (1) the name includes a word or words that identify the reorganized stock insurer as a stock insurer and (2) the director finds that the continued use of the word mutual in its name is not likely to mislead or deceive the public.
Source
Laws 1999, LB 259, § 14.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6133 - Plan of reorganization; abandonment.

44-6133.
Plan of reorganization; abandonment.
A mutual insurer may, by not less than a two-thirds vote of the members of its board of directors and with the approval of the director, abandon a plan of reorganization at any time before the issuance of the certificate of authority by the director. Upon such abandonment, all rights and obligations arising out of the plan of reorganization shall terminate and the mutual insurer shall continue to conduct its business as a domestic mutual insurer as though no plan of reorganization had ever been adopted.
Source
Laws 1997, LB 740, § 12.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6135 - Annual statement; audit.

44-6135.
Annual statement; audit.
A mutual insurance holding company shall file with the director, by March 1 of each year, an annual statement consisting of an income statement, balance sheet, and cash flows prepared in accordance with generally accepted accounting practices and a confidential statement disclosing any intention to pledge, borrow against, alienate, hypothecate, or in any way encumber the assets of the mutual insurance holding company. A mutual insurance holding company shall also have an annual audit by an independent certified public accountant in a form approved by the director and shall file such audit on or before June 1 of each year for the year ending December 31 immediately preceding.
Source
Laws 1997, LB 740, § 14.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6136 - Production of records.

44-6136.
Production of records.
The director shall have the power to order production of any records, books, or other information and papers in the possession of a mutual insurance holding company or its affiliates as are reasonably necessary to ascertain the financial condition of the reorganized stock insurer or to determine compliance with Chapter 44.
Source
Laws 1997, LB 740, § 15.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6137 - Construction of act.

44-6137.
Construction of act.
Nothing contained in the Mutual Insurance Holding Company Act shall be construed to prohibit demutualization of a mutual insurance holding company pursuant to the Insurers Demutualization Act.
Source
Laws 1997, LB 740, § 16.
Cross References
Insurers Demutualization Act, see section 44-6101.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6138 - Fee, commission, or consideration; restrictions.

44-6138.
Fee, commission, or consideration; restrictions.
(1)(a) No director, officer, employee, or agent of the mutual insurer and no other person shall receive any fee, commission, or other valuable consideration whatsoever, other than his or her usual regular salary and compensation, for in any manner aiding, promoting, or assisting in a plan of reorganization except as set forth in the plan of reorganization approved by the director.
(b) Subdivision (1)(a) of this section shall not prohibit a management-incentive compensation program which is contained in the plan of reorganization and approved by the director to be adopted upon reorganization to the reorganized stock insurer or prohibit such a program to be later adopted by the reorganized stock insurer.
(c) All fees, commissions, compensation, and valuable consideration described in this subsection shall be subject to the restrictions on salary, compensation, and emoluments in section 44-213.
(2) Subdivision (1)(a) of this section shall not be deemed to prohibit the payment of reasonable fees and compensation to attorneys, accountants, actuaries, and investment bankers for services performed in the independent practice of their professions even though any such person is also a member of the board of directors of the mutual insurer.
Source
Laws 1997, LB 740, § 17.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6139 - Experts; costs of review.

44-6139.
Experts; costs of review.
For purposes of determining whether a plan of reorganization meets the requirements of the Mutual Insurance Holding Company Act or in connection with any other matters relating to development of a plan of reorganization, the director may engage the services of experts. All reasonable costs related to the review of a plan of reorganization or such other matters, including those costs attributable to the use of experts, shall be paid by the mutual insurer making the filing or initiating discussions with the director about such matters.
Source
Laws 1997, LB 740, § 18.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6141 - Enforcement.

44-6141.
Enforcement.
Whenever it appears to the director that any person or any director, officer, employee, or agent of the person has committed or is about to commit a violation of the Mutual Insurance Holding Company Act or of any rule, regulation, or order of the director, the director may apply to the district court of Lancaster County for an order enjoining such person, director, officer, employee, or agent from violating or continuing to violate the act or any such rule, regulation, or order and for such other equitable relief as the nature of the case and the interest of the insurer's policyholders, creditors, and shareholders or the public may require.
Source
Laws 1997, LB 740, § 20.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6202 - Purpose of act.

44-6202.
Purpose of act.
It is the purpose of the Assumption Reinsurance Act to provide for the regulation of the transfer and novation of contracts of insurance by way of assumption reinsurance. The act describes assumption reinsurance and establishes notice and disclosure requirements which protect and define the rights and obligations of policyholders, regulators, and the parties to assumption reinsurance agreements.
Source
Laws 1993, LB 583, § 63.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6203 - Applicability of act.

44-6203.
Applicability of act.
(1) The Assumption Reinsurance Act shall apply to any insurer authorized to transact business in this state which either assumes or transfers the obligations or risks on contracts of insurance owned by policyholders residing in this state pursuant to an assumption reinsurance agreement. The act shall not relieve any insurer of any other requirements of the insurance laws of this state.
(2) The act shall not apply to:
(a) Any reinsurance agreement or transaction in which the ceding insurer continues to remain directly liable for its insurance obligations or risks under the contracts of insurance subject to the reinsurance agreement;
(b) The substitution of one insurer for another upon the expiration of insurance coverage pursuant to statutory or contractual requirements and the issuance of a new contract of insurance by another insurer;
(c) The transfer of contracts of insurance pursuant to mergers or consolidations of two or more insurers to the extent that those transactions are regulated by law;
(d) Any insurer subject to a judicial order of rehabilitation or liquidation; or
(e) Any reinsurance agreement or transaction to which a state insurance guaranty association is a party.
Source
Laws 1993, LB 583, § 64.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6204 - Terms, defined.

44-6204.
Terms, defined.
For purposes of the Assumption Reinsurance Act:
(1) Assuming insurer shall mean the insurer which acquires an insurance obligation or risk from the transferring insurer pursuant to an assumption reinsurance agreement;
(2) Assumption reinsurance agreement shall mean any contract which both:
(a) Transfers insurance obligations or risks of existing contracts of insurance or contracts of insurance which are in force from a transferring insurer to an assuming insurer; and
(b) Is intended to effect a novation of the transferred contract of insurance with the result that the assuming insurer becomes directly liable to the policyholders of the transferring insurer and the transferring insurer's insurance obligations or risks under such contract of insurance are extinguished;
(3) Contract of insurance shall mean any written agreement between an insurer and policyholder pursuant to which the insurer, in exchange for premium or other consideration, agrees to assume an obligation or risk of the policyholder or to make payments on behalf of or to the policyholder or its beneficiaries. The term shall include all lines of insurance specified in section 44-201;
(4) Director shall mean the Director of Insurance;
(5) Notice of transfer shall mean the written notice to the policyholders required by section 44-6205;
(6) Policyholder shall mean any individual or entity which has the right to terminate or otherwise alter the terms of a contract of insurance. The term shall include any certificate holder whose certificate is in force on the proposed effective date of the assumption if the certificate holder has the right to keep the certificate in force without change in benefit following termination of the group policy. Such rights to keep the certificate in force shall not include the right to elect individual coverage under sections 44-1640 to 44-1645 or the federal Consolidated Omnibus Budget Reconciliation Act, section 601 et seq., of the federal Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. 1161 et seq.; and
(7) Transferring insurer shall mean the insurer which transfers an insurance obligation or risk to an assuming insurer pursuant to an assumption reinsurance agreement.
Source
Laws 1993, LB 583, § 65.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6205 - Notice requirements.

44-6205.
Notice requirements.
(1) The transferring insurer shall provide or cause to be provided to each policyholder a notice of transfer by first-class mail addressed to the policyholder's last-known address or to the address to which premium notices or other policy documents are sent or, with respect to home-service business, by personal delivery with acknowledged receipt. A notice of transfer shall also be sent to the transferring insurer's agents or brokers of record on the affected policies.
(2) The notice of transfer shall state or provide:
(a) The date the transfer and novation of the policyholder's contract of insurance is proposed to take place;
(b) The names, addresses, and telephone numbers of the assuming insurer and transferring insurer;
(c) That the policyholder has the right to either accept or reject the transfer and novation;
(d) The procedures and time limit for accepting or rejecting the transfer and novation;
(e) A summary of any effect that accepting or rejecting the transfer and novation will have on the policyholder's rights;
(f) A statement that the assuming insurer is authorized to write the type of business being assumed in the state where the policyholder resides or is otherwise authorized, as provided in the Assumption Reinsurance Act, to assume such business;
(g) The name and address of the person at the transferring insurer to whom the policyholder should send its written statement of acceptance or rejection of the transfer and novation;
(h) The address and telephone number of the insurance department of the state where the policyholder resides so that the policyholder may write or call such insurance department for further information regarding the financial condition of the assuming insurer;
(i) The following information regarding both insurers:
(i) Ratings for the last five years if available, or for such lesser period as is available, from two nationally recognized insurance rating services acceptable to the director, including the rating service's explanation of the rating's meaning. If ratings are unavailable for any year of the five-year period, this shall also be disclosed;
(ii) The annual statement balance sheet as of December 31 for the previous two years if available, or for such lesser period as is available, and as of the date of the most recent quarterly statement; and
(iii) An explanation of the reason for the transfer; and
(j) Such other information as the director may by rule and regulation require.
(3) A notice of transfer in a form identical or substantially similar to a form prescribed by the director shall be deemed to comply with the requirements of subsection (2) of this section.
(4) The notice of transfer shall include a preaddressed, postage-paid response card which a policyholder may return as its written statement of acceptance or rejection of the transfer and novation.
(5) The notice of transfer proposed to be used shall be filed with the director as part of the prior approval requirement set forth in subsection (1) of section 44-6206.
Source
Laws 1993, LB 583, § 66.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6207 - Policyholder rights.

44-6207.
Policyholder rights.
(1) Every policyholder shall have the right to reject the transfer and novation of his or her contracts of insurance. Policyholders electing to reject the assumption transaction shall return to the transferring insurer the preaddressed, postage-paid response card or other written notice and indicate thereon that the assumption is rejected.
(2) Payment of the next premium after notice is received to the assuming insurer shall be deemed to indicate the policyholder's acceptance of the transfer to the assuming insurer and a novation shall be deemed to have been effected if the premium notice clearly states that payment of the premium to the assuming insurer shall constitute acceptance of the transfer. Such a premium notice shall also provide a method for the policyholder to pay the premium while reserving the right to reject the transfer.
(3) After no fewer than twelve months after the mailing of the initial notice of transfer required under section 44-6205, if positive acceptance to the transfer and assumption has not been received or acceptance has not been deemed to have occurred under subsection (2) of this section, the transferring insurer shall send to the policyholder a second and final notice of transfer. If the policyholder does not reject the transfer during the two-month period immediately following the date on which the transferring insurer mails the second and final notice of transfer, the policyholder's acceptance will be deemed to have occurred and novation of the contract of insurance will be effected.
(4) The transferring insurer will be deemed to have received the response card on the date it is postmarked. A policyholder may also send a response card by facsimile or other electronic transmission or by registered mail, express delivery, or courier service, in which case the response card shall be deemed to have been received by the assuming insurer on the date of actual receipt by the transferring insurer.
Source
Laws 1993, LB 583, § 68.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6208 - Effect of consent.

44-6208.
Effect of consent.
If a policyholder accepts the transfer pursuant to section 44-6207 or if the transfer is effected under section 44-6209, there shall be a novation of the contract of insurance subject to the assumption reinsurance agreement with the result that the transferring insurer shall thereby be relieved of all insurance obligations or risks transferred under the assumption reinsurance agreement and the assuming insurer shall become directly and solely liable to the policyholder for those insurance obligations or risks.
Source
Laws 1993, LB 583, § 69.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6209 - Director's discretion.

44-6209.
Director's discretion.
If an insurer domiciled in this state or in a state which does not have assumption reinsurance requirements adopted by statute or regulation substantially similar to those contained in the Assumption Reinsurance Act is deemed by the director to be in hazardous financial condition or an administrative or judicial proceeding has been instituted against it for the purpose of liquidating, reorganizing, or conserving such insurer, and the transfer of the contracts of insurance is in the best interest of the policyholders, as determined by the director, a transfer and novation may be effected notwithstanding the provisions of the act. This may include use of a form of implied acceptance and adequate notification to the policyholder of the circumstances requiring the transfer and novation as approved by the director.
Source
Laws 1993, LB 583, § 70.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6302 - Terms, defined.

44-6302.
Terms, defined.
For purposes of the Disclosure of Material Insurance Transactions Act:
(1) Director shall mean the Director of Insurance; and
(2) Insurer shall mean an insurer as defined in section 44-103 authorized to transact the business of insurance in this state, except that insurer shall include health maintenance organizations and insurer shall not include unincorporated mutual associations and assessment associations.
Source
Laws 1994, LB 978, § 2.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6304 - Disclosure; when required; nonconsolidated basis.

44-6304.
Disclosure; when required; nonconsolidated basis.
(1) No acquisitions or dispositions of assets need be reported pursuant to section 44-6303 if the acquisitions or dispositions are not material. A material acquisition, or the aggregate of any series of related acquisitions during any thirty-day period, or material disposition, or the aggregate of any series of related dispositions during any thirty-day period, shall mean one that is nonrecurring and not in the ordinary course of business and involves more than five percent of the reporting insurer's total admitted assets as reported in its most recent financial statement filed with the director pursuant to section 44-322.
(2) Asset acquisitions subject to the Disclosure of Material Insurance Transactions Act shall include every purchase, lease, exchange, merger, consolidation, succession, or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials for such purpose. Asset dispositions subject to the act shall include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, whether for the benefit of creditors or otherwise, abandonment, destruction, or other disposition.
(3) The following information shall be disclosed in any report of a material acquisition or disposition of assets:
(a) Date of the transaction;
(b) Manner of acquisition or disposition;
(c) Description of the assets involved;
(d) Nature and amount of the consideration given or received;
(e) Purpose of or reason for the transaction;
(f) Manner by which the amount of consideration was determined;
(g) Gain or loss recognized or realized as a result of the transaction; and
(h) Name of the person from whom the assets were acquired or to whom they were disposed.
(4) Insurers shall report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or one-hundred-percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and such insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent of the insurer's capital and surplus.
Source
Laws 1994, LB 978, § 4.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6401 - Act, how cited.

44-6401.
Act, how cited.
Sections 44-6401 to 44-6414 shall be known and may be cited as the Uninsured and Underinsured Motorist Insurance Coverage Act.
Source
Laws 1986, LB 573, § 1;
R.S.1943, (1988), § 60-571;
Laws 1994, LB 1074, § 1.
Annotations
The act did not apply where it was not in effect at the time the policies were issued to the insured. Polenz v. Farm Bureau Ins. Co., 227 Neb. 703, 419 N.W.2d 677 (1988).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6402 - Definitions, where found.

44-6402.
Definitions, where found.
For purposes of the Uninsured and Underinsured Motorist Insurance Coverage Act, the definitions found in sections 44-6403 to 44-6407 shall apply.
Source
Laws 1986, LB 573, § 2;
R.S.1943, (1988), § 60-572;
Laws 1994, LB 1074, § 2.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6403 - Affiliated insurer, defined.

44-6403.
Affiliated insurer, defined.
Affiliated insurer shall mean an insurer who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person.
Source
Laws 1986, LB 573, § 6;
R.S.1943, (1988), § 60-576;
Laws 1994, LB 1074, § 3.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6404 - Motor vehicle, defined.

44-6404.
Motor vehicle, defined.
Motor vehicle shall mean a motor vehicle as defined in section 60-501.
Source
Laws 1986, LB 573, § 3;
R.S.1943, (1988), § 60-573;
Laws 1994, LB 1074, § 4.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6405 - Uninsured motor vehicle, defined.

44-6405.
Uninsured motor vehicle, defined.
Uninsured motor vehicle shall mean a motor vehicle with respect to the ownership, operation, maintenance, or use of which:
(1) There is no bodily injury liability insurance or bond applicable at the time of the accident;
(2) There is bodily injury liability insurance or a bond applicable at the time of the accident but the insurer writing such insurance or bond (a) denies coverage or (b) is or becomes insolvent as described in section 44-2403 within four years after the time of the accident which occurred while the named insured's uninsured motorist coverage was in effect;
(3) The owner or operator is unknown and bodily injury, sickness, disease, or death of an insured results from actual physical contact between such motor vehicle and the insured or a motor vehicle occupied by the insured; or
(4) The owner or operator is unknown and bodily injury, sickness, disease, or death of an insured is caused by such motor vehicle without actual physical contact between such motor vehicle and the insured or a motor vehicle occupied by the insured if (a) the accident has been reported, as required by law, to the proper law enforcement authorities and (b) the facts of the accident can be corroborated by competent evidence provided by an independent and disinterested person and not by the insured or any person occupying the insured motor vehicle.
Source
Laws 1994, LB 1074, § 5;
Laws 1996, LB 1008, § 1.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6406 - Underinsured motor vehicle, defined.

44-6406.
Underinsured motor vehicle, defined.
Underinsured motor vehicle shall mean a motor vehicle with respect to the ownership, operation, maintenance, or use of which there is bodily injury liability insurance or a bond applicable at the time of the accident and the amount of the insurance or bond is less than or has been reduced by payments to persons, other than an insured, injured in the accident to less than the damages for bodily injury, sickness, disease, or death sustained by the insured. Underinsured motor vehicle shall not include an uninsured motor vehicle.
Source
Laws 1986, LB 573, § 4;
Laws 1990, LB 1136, § 123;
R.S.Supp.,1992, § 60-574;
Laws 1994, LB 1074, § 6.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6407 - Uninsured or underinsured motor vehicle; exclusions.

44-6407.
Uninsured or underinsured motor vehicle; exclusions.
An uninsured or underinsured motor vehicle shall not include a motor vehicle:
(1) Insured under the liability coverage of the same policy of which the uninsured or underinsured motorist coverage is a part;
(2) Owned by, furnished, or available for the regular use of the named insured or any resident of the insured's household;
(3) Which is self-insured under sections 60-562 to 60-564 or is self-insured within the meaning of the motor vehicle financial responsibility law of any other state in which the motor vehicle is registered or any federal law which requires maintenance of financial responsibility;
(4) Which is owned by any government, political subdivision, or agency thereof; or
(5) Which is located and used as a residence or premises and not as a vehicle.
Source
Laws 1986, LB 573, § 5;
R.S.1943, (1988), § 60-575;
Laws 1994, LB 1074, § 7.
Annotations
A "regular use" exclusion in an automobile insurance policy, which mirrors the statutory exclusion, reflects the public policy of this state and is not void as against public policy. Alsidez v. American Family Mut. Ins. Co., 282 Neb. 890, 807 N.W.2d 184 (2011).
Nebraska's Uninsured and Underinsured Motorist Insurance Coverage Act specifically excludes government-owned vehicles from the definition of "underinsured motor vehicle" and thus permits exclusion of government-owned vehicles from the definition of "underinsured motor vehicle" in an automobile insurance policy. Continental Western Ins. Co. v. Conn, 262 Neb. 147, 629 N.W.2d 494 (2001).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6409 - Maximum liability; limits of liability; how construed.

44-6409.
Maximum liability; limits of liability; how construed.
(1) The maximum liability of the insurer under the uninsured motorist coverage or the underinsured motorist coverage shall be the amount of damages for bodily injury, sickness, disease, or death sustained by the insured less the amount paid to the insured by or for any person or organization which may be held legally liable for the bodily injury, sickness, disease, or death, but in no event shall the maximum liability of the insurer under either such coverage be more than the limits of the coverage provided.
(2) The limits of liability of uninsured motorist coverage and underinsured motorist coverage shall not be reduced by the amount of benefits paid under any first party medical payments coverage portion of the policy. The uninsured motorist coverage and underinsured motorist coverage shall be excess over, and shall not pay again, any medical expenses already paid under the first party medical payments coverage portion of the policy.
Source
Laws 1986, LB 573, § 8;
Laws 1990, LB 1136, § 124;
R.S.Supp.,1992, § 60-578;
Laws 1994, LB 1074, § 9;
Laws 1997, LB 741, § 1.
Annotations
Pursuant to a 1990 amendment to this section (transferred from section 60-578), an insured's own carrier must compensate the insured to the limit of the carrier's underinsured motorist coverage if, after payments by any other legally liable person or organization, the insured still has not been fully compensated for his or her injuries. This provision does not apply to claims that accrued before the effective date of the amendment. Shkolnick v. American Family Mut. Ins. Co., 2 Neb. App. 61, 506 N.W.2d 356 (1993).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6410 - Stacking of coverage; prohibited; exception.

44-6410.
Stacking of coverage; prohibited; exception.
Regardless of the number of vehicles involved, persons covered, claims made, vehicles or premiums shown on the policy, or premiums paid, the limits of liability for uninsured or underinsured motorist coverage for two or more motor vehicles insured under the same policy or separate policies shall not be added together, combined, or stacked to determine the limit of insurance coverage available to an injured person for any one accident except as provided in section 44-6411.
Source
Laws 1986, LB 573, § 9;
R.S.1943, (1988), § 60-579;
Laws 1994, LB 1074, § 10.
Annotations
Policies shall not be stacked. American States Ins. Co. v. Farm Bureau Ins. Co., 7 Neb. App. 507, 583 N.W.2d 358 (1998).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6411 - Maximum amount of recovery; multiple policies; priority of payment.

44-6411.
Maximum amount of recovery; multiple policies; priority of payment.
(1) In the event an insured is entitled to uninsured or underinsured motorist coverage under more than one policy of motor vehicle liability insurance, the maximum amount an insured may recover shall not exceed the highest limit of any one such policy.
(2) In the event of bodily injury, sickness, disease, or death of an insured while occupying a motor vehicle not owned by the insured, payment shall be made in the following order of priority, subject to the limitations in subsection (1) of this section: (a) The uninsured or underinsured motorist coverage on the occupied motor vehicle is primary; and (b) if such primary coverage is exhausted, other uninsured or underinsured motorist coverage available to the insured is excess.
(3) When multiple policies apply, payment shall be made in the following order of priority, subject to the limit of liability for each applicable policy:
(a) A policy covering a motor vehicle occupied by the injured person at the time of the accident;
(b) A policy covering a motor vehicle which causes bodily injury, sickness, disease, or death of the insured while a pedestrian; and
(c) A policy covering a motor vehicle not involved in the accident with respect to which the injured person is an insured.
Source
Laws 1986, LB 573, § 10;
R.S.1943, (1988), § 60-580;
Laws 1994, LB 1074, § 11.
Annotations
Priority-of-payment provisions are not applicable in a case where the passenger in a motor vehicle collision was not an insured under the insurance policy of the vehicle in which he was an occupant at the time of his injury. Accordingly, the passenger is not entitled to benefits under more than one policy. Jones v. Shelter Mut. Ins. Cos., 274 Neb. 186, 738 N.W.2d 840 (2007).
This section establishes the maximum recovery of an insured in the specific circumstances where he or she is entitled to coverage under more than one underinsured motorist policy and, further, establishes the priority by which payments under such policies are to be made. Nicholson v. General Cas. Co. of Wis., 255 Neb. 937, 587 N.W.2d 867 (1999).
Stacking of uninsured motorist coverages is prohibited, and an insured's maximum recovery of uninsured motorist benefits is limited to the highest limit of any one applicable policy. Weston v. Continental Western Ins. Co., 14 Neb. App. 956, 720 N.W.2d 904 (2006).
This section provides for the amount of recovery and the priority of payment when there are multiple policies. American States Ins. Co. v. Farm Bureau Ins. Co., 7 Neb. App. 507, 583 N.W.2d 358 (1998).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6412 - Insurer; payment; rights of insurer; agreement to settle; notice; subrogation.

44-6412.
Insurer; payment; rights of insurer; agreement to settle; notice; subrogation.
(1) In the event of payment under the uninsured or underinsured motorist coverage, the insurer making such payment shall, to the extent of such payment, be entitled to the proceeds of any settlement or judgment to the extent such settlement or judgment exceeds the amount paid under any applicable bodily injury liability policy or bond.
(2) If a tentative agreement to settle for liability limits has been reached with the owner or operator of an underinsured motor vehicle, written notice shall be given by certified or registered mail to the underinsured motorist coverage insurer by its insured. Such notice shall include written documentation of lost wages, medical bills, and written authorization to obtain reports from all employers and medical providers. Within thirty days of receipt of such notice, the underinsured motorist coverage insurer may substitute its payment to the insured for the tentative settlement amount. The underinsured motorist coverage insurer shall then be subrogated to the insured's right of recovery to the extent of such payment and any settlement under the underinsured motorist coverage. If the underinsured motorist coverage insurer fails to pay the insured the amount of the tentative settlement within thirty days of receipt of such notice, the underinsured motorist coverage insurer shall have no right of subrogation for any amount paid under the underinsured motorist coverage.
(3) Whenever an insurer makes payment under uninsured or underinsured motorist coverage because of an insurer insolvency, as described in section 44-2403, the paying insurer's right of recovery or reimbursement shall not include any rights either against the insured of such insolvent insurer, except for the amount which is in excess of the limits of liability of the policy of the insolvent insurer, or against a guaranty account established pursuant to the Nebraska Property and Liability Insurance Guaranty Association Act.
Source
Laws 1986, LB 573, § 11;
R.S.1943, (1988), § 60-581;
Laws 1994, LB 1074, § 12.
Cross References
Nebraska Property and Liability Insurance Guaranty Association Act, see section 44-2418.
Annotations
An insured must, within the statute of limitations and utilizing the procedures set forth in this section, file suit against or settle with all underinsured or uninsured tort-feasors involved in an automobile accident. Steffen v. Progressive Northern Ins. Co., 276 Neb. 378, 754 N.W.2d 730 (2008).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6414 - Rules and regulations.

44-6414.
Rules and regulations.
The Director of Insurance may adopt and promulgate rules and regulations to carry out the Uninsured and Underinsured Motorist Insurance Coverage Act.
Source
Laws 1994, LB 1074, § 14.
Annotations
The Director of Insurance shall adopt and promulgate the carrying out of the provisions of the Uninsured and Underinsured Motorist Insurance Coverage Act. American States Ins. Co. v. Farm Bureau Ins. Co., 7 Neb. App. 507, 583 N.W.2d 358 (1998).