reglab/statecodes huggingface dataset:
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5907 - Conflict of interest.

44-5907.
Conflict of interest.
(1) No examiner may be appointed by the director if such examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any company subject to examination under the Insurers Examination Act. This section shall not be construed to automatically preclude an examiner from being:
(a) A policyholder or claimant under an insurance policy;
(b) A grantor of a mortgage or similar instrument on the examiner's residence to a regulated entity if done under customary terms and in the ordinary course of business;
(c) An investment owner in shares of regulated diversified investment companies; or
(d) A settlor or beneficiary of a blind trust into which any otherwise impermissible holdings have been placed.
(2) Notwithstanding the requirements of this section, the director may retain from time to time, on an individual basis, qualified actuaries, certified public accountants, or other similar individuals who are independently practicing their professions even though the individuals may from time to time be similarly employed or retained by persons subject to examination under the act.
Source
Laws 1993, LB 583, § 7.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5908 - Cost of examinations.

44-5908.
Cost of examinations.
The reasonable expenses of the examination of a company conducted under the Insurers Examination Act shall be fixed and determined by the director who shall collect the same from the company examined. The company shall reimburse the amount thereof upon presentation of a statement by the director. Reimbursement shall be limited to a reasonable allocation for the salary of each examiner plus actual expenses. All money collected by the director for examination of the affairs of companies shall be remitted in accordance with section 44-116.
Source
Laws 1993, LB 583, § 8.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-5909 - Immunity from liability.

44-5909.
Immunity from liability.
(1) No cause of action shall arise nor shall any liability be imposed against the director, his or her authorized representatives, or any examiner appointed by the director for any statements made or conduct performed in good faith while carrying out the provisions of the Insurers Examination Act.
(2) No cause of action shall arise, nor shall any liability be imposed against any person, for the act of communicating or delivering information or data to the director or his or her authorized representative or examiner pursuant to an examination made under the Insurers Examination Act if such act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive.
(3) This section does not abrogate or modify in any way any common-law or statutory privilege or immunity otherwise enjoyed by any person identified in subsection (1) of this section.
(4) A person identified in subsection (1) of this section shall be entitled to an award of attorney's fees and costs if he or she is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of the act and the party bringing the action was not substantially justified in doing so. For purposes of this section, a proceeding shall be substantially justified if it had a reasonable basis in law or fact at the time that it was initiated.
Source
Laws 1993, LB 583, § 9.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6001 - Act, how cited.

44-6001.
Act, how cited.
Sections 44-6001 to 44-6026 shall be known and may be cited as the Insurers and Health Organizations Risk-Based Capital Act.
Source
Laws 1993, LB 583, § 13;
Laws 1994, LB 978, § 32;
Laws 1999, LB 258, § 3.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6002 - Definitions, where found.

44-6002.
Definitions, where found.
For purposes of the Insurers and Health Organizations Risk-Based Capital Act, the definitions found in sections 44-6003 to 44-6014 shall be used.
Source
Laws 1993, LB 583, § 14;
Laws 1994, LB 978, § 33;
Laws 1999, LB 258, § 4.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6003 - Adjusted risk-based capital report, defined.

44-6003.
Adjusted risk-based capital report, defined.
Adjusted risk-based capital report means a risk-based capital report which has been adjusted by the director in accordance with subsection (6) of section 44-6015.
Source
Laws 1993, LB 583, § 15;
Laws 1994, LB 978, § 34;
Laws 1999, LB 258, § 5.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6004 - Corrective order, defined.

44-6004.
Corrective order, defined.
Corrective order means an order issued by the director specifying corrective actions which the director has determined are required.
Source
Laws 1993, LB 583, § 16;
Laws 1999, LB 258, § 6.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6007.02 - Health organization, defined.

44-6007.02.
Health organization, defined.
Health organization means a health maintenance organization, prepaid limited health service organization, prepaid dental service corporation, or other managed care organization. Health organization does not include a life and health insurer, a fraternal benefit society, or a property and casualty insurer as defined in section 44-6008 that is otherwise subject to either life and health or property and casualty risk-based capital requirements.
Source
Laws 1999, LB 258, § 12;
Laws 2013, LB426, § 2.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6008 - Insurer, defined.

44-6008.
Insurer, defined.
Insurer means an insurer as defined in section 44-103 authorized to transact the business of insurance, except that insurer does not include health organizations, unincorporated mutual associations, assessment associations, health maintenance organizations, prepaid dental service corporations, prepaid limited health service organizations, monoline mortgage guaranty insurers, monoline financial guaranty insurers, title insurers, prepaid legal corporations, intergovernmental risk management pools, and any other kind of insurer to which the application of the Insurers and Health Organizations Risk-Based Capital Act, in the determination of the director, would be clearly inappropriate. Insurer includes a risk retention group.
Insurer, when referring to life and health insurers, means an insurer authorized to transact life insurance business and sickness and accident insurance business specified in subdivisions (1) through (4) of section 44-201, or any combination thereof, and also includes fraternal benefit societies authorized to transact business specified in sections 44-1072 to 44-10,109.
Insurer, when referring to property and casualty insurers, means an insurer authorized to transact property insurance business and casualty insurance business specified in subdivisions (5) through (14) and (16) through (20) of section 44-201, or any combination thereof, and also includes an insurer authorized to transact insurance business specified in subdivision (4) of section 44-201 if also authorized to transact insurance business specified in subdivisions (5) through (14) and (16) through (20) of section 44-201.
Source
Laws 1993, LB 583, § 20;
Laws 1994, LB 978, § 35;
Laws 1999, LB 258, § 13;
Laws 2013, LB426, § 3;
Laws 2014, LB700, § 18.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6009 - Negative trend, with respect to a life and health insurer or a fraternal benefit society, defined.

44-6009.
Negative trend, with respect to a life and health insurer or a fraternal benefit society, defined.
Negative trend, with respect to a life and health insurer or a fraternal benefit society, means a negative trend over a period of time, as determined in accordance with the trend test calculation included in the life risk-based capital instructions.
Source
Laws 1993, LB 583, § 21;
Laws 1994, LB 978, § 36;
Laws 1999, LB 258, § 14;
Laws 2008, LB855, § 29;
Laws 2013, LB426, § 4.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6010 - Risk-based capital instructions, defined.

44-6010.
Risk-based capital instructions, defined.
Risk-based capital instructions means the risk-based capital report, including risk-based capital instructions adopted by the National Association of Insurance Commissioners, as such instructions may be amended by the association from time to time in accordance with the procedures adopted by the association.
Source
Laws 1993, LB 583, § 22;
Laws 1999, LB 258, § 15.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6011 - Risk-based capital level, defined.

44-6011.
Risk-based capital level, defined.
Risk-based capital level means an insurer's or a health organization's company action level risk-based capital, regulatory action level risk-based capital, authorized control level risk-based capital, or mandatory control level risk-based capital. For purposes of this section:
(1) Authorized control level risk-based capital means the number determined under the risk-based capital formula in accordance with the risk-based capital instructions;
(2) Company action level risk-based capital means, with respect to any insurer or health organization, the product of 2.0 and its authorized control level risk-based capital;
(3) Mandatory control level risk-based capital means the product of 0.7 and the authorized control level risk-based capital; and
(4) Regulatory action level risk-based capital means the product of 1.5 and its authorized control level risk-based capital.
Source
Laws 1993, LB 583, § 23;
Laws 1999, LB 258, § 16.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6012 - Risk-based capital plan, defined.

44-6012.
Risk-based capital plan, defined.
Risk-based capital plan means a comprehensive financial plan containing the elements specified in subsection (2) of section 44-6016. If the director rejects a plan and it is revised by the insurer or health organization, with or without the director's recommendation, the plan shall be called the revised risk-based capital plan.
Source
Laws 1993, LB 583, § 24;
Laws 1999, LB 258, § 17.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6014 - Total adjusted capital, defined.

44-6014.
Total adjusted capital, defined.
Total adjusted capital means the sum of:
(1) An insurer's or a health organization's statutory capital and surplus as determined in accordance with the statutory accounting applicable to the annual financial statements required to be filed under sections 44-322, 44-32,134, 44-3823, and 44-4720; and
(2) Such other items, if any, as the risk-based capital instructions may provide.
Source
Laws 1993, LB 583, § 26;
Laws 1999, LB 258, § 19.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6018 - Authorized control level event.

44-6018.
Authorized control level event.
(1) Authorized control level event means any of the following events:
(a) The filing of a risk-based capital report by the insurer or health organization which indicates that the insurer's or health organization's total adjusted capital is greater than or equal to its mandatory control level risk-based capital but less than its authorized control level risk-based capital;
(b) The notification by the director to the insurer or health organization of an adjusted risk-based capital report that indicates the event described in subdivision (1)(a) of this section unless the insurer or health organization challenges the adjusted risk-based capital report under section 44-6020;
(c) If, pursuant to section 44-6020, the insurer or health organization challenges an adjusted risk-based capital report that indicates the event described in subdivision (1)(a) of this section, the notification by the director to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge;
(d) The failure of the insurer or health organization to respond, in a manner satisfactory to the director, to a corrective order unless the insurer or health organization has challenged the corrective order under section 44-6020; or
(e) If the insurer or health organization has challenged a corrective order under section 44-6020 and the director has, after a hearing, rejected the challenge or modified the corrective order, the failure of the insurer or health organization to respond, in a manner satisfactory to the director, to the corrective order subsequent to rejection or modification by the director.
(2) In the event of an authorized control level event the director shall:
(a) Take such actions as are required under section 44-6017 regarding an insurer or a health organization with respect to which a regulatory action level event has occurred; or
(b) If the director deems it to be in the best interests of the policyholders and creditors of the insurer or health organization and of the public, take such actions as are necessary to cause the insurer or health organization to be placed under regulatory control under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act. In the event the director takes such actions, the authorized control level event shall be deemed sufficient grounds for the director to take action under the act, and the director shall have the rights, powers, and duties with respect to the insurer or health organization as are set forth in the act. In the event the director takes actions under this subdivision pursuant to an adjusted risk-based capital report, the insurer or health organization shall be entitled to such protections as are afforded to insurers or health organizations under the provisions of the act pertaining to summary proceedings.
Source
Laws 1993, LB 583, § 30;
Laws 1994, LB 978, § 40;
Laws 1999, LB 258, § 23.
Cross References
Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, see section 44-4862.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6019 - Mandatory control level event.

44-6019.
Mandatory control level event.
(1) Mandatory control level event means any of the following events:
(a) The filing of a risk-based capital report which indicates that the insurer's or health organization's total adjusted capital is less than its mandatory control level risk-based capital;
(b) The notification by the director to the insurer or health organization of an adjusted risk-based capital report that indicates the event described in subdivision (1)(a) of this section unless the insurer or health organization challenges the adjusted risk-based capital report under section 44-6020; or
(c) If, pursuant to section 44-6020, the insurer or health organization challenges an adjusted risk-based capital report that indicates the event described in subdivision (1)(a) of this section, the notification by the director to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge.
(2) In the event of a mandatory control level event, the director shall take such actions as are necessary to place the insurer or health organization under regulatory control under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act or, in the case of a property and casualty insurer which is writing no business and which is running off its existing business, may allow the insurer to continue its run-off under the supervision of the director. In the event the director takes such actions, the mandatory control level event shall be deemed sufficient grounds for the director to take action under the act, and the director shall have the rights, powers, and duties with respect to the insurer or health organization as are set forth in the act. In the event the director takes actions under this subsection pursuant to an adjusted risk-based capital report, the insurer or health organization shall be entitled to such protections as are afforded to insurers or health organizations under the provisions of the act pertaining to summary proceedings. Notwithstanding the provisions of this subsection, the director may forego action for up to ninety days after the mandatory control level event if he or she finds there is a reasonable expectation that the mandatory control level event may be eliminated within the ninety-day period.
Source
Laws 1993, LB 583, § 31;
Laws 1994, LB 978, § 41;
Laws 1999, LB 258, § 24.
Cross References
Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, see section 44-4862.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6020 - Hearings.

44-6020.
Hearings.
Upon any of the following notifications, the insurer or health organization shall have the right to a hearing pursuant to the Administrative Procedure Act at which the insurer or health organization may challenge any determination or action by the director:
(1) Notification to an insurer or a health organization by the director of an adjusted risk-based capital report;
(2) Notification to an insurer or a health organization by the director that:
(a) The insurer's or health organization's risk-based capital plan or revised risk-based capital plan is unsatisfactory; and
(b) Such notification constitutes a regulatory action level event with respect to such insurer or health organization;
(3) Notification to an insurer or a health organization by the director that the insurer or health organization has failed to adhere to its risk-based capital plan or revised risk-based capital plan and that such failure has a substantial adverse effect on the ability of the insurer or health organization to eliminate the company action level event with respect to the insurer or health organization in accordance with its risk-based capital plan or revised risk-based capital plan; or
(4) Notification to an insurer or a health organization by the director of a corrective order with respect to the insurer or health organization.
The insurer or health organization shall notify the director of its request for a hearing within five days after the notification by the director. Upon receipt of the insurer's or health organization's request for a hearing, the director shall set a date for the hearing, which date shall be no less than ten nor more than thirty days after the date of the insurer's or health organization's request.
Source
Laws 1993, LB 583, § 32;
Laws 1999, LB 258, § 25.
Cross References
Administrative Procedure Act, see section 84-920.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6022 - Supplemental provisions.

44-6022.
Supplemental provisions.
(1) The provisions of the Insurers and Health Organizations Risk-Based Capital Act are supplemental to any other provisions of the laws of this state and shall not preclude or limit any other powers or duties of the director under such laws, including, but not limited to, the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act.
(2) The director may exempt from the application of the Insurers and Health Organizations Risk-Based Capital Act a domestic health organization which:
(a)(i) Writes direct business only in this state;
(ii) Assumes no reinsurance in excess of five percent of direct premium written; and
(iii) Writes direct annual premiums for comprehensive medical business of two million dollars or less; or
(b) Is a limited health service organization that covers fewer than two thousand lives.
Source
Laws 1993, LB 583, § 34;
Laws 1994, LB 978, § 43;
Laws 1999, LB 258, § 27.
Cross References
Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, see section 44-4862.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6023 - Foreign insurers or foreign health organization.

44-6023.
Foreign insurers or foreign health organization.
(1) Any foreign insurer or foreign health organization shall, upon the written request of the director, submit to the director a risk-based capital report as of the end of the calendar year just ended not later than the later of:
(a) The date a risk-based capital report would be required to be filed by a domestic insurer or domestic health organization under section 44-6015; or
(b) Fifteen days after the request is received by the foreign insurer or foreign health organization.
Any foreign insurer or foreign health organization shall, at the written request of the director, promptly submit to the director a copy of any risk-based capital plan that is filed with the insurance commissioner of any other state.
(2) In the event of a company action level event, a regulatory action level event, or an authorized control level event with respect to any foreign insurer or foreign health organization as determined under the risk-based capital law applicable in the state of domicile of the insurer or health organization or, if no risk-based capital law is in force in that state, under the Insurers and Health Organizations Risk-Based Capital Act, if the insurance commissioner of the state of domicile of the foreign insurer or foreign health organization fails to require the foreign insurer or foreign health organization to file a risk-based capital plan in the manner specified under the risk-based capital law applicable in the state of domicile of the insurer or health organization or, if no risk-based capital law is in force in the state of domicile of the insurer or health organization, under section 44-6016, the director may require the foreign insurer or foreign health organization to file a risk-based capital plan with the director. In such event, the failure of the foreign insurer or foreign health organization to file a risk-based capital plan with the director shall be grounds to order the insurer or health organization to cease and desist from writing new insurance business in this state.
(3) In the event of a mandatory control level event with respect to any foreign insurer or foreign health organization, if no domiciliary receiver has been appointed with respect to the foreign insurer or foreign health organization under the rehabilitation and liquidation law applicable in the state of domicile of the foreign insurer or foreign health organization, the director may make application to the district court of Lancaster County under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act with respect to the liquidation of property of foreign insurers or foreign health organizations found in this state, and the occurrence of the mandatory control level event shall be considered adequate grounds for the application.
Source
Laws 1993, LB 583, § 35;
Laws 1994, LB 978, § 44;
Laws 1999, LB 258, § 28.
Cross References
Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, see section 44-4862.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6023.01 - Immunity.

44-6023.01.
Immunity.
There shall be no liability on the part of, and no cause of action shall arise against, the director, the Department of Insurance, or its employees or agents for any action taken by them in the performance of their powers and duties under the Insurers and Health Organizations Risk-Based Capital Act.
Source
Laws 1994, LB 978, § 45;
Laws 1999, LB 258, § 29.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6024 - Notices.

44-6024.
Notices.
All notices by the director to an insurer or a health organization which may result in regulatory action under the Insurers and Health Organizations Risk-Based Capital Act shall be effective upon dispatch if transmitted by registered or certified mail or, in the case of any other transmission, shall be effective upon the insurer's or health organization's receipt of such notice.
Source
Laws 1993, LB 583, § 36;
Laws 1994, LB 978, § 46;
Laws 1999, LB 258, § 30.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6025 - Phase-in provision.

44-6025.
Phase-in provision.
For risk-based capital reports required to be filed by health organizations with respect to 1999 only, the following requirements shall apply in lieu of the provisions of sections 44-6016 to 44-6019:
(1) In the event of a company action level event with respect to a domestic health organization, the director shall take no regulatory action under the Insurers and Health Organizations Risk-Based Capital Act;
(2) In the event of a regulatory action level event under subdivisions (1)(a) through (c) of section 44-6017, the director shall take the actions required under section 44-6016;
(3) In the event of a regulatory action level event under subdivisions (1)(d) through (i) of section 44-6017 or an authorized control level event, the director shall take the actions required under section 44-6017 with respect to the health organization; and
(4) In the event of a mandatory control level event with respect to a health organization, the director shall take the actions required under section 44-6018 with respect to the health organization.
Source
Laws 1993, LB 583, § 37;
Laws 1994, LB 978, § 47;
Laws 1999, LB 258, § 31.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6026 - Rules and regulations.

44-6026.
Rules and regulations.
The director may adopt and promulgate rules and regulations to carry out the Insurers and Health Organizations Risk-Based Capital Act.
Source
Laws 1993, LB 583, § 38;
Laws 1994, LB 978, § 48;
Laws 1999, LB 258, § 32.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6101 - Act, how cited.

44-6101.
Act, how cited.
Sections 44-6101 to 44-6121 shall be known and may be cited as the Insurers Demutualization Act.
Source
Laws 1993, LB 583, § 41;
Laws 1997, LB 52, § 4.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6102 - Legislative findings and declarations.

44-6102.
Legislative findings and declarations.
The Legislature finds and declares that it is in the public interest that a domestic mutual insurer be permitted to convert to a stock insurer on terms and conditions that are fair and equitable to such mutual insurer's policyholders. The Legislature further finds that because it is not possible to anticipate all of the circumstances and considerations which may arise incident to a conversion from a mutual insurer to a stock insurer, the Director of Insurance should have broad authority in reviewing such conversion, and the procedures and criteria to be applied by the director should be flexible within the parameters of the Insurers Demutualization 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 1993, LB 583, § 42.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6103 - Terms, defined.

44-6103.
Terms, defined.
For purposes of the Insurers Demutualization Act, the terms defined in section 44-103 shall have the same meanings as set forth in such section and:
(1) Final order shall mean the final written order of the director approving or disapproving the conversion of a mutual insurer to a stock insurer; and
(2) Policyholders shall mean the policyholders of the mutual insurer on the day the plan of conversion is initially approved by the board of directors of the mutual insurer.
Source
Laws 1993, LB 583, § 43.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6104 - Authority to convert.

44-6104.
Authority to convert.
A domestic mutual insurer may amend its articles of incorporation pursuant to the Insurers Demutualization Act to become a stock insurer under a fair and equitable plan of conversion approved by the director.
Source
Laws 1993, LB 583, § 44.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6105 - Application; fee.

44-6105.
Application; fee.
A domestic mutual insurer may convert to a stock insurer by meeting the requirements of the Insurers Demutualization Act. The mutual insurer shall file an application to convert to a stock insurer with the director. The application shall be accompanied by a nonrefundable application fee of one thousand dollars. The application shall include the following at a minimum:
(1) A plan of conversion containing a description of the structure and form of the proposed consideration to the policyholders, the projected range of the number of shares of capital stock to be issued by the new stock insurer or the holding company of such insurer, whether to policyholders, to be sold or reserved for sale to investors by the new stock insurer or the holding company of such insurer, or to a trust established for the exclusive benefit of policyholders for the purpose of effecting the conversion into which shares of the capital stock of the new stock insurer or the holding company of such insurer are placed pending distribution to the policyholders, and such other proposed conditions and provisions as determined by the mutual insurer not to be inconsistent with the act;
(2) A certification that the plan of conversion 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;
(3) 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 conversion is fair and equitable to the policyholders;
(4) Certified copies of the proposed amendments to the articles of incorporation and bylaws to effectuate the conversion;
(5) A form of the proposed notice to be mailed by the mutual insurer to its policyholders as required in section 44-6109; and
(6) Any other additional information as the director may reasonably request.
Source
Laws 1993, LB 583, § 45;
Laws 1999, LB 326, § 6.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6106 - Consideration.

44-6106.
Consideration.
The plan of conversion required by section 44-6105 shall specify the consideration to the policyholders entitled thereto, which consideration may be in cash, stock, a combination thereof, or such other valuable consideration as the director may approve. The plan of conversion may, subject to the approval of the director, provide that all or any portion of the consideration distributable to policyholders may be held in a trust, the terms of which are subject to the approval of the director, established by the mutual insurer for a period not greater than three years, which period may be extended beyond three years for additional annual periods not to exceed five years in the aggregate, with the approval of the director, pursuant to and subject to limitations set forth in the plan of conversion. Unless otherwise ordered by the director and notwithstanding any provisions of law to the contrary, policyholders are not required to be given preemptive rights.
Source
Laws 1993, LB 583, § 46;
Laws 1999, LB 326, § 7.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6107 - Public hearing.

44-6107.
Public hearing.
The director shall conduct a public hearing within one hundred and twenty days after the date the application is filed pursuant to section 44-6105 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 applying to convert to a stock insurer shall give such reasonable notice of the public hearing as the director in his or her discretion shall require.
Source
Laws 1993, LB 583, § 47;
Laws 1997, LB 52, § 5.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6108 - Initial determination; application disapproval.

44-6108.
Initial determination; application disapproval.
(1) The director shall issue an order making an initial determination to approve or disapprove the application within thirty days after the close of the public hearing as required by section 44-6107.
(2)(a) The director shall not approve the application unless he or she finds that:
(i) The plan of conversion is fair and equitable to the policyholders;
(ii) The plan of conversion does not deprive the policyholders of their property rights or due process of law; and
(iii) The new stock insurer would meet the minimum requirements to be issued a certificate of authority by the director to transact business in this state and the continued operations of the new stock insurer would not be hazardous to future policyholders and the public.
(b) For purposes of this subsection, the director may consider any relevant factor, including, but not limited to:
(i) The capital requirements of the new stock insurer;
(ii) Whether a portion of the statutory surplus has been contributed by persons or entities whose policies or contracts are not in force on the date the plan of conversion is initially approved by the board of directors of the mutual insurer and, in such event, the consideration to policyholders may be less than the statutory surplus;
(iii) Whether the plan of conversion includes preemptive rights for policyholders to purchase securities offered in the initial sale of securities by the new stock insurer;
(iv) Whether the plan of conversion includes establishment of a preference account from which the payment of any shareholder dividends, including a regular, special, or liquidation dividend, would be prohibited for a reasonable period of time as the director may require;
(v) The suitability of the trustees of any trust created pursuant to the provisions of section 44-6106; and
(vi) Whether the utilization of a trust, if included in the plan of conversion, has a material adverse effect on policyholders, other than delaying receipt of shares of capital stock.
(3) If the director makes a determination to disapprove the application, the director shall issue a final order setting forth specific findings for the disapproval.
Source
Laws 1993, LB 583, § 48;
Laws 1997, LB 52, § 6;
Laws 1999, LB 326, § 8.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6109 - Policyholders' vote.

44-6109.
Policyholders' vote.
Within forty-five days after the date of the director's initial determination of approval pursuant to section 44-6108, 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 conversion. 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 conversion will be voted upon at a regular or special meeting of the policyholders, which notice shall include a brief description of the plan of conversion and a statement that the director has initially approved the plan of conversion. The notice mailing to each policyholder shall also include a written proxy permitting the policyholder to vote for or against the plan of conversion. 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 conversion 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 conversion. 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 conversion as necessary to ensure that the vote is fair and consistent with the requirements of this section. The director shall enter a final order approving the application to convert to a stock insurer within ten days after receiving a valid certification from the mutual insurer setting forth the vote and certifying that the plan of conversion was approved by not less than two-thirds of the policyholders voting in person or by proxy on the plan of conversion. In such event, the director shall also publish notification of the issuance of the final order in a legal newspaper in Lancaster County and in the county of domicile of the mutual insurer if different than Lancaster County.
Source
Laws 1993, LB 583, § 49;
Laws 1997, LB 52, § 7.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6110 - Conversion.

44-6110.
Conversion.
The director shall issue a certificate of authority to a new stock insurer when the mutual insurer files a certificate with the director stating that all of the conditions set forth in the plan of conversion have been satisfied so long as the board of directors of the mutual insurer has not abandoned the plan of conversion pursuant to section 44-6114. The conversion 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 1993, LB 583, § 50.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6111 - Appeal from the final order.

44-6111.
Appeal from the final order.
Any person affected by a final order issued pursuant to the Insurers Demutualization 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 1993, LB 583, § 51.
Cross References
Administrative Procedure Act, see section 84-920.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6112 - Continuation of corporate existence.

44-6112.
Continuation of corporate existence.
Corporate existence of a mutual insurer converting to a stock insurer pursuant to the Insurers Demutualization Act shall not terminate, but the new 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 1993, LB 583, § 52.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6113 - Name.

44-6113.
Name.
If the name of a mutual insurer converting to a stock insurer pursuant to the Insurers Demutualization Act includes the word mutual, the new stock insurer may continue to use the word mutual in its name if (1) the name includes a word or words that identify the new 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 1993, LB 583, § 53.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6114 - Abandonment.

44-6114.
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 the plan of conversion 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 conversion shall terminate and the mutual insurer shall continue to conduct its business as a domestic mutual insurer as though no plan of conversion had ever been adopted.
Source
Laws 1993, LB 583, § 54.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6115.01 - Anti-takeover provision; voting of securities; limitations; enforcement.

44-6115.01.
Anti-takeover provision; voting of securities; limitations; enforcement.
No security which is the subject of any agreement or arrangement regarding acquisition, or which is acquired or to be acquired, in contravention of section 44-6115 or of any rule, regulation, or order of the director may be voted at any shareholders' meeting or may be counted for quorum purposes, and any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though such securities were not issued and outstanding, but no action taken at any such meeting shall be invalidated by the voting of such securities unless the action would materially affect control of the new stock insurer or an institution which owns a majority or all of the voting securities of the new stock insurer or unless the courts of this state have so ordered. If a new stock insurer or the director has reason to believe that any security of the new stock insurer or an institution which owns a majority or all of the voting securities of the new stock insurer has been or is about to be acquired in contravention of the Insurers Demutualization Act or of any rule, regulation, or order of the director, the new stock insurer or the director may apply to the district court of Lancaster County for an order to enjoin any offer or acquisition made in contravention of section 44-6115 or any rule, regulation, or order of the director to enjoin the voting of any security so acquired, to void any vote of such security already cast at any shareholders' meeting, and for such other equitable relief as the nature of the case and the interest of the new stock insurer's policyholders, creditors, and shareholders or the public may require.
Source
Laws 1997, LB 52, § 9.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6115.02 - Seizure or sequestration of securities; when.

44-6115.02.
Seizure or sequestration of securities; when.
In any case when a person has acquired or is proposing to acquire any voting securities in violation of the Insurers Demutualization Act or any rule, regulation, or order of the director, the district court of Lancaster County may, on such notice as the court deems appropriate, upon the application of the director or the new stock insurer seize or sequester any voting securities of the new stock insurer or an institution which owns a majority or all of the voting securities of the new stock insurer owned directly or indirectly by such person and issue such order with respect thereto as may be appropriate to effectuate the act. Notwithstanding any other provisions of law, for purposes of the act, situs of the ownership of such securities shall be deemed to be in this state.
Source
Laws 1997, LB 52, § 10.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6115.03 - Failure to file application; penalty.

44-6115.03.
Failure to file application; penalty.
Any person who fails to file an application for acquisition and obtain the prior approval of the director as required by section 44-6115 may be required by the director, after notice and hearing, to pay an administrative penalty of one hundred dollars for each day's delay not to exceed an aggregate penalty of ten thousand dollars. The director may reduce the penalty if the person demonstrates to the director that the imposition of the penalty would constitute a financial hardship to the person.
Source
Laws 1997, LB 52, § 11.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6115.04 - Anti-takeover provision; violation; penalty.

44-6115.04.
Anti-takeover provision; violation; penalty.
Any director or officer of a person or an agent of the person who knowingly violates or assents to or permits any officer or agent of the person to violate the requirements of section 44-6115 may be required by the Director of Insurance, after notice and hearing, to pay, in his or her individual capacity, an administrative penalty of not more than five thousand dollars per violation. In determining the amount of the penalty, the Director of Insurance shall take into account the appropriateness of the penalty with respect to the gravity of the violation, the history of previous violations, and such other matters as justice may require.
Source
Laws 1997, LB 52, § 12.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6115.05 - Anti-takeover provision; violation; cease and desist order.

44-6115.05.
Anti-takeover provision; violation; cease and desist order.
Whenever it appears to the director that any person or any director, officer, employee, or agent of the person has engaged in any conduct in violation of section 44-6115, the director may order the person to cease and desist immediately any further activity. After notice and hearing, the director may also order the person to void any contracts and restore the status quo if such action is in the best interest of the policyholders, the creditors, or the public.
Source
Laws 1997, LB 52, § 13.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6116 - Stock purchase rights.

44-6116.
Stock purchase rights.
Nothing in the Insurers Demutualization Act shall prohibit the inclusion in the plan of conversion of provisions under which individuals comprising the new stock insurer's board of directors, officers, employees, agents, and persons acting as trustees of employee stock ownership plans or other employee benefit plans may be entitled to purchase for cash capital stock of the new stock insurer at the same price initially issued by the new stock insurer under the plan of conversion but no such purchase may be made while any shares of capital stock are held in a trust established pursuant to the plan of conversion.
Source
Laws 1993, LB 583, § 56;
Laws 1999, LB 326, § 9.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6117 - Compensation.

44-6117.
Compensation.
(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 conversion except as set forth in the plan of conversion 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 conversion and approved by the director to be adopted upon conversion to the new stock insurer or prohibit such a program to be later adopted by the new 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 1993, LB 583, § 57;
Laws 1997, LB 52, § 14.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6118 - Insolvent mutual insurers.

44-6118.
Insolvent mutual insurers.
Notwithstanding the requirements of section 44-6105, in the event of insolvency of the mutual insurer, its board of directors by a vote of not less than two-thirds of its members may, in its application, request that the director waive the requirements imposing notice to policyholders and policyowner approval for the plan of conversion. The application shall specify both of the following:
(1) The method and basis for the issuance of the new stock insurer's shares of its capital stock to an independent party in connection with an investment by such independent party in an amount sufficient to restore the insurer to a sound financial condition; and
(2) That the conversion shall be accomplished without distribution to the past, present, or future policyholders, if the director finds that the value of the insurer, due to insolvency, is insufficient to warrant any such distribution.
If the director determines that the mutual insurer is insolvent as defined in section 44-4803, he or she shall grant the request to waive the requirements imposing notice to policyholders and policyowner approval for the plan of conversion.
Source
Laws 1993, LB 583, § 58.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6119 - Experts; costs.

44-6119.
Experts; costs.
For the purpose of determining whether a plan of conversion meets the requirements of the Insurers Demutualization Act or in connection with any other matters relating to development of a plan of conversion, the director may engage the services of experts. All reasonable costs related to the review of a plan of conversion 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 1993, LB 583, § 59;
Laws 1997, LB 52, § 15.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-6120 - Rules and regulations; orders.

44-6120.
Rules and regulations; orders.
The director may adopt and promulgate rules and regulations and issue orders to carry out the Insurers Demutualization Act.
Source
Laws 1993, LB 583, § 60;
Laws 1997, LB 52, § 18.