reglab/statecodes huggingface dataset:
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-206 - Insurance companies; formation; notice; publication.

44-206.
Insurance companies; formation; notice; publication.
Within the earlier of thirty days after receiving the certificate of authority to transact business or four months after filing its articles of incorporation, such corporation shall publish a notice in some legal newspaper, which notice shall contain the same information, as far as practicable, as that required under the Nebraska Model Business Corporation Act.
Source
Laws 1913, c. 154, § 81, p. 429;
R.S.1913, § 3218;
Laws 1919, c. 190, tit. V, art. V, § 4, p. 609;
Laws 1921, c. 305, § 1, p. 963;
C.S.1922, § 7817;
C.S.1929, § 44-404;
R.S.1943, § 44-206;
Laws 1989, LB 92, § 48;
Laws 1995, LB 109, § 216;
Laws 2014, LB749, § 281.
Cross References
Nebraska Model Business Corporation Act, see section 21-201.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-207 - Insurance companies; formation; executive officers; qualifications.

44-207.
Insurance companies; formation; executive officers; qualifications.
Insurance companies hereafter organizing under the laws of this state are required to have as their executive officers persons who are known to be capable of running the affairs of an insurance company. The requirements shall consist of good character and known business ability, the latter requirement including a practical knowledge of the executive duties of conducting an insurance business.
Source
Laws 1921, c. 305, § 1, p. 963;
C.S.1922, § 7817;
C.S.1929, § 44-404;
R.S.1943, § 44-207.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-208 - Insurance companies; stock distribution and sale; compensation; limitation; statement.

44-208.
Insurance companies; stock distribution and sale; compensation; limitation; statement.
No domestic insurance company shall issue, cause, or allow to be issued any stock or stock subscriptions at any time upon which all expenses of distribution and sale, including promotion, commissions, and underwriting fees, exceed ten percent of the amount paid in money upon such stock or stock subscriptions. All persons incorporating a stock insurance company shall sign a statement before a notary public stating that no one person or group of persons shall receive directly or indirectly any money or securities whatsoever for promoting and organizing any such company in excess of that amount provided for in the insurance laws of this state pertaining to the promotion and organization of insurance companies, and such statement shall be filed in the office of the Department of Insurance.
Source
Laws 1921, c. 305, § 1, p. 963;
C.S.1922, § 7817;
C.S.1929, § 44-404;
R.S.1943, § 44-208;
Laws 1989, LB 92, § 49.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-208.01 - Insurance companies; organization; filings required.

44-208.01.
Insurance companies; organization; filings required.
(1) In addition to the statement required by section 44-208 of persons incorporating stock companies, the incorporators of all domestic stock, mutual, and assessment insurers shall file with the Department of Insurance (a) copies of the proposed bylaws, (b) forms of subscriptions for capital stock or forms of application for membership or for insurance, and (c) a bond payable to the Director of Insurance and his or her successors, as trustees, in the penal sum to be determined by the Director of Insurance and in no event to be less than ten thousand dollars, with corporate surety, and conditioned upon the faithful accounting to the corporation on completion of its organization and the receipt of its certificate of authority from the Department of Insurance, to the shareholders, applicants for membership or for policies, or creditors, or to the trustee, receiver, or assignee of the corporation, duly appointed in any court of competent jurisdiction in this state, in accordance with their respective rights in the event the organization of the corporation is not completed and a certificate of authority to do business is not procured.
(2) In addition to the requirements of subsection (1) of this section, the incorporators of stock insurers shall file an application to solicit subscriptions for stock which shall include (a) the correct names and addresses of the incorporators and promoters, (b) a detailed statement of the plan upon which the corporation will operate, (c) the names, the addresses, and a brief description of the business experience of the proposed executive officers, including supervisory and administrative personnel, (d) the par value of the stock, (e) the subscription price of the stock, (f) the amount to be expended for organization and promotion expenses, expressed in a percentage of the subscription price of the stock, (g) the proposed plan of soliciting subscriptions for stock, (h) the place and manner in which the proceeds from full and partial subscriptions for stock will be held pending the corporation's organization, (i) an outline of the manner in which the corporation proposes to maintain its books and records, including the records pertaining to the solicitation of subscriptions for stock, (j) duplicate copies of all advertising matter which is to be used in connection with the sale of stock, (k) duplicate copies of all contracts to be entered into with persons employed to solicit subscriptions, and (l) such other information as may be required by the Department of Insurance.
Source
Laws 1957, c. 178, § 2, p. 612;
Laws 1989, LB 92, § 50.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-208.02 - Insurance companies; organization; subscriptions to stock; permit.

44-208.02.
Insurance companies; organization; subscriptions to stock; permit.
If the Director of Insurance approves the forms of subscriptions for capital stock or the forms of application for membership or for insurance, the corporate surety on the bond required by section 44-208.01, and, in the case of stock insurers, the application to solicit subscriptions for stock, he or she shall deliver to the promoter or incorporators a permit in the name of the corporation authorizing it to complete its organization. Upon receiving such permit, the corporation shall have authority to solicit subscriptions and payments for capital stock if a stock insurer and applications and premiums or advance assessments for insurance if other than a stock insurer and to exercise such powers, subject to the limitations imposed by the Nebraska Model Business Corporation Act and Chapter 44, as may be necessary and proper in completing its organization and qualifying for a license to transact the kind or kinds of insurance proposed in its articles of incorporation. No corporation shall issue policies or enter into contracts of insurance until it receives a certificate of authority permitting it to do so.
Source
Laws 1957, c. 178, § 3, p. 613;
Laws 1989, LB 92, § 51;
Laws 1995, LB 109, § 217;
Laws 2014, LB749, § 282.
Cross References
Nebraska Model Business Corporation Act, see section 21-201.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-208.03 - Insurance companies; organization; solicitors; written contract required; filing.

44-208.03.
Insurance companies; organization; solicitors; written contract required; filing.
No person shall solicit subscriptions for the capital stock of, or applications for membership or for insurance in any corporation in the process of organization, unless he has entered into a written contract with the corporation and a certificate of his authority, signed by at least three incorporators, has been filed with the Department of Insurance.
Source
Laws 1957, c. 178, § 4, p. 613.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-208.04 - Insurance companies; organization; promotion expense; subscription, required stipulations.

44-208.04.
Insurance companies; organization; promotion expense; subscription, required stipulations.
Every subscription to the capital stock of a corporation in the process of organization shall contain a stipulation that no sum shall be used for promotion or organization expense in excess of a stated percent of the amount paid upon the subscription. Such sum shall in no event exceed the percentage permitted by law. All sums paid by subscribers shall be held or invested in the manner described in the corporation's application for approval to solicit subscriptions required by section 44-208.01, and no sums may be disbursed by the corporation except for commissions or other promotion or organization expenses until the corporation has procured a certificate of authority from the Department of Insurance. Every subscription for stock, and every application for membership or for insurance made prior to the date the corporation is authorized to write insurance, shall contain a stipulation that the consideration paid by the subscriber or applicant shall be returned to him without any deduction except for organization and promotion expenses actually incurred, in no event to exceed the maximum permitted by law, in case the corporation fails to complete its organization and procure its certificate of authority, or issue the policy applied for.
Source
Laws 1957, c. 178, § 5, p. 613.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-208.05 - Insurance companies; organization; failure to complete; proceedings authorized.

44-208.05.
Insurance companies; organization; failure to complete; proceedings authorized.
(1) If a corporation does not qualify for a certificate of authority within one year from the date it receives its permit to complete its organization or if an agent of the corporation employed to solicit subscriptions or applications has violated the insurance laws of the state, the Director of Insurance may revoke such permit and order the assets of the corporation to be distributed to the persons or legal entities entitled thereto or proceed against the corporation as an insolvent insurance company in the manner authorized and directed by the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act.
(2) If any corporation does not qualify to receive its certificate of authority within two years from the date it receives its permit to complete organization, the Director of Insurance shall order the assets of the corporation to be distributed to the persons or legal entities entitled thereto or proceed against the corporation as an insolvent insurance company in the manner authorized and directed by the act.
Source
Laws 1957, c. 178, § 6, p. 614;
Laws 1989, LB 92, § 52;
Laws 1989, LB 319, § 67.
Cross References
Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, see section 44-4862.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-208.06 - Insurance companies; shares of stock; sale in excess of subscription price, limitation.

44-208.06.
Insurance companies; shares of stock; sale in excess of subscription price, limitation.
Until a certificate of authority is issued to a corporation to transact business on the stock plan and for three years thereafter, no shares of stock shall be issued by the corporation or sold or transferred by the promoters, incorporators, or other persons engaged in soliciting subscriptions or in organizing or promoting the corporation, without approval of the Department of Insurance, for an amount in excess of the original subscription price as stated in the application required by section 44-208.01. Except to the extent provided in this section, sales and transfers of shares of stock by the record owner or owners shall not be subject to sections 44-208.01 to 44-208.08.
Source
Laws 1957, c. 178, § 7, p. 615;
Laws 1989, LB 92, § 53.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-208.07 - Insurance companies; organization; rules and regulations.

44-208.07.
Insurance companies; organization; rules and regulations.
The Director of Insurance shall have authority to adopt and promulgate rules and regulations to regulate all other matters in connection with the organization of domestic insurers for the purpose of protecting the public or preventing fraud.
Source
Laws 1957, c. 178, § 8, p. 615;
Laws 1989, LB 92, § 54.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-208.08 - Insurance companies; organization; violation of law; personal liability of solicitors.

44-208.08.
Insurance companies; organization; violation of law; personal liability of solicitors.
Any person, firm, association, partnership, limited liability company, or corporation which solicits any subscriptions for stock or any application for membership or for a policy or sells any surplus note for any insurer in process of organization in violation of law shall be personally liable to any person from whom he or she may have solicited such subscription for stock or application or to whom he or she may have sold such surplus note in an amount equal to that paid by the purchaser or applicant. Suit to recover the same may be brought by such purchasers or applicants, jointly or severally, in any court of competent jurisdiction in this state.
Source
Laws 1957, c. 178, § 9, p. 615;
Laws 1989, LB 92, § 55;
Laws 1993, LB 121, § 219.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-210 - Annual meeting; special meeting; voting rights; proxies; preferred stock; limitation on right to vote; quorum requirements; when.

44-210.
Annual meeting; special meeting; voting rights; proxies; preferred stock; limitation on right to vote; quorum requirements; when.
Every domestic stock and mutual company and assessment association shall hold an annual meeting of its shareholders, if a stock company, or of its members, if a mutual company or an assessment association, on or before the 30th day of June in each and every calendar year, for the purpose of receiving the report of its officers and directors, to elect directors whose terms expire, and to transact such other business as may be lawful for it to do. Special meetings of the shareholders or members may be held as may be provided in the articles of incorporation or the bylaws and as otherwise provided by law. Each outstanding share of stock in a stock company and each member in a mutual company or assessment association shall be entitled to one vote on each matter submitted to a vote at an annual or special meeting of the shareholders or members, except as otherwise provided by law and except that any such stock company in its articles of incorporation may provide that the holders of preferred shares of stock shall have no right to vote and, in such event, such shares of stock shall not be entitled to vote. A shareholder or member may vote either in person or by proxy executed in writing by the shareholder or member or by his or her duly authorized attorney in fact appointing any director, officer, shareholder, or member for such purpose. In the case of a mutual company or an assessment association, such proxy may be incorporated into a member's application for insurance or policy. All such proxies shall be filed or on file with the stock or mutual company or assessment association at least five days prior to the day of the meeting, and they shall expire eleven months from their effective date, unless otherwise provided in such proxy, application, or policy. Nothing in this section shall be construed to prohibit or limit the right of a shareholder or member to vote in person or otherwise revoke any such proxy at any time prior to any exercise thereof. In the case of a mutual company or an assessment association, there shall be no quorum requirements for any meeting of members except as set forth in the articles of incorporation or the bylaws of such mutual company or assessment association.
Source
Laws 1913, c. 154, § 63, p. 422;
R.S.1913, § 3199;
Laws 1919, c. 190, tit. V, art. IV, § 33, p. 602;
C.S.1922, § 7798;
C.S.1929, § 44-333;
R.S.1943, § 44-210;
Laws 1963, c. 265, § 1, p. 794;
Laws 1965, c. 254, § 1, p. 720;
Laws 1989, LB 92, § 56;
Laws 1994, LB 1222, § 47.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-211 - Incorporators; manage business until first meeting of shareholders; board of directors; election; number; qualifications; powers.

44-211.
Incorporators; manage business until first meeting of shareholders; board of directors; election; number; qualifications; powers.
The business and affairs of an insurance corporation shall be managed by the incorporators until the first meeting of shareholders or members and then and thereafter by a board of directors elected by the shareholders or members and as otherwise provided by law. The board of directors shall consist of not less than five persons, and one of them shall be a resident of the State of Nebraska. At least one-fifth of the directors of an insurance company, which is not subject to section 44-2135, shall be persons who are not officers or employees of such company. A person convicted of a felony may not be a director, and all directors shall be of good moral character and known professional, administrative, or business ability, such business ability to include a practical knowledge of insurance, finance, or investment. No person shall hold the office of director unless he or she is a policyholder, if the company is a mutual company or assessment association. Unless otherwise provided in the articles of incorporation, the board of directors shall make all bylaws. A director shall discharge his or her duties as a director in accordance with section 21-2,102.
Source
Laws 1913, c. 154, § 82, p. 429;
R.S.1913, § 3219;
Laws 1919, c. 190, tit. V, art. V, § 5, p. 609;
C.S.1922, § 7818;
C.S.1929, § 44-405;
R.S.1943, § 44-211;
Laws 1953, c. 145, § 1, p. 469;
Laws 1959, c. 195, § 1, p. 702;
Laws 1961, c. 212, § 1, p. 630;
Laws 1965, c. 255, § 1, p. 722;
Laws 1967, c. 263, § 1, p. 706;
Laws 1989, LB 92, § 57;
Laws 1991, LB 236, § 35;
Laws 1999, LB 259, § 2;
Laws 2007, LB191, § 2;
Laws 2014, LB749, § 283.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-212 - Insurance companies; officers; elections; terms; salaries.

44-212.
Insurance companies; officers; elections; terms; salaries.
The directors of every stock company and the board of directors or members of every mutual company or assessment association may elect such officers as are necessary to conduct the business of the company, including a president, secretary, and treasurer, and employ such other officers and employees as may be required to carry on the business of the company and may fix their terms of office or employment and their salaries and compensation, but such action shall not be in conflict with the provisions of law relating thereto.
Source
Laws 1913, c. 154, § 29, p. 411;
R.S.1913, § 3165;
Laws 1919, c. 190, tit. V, art. III, § 21, p. 590;
C.S.1922, § 7765;
C.S.1929, § 44-221;
R.S.1943, § 44-212;
Laws 1989, LB 92, § 58.
Annotations
Basic authority for fixing salaries of employees was vested in board of directors. Ledwith v. Bankers Life Ins. Co., 156 Neb. 107, 54 N.W.2d 409 (1952).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-213 - Employee, officer, trustee, or director of domestic company; salaries; length of contract; limitations; deferred payment of compensation; employee benefit plans.

44-213.
Employee, officer, trustee, or director of domestic company; salaries; length of contract; limitations; deferred payment of compensation; employee benefit plans.
No domestic insurance company shall pay any salary, compensation, or emolument to any salaried employee or to any officer, trustee, or director thereof in excess of a reasonable return for the services performed or to be performed by such person. The shareholders of stock companies and the members of other companies shall retain the power at any meeting to alter or discontinue any employment agreement. No such company shall make an agreement with any salaried employee or with any officer, trustee, or director whereby it agrees that, for any services to be rendered, he or she shall receive any salary, compensation, or emolument that will extend beyond a period of five years from the date of such agreement, but any such company may make a conditional or unconditional agreement with any such person whereby it agrees that, in consideration of a current salary, compensation, or emolument of any amount less than a reasonable return for the services performed or to be performed by such person, he or she shall at specified future time or times, without regard to the five-year limitation set out in this section, receive, either without further condition or subject to reasonable contingencies, additional deferred salary, compensation, or emolument of any amount adequate to make the total thereof received by such person a reasonable return for the services performed by such person. Salary, compensation, and emolument as used in this section shall not include payments made pursuant to a plan for retirement, disability, sickness, accident, or death benefits.
Source
Laws 1913, c. 154, § 46, p. 418;
R.S.1913, § 3182;
Laws 1919, c. 190, tit. V, art. IV, § 17, p. 597;
C.S.1922, § 7782;
Laws 1925, c. 125, § 1, p. 331;
C.S.1929, § 44-317;
R.S.1943, § 44-213;
Laws 1945, c. 106, § 1, p. 340;
Laws 1953, c. 146, § 1, p. 470;
Laws 1957, c. 176, § 1, p. 608;
Laws 1961, c. 213, § 1, p. 631;
Laws 1975, LB 374, § 1;
Laws 1989, LB 92, § 59.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-214 - Stock insurance company; capital stock and surplus requirements; lines of insurance authorized; additional requirements.

44-214.
Stock insurance company; capital stock and surplus requirements; lines of insurance authorized; additional requirements.
(1) Except as provided in section 44-202.01, no stock insurance company shall, on and after August 25, 1989, transact any line of insurance specified in section 44-201 in this state unless it maintains a capital stock, actually paid in cash or invested as provided by law, of at least one million dollars, nor shall it, on or after such date, transact the line or lines of insurance specified in subdivisions (1) and (2) of section 44-201 and in addition thereto one or more lines of insurance other than those specified in subdivisions (3) and (4) of such section in this state unless it maintains a capital stock, actually paid in cash or invested as provided by law, of at least two million dollars. No stock insurance company shall, on and after August 25, 1989, begin to transact any line of insurance as specified in section 44-201 unless it has a surplus of at least one million dollars, nor shall it, on and after such date, begin to transact the line or lines of insurance specified in subdivisions (1) and (2) of section 44-201 and in addition thereto one or more lines of insurance other than those specified in subdivisions (3) and (4) of such section in this state unless it has a surplus of at least two million dollars.
(2) The provisions of subsection (1) of this section shall be considered minimum requirements. Stock insurers holding a certificate of authority to transact business in this state shall also be subject to the requirements of the Insurers and Health Organizations Risk-Based Capital Act.
Source
Laws 1913, c. 154, § 86, p. 430;
R.S.1913, § 3223;
Laws 1919, c. 190, tit. V, art. V, § 9, p. 610;
C.S.1922, § 7822;
Laws 1925, c. 123, § 1, p. 324;
C.S.1929, § 44-409;
Laws 1935, c. 98, § 1, p. 326;
C.S.Supp.,1941, § 44-409;
R.S.1943, § 44-214;
Laws 1949, c. 141, § 1, p. 365;
Laws 1957, c. 177, § 1, p. 610;
Laws 1965, c. 253, § 2, p. 716;
Laws 1967, c. 262, § 3, p. 703;
Laws 1974, LB 919, § 1;
Laws 1989, LB 92, § 61;
Laws 1993, LB 583, § 39;
Laws 1994, LB 978, § 15;
Laws 1999, LB 258, § 1.
Cross References
Insurers and Health Organizations Risk-Based Capital Act, see section 44-6001.
Annotations
Under prior law, setting the subscription price of the capital stock of a former mutual company at one hundred twenty-five percent of par so as to provide the surplus required by the statute, was at most a mere irregularity. Leininger v. North Am. Nat. Life Ins. Co., 115 Neb. 801, 215 N.W. 167 (1927).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-216 - Mutual company; assessment association; articles of incorporation; contents.

44-216.
Mutual company; assessment association; articles of incorporation; contents.
The articles of incorporation of a mutual company or an assessment association may limit the insurance to specified kinds or classes of property, lives, individuals, or liabilities within any subdivision of section 44-201 or the territory within which insurance shall be granted and shall provide the manner in which policyholders of a mutual company shall participate in the profits of the company.
Source
Laws 1913, c. 154, § 85, p. 430;
R.S.1913, § 3222;
Laws 1919, c. 190, tit. V, art. V, § 8, p. 610;
C.S.1922, § 7821;
C.S.1929, § 44-408;
R.S.1943, § 44-216;
Laws 1989, LB 92, § 62.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-217 - Mutual company; assessment association; membership; voting.

44-217.
Mutual company; assessment association; membership; voting.
Each person, corporation, association, partnership, or limited liability company owning a policy or policies of insurance issued by a mutual company or an assessment association shall be a member thereof and have one vote.
Source
Laws 1913, c. 154, § 83, p. 429;
R.S.1913, § 3220;
Laws 1919, c. 190, tit. V, art. V, § 6, p. 610;
C.S.1922, § 7819;
C.S.1929, § 44-406;
R.S.1943, § 44-217;
Laws 1989, LB 92, § 63;
Laws 1993, LB 121, § 220.
Annotations
The provision that guarantees full rights of subscription to the members of a mutual insurance company, transformed into a stock company, refers to the policyholders of the former mutual company. Leininger v. North Am. Nat. Life Ins. Co., 115 Neb. 801, 215 N.W. 167 (1927).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-218 - Mutual company; limitation of liability.

44-218.
Mutual company; limitation of liability.
The liability of a member of a mutual company shall be limited to the premiums stated in the policy.
Source
Laws 1913, c. 154, § 79, p. 428;
R.S.1913, § 3216;
Laws 1919, c. 190, tit. V, art. V, § 2, p. 608;
C.S.1922, § 7815;
Laws 1925, c. 124, § 2, p. 328;
C.S.1929, § 44-402;
Laws 1931, c. 89, § 1, p. 251;
C.S.Supp.,1941, § 44-402;
R.S.1943, § 44-218;
Laws 1957, c. 189, § 1, p. 662;
Laws 1989, LB 92, § 64.
Annotations
Assessments conformed to statute and could be recovered by company in action against policyholder. Nebraska Mutual Ins. Co. v. Borden, 132 Neb. 656, 272 N.W. 767 (1937).
Assessment in excess of limitation herein prescribed is at least partially invalid, and failure to pay same is no defense to action on policy. Hobza v. State Farmers Ins. Co., 125 Neb. 776, 252 N.W. 214 (1934).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-219 - Domestic mutual company; transaction of business; policies and reserve required; additional requirements.

44-219.
Domestic mutual company; transaction of business; policies and reserve required; additional requirements.
(1)(a) No domestic mutual insurance company shall begin to transact the business of insurance until (i) it has received not less than one hundred applications for insurance unless organized to write (A) workers' compensation and employers liability insurance, in which case it shall receive applications from at least twenty employers covering in the aggregate five hundred employees, or (B) the line or lines of insurance specified in subdivisions (13) and (14) of section 44-201, in which case no application shall be required, and in addition thereto (ii) it has received in cash one annual premium for each application for insurance.
(b) Except as provided in section 44-202.01, no mutual insurance company shall, on and after August 25, 1989, transact any line of insurance specified in section 44-201 in this state unless it has and maintains a minimum surplus, in cash or invested as provided by law, of at least one million dollars, nor shall it, on and after such date, transact the line or lines of insurance specified in subdivisions (1) and (2) of section 44-201 and in addition thereto one or more lines of insurance other than those specified in subdivisions (3) and (4) of such section in this state unless it has and maintains a minimum surplus, in cash or invested as provided by law, of at least two million dollars.
(2) The provisions of subsection (1) of this section shall be considered minimum requirements. Mutual insurers holding a certificate of authority to transact business in this state shall also be subject to the requirements of the Insurers and Health Organizations Risk-Based Capital Act.
Source
Laws 1913, c. 154, § 87, p. 431;
R.S.1913, § 3224;
Laws 1919, c. 190, tit. V, art. V, § 10, p. 611;
C.S.1922, § 7823;
C.S.1929, § 44-410;
Laws 1941, c. 84, § 1, p. 332;
C.S.Supp.,1941, § 44-410;
R.S.1943, § 44-219;
Laws 1949, c. 142, § 1(1), p. 366;
Laws 1957, c. 178, § 11, p. 616;
Laws 1965, c. 253, § 3, p. 717;
Laws 1967, c. 262, § 4, p. 703;
Laws 1974, LB 919, § 2;
Laws 1986, LB 811, § 15;
Laws 1989, LB 92, § 65;
Laws 1993, LB 583, § 40;
Laws 1994, LB 978, § 16;
Laws 1999, LB 258, § 2.
Cross References
Insurers and Health Organizations Risk-Based Capital Act, see section 44-6001.
Annotations
Contracts, providing for distribution of a percentage of the premiums collected annually as dividends to charter members, made in an effort to secure the number of applications required by statute before business may be commenced, are ultra vires in the absence of authority therefore in the statute or charter. Durland v. Elkhorn Life & Acc. Ins. Co., 112 Neb. 105, 198 N.W. 564 (1924).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-220 - Domestic company; power to borrow; purposes; conditions; issuance of surplus notes.

44-220.
Domestic company; power to borrow; purposes; conditions; issuance of surplus notes.
In addition to the general power and authority to borrow money for its regular business purposes, any domestic insurance company may borrow money: (1) To defray the reasonable expenses of its organization; (2) to provide special contingency loss funds; (3) to provide additional surplus funds; (4) to make good any deficiency; and (5) to provide the amount of minimum surplus required by Chapter 44 and may issue its notes therefor, to be known as surplus notes, which shall fully recite the purpose for which the money was borrowed, if application has been made to the Department of Insurance and approval in writing is obtained from the Director of Insurance for the issuance of such surplus notes in a stated maximum amount. The amount thereof outstanding with the unpaid interest shall be stated in each annual report.
Source
Laws 1913, c. 154, § 84, p. 429;
R.S.1913, § 3221;
Laws 1919, c. 190, tit. V, art. V, § 7, p. 610;
C.S.1922, § 7820;
C.S.1929, § 44-407;
Laws 1941, c. 83, § 1, p. 330;
C.S.Supp.,1941, § 44-407;
R.S.1943, § 44-220;
Laws 1949, c. 143, § 1, p. 368;
Laws 1965, c. 256, § 1, p. 723;
Laws 1989, LB 92, § 66;
Laws 1994, LB 1222, § 48.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-221 - Domestic company; surplus notes; repayment; interest rate.

44-221.
Domestic company; surplus notes; repayment; interest rate.
(1) Except as provided in this subsection, surplus notes issued prior to September 9, 1995, and the indebtedness which they represent shall not be a liability or claim against any of the assets of the company. The principal of such notes may be paid from time to time, either in full or in part, from available surplus funds of the company only when the amount of the surplus of the company over all liabilities is double that of the principal amount then being paid. The company shall have the right to make such repayments whenever it is able to do so, except that the company shall first receive the prior approval of the Director of Insurance for any such repayments. The director shall use the standards set forth in section 44-2136 relating to adequacy of surplus in determining whether or not to approve such repayments. The interest on such notes shall only be payable from the surplus and shall not exceed such sum as may be fixed. Upon a dissolution of the company, the principal and accrued and unpaid interest shall be payable from the surplus.
(2) Except as provided in this subsection, the principal of surplus notes issued on or after September 9, 1995, and the indebtedness which such notes represent shall not be a liability or claim against any of the assets of the company. The principal of and interest on such notes may be paid from time to time, either in full or in part, from available surplus funds of the company only when the amount of the surplus of the company over all liabilities is double that of the amount of principal and interest then being paid. The company shall have the right to make such payments whenever it is able to do so, except that the company shall first receive the prior approval of the Director of Insurance for any such payments. The director shall use the standards set forth in section 44-2136 relating to adequacy of surplus in determining whether or not to approve such payments. Upon a dissolution of the company, the principal and accrued and unpaid interest shall be payable from the surplus.
Source
Laws 1913, c. 154, § 84, p. 430;
R.S.1913, § 3221;
Laws 1919, c. 190, tit. V, art. V, § 7, p. 610;
C.S.1922, § 7820;
C.S.1929, § 44-407;
Laws 1941, c. 83, § 1, p. 330;
R.S.Supp.,1941, § 44-407;
R.S.1943, § 44-221;
Laws 1973, LB 405, § 1;
Laws 1989, LB 92, § 67;
Laws 1991, LB 236, § 36;
Laws 1994, LB 1222, § 49;
Laws 1995, LB 162, § 1.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-222 - Insurance; maximum risks; exceptions.

44-222.
Insurance; maximum risks; exceptions.
Except as otherwise provided by law, no insurance company shall expose itself to any loss on any one risk in an amount exceeding ten percent of its surplus to policyholders as reflected by the last annual statement of the company, except that domestic assessment associations organized for the primary purpose of writing insurance coverage on farm properties and which write such insurance in less than thirty-one counties in Nebraska shall not write any policy for an amount in excess of one-eighth of one percent of its insurance in force. The term loss shall mean the incremental decrease in surplus resulting from payment of a claim equal to the maximum liability of the insurer on any one risk. The term any one risk shall mean, in the case of property insurance, all properties insured by the same insurance company which are customarily considered by underwriters to be subject to loss or destruction from the same hazard or occurrence except hazards or occurrences of a catastrophic nature. The term surplus to policyholders shall mean the amount obtained by subtracting, from the admitted assets, actual liabilities, including any reserves which by law must be maintained. In the case of a stock company, surplus to policyholders shall also include the paid-up and outstanding capital stock. Any reinsurance taking effect simultaneously with the policy or bond shall be deducted in determining whether any one risk or policy exceeds the limitation of risk or policy prescribed in this section. This section shall not be applicable to workers' compensation or employers liability insurance or to any policy or type of coverage as to which the maximum possible loss to the insurance company is not ascertainable on issuance of the policy.
Source
Laws 1913, c. 154, § 88, p. 431;
R.S.1913, § 3225;
Laws 1919, c. 190, tit. V, art. V, § 11, p. 611;
C.S.1922, § 7824;
C.S.1929, § 44-411;
Laws 1935, c. 98, § 2, p. 326;
C.S.Supp.,1941, § 44-411;
R.S.1943, § 44-222;
Laws 1957, c. 179, § 1, p. 618;
Laws 1959, c. 197, § 1, p. 704;
Laws 1986, LB 811, § 16;
Laws 1987, LB 416, § 18;
Laws 1989, LB 92, § 68;
Laws 1994, LB 978, § 17.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-222.01 - Insurance; maximum risk; reinsurance; filing information with director.

44-222.01.
Insurance; maximum risk; reinsurance; filing information with director.
For the purpose of determining whether any one risk exceeds the limitation imposed by section 44-222, reinsurance shall be in a company acceptable to the Director of Insurance. If requested by the director, the original company writing the risk or policy shall file with the Director of Insurance evidence of such reinsurance listing the name of the reinsurer and such other information pertaining thereto as may be required by the director.
Source
Laws 1959, c. 197, § 2, p. 705;
Laws 1989, LB 92, § 69.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-222.02 - Violations; report to Attorney General; suspension of authority to do business; appeal.

44-222.02.
Violations; report to Attorney General; suspension of authority to do business; appeal.
The Director of Insurance may, if he or she finds that any person or insurer has violated any of the provisions of sections 44-222 and 44-222.01, report the facts to the Attorney General for prosecution in accordance with the provisions of section 44-395. In lieu of the criminal prosecution provided herein or in addition thereto the Director of Insurance may suspend such insurer's authority to do business in Nebraska for such length of time as the director may prescribe. An appeal may be taken from the decision of the director, and the appeal shall be in accordance with the Administrative Procedure Act.
Source
Laws 1959, c. 197, § 3, p. 705;
Laws 1969, c. 359, § 9, p. 1271;
Laws 1988, LB 352, § 41;
Laws 1989, LB 92, § 70.
Cross References
Administrative Procedure Act, see section 84-920.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-223 - Insurance companies; incorporators and directors; liability.

44-223.
Insurance companies; incorporators and directors; liability.
The original incorporators, until the election of directors, and thereafter the directors shall be jointly and severally liable for any losses incurred during the following time or times: (1) For the excess of any policy above the maximum single risks prescribed by section 44-222 during the time that such policy exceeds such maximum single risks; (2) for any losses occurring upon any new risk taken after the expiration of the period designated by the Department of Insurance in accordance with sections 44-120 to 44-124 in which to make good any deficiency; and (3) for all debts and liabilities contracted prior to the time the company received its certificate of authority.
Source
Laws 1913, c. 154, § 89, p. 432;
R.S.1913, § 3226;
Laws 1919, c. 190, tit. V, art. V, § 12, p. 612;
C.S.1922, § 7825;
C.S.1929, § 44-412;
R.S.1943, § 44-223;
Laws 1959, c. 198, § 1, p. 706;
Laws 1989, LB 92, § 71.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-224.01 - Reinsurance, merger, consolidation; terms, defined.

44-224.01.
Reinsurance, merger, consolidation; terms, defined.
For purposes of sections 44-224.01 to 44-224.10, unless the context otherwise requires:
(1) Director shall mean the Director of Insurance or his or her authorized representative;
(2) Policyholders shall mean the members of mutual insurance companies, the members of assessment associations, and the subscribers to reciprocal insurance exchanges;
(3) Merger or contract of merger shall mean a merger or consolidation agreement between stock insurance companies as authorized by the Nebraska Model Business Corporation Act;
(4) Consolidation or contract of consolidation shall mean a merger or consolidation agreement between companies operating on other than the stock plan of insurance; and
(5) Bulk reinsurance or contract of bulk reinsurance shall mean an agreement whereby one company cedes by an assumption reinsurance agreement fifty percent or more of its risks and business to another company.
Source
Laws 1957, c. 180, § 1, p. 620;
Laws 1969, c. 359, § 10, p. 1271;
Laws 1989, LB 92, § 72;
Laws 1995, LB 109, § 218;
Laws 2014, LB749, § 284.
Cross References
Nebraska Model Business Corporation Act, see section 21-201.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-224.02 - Reinsurance; authorization.

44-224.02.
Reinsurance; authorization.
(1) Any domestic insurance company may, in the course of its business, accept reinsurance or bulk reinsurance for the same kinds of insurance and within the same limits as it is authorized to transact directly.
(2) Any domestic insurance company may, in the usual course of business, reinsure any of its risks.
Source
Laws 1957, c. 180, § 2, p. 620.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-224.03 - Domestic stock company; bulk reinsurance; contract; approval.

44-224.03.
Domestic stock company; bulk reinsurance; contract; approval.
(1) Any domestic stock insurance company may cede its business to another licensed insurer by a contract of bulk reinsurance, but such contract shall not become effective unless first filed with and approved by the director and thereafter approved by a majority vote of the shareholders of the ceding company present in person or by proxy and voting at an annual meeting or at a special meeting called for that purpose.
(2) The director shall approve such contract within a reasonable time after such filing unless he or she finds it is inequitable to the shareholders or policyholders of both insurers. If the director does not approve the contract, he or she shall so notify the respective insurers in writing specifying his or her reasons therefor. If approved by the director, the contract shall then be submitted to the shareholders of the ceding company for their approval as provided in subsection (1) of this section. If approved by the required vote of the shareholders, the contract shall then become effective.
Source
Laws 1957, c. 180, § 3, p. 620;
Laws 1989, LB 92, § 73.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-224.04 - Domestic stock company merger; contract; approval.

44-224.04.
Domestic stock company merger; contract; approval.
Any domestic stock insurance company may merge with another stock insurer after the contract of merger is approved by the director. The director shall not approve any such contract of merger unless the interests of the policyholders or shareholders of both parties thereto are properly protected. If the director does not approve the contract of merger, he or she shall issue a written order of disapproval setting forth his or her findings. After having obtained the approval of the director, the contract of merger shall be consummated in the manner set forth in the Nebraska Model Business Corporation Act for the merger or consolidation of stock corporations.
Source
Laws 1957, c. 180, § 4, p. 621;
Laws 1969, c. 362, § 1, p. 1286;
Laws 1976, LB 916, § 1;
Laws 1989, LB 92, § 74;
Laws 1995, LB 109, § 219;
Laws 2014, LB749, § 285.
Cross References
Nebraska Model Business Corporation Act, see section 21-201.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-224.05 - Domestic nonstock company; bulk reinsurance; contract; approval.

44-224.05.
Domestic nonstock company; bulk reinsurance; contract; approval.
(1) Any domestic insurance company operating on other than the stock plan may cede its business to another licensed insurer, whether stock, mutual, assessment, or reciprocal exchange, by a contract of bulk reinsurance upon compliance with this section.
(2) Such contract of bulk reinsurance shall not become effective unless first filed with and approved by the director and thereafter approved by a majority vote of the members of the ceding company present in person or by proxy and voting at an annual meeting or at a special meeting called for that purpose. The director shall not approve such contract unless he or she finds it to be fair and equitable to the policyholders of each insurer involved. If the director does not so approve, he or she shall notify each insurer involved in writing specifying his or her reasons therefor.
(3) Contracts of bulk reinsurance whereby an insurer operating on other than the stock plan of insurance cedes its business to a stock insurer shall provide for distribution to each policyholder of the ceding company of his or her equity in the surplus funds, if any, of such ceding company as determined under a fair and equitable formula approved by the director.
Source
Laws 1957, c. 180, § 5, p. 621;
Laws 1989, LB 92, § 75.
Annotations
This section does not abrogate the common law duties of corporate directors to policyholders of a mutual insurance company and the approval of a contract of bulk reinsurance by the Director of Insurance does not insulate the directors of the company from liability for violation of their fiduciary duties. Doyle v. Union Ins. Co., 202 Neb. 599, 277 N.W.2d 36 (1979).
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-224.06 - Domestic assessment association; bulk reinsurance; contract.

44-224.06.
Domestic assessment association; bulk reinsurance; contract.
Any domestic assessment association, which has accumulated and maintains the same reserve for liabilities that is required of a mutual company transacting the same kind or kinds of business, and which has a surplus or contingency funds equal to, or in excess of the surplus required of a mutual company transacting the same kind or kinds of business, may in any contract of reinsurance or bulk reinsurance, agree to limit its assessments to the premium stated in the policies issued by the ceding company.
Source
Laws 1957, c. 180, § 6, p. 622.
2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-224.07 - Domestic company; consolidation; contract; approval.

44-224.07.
Domestic company; consolidation; contract; approval.
(1) A contract of consolidation involving a domestic insurance company shall be approved by a majority vote of the board of directors or other governing body of each of the respective parties thereto as well as by a majority vote of the members present in person or by proxy at an annual meeting or at a special meeting called for that purpose. Such contract of consolidation shall be approved by the director prior to submission to the members for approval. After approval by the members, the officers of the respective parties thereto may enter into and consummate such contract of consolidation and do and perform all acts necessary to the final and complete consummation thereof. Such contract of consolidation shall designate the corporation which is to continue or survive and which shall thereafter retain a certificate of authority issued by the department. The surviving company may assume, in whole or in part, the name of the retiring company. Such contract of consolidation upon becoming effective shall have the effect of transferring the assets, rights, franchises, and interests of the companies so consolidated to the continuing or surviving company, and simultaneously therewith, such surviving or continuing company shall be deemed to have assumed all the liabilities of the consolidated companies. A contract of consolidation need not require a disposition or other distribution of the surplus assets of either party thereto to their respective policyholders. No action or proceeding pending at the time of such consolidation to which either of the consolidating parties may be a party shall be abated or discontinued by reason of such consolidation, but the same may be prosecuted to final judgment in the same manner as if the consolidation had not taken place or the continuing or surviving company may be substituted in place of any such company so consolidated, as the case may be, by order of the court in which the action or proceeding is pending.
(2) Any assessment association which has accumulated and maintains the same reserve for liabilities that is required of a mutual company transacting the same kind or kinds of business and which has a surplus or contingency funds equal to or in excess of that required of a mutual company transacting the same kind or kinds of business may, in any consolidation agreement in which it is to continue or survive as an assessment association, agree to limit its assessments to the premium stated in the policies issued by the retiring company.
Source
Laws 1957, c. 180, § 7, p. 622;
Laws 1989, LB 92, § 76.