2023 Nebraska Revised Statutes › Chapter 44 - Insurance › 44-4803 - Terms, defined.

44-4803.
Terms, defined.
For purposes of the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act:
(1) Ancillary state means any state other than a domiciliary state;
(2) Creditor means a person having any claim, whether matured or unmatured, liquidated or unliquidated, secured or unsecured, or absolute, fixed, or contingent;
(3) Delinquency proceeding means any proceeding instituted against an insurer for the purpose of liquidating, rehabilitating, reorganizing, or conserving such insurer and any summary proceeding under section 44-4809 or 44-4810;
(4) Department means the Department of Insurance;
(5) Director means the Director of Insurance;
(6) Doing business includes any of the following acts, whether effected by mail or otherwise:
(a) The issuance or delivery of contracts of insurance to persons who are residents of this state;
(b) The solicitation of applications for such contracts or other negotiations preliminary to the execution of such contracts;
(c) The collection of premiums, membership fees, assessments, or other consideration for such contracts;
(d) The transaction of matters subsequent to execution of such contracts and arising out of them; or
(e) Operating as an insurer under a license or certificate of authority issued by the department;
(7) Domiciliary state means the state in which an insurer is incorporated or organized or, in the case of an alien insurer, its state of entry;
(8) Fair consideration is given for property or an obligation:
(a) When in exchange for such property or obligation, as a fair equivalent therefor, and in good faith, (i) property is conveyed, (ii) services are rendered, (iii) an obligation is incurred, or (iv) an antecedent debt is satisfied; or
(b) When such property or obligation is received in good faith to secure a present advance or antecedent debt in an amount not disproportionately small as compared to the value of the property or obligation obtained;
(9) Foreign country means any other jurisdiction not in any state;
(10) Foreign guaranty association means a guaranty association now in existence in or hereafter created by the legislature of another state;
(11) Formal delinquency proceeding means any liquidation or rehabilitation proceeding;
(12) General assets means all property, real, personal, or otherwise not specifically mortgaged, pledged, deposited, or otherwise encumbered for the security or benefit of specified persons or classes of persons. As to specifically encumbered property, general assets includes all such property or its proceeds in excess of the amount necessary to discharge the sum or sums secured thereby. Assets held in trust and on deposit for the security or benefit of all insureds or all insureds and creditors, in more than a single state, are treated as general assets;
(13) Guaranty association means the Nebraska Property and Liability Insurance Guaranty Association, the Nebraska Life and Health Insurance Guaranty Association, and any other similar entity now or hereafter created by the Legislature for the payment of claims of insolvent insurers;
(14) Insolvency or insolvent means:
(a) For an insurer formed under Chapter 44, article 8:
(i) The inability to pay any obligation within thirty days after it becomes payable; or
(ii) If an assessment is made within thirty days after such date, the inability to pay such obligation thirty days following the date specified in the first assessment notice issued after the date of loss;
(b) For any other insurer, that it is unable to pay its obligations when they are due or when its admitted assets do not exceed its liabilities plus the greater of:
(i) Any capital and surplus required by law to be maintained; or
(ii) The total par or stated value of its authorized and issued capital stock; and
(c) For purposes of this subdivision, liabilities includes, but is not limited to, reserves required by statute or by rules and regulations adopted and promulgated or specific requirements imposed by the director upon a subject company at the time of admission or subsequent thereto;
(15) Insurer means any person who has done, purports to do, is doing, or is licensed to do an insurance business and is or has been subject to the authority of or to liquidation, rehabilitation, reorganization, supervision, or conservation by the director or the director, commissioner, or equivalent official of another state. Any other persons included under section 44-4802 are deemed to be insurers;
(16) Netting agreement means an agreement and any terms and conditions incorporated by reference therein, including a master agreement that, together with all schedules, confirmations, definitions, and addenda thereto and transactions under any thereof, shall be treated as one netting agreement:
(a) That documents one or more transactions between parties to the agreement for or involving one or more qualified financial contracts; and
(b) That provides for the netting or liquidation of qualified financial contracts or present or future payment obligations or payment entitlements thereunder, including liquidation or closeout values relating to such obligations or entitlements among the parties to the netting agreement;
(17) Person includes any individual, corporation, partnership, limited liability company, association, trust, or other entity;
(18) Qualified financial contract means a commodity contract, forward contract, repurchase agreement, securities contract, swap agreement, and any similar agreement that the director determines by rule and regulation, resolution, or order to be a qualified financial contract for the purposes of the act;
(19) Receiver means receiver, liquidator, rehabilitator, or conservator as the context requires;
(20) Reciprocal state means any state other than this state in which in substance and effect sections 44-4818, 44-4852, 44-4853, and 44-4855 to 44-4857 are in force, in which provisions are in force requiring that the director, commissioner, or equivalent official of such state be the receiver of a delinquent insurer, and in which some provision exists for the avoidance of fraudulent conveyances and preferential transfers;
(21) Secured claim means any claim secured by mortgage, trust deed, pledge, or deposit as security, escrow, or otherwise but does not include a special deposit claim or a claim against general assets. The term includes claims which have become liens upon specific assets by reason of judicial process;
(22) Special deposit claim means any claim secured by a deposit made pursuant to statute for the security or benefit of a limited class or classes of persons but does not include any claim secured by general assets;
(23) State means any state, district, or territory of the United States and the Panama Canal Zone; and
(24) Transfer includes the sale of property or an interest therein and every other and different mode, direct or indirect, of disposing of or of parting with property, an interest therein, or the possession thereof or of fixing a lien upon property or an interest therein, absolutely or conditionally, voluntarily, or by or without judicial proceedings. The retention of a security title to property delivered to a debtor is deemed a transfer suffered by the debtor.
Source
Laws 1989, LB 319, § 3;
Laws 1990, LB 984, § 4;
Laws 1991, LB 236, § 60;
Laws 1993, LB 121, § 258;
Laws 2011, LB72, § 6.
Cross References
Nebraska Life and Health Insurance Guaranty Association, see section 44-2705.
Nebraska Property and Liability Insurance Guaranty Association, see section 44-2404.