LB437 LB437
2023 2023
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 437
Introduced by Ballard, 21.
Read first time January 13, 2023
Committee: Banking, Commerce and Insurance
1 A BILL FOR AN ACT relating to insurance; to amend section 44-4054,
2 Reissue Revised Statutes of Nebraska; to change the renewal period
3 for business entity licenses issued under the Insurance Producers
4 Licensing Act from annual to biennial; to provide an operative date;
5 and to repeal the original section.
6 Be it enacted by the people of the State of Nebraska,
-1-
LB437 LB437
2023 2023
1 Section 1. Section 44-4054, Reissue Revised Statutes of Nebraska, is
2 amended to read:
3 44-4054 (1) Unless denied licensure pursuant to section 44-4059, a
4 person who has met the requirements of sections 44-4052 and 44-4053 shall
5 be issued an insurance producer license. An insurance producer may
6 receive qualification for a license in one or more of the following lines
7 of authority:
8 (a) Life insurance coverage on human lives, including benefits of
9 endowment and annuities, and may include benefits in the event of death
10 or dismemberment by accident and benefits for disability income;
11 (b) Accident and health or sickness, insurance coverage for
12 sickness, bodily injury, or accidental death and may include benefits for
13 disability income;
14 (c) Property insurance coverage for the direct or consequential loss
15 or damage to property of every kind;
16 (d) Casualty insurance coverage against legal liability, including
17 that for death, injury, or disability or damage to real or personal
18 property;
19 (e) Variable life and variable annuity products, insurance coverage
20 provided under variable life insurance contracts, and variable annuities;
21 (f) Limited line credit insurance;
22 (g) Limited line pre-need funeral insurance;
23 (h) Personal lines property and casualty insurance coverage sold to
24 individuals and families for primarily noncommercial purposes; and
25 (i) Any other line of insurance permitted under Nebraska laws,
26 rules, or regulations.
27 (2) An insurance producer license shall remain in effect unless
28 revoked or suspended if the fee set forth in section 44-4064 is paid and
29 education requirements for resident individual producers are met by the
30 due date.
31 (3) All business entity licenses issued under the Insurance
-2-
LB437 LB437
2023 2023
1 Producers Licensing Act shall expire on April 30 of each even-numbered
2 year, and all producers licenses shall expire on the last day of the
3 month of the producer's birthday in the first year after issuance in
4 which his or her age is divisible by two. Such producer licenses may be
5 renewed within the ninety-day period before their expiration dates.
6 Business entity and producer licenses also may be renewed within the
7 thirty-day period after their expiration dates upon payment of a late
8 renewal fee as established by the director pursuant to section 44-4064 in
9 addition to the applicable fee otherwise required for renewal of business
10 entity and producer licenses as established by the director pursuant to
11 such section. All business entity and producer licenses renewed within
12 the thirty-day period after their expiration dates pursuant to this
13 subsection shall be deemed to have been renewed before their expiration
14 dates.
15 (4) The director may establish procedures for renewal of licenses by
16 rule and regulation adopted and promulgated pursuant to the
17 Administrative Procedure Act.
18 (5) An individual insurance producer who allows his or her license
19 to lapse may, within twelve months from the due date of the renewal fee,
20 reinstate the same license without the necessity of passing a written
21 examination. Producer licenses reinstated pursuant to this subsection
22 shall be issued only after payment of a reinstatement fee as established
23 by the director pursuant to section 44-4064 in addition to the applicable
24 fee otherwise required for renewal of producer licenses as established by
25 the director pursuant to such section.
26 (6) The director may grant a licensed insurance producer who is
27 unable to comply with license renewal procedures due to military service
28 or some other extenuating circumstance, including, but not limited to, a
29 long-term medical disability, a waiver of those procedures. The director
30 may grant a producer a waiver of any examination requirement or any other
31 fine, fee, or sanction imposed for failure to comply with renewal
-3-
LB437 LB437
2023 2023
1 procedures.
2 (7) The license shall contain the licensee's name, address, and
3 personal identification number, the date of issuance, the lines of
4 authority, the expiration date, and any other information the director
5 deems necessary.
6 (8) Licensees shall inform the director by any means acceptable to
7 the director of a change of legal name or address within thirty days
8 after the change. Any person failing to provide such notification shall
9 be subject to a fine by the director of not more than five hundred
10 dollars per violation, suspension of the person's license until the
11 change of address is reported to the director, or both.
12 (9) The director may contract with nongovernmental entities,
13 including the National Association of Insurance Commissioners or any
14 affiliates or subsidiaries that the National Association of Insurance
15 Commissioners oversees, to perform any ministerial functions, including
16 the collection of fees, related to producer licensing that the director
17 may deem appropriate.
18 Sec. 2. This act becomes operative on April 30, 2024.
19 Sec. 3. Original section 44-4054, Reissue Revised Statutes of
20 Nebraska, is repealed.
-4-
Statutes affected: Introduced: 44-4054