LB280 LB280
2021 2021
LEGISLATURE OF NEBRASKA
ONE HUNDRED SEVENTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 280
Introduced by Albrecht, 17.
Read first time January 12, 2021
Committee: Banking, Commerce and Insurance
1 A BILL FOR AN ACT relating to insurance; to amend section 44-211, Revised
2 Statutes Cumulative Supplement, 2020; to eliminate a state residency
3 requirement for the board of directors of an insurance company; and
4 to repeal the original section.
5 Be it enacted by the people of the State of Nebraska,
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LB280 LB280
2021 2021
1 Section 1. Section 44-211, Revised Statutes Cumulative Supplement,
2 2020, is amended to read:
3 44-211 The business and affairs of an insurance corporation shall be
4 managed by the incorporators until the first meeting of shareholders or
5 members and then and thereafter by a board of directors elected by the
6 shareholders or members and as otherwise provided by law. The board of
7 directors shall consist of not less than five persons, and one of them
8 shall be a resident of the State of Nebraska. At least one-fifth of the
9 directors of an insurance company, which is not subject to section
10 44-2135, shall be persons who are not officers or employees of such
11 company. A person convicted of a felony may not be a director, and all
12 directors shall be of good moral character and known professional,
13 administrative, or business ability, such business ability to include a
14 practical knowledge of insurance, finance, or investment. No person shall
15 hold the office of director unless he or she is a policyholder, if the
16 company is a mutual company or assessment association. Unless otherwise
17 provided in the articles of incorporation, the board of directors shall
18 make all bylaws. A director shall discharge his or her duties as a
19 director in accordance with section 21-2,102.
20 Sec. 2. Original section 44-211, Revised Statutes Cumulative
21 Supplement, 2020, is repealed.
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Statutes affected:
Introduced: 44-211