State NRRA Compliance Review
Legislation: L 70 Effective July 21, 2011
Bulletins/Regulations/Rules: June 17, 2011 Implementation of Federal NRRA in Nebraska
October 28, 2011 - Surplus Lines Requirements
October 28, 2011 - Surplus Lines Insurance Act Revisions
January 5, 2012 - Nebraska Withdraws from NIMA
Compact, NIMA, other: NOTE: This state has withdrawn from NIMA.
NOTE: New material in bold,
Sec. 5. Section 44-5506, Reissue Revised Statutes of
(1) For purposes of carrying out the Nonadmitted and Reinsurance
Reform Act of 2010, which is Subtitle B of the
Reform and Consumer Protection Act, Public Law 111-203, as such act existed on January 1, 2011, the director may enter into the Nonadmitted Insurance Multi-State Agreement in order to facilitate the collection, allocation, and disbursement of premium taxes attributable to the placement of nonadmitted insurance, provide for uniform methods of allocation and reporting among nonadmitted insurance risk classifications, and share information among states relating to nonadmitted insurance premium taxes.
(2) The director may participate in the clearinghouse established through the
Home State Definition:
The term affiliated group means any group of entities that are affiliated. An affiliate means (a) with respect to an insured, any entity that controls, is controlled by, or is under common control with the insured. An entity has control over another entity if the entity: (i) directly or indirectly or acting through one or more other person owns, controls or has the power to vote twenty –five percent or more of any class of voting securities of the other entity; or (ii) controls in any manner the election of a majority of the directors of trustees of the other entity.
The following definition is not in the NRRA but is in L 70: When determining the home state of the insured, the principal place of business is the state in which the insured maintains its headquarters and where the insured’s high-level officers direct, control, and coordinate the business activities of the insured.
Exempt Commercial Purchaser: On or after July 21, 2011, a surplus lines licensee seeking to procure or place nonadmitted insurance on behalf of an "exempt commercial purchaser" is not required to perform a diligent search if: 1) the licensee has disclosed to the exempt commercial purchaser that insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and 2) the exempt commercial purchaser has subsequently requested in writing for the licensee to procure or place such insurance from a nonadmitted insurer. "Exempt commercial purchaser" is defined in Neb.Rev.Stat. §44-5502(5). “Qualified risk manager” is not defined in L 70. The NRRA definition applies.
NOTE: Previous section 44-5502 was repealed:
Eligibility: The NRRA restricts the eligibility requirements a state may impose on nonadmitted
Tax Reporting Status: See also bulletin above. NOTE: New material in bold, deleted material in strikethru
44-5506…(3) Every surplus lines licensee transacting business under the
Tax Processing Fee: Silent
Policyholder Notice: No substantive change, but addressed in L 70:
Department Contact: Nebraska Department of Insurance - 941 O Street, Suite 400 - Lincoln, NE 68508 - (402) 471-2201