Nebraska Department of Insurance

The Nebraska Department of Insurance (NDOI) is the state agency responsible for regulating the Property & Casualty insurance industry in Nebraska. The Department ensures fair insurance practices, financial stability of insurers, and protection of Nebraska consumers.

The Director of Insurance

The Nebraska Director of Insurance is:

• Appointed by the Governor
• Confirmed by the Nebraska Legislature
• Serves at the pleasure of the Governor
• Responsible for enforcing Nebraska Revised Statutes Chapter 44 (Insurance Code)
• Authorized to adopt regulations, review rates, investigate violations, and discipline licensees

Director Powers and Duties

Department Structure

Key Divisions

Regulatory Authority

Nebraska Revised Statutes Chapter 44

The Department's authority comes from NRS Chapter 44, which covers:

• Insurance company licensing and regulation
• Producer licensing requirements
• Rate and form filing requirements
• Trade practice regulations
• Consumer protection provisions
• Penalties and enforcement procedures

Regulatory Framework

Nebraska's insurance regulatory framework includes:

1. Statutes - Laws passed by the Nebraska Legislature
2. Regulations - Rules adopted by the Department
3. Bulletins - Director guidance on specific issues
4. Orders - Individual enforcement actions

Rate Regulation

Nebraska uses a file-and-use system for most P&C insurance:

How File-and-Use Works

1. Insurers develop rates based on actuarial data
2. Rates filed with the Department before use
3. Rates can be used immediately upon filing
4. Department reviews rates for compliance
5. Department can disapprove rates after review

Rate Standards

Rates must be:

• Not Excessive - Not unreasonably high
• Not Inadequate - Sufficient to cover losses and expenses
• Not Unfairly Discriminatory - Based on actuarial justification

Prior Approval Required

Some insurance lines require prior approval:

• Title insurance rates
• Workers' compensation rates
• Credit insurance rates

Exam Tip: Nebraska's file-and-use system allows insurers to implement rates quickly while maintaining regulatory oversight. The Department can disapprove rates found to be excessive, inadequate, or unfairly discriminatory.

Consumer Protection

Consumer Services Division

The Consumer Services Division helps Nebraska residents with:

• Insurance questions and information
• Complaint investigation and resolution
• Insurance fraud reporting
• Coverage verification assistance

Contact Information

Complaint Process

1. File Complaint - Online, mail, or phone
2. Department Review - Initial assessment within 10 days
3. Investigation - Department contacts insurer
4. Resolution - Mediation or formal action
5. Appeal - Administrative hearing if needed

Consumer Bill of Rights

Nebraska consumers have the right to:

• Clear explanation of coverage and costs
• Timely claims handling and payment
• Fair treatment regardless of demographics
• File complaints without retaliation
• Receive written explanation of claim denials

Nebraska Guaranty Associations

Property and Liability Insurance Guaranty Association

If a P&C insurer becomes insolvent:

• Guaranty association pays covered claims
• Maximum claim payment: $300,000 per claim
• Funded by assessments on admitted insurers
• Does not cover surplus lines insurers

Key Provisions

Exam Tip: Know that Nebraska's Guaranty Association protects policyholders when insurers fail, but has limits and exclusions. Surplus lines policies are NOT covered.

Market Conduct Regulation

Examinations

The Department conducts market conduct examinations to ensure:

• Proper claims handling practices
• Accurate rating and underwriting
• Compliant advertising and marketing
• Appropriate policy forms and endorsements
• Consumer protection compliance

Common Violations