State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter44 > 44-7515

44-7515. Exemption fromthe requirement for insurers to use filed rates and policy forms for certaincommercial policyholders; eligibilityfor professional employer organizations.(1)The director shall adopt and promulgate rules and regulations to modify oreliminate requirements for insurers to use filed rates and policy forms forcommercial policyholders under common ownership identified through the applicationof subsection (4) of this section. Unlessset forth by rules and regulations, on and after January 1, 2012, eligibilityfor a professional employer organization shall be based upon the professionalemployer organization's total premiums, including premiums for multiple coordinatedpolicies written for the professional employer organization's clients. Unlessotherwise set forth in the rules and regulations, the rules and regulationsapply to multiple coordinated policies written on behalf of an eligible professionalemployer organization.(2) The rules and regulations adopted and promulgated pursuantto this section may establish requirements and thresholds that differ by lineor type of insurance or that differ for rates and policy forms.(3) The rules and regulations adopted and promulgated pursuantto this section shall require insurers to inform exempt commercial policyholdersat the earliest practical date, but no later than thirty days after the inceptionof coverage, of those policy forms applying to them that have not been approvedby the director.(4) The director shall consider the following factors indetermining those commercial policyholders to which the rules and regulationsadopted and promulgated pursuant to this section shall apply:(a) For modification or elimination of the applicabilityof filed rates, characteristics of insureds that are likely to avail themselvesof regular price comparisons between competing insurers and are likely tostudy and understand the differences and details of pricing proposals thatthey receive;(b) For modification or elimination of the applicabilityof filed rates, characteristics of insureds for which filed rates and ratingplans are less likely to provide the lowest premiums otherwise consistentwith the provisions of the Property and Casualty Insurance Rate and Form Act;(c) Modification or elimination of the applicability of filedrates for commercial insureds that are primarily located in another jurisdictionwhere they are subject to similar exemptions or waivers in that jurisdiction;(d) For modification or elimination of the applicabilityof filed policy forms, characteristics of insureds that are likely to studyand understand the details of their business risks and insurance coveragesand exclusions;(e) For modification or elimination of the applicabilityof filed policy forms, characteristics of insureds that are likely to requireindividually written policies, as contrasted to insureds that can customarilyhave their coverage needs met using policy forms that could also be used forother insureds;(f) For both rates and policy forms, favorable or adverseexperiences with the modification or elimination of regulatory requirements,especially the experience in this state; and(g) Any other relevant factor.(5) For exempt commercial policyholders to which rating systemregulation is made otherwise inapplicable, insurers shall allocate premiumsbetween policies, exposures, and states in proportion to the expected lossesand expenses for those policies, exposures, and states.(6) The following restrictions apply to rules and regulationsadopted and promulgated pursuant to this section:(a) The rules and regulations may not allow any reductionof the benefits payable under workers' compensation or excess workers' compensationpolicies or any alteration of provisions for the handling and settlement ofclaims under such policies, but the rules and regulations may allow exemptcommercial policyholders to negotiate workers' compensation or excess workers'compensation premiums and premium payment provisions;(b) The rules and regulations may not allow any reductionof automobile insurance coverage limits to less than those required by Nebraskalaw, but the rules and regulations may allow exempt commercial policyholdersto negotiate automobile insurance premiums and premium payment provisions;(c) The rules and regulations may not allow any limitationof the coverage provisions necessary for health care providers to qualifyunder the Nebraska Hospital-Medical Liability Act, but the rules and regulationsmay allow exempt commercial policyholders to negotiate medical professionalliability insurance premiums and premium payment provisions;(d) The rules and regulations may not reduce the rate regulatoryrequirements applying to insurancewritten for a professional employer organization on or after January 1, 2012,or to any insurance written for an individual policyholder that is not a clientof a professional employer organization with total premiums ofless than twenty-five thousand dollars for lines of insurance subject to theProperty and Casualty Insurance Rate and Form Act; and(e) The rules and regulations may not reduce the form regulatoryrequirements applying to insurancewritten for a professional employer organization on or after January 1, 2012,or to any insurance written for an individual policyholder that is not a clientof a professional employer organization with total premiums ofless than fifty thousand dollars for lines of insurance subject to the Propertyand Casualty Insurance Rate and Form Act.(7) Policy forms for commercial risks exempted by the rulesand regulations adopted and promulgated pursuant to this section may includelanguage that conflicts with section 44-501. If a conflict results betweena policy form and the requirements of section 44-501, the language in thepolicy form shall apply to the extent that it is inconsistent with such section. SourceLaws 2000, LB 1119, § 15; Laws 2002, LB 1139, § 54; Laws 2003, LB 216, § 23; Laws 2010, LB579, § 13. Cross ReferencesNebraska Hospital-Medical Liability Act, see section 44-2855.