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NebraskaLB325109th Legislature 1st and 2nd Sessionslegislature

Change provisions relating to qualifications and requirements for the board of directors of an insurance corporation

Sponsored By: Mike Jacobson

Signed by Governor

Banking, Commerce and Insurance Committee

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Five-year waiver of in-state director for insurers

Insurance company boards must have at least five directors and normally include one Nebraska resident. A company can waive the in-state director rule for five years by filing a sworn affidavit with the Department of Insurance. It must show: its main executive offices are in Nebraska; it is publicly traded or a wholly owned affiliate of one; it has been domiciled in Nebraska 25 years; it employs over 500 Nebraska workers who pay Nebraska income tax; and its ultimate controller has not changed in 10 years. If it stops meeting any condition, it must notify the Department and add a Nebraska resident director within six months. The company can file a new five‑year affidavit after the first one expires.

Stronger standards for insurance company boards

At least 20% of directors must be people who are not company officers or employees for insurers not covered by section 44-2135. No one convicted of a felony may serve as a director. All directors must be of good moral character and have practical knowledge of insurance, finance, or investment. For mutual companies and assessment associations, only policyholders may be directors. Unless the articles say otherwise, the board makes all bylaws, and directors must follow Nebraska’s legal duty standard for directors (section 21-2,102).

Sponsors & Cosponsors

Sponsor

  • Mike Jacobson

    Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 90 • No: 0

legislature vote • 4/3/2025

Final Reading

Yes: 47 • No: 0 • Other: 2

legislature vote • 3/5/2025

Vote

Yes: 43 • No: 0 • Other: 6

Actions Timeline

  1. Approved by Governor on April 7, 2025

    4/7/2025legislature

  2. Presented to Governor on April 3, 2025

    4/3/2025legislature

  3. President/Speaker signed

    4/3/2025legislature

  4. Passed on Final Reading 47-0-2

    4/3/2025legislature

  5. Placed on Final Reading

    3/26/2025legislature

  6. Advanced to Enrollment and Review for Engrossment

    3/18/2025legislature

  7. Enrollment and Review ER25 adopted

    3/18/2025legislature

  8. Enrollment and Review ER25 filed

    3/11/2025legislature

  9. Placed on Select File with ER25

    3/11/2025legislature

  10. Advanced to Enrollment and Review Initial

    3/5/2025legislature

  11. Placed on General File

    2/13/2025legislature

  12. Notice of hearing for February 11, 2025

    1/27/2025legislature

  13. Referred to Banking, Commerce and Insurance Committee

    1/21/2025legislature

  14. Date of introduction

    1/16/2025legislature

Bill Text

  • Introduced

    1/16/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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