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NebraskaLB325109th Legislature 1st and 2nd SessionslegislatureWALLET

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: 0 benefits, 1 costs, 1 mixed.

Stricter rules for insurance company boards

For most insurers, at least 20% of the board must be people who are not company officers or employees. Directors must be of good moral character. They must have practical knowledge in insurance, finance, or investing. In a mutual company or assessment association, only a policyholder can be a director. The statute also changes the felony rule and says a person convicted of a felony “shall may not” be a director, which is unclear wording. The 20% rule does not apply to companies covered by a separate Nebraska law.

Insurers can waive Nebraska resident director

Insurance companies in Nebraska must have at least five directors. At least one is usually a Nebraska resident. The law lets a company skip the resident seat for five years if it files a sworn affidavit with the Department of Insurance. The affidavit must certify all five facts: main offices in Nebraska; publicly traded or a wholly owned affiliate; domiciled in Nebraska at least 25 years; more than 500 Nebraska employees who pay Nebraska income tax; and no change in the ultimate controlling entity for 10 years. The waiver can be renewed. If the company later fails any item, it must tell the Department and add a Nebraska‑resident director within six calendar months.

Sponsors & Cosponsors

Sponsor

  • Mike Jacobson

    legislature

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

    4/8/2025legislature

  2. Passed on Final Reading 47-0-2

    4/3/2025legislature

  3. President/Speaker signed

    4/3/2025legislature

  4. Presented to Governor on April 3, 2025

    4/3/2025legislature

  5. Placed on Final Reading

    3/26/2025legislature

  6. Enrollment and Review ER25 adopted

    3/18/2025legislature

  7. Advanced to Enrollment and Review for Engrossment

    3/18/2025legislature

  8. Placed on Select File with ER25

    3/11/2025legislature

  9. Enrollment and Review ER25 filed

    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

    4/8/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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