44-2701. Purpose of act.
167 words·~1 min read·
/ne/chapter-44/44-2701A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The purpose of the Nebraska Life and Health Insurance Guaranty Association Act is to protect resident policyowners, insureds, including certificate holders under group insurance policies or contracts, beneficiaries, annuitants, payees, and assignees of life insurance policies, health insurance policies, annuity contracts, and supplemental contracts of member insurers, subject to certain limitations, against failure in the performance of contractual obligations due to the impairment or insolvency of the member insurer issuing such policies or contracts and to assist in the detection and prevention of insurer insolvencies. To provide this protection,
(1)an association of insurers is created to enable the guaranty of payment of benefits and of continuation of coverages, as limited in the act, and
(2)members of the association are made subject to assessment to provide funds to carry out the purposes of the act.
Resident employees, and not a nonresident trustee, are entitled to protection under this section. Unisys Corp. v. Nebraska Life & Health Ins. Guar. Assn., 267 Neb. 158, 673 N.W.2d 15 (2004).