44-369. Premium notes; sale or pledge before delivery of policy; prohibited.
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/ne/chapter-44/44-369A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
It shall be unlawful for any company or agent thereof to hypothecate, sell or dispose of a promissory note, received in payment for any part of a premium on a policy of insurance applied for under the provisions of this chapter, prior to the delivery of the policy to the applicant.
Sale or pledge of note given for insurance premium is unlawful prior to delivery of policy. Standard Investment Co. v. Fisher, 126 Neb. 394, 253 N.W. 427 (1934).
Evidence was insufficient to show good faith in the purchase of note which was bought before insurance policy delivered. State Bank v. House, 114 Neb. 681, 209 N.W. 246 (1926).
A bank purchasing with full knowledge that the note was given to pay insurance prior to delivery of policy is not a bona fide holder and cannot recover thereon. Stockmen's State Bank v. Fisher, 106 Neb. 525, 184 N.W. 55 (1921).