44-4801. Purpose of act.

297 words·~1 min read·/ne/chapter-44/44-4801

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

The purpose of the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act is to protect the interests of insureds, claimants, creditors, and the public with minimum interference with the normal prerogatives of the owners and managers of insurers through:

(1)Early detection of any potentially dangerous condition in an insurer and prompt application of appropriate corrective measures;

(2)Improved methods for rehabilitating insurers involving the cooperation and management expertise of the insurance industry;

(3)Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation;

(4)Equitable apportionment of any unavoidable loss;

(5)Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process and by extending the scope of personal jurisdiction over debtors of the insurer outside this state;

(6)Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business; and

(7)Providing for a comprehensive scheme for the supervision, rehabilitation, and liquidation of insurers and those subject to the act as part of the regulation of the business of insurance, insurance industry, and insurers in this state. Proceedings in cases of insurer insolvency and delinquency are deemed an integral aspect of the business of insurance and are of vital public interest and concern.

The act shall be liberally construed to effect the purposes enumerated in this section and shall not be interpreted to limit the powers granted the director by other provisions of the law.

Proceedings under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act are equitable in nature, and therefore, the liquidation court's determinations of claims disputes are reviewed de novo on the record. State ex rel. Wagner v. Amwest Sur. Ins. Co., 274 Neb. 121, 738 N.W.2d 813 (2007).