§ 44-1989 — Liquidation, dissolution, or insolvency

(1) The Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act shall apply to all title insurers subject to the Title Insurers Act except as otherwise provided in this section. In applying the provisions of the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, the court shall consider the unique aspects of title insurance and shall have broad authority to fashion relief that provides for the maximum protection of the title insurance policyholders.
(2) Security and escrow funds held by or on behalf of a title insurer shall not become general assets and shall be administered as secured creditor claims as defined in the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act.
(3) Title insurance policies that are in force at the time an order of liquidation is entered shall not be canceled except upon a showing to the court of good cause by the liquidator. The determination of good cause shall be within the discretion of the court. In making this determination, the court shall consider the unique aspects of title insurance and all other relevant circumstances.
(4) The court may set appropriate dates that potential claimants must file their claims with the liquidator. The court may set different dates for claims based upon a title insurance policy than for all other claims. In setting dates, the court shall consider the unique aspects of title insurance and all other relevant circumstances.
(5) As of the date of the order of insolvency or liquidation, all premiums paid, due, or to become due under title insurance policies of the title insurer shall be fully earned. It shall be the obligation of title insurance agents, insureds, or representatives of the title insurer to pay fully earned premiums to the liquidator or rehabilitator.

Legislative History

Source: Laws 1997, LB 53, § 12. Cross References: Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, see section 44-4862.