§ 44-2411 — Exhaustion of remedies

(1) Any person having a claim against any insurer under any provisions of any insurance policy, which claim is also a covered claim against an insolvent insurer under the Nebraska Property and Liability Insurance Guaranty Association Act, shall be required to exhaust all rights under such policy before the association is obligated to pay the covered claim, whether the claim is a first-party or third-party claim, including, but not limited to, accident and health insurance, workers' compensation, and all other coverages except policies of an insolvent insurer. Any person having a claim against any state or federal government program, which claim would also give rise to a covered claim, shall be required to exhaust all rights under such government program before the association is obligated to pay the covered claim. Any amount payable on a covered claim shall be reduced by the amount of the recovery under any other insurance policy or state or federal government program.
(2) Any person having a claim which may be recovered under more than one insurance guaranty association, or its equivalent, shall seek recovery first from the association of the place of residence of the insured, except that if it is a first-party claim for damage to property with a permanent location, from the association of the location of the property, and if it is a workers' compensation claim, from the association of the residence of the claimant. Any recovery pursuant to the Nebraska Property and Liability Insurance Guaranty Association Act shall be reduced by the amount of the recovery from any other insurance guaranty association or its equivalent.

Legislative History

Source: Laws 1971, LB 722, § 11; Laws 1986, LB 811, § 24; Laws 2019, LB380, § 7; Laws 2025, LB326, § 13. Effective Date: September 3, 2025