§ 44-369 — Premium notes; sale or pledge before delivery of policy; prohibited

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.

Legislative History

Source: Laws 1913, c. 154, § 154, p. 471; R.S.1913, § 3291; Laws 1919, c. 190, tit. V, art. XI, § 19, p. 653; C.S.1922, § 7898; C.S.1929, § 44-1119; R.S.1943, § 44-369. Annotations: 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).