§ 44-7515 — Exemption from the requirement for insurers to use filed rates and policy forms for certain commercial policyholders; eligibility for professional employer organizations

Nebraska § 44-7515

• Jurisdiction: Nebraska
• Ch. 44: Insurance

Text

(1)
The director shall adopt and promulgate rules and regulations to modify or
eliminate requirements for insurers to use filed rates and policy forms for
commercial policyholders under common ownership identified through the application
of subsection (4) of this section. Unless
set forth by rules and regulations, on and after January 1, 2012, eligibility
for a professional employer organization shall be based upon the professional
employer organization's total premiums, including premiums for multiple coordinated
policies written for the professional employer organization's clients. Unless
otherwise set forth in the rules and regulations, the rules and regulations
apply to multiple coordinated policies written on behalf of an eligible professional
employer organization.
(2) The rules and regulations adopted and promulgated pursuant
to this section may establish requirements and thresholds that differ by line
or type of insurance or that differ for rates and policy forms.
(3) The rules and regulations adopted and promulgated pursuant
to this section shall require insurers to inform exempt commercial policyholders
at the earliest practical date, but no later than thirty days after the inception
of coverage, of those policy forms applying to them that have not been approved
by the director.
(4) The director shall consider the following factors in
determining those commercial policyholders to which the rules and regulations
adopted and promulgated pursuant to this section shall apply:
(a) For modification or elimination of the applicability
of filed rates, characteristics of insureds that are likely to avail themselves
of regular price comparisons between competing insurers and are likely to
study and understand the differences and details of pricing proposals that
they receive;
(b) For modification or elimination of the applicability
of filed rates, characteristics of insureds for which filed rates and rating
plans are less likely to provide the lowest premiums otherwise consistent
with the provisions of the Property and Casualty Insurance Rate and Form Act;
(c) Modification or elimination of the applicability of filed
rates for commercial insureds that are primarily located in another jurisdiction
where they are subject to similar exemptions or waivers in that jurisdiction;
(d) For modification or elimination of the applicability
of filed policy forms, characteristics of insureds that are likely to study
and understand the details of their business risks and insurance coverages
and exclusions;
(e) For modification or elimination of the applicability
of filed policy forms, characteristics of insureds that are likely to require
individually written policies, as contrasted to insureds that can customarily
have their coverage needs met using policy forms that could also be used for
other insureds;
(f) For both rates and policy forms, favorable or adverse
experiences with the modification or elimination of regulatory requirements,
especially the experience in this state; and
(g) Any other relevant factor.
(5) For exempt commercial policyholders to which rating system
regulation is made otherwise inapplicable, insurers shall allocate premiums
between policies, exposures, and states in proportion to the expected losses
and expenses for those policies, exposures, and states.
(6) The following restrictions apply to rules and regulations
adopted and promulgated pursuant to this section:
(a) The rules and regulations may not allow any reduction
of the benefits payable under workers' compensation or excess workers' compensation
policies or any alteration of provisions for the handling and settlement of
claims under such policies, but the rules and regulations may allow exempt
commercial policyholders to negotiate workers' compensation or excess workers'
compensation premiums and premium payment provisions;
(b) The rules and regulations may not allow any reduction
of automobile insurance coverage limits to less than those required by Nebraska
law, but the rules and regulations may allow exempt commercial policyholders
to negotiate automobile insurance premiums and premium payment provisions;
(c) The rules and regulations may not allow any limitation
of the coverage provisions necessary for health care providers to qualify
under the Nebraska Hospital-Medical Liability Act, but the rules and regulations
may allow exempt commercial policyholders to negotiate medical professional
liability insurance premiums and premium payment provisions;
(d) The rules and regulations may not reduce the rate regulatory
requirements applying to insurance
written for a professional employer organization on or after January 1, 2012,
or to any insurance written for an individual policyholder that is not a client
of a professional employer organization with total premiums of
less than twenty-five thousand dollars for lines of insurance subject to the
Property and Casualty Insurance Rate and Form Act; and
(e) The rules and regulations may not reduce the form regulatory
requirements applying to insurance
written for a professional employer organization on or after January 1, 2012,
or to any insurance written for an individual policyholder that is not a client
of a professional employer organization with total premiums of
less than fifty thousand dollars for lines of insurance subject to the Property
and Casualty Insurance Rate and Form Act.
(7) Policy forms for commercial risks exempted by the rules
and regulations adopted and promulgated pursuant to this section may include
language that conflicts with section 44-501 . If a conflict results between
a policy form and the requirements of section 44-501 , the language in the
policy form shall apply to the extent that it is inconsistent with such section.

Legislative History

Source: Laws 2000, LB 1119, § 15; Laws 2002, LB 1139, § 54; Laws 2003, LB 216, § 23; Laws 2010, LB579, § 13. Cross References: Nebraska Hospital-Medical Liability Act, see section 44-2855.