Nebraska Statutes 44-5119. Director’s authority
(1) The director may impose reasonable and temporary restrictions upon the investments of an insurer, including prohibition or divestment of a particular investment, if the director finds that the interests of insureds, creditors, or the general public are or may be endangered.
Terms Used In Nebraska Statutes 44-5119
- Director: shall mean the Director of Insurance. See Nebraska Statutes 44-103
- Insurer: shall include all companies, exchanges, societies, or associations whether organized on the stock, mutual, assessment, or fraternal plan of insurance and reciprocal insurance exchanges. See Nebraska Statutes 44-103
- Insurer shall: include all companies, exchanges, societies, or associations whether organized on the stock, mutual, assessment, or fraternal plan of insurance and reciprocal insurance exchanges. See Nebraska Statutes 44-103
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(2) If any insurer desires to exceed any investment limitation contained in the Insurers Investment Act, the insurer shall file an application with the director requesting written approval to exceed the investment limitation. The application shall set out all pertinent information regarding the proposed investment, including a full description of the investment, its actual cost, its market value, any appraisals, any encumbrances, the interest rate, the maturity dates, as appropriate, and any other relevant information requested by the director. The application shall be a public record open to public inspection from the date of filing. If the application is not approved or disapproved by the director within thirty days from the date of filing, the application shall be deemed disapproved. The disapproval in whole or in part shall be in the sole discretion of the director and shall not be subject to judicial review.
In determining whether to approve or disapprove the application, the director shall consider the following factors:
(a) The credit risk quality of the proposed investment;
(b) The liquidity of the proposed investment and of the insurer’s entire investment portfolio;
(c) The extent of the diversification of the insurer’s investment portfolio;
(d) The yield of the proposed investment;
(e) The reasonableness of the insurer’s policyholders surplus in relation to the insurer’s outstanding liabilities and financial needs as evaluated in accordance with the factors set forth in section 44-2136 ; and
(f) Any other relevant considerations.
If the director approves the application in whole or in part, the proposed investment shall be deemed to be an authorized investment to the extent of the director’s approval. Whenever an insurer makes application pursuant to this subsection, the director may retain, at the insurer’s expense, such attorneys, actuaries, accountants, and other experts not otherwise a part of the director’s staff as are reasonably necessary to assist the director in determining whether such application should be approved. Any individual or organization so retained shall be under the direction and control of the director and shall serve in a purely advisory capacity.