Insurance Company in Liquidation

SURETY BONDS – UNEARNED PREMIUM

 
 
Nebraska Statutes 
 
44-4833
Recovery of premiums owed; violation; penalty; appeal.
 
 (1)(a) An agent, broker, premium finance
company, or any other person, other than the insured, responsible
for the payment of a premium shall be obligated to pay any unpaid
earned premium due the insurer at the time of the declaration of
insolvency as shown on the records of the insurer. The
liquidator shall also have the right to recover from such person
any part of an unearned commission of such person. An agent,
broker, premium finance company, or any other person, other than
the insured, responsible for the payment of a premium shall not
be obligated to pay the unpaid unearned premium due the insurer
at the time of the declaration of insolvency as shown on the
records of the insurer, and any such unearned premium in the
possession of such agent, broker, premium finance company, or
other person at such time shall be returned promptly by such
agent, broker, premium finance company, or other person to the
insured or other person from whom it was received. Credits or
setoffs or both shall not be allowed to an agent, broker, or
premium finance company for any amounts advanced to the insurer
by the agent, broker, or premium finance company on behalf of,
but in the absence of a payment by, the insured.
 (b) An insured shall be obligated to pay any unpaid
earned premium due the insurer at the time of the declaration of
insolvency as shown on the records of the insurer.
 (2) Upon satisfactory evidence of a violation of this
section, the director may pursue either one or both of the
following courses of action:
 (a) Suspend, revoke, or refuse to renew the licenses of
such offending party or parties; or
 (b) Impose a civil penalty of not more than one
thousand dollars for each and every act in violation of this
section by the party or parties.
 (3) Before the director takes any action as set  forth
in subsection (2) of this section, he or she shall give written
notice to the person, company, association, or exchange accused
of violating the law, stating specifically the nature of the
alleged violation and fixing a time and place, at least ten days
thereafter, when a hearing on the matter shall be held. After
such hearing or upon failure of the accused to appear at such
hearing, the director, if he or she finds such violation, shall
impose the penalties under subsection (2) of this section as he
or she deems advisable.
 (4) When the director takes action in any or all of the
ways set out in subsection (2) of this section, the party
aggrieved may appeal from the action to the district court of
Lancaster County.

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