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N E B R A S K A D E P A R T M E N T O F Inside: F RAUD D IVISION 2 • Perception of Crime Seriousness L IFE & H EALTH 3 • Use of 2001 CSO Mortality Table and
Revised Valuation or Nonforfeiture
Interest Rates • Coordination of Benefits Regulation • Interest Rate on Death Proceeds • Emergency Medical Condition Defined L EGAL D IVISION 5 • Company/Producer Actions • Nebraska Supreme Court Cases • Is It Insurance or Biblical Sharing? • Title Agents Disclosures Required • Bond Requirement for Title Agents P RODUCER L ICENSING 11 • Reporting Requirements • Renewal of Producers’ Appointments • Agency License Renewals • Discontinued Use of Social Security
Numbers P ROPERTY & C ASUALTY 12 • Analyst Contacts Listed on Website • Lines of Insurance/Methods Reviewed E XAMINATION D IVISION 14 • Chief Financial Examiner Named • Exams Completed M ARKET C ONDUCT D IVISION 15 • Exams Completed

NAIC Committee Assignments 15
Department Calendar Back
Director Wagner Reminds Insurers and Producers of Requirements Following Breaches of Customers’ Records
During the past few years, several news reports have pointed out instances where corporations and other entities have experienced breaches of their customers’ records. These have occurred through various accidents such as by losing laptop computers, using unsecured computer systems, theft, and even improper record disposal techniques.
As of July 14, 2006, Nebraska requires commercial entities that do business in Nebraska to conduct a good faith, prompt and reasonable investigation when it becomes aware of a breach in its security system. If the investigation determines that information about a Nebraska resident has been used for an unauthorized purpose, or that unauthorized use is likely to occur, the commercial entity is required to provide notice to each impacted consumer.
The Nebraska Financial Data Protection and Consumer Notification of Data Security Breach Act of 2006 (“Act”) includes other important provisions and requirements. We encourage all licensed entities and insurance producers to review the full text, which is cited as Neb.Rev.Stat. §§87-801 through 87-807. The entire text of the Act can be found at uniweb.legislature.ne.gov/LegalDocs/view.php?page=s87index .
In addition to compliance with the above-mentioned Act, the Nebraska Department of Insurance requests that licensed entities and producers advise us of any such situations that should happen to occur.
Please direct any questions concerning breaches in security systems to Bruce Ramge at bramge@doi.state.ne.us. D ave H eineman Governor L. T im W agner
Director W INTER 2006 Page 2 Survey Addresses Perceptions of Crime Seriousness

The National White Collar Crime Center recently provided findings of the 2005 National Public Survey on White Collar Crime. The survey addressed, in part, the perception of the public as to the seriousness of a crime. The survey inquired about individuals’ perceptions of crime serious- ness by having them rate 12 given crime scenarios. These scenarios included white collar crimes as well as the more traditional crimes such as burglary or robbery. Respondents were asked to rate each of 12 crimes on a scale of 1 (not serious) to 7 (very serious) after considering a base crime of stealing a car (which was scored in the neutral range of 4).
Average Crime Seriousness Scores per Scenario:














Although this was a limited study it is interesting to note insurance overcharge and insurance claims fraud were considered more serious than the traditional crimes of burglary or robbery by the respondents. Save the Date Plans are underway in developing an agenda for the Annual Industry Insurance Fraud Conference at Mahoney State Park. Mark your calendars to attend Wednesday, June 13, 2007.
F RAUD D IVISION 6.89 6.37 6.18 5.83 5.77 5.6 5.58 5.49 5.4 5.23 5.12 4.99 4.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Car Theft (Base Crime) Burglary Auction Fraud Robbery False Earning Report INSURANCE OVERCHARGE Embezzlement Database Hack Assault INSURANCE FRAUD - False Claims Omission of Safety Report Toxic Waste Carjacking/Murder W INTER 2006 Page 3









If no other changes are being made to
the form, it is not necessary to re-file
the form, but the company should
submit a cover letter, a revised
actuarial memorandum, and a
form identifying the form number
of each policy.















Companies that would like a returned
copy of the filing stamped “filed” must
submit the requested information in
duplicate along with a self-addressed,
stamped envelope.
















A filing for approval is required if
the forms will be revised by the
attachment of an endorsement, or
if other changes to the form are
being made.



Use of the 2001 CSO Mortality Table and Revised
Valuation or Nonforfeiture Interest Rates We continue to receive filings from companies wanting to use the 2001 CSO Mortality Table in products previously approved by the Division. We are also receiving filings for previously ap- proved products that revise the valuation or nonforfeiture inter- est rate resulting from the recent changes to the Standard Non- Forfeiture Law. We thought we should restate our requirements for these filings (first published in the Fall 2005 Department of Insurance Newsletter).
If no other changes are being made to the form, it is not neces- sary to re-file the form. The company should submit: • a cover letter that includes a list of the policy forms being re- vised, the original approval dates, and the effective date of the revisions; • a revised actuarial memorandum; and • a Life and Health Filing Form identifying the form number of each affected policy. To download an interactive version of the Filing Form, go to www.doi.ne.gov/lh/cb53form.pdf. This procedure may be followed regardless of whether the valua- tion and nonforfeiture basis was originally filed as a variable. This procedure may only be followed if: • the forms will be revised as of a certain date; • the only changes being made are to the valuation or nonforfei- ture interest rate and/or mortality table; and • the form number will not be revised. The Division will consider this an informational filing. Compa- nies that would like a returned copy of the filing stamped “filed” must submit the above information in duplicate along with a self-addressed, stamped envelope.
A filing for approval is required if the forms will be revised by the attachment of an endorsement, or if other changes to the form are being made. The company must follow the procedures out- lined in Bulletin CB-53. This bulletin may be viewed on the De- partment website at www.doi.ne.gov/bulletin/cb53.pdf.
Please direct any questions to the Life and Health Division at 402-471-2201. L IFE & H EALTH D IVISION W INTER 2006 Page 4





Nebraska has adopted a revised
coordination of benefits regulation,
which applies to all group accident
and health insurance plans issued
on or after the effective date of
July 1, 2006.














The 2007 interest rate to be paid
on death proceeds not paid within
30 days of receipt of proof of loss
is 7.014%. Coordination of Benefits Regulation This is a reminder that Nebraska has adopted a revised coordi- nation of benefits regulation. Title 210, Chapter 39, Group Co- ordination of Benefits Regulation, applies to all group accident and health insurance plans issued on or after the effective date of July 1, 2006. A group contract that was issued before the ef- fective date shall be brought into compliance by the later of (1) the next anniversary date or renewal date of the contract or (2) July 1, 2007. Please note that policy forms filed with the Life and Health Division must be in compliance with the applicable regulation concerning coordination of benefits.
If you have any questions concerning the above regulation, please contact the Department of Insurance at 402-471-2201.
Interest Rate on Death Proceeds
The 2007 interest rate to be paid on death proceeds not paid within 30 days of receipt of proof of loss is 7.014%. Neb.Rev. Stat. §44-3,143 requires that interest be paid from the date of receipt of proof of death to the date of payment. Information can also be found on the Department’s website and at court.nol.org/community/interestrate.htm. Definition of Emergency Medical Condition This is a reminder that Nebraska has statutes addressing emergency services. Please note that policy forms filed with the Life and Health Division must comply with applicable statutes concern- ing emergency services.
Section §44-6826 reads, “The purpose of the Managed Care Emergency Services Act is to estab- lish standards for health carriers that offer managed care plans to provide for access by covered persons to and delivery of emergency services.”
The definition of emergency medical condition is outlined in §44-6827(5). “Emergency medical condition means a medical or behavioral condition, the onset of which is sudden, that manifests itself by symptoms of sufficient severity, including, but not limited to, severe pain, that a prudent layperson, possessing an average knowledge of medicine and health, could reasonably expect the absence of immediate medical attention to result in (a) placing the health of the person af- flicted with such condition in serious jeopardy or, in the case of a behavioral condition, placing the health of such persons or others in serious jeopardy, (b) serious impairment to such person's bodily functions, (c) serious impairment of any bodily organ or part of such person, or (d) serious disfigurement of such person”. W INTER 2006 Page 5 Sections §44-5416 to 44-5431 shall be known and may be cited as the Utilization Review Act. According to §44-5417, “The purpose of the Utilization Review Act is to establish requirements and standards of operation for certification of medical utilization review agents. It is proper for the state to oversee utilization review agents as a part of the state's regulation and supervision of the business of insurance and to encourage effective, efficient, and consistent utilization review.” According to §44-5418 (12), “Emergency medical condition means a medical or behavioral condi- tion, the onset of which is sudden, that manifests itself by symptoms of sufficient severity, includ- ing, but not limited to, severe pain, that a prudent layperson, possessing an average knowledge of medicine and health, could reasonably expect the absence of immediate medical attention to result in (a) placing the health of the person afflicted with such condition in serious jeopardy or, in the case of a behavioral condition, placing the health of such person or others in serious jeop- ardy, (b) serious impairment to such person's bodily functions, (c) serious impairment of any bod- ily organ or part of such person, or (d) serious disfigurement of such person; and (13) Emergency services means health care services necessary to screen and stabilize a covered person in con- nection with an emergency medical condition.”
Any questions concerning the above statutes should be directed to the Life and Health Division at 402-471-2201.
Actions Taken Against Companies C AUSE N O. A LLEGATION D ISPOSITION C-1537
National States Insurance
Company
(MO ) Violated Neb.Rev.Stat. §44-703, Unfair Trade
Practices Act, Insurers Examination Act, Title 210
NAC Chapters 19, 33, 46 and 61. Consent Order
$12,500 admin. fine
11/7/06
C-1598
Midland National Life Insurance
Company
(SD) Violated Title 210 NAC Chapter 19 (008.02B).
Proper notice regarding replacement policy not
sent. Consent Order
$350 admin. fine
12/22/06 C-1604
Globe Life and Accident Insur-
ance Company
(OK) Violated Title 210 NAC Chapter 50 (005.01),
(006.02), & (006.03). Failed to follow advertise-
ment rules for life insurance and annuities. Consent Order
$1,500 admin. fine
12/28/06 C-1555, 1556, 1558, 1563,
1564, 1575, 1596, 1600, 1601,
and 1602
Conseco Senior Health Insurance
Company
(IN) Violated Unfair Trade Practices Act, Neb.Rev.
Stat. §44-5905(2)(b)(i)(B), Title 210 NAC Chapter
61. Note: This is a joint consent order for 10
administrative actions. Consent Order
$95,000 admin. fine
12/29/06
L EGAL D IVISION W INTER 2006 Page 6

Nebraska Supreme Court Cases Pogge v American Family Mutual Ins. Co., 272 Neb. 554 (November 9, 2006)
On January 15, 1999, Rosemary Pogge sustained serious injuries in an automobile accident with Sisson
and Mandell. Pogge settled a negligence suit with Sisson’s insurance carrier for the liability policy limit of $100,000. She settled with Mandell’s insurance carrier for $75,000, which was $25,000 below the liability policy limit. Pogge sought to recover additional damages from American Family under her
underinsured motorist coverage. Actions Taken Against Producers C AUSE NO. A LLEGATION D ISPOSITION A-1687
Rodney D. Watson
Phillips, NE Violated Neb.Rev.Stat. §§44-4059(1)(b), (e) & (h),
44-4061(1), and 44-4065(1). Violated any insur-
ance law; misrepresentation; used fraudulent, coer-
cive or dishonest practices; proper appointment
with insurance company not held; and failed to no-
tify the department of administrative action in an-
other jurisdiction. Order
$1,500 admin. fine
11/29/06 A-1690
James G. Vejvoda
Grand Island, NE Violated Neb.Rev.Stat. §§44-4059(1)(b) and (h).
Violated any insurance law; used fraudulent, coer-
cive or dishonest practices. Consent Order
$1,200 admin. fine
12/28/06 A-1693
Raymond J. Reifenrath, III
Sioux City, IA Violated Neb.Rev.Stat. §§44-4059(1)(b) & (f), 44-
4054(8), and 44-4065(2). Violated any insurance
law; convicted of a felony or a Class I, II, or III
misdemeanor; failed to change address within 30
days; failed to report criminal proceedings within
30 days. Consent Order
$3,500 admin. fine
11/22/06 A-1697
Scott Shea
Belleville, KS Hearing requested for reconsideration of denial of
application for nonresident producer license. Order
License granted
11/22/06 A-1699
Pamela J. Dorn
Beatrice, NE Hearing requested for reconsideration of denial of
application for resident producer license. Order
License granted
12/14/06 A-1700
Allison L. Klanecky
Grand Island, NE Violated Neb.Rev.Stat. §§44-4059(1)(b), (e), (g)
and (h). Violated any insurance law; misrepresen-
tation; committed unfair trade practice; and used-
fraudulent, coercive or dishonest practices Consent Order
$2,000 admin. fine
1/8/07
A-1702
Sally J. Beyer
Omaha, NE Violated Neb.Rev.Stat. §§44-354 and 44-4059(1)
(b) & (h). Rebating violation; violated any insur-
ance law; demonstrated financial irresponsibility. Consent Order
$1,000 admin. fine
1/8/07
W INTER 2006 Page 7 Pogge sought a declaratory judgment on American Family’s liability under the underinsured motorist pol-
icy. The District Court sustained American Family’s motion for summary judgment, concluding that the settlement established Mandell’s liability and Pogge had failed to exhaust Mandell’s liability coverage as required by the underinsured motorist policy.

The Nebraska Supreme Court reversed. First, the Court held that evidence of settlement by the insur-
ance carriers is not admissible to establish their liability. Neb.Rev.Stat. §27-408. Second, the Court con- cluded that there was no evidence of Mandell’s liability. Since Pogge had no responsibility to exhaust
Mandell’s liability coverage, she is entitled to underinsured motorist coverage from American Family.
Peterson v. Ohio Casualty Group, 272 Neb. 700 (December 8, 2006)
Holcomb, an anesthesiologist, filed a defamation suit against his former business partner, Peterson, al- leging that Peterson had made false and defamatory statements and allegations regarding Holcomb’s
competence and conduct. Holcomb further alleged that Peterson made unprivileged publication of false and defamatory communications to a hospital and several physicians.
Peterson filed a declaratory judgment action against Ohio Casualty seeking defense and indemnification
under his homeowner’s insurance and personal umbrella liability endorsement policies. Ohio Casualty argued that it was relieved of a duty to defend and indemnify Peterson under an exception in the policy for defamation suits “arising out of the business pursuits of an insured.” The district court granted Ohio
Casualty’s motion for summary judgment.
The issue in this case is the duty of an insurer to defend and indemnify an insured. An insurer’s duty to defend is primarily a matter of contract. The insurer bears the burden of proving that a claim falls under an exclusionary clause in a policy.

The Nebraska Supreme Court affirmed, concluding that Holcomb’s defamation suit clearly falls within the
“business pursuits” exclusion, and thus Ohio Casualty owed no duty under either of its policies to defend or indemnify the Petersons. Brodine v. Blue Cross Blue Shield of Nebraska, 272 Neb. 713 (December 8, 2006)
Brodine received several medical treatments during the period from January 9 to May 7, 1999. Her
health care provider filed a timely claim for coverage on a group health insurance policy from Blue Cross. Brodine initiated a suit to recover under the policy in U.S. District Court in April 2002, but the suit was dis- missed upon joint motion of the parties. Brodine subsequently filed suit in state district court. The dis-
trict court granted Blue Cross’ motion for summary judgment because the suit was time-barred. The pol- icy stated that a legal action for coverage must be brought within three years from the date the written
proof of loss is required. The Nebraska Supreme Court affirmed. The Court rejected Brodine’s argument that the three-year limita-
tions period is unenforceable. The 3-year limitations period is explicitly permitted under Neb.Rev.Stat. §44-710.03(11) and the contractual limitation pre-empts the general 5-year statute of limitations on writ-
ten contracts under Neb.Rev.Stat. §§25-505 and 44-357. The Court also rejected Brodine’s argument that the limitations period is tolled by the pendent federal action, concluding that Neb.Rev.Stat. §25- 201.01 does not apply. W INTER 2006 Page 8 Which is it: Insurance or Biblical Sharing? Recently, a Franklin County Circuit Court in Kentucky and the Montana First District Court issued final orders in actions brought against the American Evangelical Association and its division Christian Care Ministry doing business as Medi-Share. Among the various issues addressed by the court is whether Medi-Share acts as a form of medical insurance coverage and is therefore subject to state regulation or merely operates as a program by which members agree, as a group, to pay one another’s medical expenses based on a biblical concept of mutual sharing among Christians. The basic premise of the Medi-Share program is that member’s submit required monthly “shares” to Christian Care Ministry, which in turn are used to pay a member’s medical bills. The decision to pay a fellow member’s medical bills is allegedly a voluntary decision to be made by Christian members, and each member is specifi- cally notified that no claim or “need” is guaranteed.
In addressing whether Medi-Share met Montana’s definition of insurance, the Montana District Court ruled that Medi-Share was in fact medical insurance, and should obtain a certificate of authority to transact insurance in Montana. In its holding, the Montana Court specifically held the “[d]efendants [Medi-Share] are clearly conducting the business of insurance by determining eligibility for member- ship, using actuarial principals and health histories to determine premium amounts, applying specific conditions for payment including preexisting condition exclusions, pooling funds, using computer soft- ware to process claims, and using stop-loss insurance to insure against large claims.” Ultimately, the Montana Court determined that Medi-Share “is subject to the same state and federal regulation appli- cable to other non-profit insurers.” See Rowden v. American Evangelical Assoc., 2007 Mont. Dist. LEXIS 7.
Alternatively, two weeks after the Montana decision, the Franklin Circuit Court of Kentucky held that Medi-Share was not engaged in the business of providing insurance and that Medi-Share’s activity was exempt from state regulation as health insurance since it constituted a religious publication. Similar to the Montana Court, the Kentucky Court cited to a basic tenant of insurance law that requires any agreement, to be considered insurance, to shift risk from one party of the agreement to another. How- ever, unlike the Montana Court, the Kentucky Court held that “[u]nless the agreement transfers a risk of the individual member/subscriber to the Defendants or to other member/subscribers, it cannot be construed as a contract for ‘insurance’…[and] from the documents and testimony provided…it is ap- parent that there has been no risk shifting.” In its holding, the Kentucky Court placed significant em- phasis on its decision not to treat Medi-Share as health insurance on a Kentucky state law that pro- vides that certain groups shall not have the provisions of the insurance code applied to them, including religious publications, or its subscribers, that meets the various requirements of the aforementioned law. See KRS 304.1-120. In its holding, the Kentucky Court specifically stated, “[t]he Medi-Share pro- gram meets the requirements of a religious publication and is exempted from the provisions of the in- surance code.” See Bosch v. Christian Care Medi-Share, (Civ. 04-092).
The State of Nebraska Department of Insurance is aware that a small portion of Nebraska residents has become members of Christian Care Ministry and the Medi-Share program. Currently, the Depart- ment of Insurance has not taken a formal position as to whether Medi-Share constitutes health insur- ance under Nebraska law; however, the Department of Insurance will continue to monitor both of the aforementioned Montana and Kentucky cases’ transition to appellate courts as it considers its regula- tory position on this matter.

W INTER 2006 Page 9




All title insurance agents must have
a Financial Disclosure Form on file
with the Department, and must
provide a written disclosure to
consumers.














To understand when it is necessary
to provide these disclosures, it is
important to understand the definition
of “affiliated business” and “producer
of title insurance business” as they
apply in the context.




















A new form must be filed whenever
there is a change in any financial
interest that is subject to disclosure. Affiliated Business Disclosures Required
Nebraska law requires that all title insurance agents engaging in affiliated business transactions must comply with certain disclosure requirements as outlined in Neb.Rev.Stat. §44- 19,112. Under this provision, title agents must have a Finan- cial Disclosure Form (“Form”) on file with the Department, and must provide a written disclosure to consumers.
To understand when it is necessary to provide these disclo- sures, it is important to understand the definition of “affiliated business” and “producer of title insurance business” as they apply in this context. Affiliated business means any portion of a title insurance agent’s title insurance business written in this state that was referred to it by a producer of title insurance business or by an associate of the producer of title insurance business, if the producer of title insurance business or associate, or both, have a financial interest in the title insurance agent. See Neb.Rev.Stat. §44-19,108(2). Producer of title insurance business means any person, including an officer, director, or owner of five percent or more of the equity or capital of any person, engaged in this state in the trade, business, occupation, or profession of: (a) buying or selling interests in real property; (b) making loans secured by interests in real property; or (c) acting as broker, agent, representative, or attorney of a person who buys or sells any interest in real property or who lends or borrows money with the interest as security. See Neb.Rev.Stat. §44-19,108(10).
Neb.Rev.Stat. §44-19,112(3) provides that “the director shall require each title insurance agent to file, on forms prescribed by the director, reports setting forth the names and addresses of those persons, if any, that have a financial interest in the title insurance agent and who the title insurance agent knows or has reason to believe are producers of title insurance business or associates of producers of title insurance business.” The Form can be found on the Department’s website at www.doi.ne.gov/forms/exhibita.pdf or a copy may be requested from the Producer Licensing Division. Annual fil- ing of the Form is not required. However, a new Form must be filed whenever there is a change in any financial interest that is subject to disclosure. Forms should be submitted to the De- partment’s Producer Licensing Division.
Neb.Rev.Stat. §44-19,112(1) provides that “whenever title insurance business to be written constitutes affiliated business, prior to commencing the transaction, the title W INTER 2006 Page 10



Failure to provide a required disclosure
is a violation of the Title Insurance
Agent Act, which may result in the
revocation or suspension of the
agent’s license and/or the imposition
of a fine of up to $1,000 per violation.


















If you and/or your employees are
handling escrow or security deposit
funds, you must be in compliance
with the requirements of Nebraska
law, §44-19,109(3).















Failure to obtain and maintain a bond
or a letter of credit, or to have a
special deposit, is a violation of the
Title Insurance Agent Act.
insurance agent shall ensure that its customer has been provided with a written disclosure of the existence of the affiliated business arrangement and a written estimate of the charge or range of charges generally made for the title insurance services provided by the title insurance agent.” The title insurance agent should also ensure that the consumers being referred through an affiliated business arrangement are not being required to use a specific title insurance agent or title insurer. See Neb.Rev.Stat. §44-19,112(4)(b).
Failure to provide a required disclosure is a violation of the Ti- tle Insurance Agent Act. Violations of the Title Insurance Agent Act may result in the revocation or suspension of the agent’s license and/or the imposition of a fine of up to $1,000 per vio- lation. See Neb.Rev.Stat. §44-19,120.
Title Insurance Agent Bond Requirement
Nebraska law, §44-19,109(3), provides that “the director shall require the title insurance agent and any bona fide employee of the title insurance agent handling escrow or security deposits to maintain a surety bond, letter of credit, certificate of deposit, or deposit of cash or securities in an amount not less than one hundred thousand dollars covering all of the title insurance agent’s employees.”
If you and/or your employees are handling escrow or security deposit funds, you must be in compliance with this requirement. If you choose to fulfill your requirement through a bond or letter of credit, the bond or letter of credit should be filed with the Producer Licensing Division. Failure to obtain and maintain a bond or a letter of credit, or to have a special deposit, is a violation of the Title Insurance Agent Act. Viola- tions of the Title Insurance Agent Act may result in the revoca- tion or suspension of the agent’s license and/or the imposition of a fine of up to $1,000 per violation. See Neb.Rev.Stat. §44- 19,120.
Questions concerning the title agent requirements mentioned above can be directed to Janette Adair, Counsel, at 402-471- 2201. W INTER 2006 Page 11









Under existing reporting require-
ments, insurance producers are
required to report applicable
administrative actions or criminal
prosecutions within 30 days of
final disposition.













The Department tracks these
reports and may pursue admini-
strative action against the licenses
for failure to provide notice within
the timeframe required by statute.













All active insurance producers’
appointments will be automatically
renewed May 1, 2007, unless
canceled by the insurance company
prior to April 15, 2007.


Reporting Requirements for Insurance Producers The division would like to remind insurance producers of exist- ing reporting requirements. Producers are required to report ap- plicable administrative actions or criminal prosecutions within 30 days of final disposition. The applicable law states: Neb.Rev.Stat. §44-4065. Reports. (1) An insurance producer shall report to the director any administrative action taken against the producer in an- other jurisdiction or by another governmental agency in this state within thirty days of the final disposition of the matter. This report shall include a copy of the order, con- sent to order, or other relevant legal documents. (2) Within thirty days of the date of arraignment or date of waiver of arraignment, if waived, an insurance pro- ducer shall report to the director any criminal prosecu- tion of the producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the or- der resulting from the hearing, and any other relevant legal documents.
Please note that the Department tracks these reports and may pursue administrative action against the licenses for failure to provide notice within the timeframe required by statute.

Renewal of Producers’ Appointments Notices have been mailed to all insurance companies licensed to transact business in Nebraska concerning the renewal of pro- ducers’ appointments for 2007-2008. All active producers’ ap- pointments will be automatically renewed May 1, 2007, unless canceled by the insurance company prior to April 15, 2007. The notice also contains information regarding the process for termi- nating a producer’s appointment, the procedure for requests for cancellation forms received after April 15, 2007, company notifi- cation of producers who have failed to renew their licenses or have moved to another state, and the procedure for new ap- pointments of producers. P RODUCER L ICENSING D IVISION W INTER 2006 Page 12





Notices have been mailed to
insurance agencies outlining the
agency license renewal procedure
for May 1, 2007 to April 30, 2008.













To help protect licensed producers'
personal information, national
producer numbers, in lieu of
producers’ social security numbers,
will be used on appointment/
cancellation invoices beginning
April 1, 2007.




















Some of lines of insurance that
each analyst handles will be changed
during February and will be posted
on the Department’s website.







Agency License Renewals
Notices have been mailed to insurance agencies outlining the agency license renewal procedure for May 1, 2007 to April 30, 2008. The notice contains information regarding agencies li- censed under DBA names, adding or deleting a designated producer to an agency, deleting a name, changing an agency name or address, and documents that need to be submitted to the Department to renew an agency license.
Both of the aforementioned notices can be found on the De- partment’s website at www.doi.ne.gov.
Discontinued Use of Social Security Numbers In order to help protect licensed producers' personal informa- tion, the Nebraska Department of Insurance will no longer be using producers’ social security numbers on appointment/ cancellation invoices that are provided to the insurers. In lieu of the producers’ social security numbers, we will use the na- tional producer numbers.
The revised appointment/cancellation invoices will take place beginning April 1, 2007.
Should you have any questions regarding this, please contact the Department of Insurance at 402-471-2201.
Changes to Analyst Contact Information We are going to be changing some lines of insurance that each analyst handles in the near future. We hope to get this done during February, at which time we will update the schedule on the Department’s website at www.doi.ne.gov/pc/email.pdf. Until the changes are made, please continue using the analyst currently shown as your contact person for any given line. We are finding that changes in the marketplace, the use of SERFF, and our Rate and Form Act all have changed the amount of time it takes to do filings. By changing the lines handled, the work should be more evenly distributed. P ROPERTY & C ASUALTY D IVISION W INTER 2006 Page 13 Methods Under Which Various Lines of Insurance Are Reviewed During 2006, the division received 4,016 new filings. We accepted 3,109 filings on a file and use basis; 314 filings were approved and 95 filings were accepted as filed. Correspondence was requested on 297 filings. Usually correspondence is necessary if the filing includes language or rating plans that are not in compliance with the current Rate and Form Act. We have included a current schedule of the various property casualty lines of insurance and have shown the method under which they are reviewed. Filing Headings





























Please contact Bev Anderson; bev_anderson@doi.state.ne.us; 402-471-4654 ( phone) or 402- 471-6559 (fax), if you have any questions. File and Use Rates & Forms Filings Prior Approval Rates & Forms Filings 100 Commercial Lines Property 341 Medical Malpractice 150 Personal Lines Property 830 Mortgage Guaranty 200 Commercial Inland Marine 840 Title 250 Personal Inland Marine 850 Credit Property 300 Commercial General Liability 860 Credit Unemployment 330 Personal Liability 940 Financial Guaranty 340 Professional Liability 342 Directors and Officers 343 Lawyers Professional 380 Commercial Umbrella/Excess 390 Personal Umbrella/Excess 950 Miscellaneous, including GAP/Flood.
Requirements are determined by how marketed and sold. If written by a
group policy and charged by to an individual, it must be approved. 400 Commercial Auto 970 Accord Forms 450 Personal Auto/Motorcycle/Rec. Veh. 460 Boat Owners 500 Homeowners Filed/Forms Only Filings 505 Combination/Homeowners/Auto 510 Homeowners with Business 520 Farm Monoline & Pkg. 900 Auto Warranty 530 Other Dwelling Pkg. Policies Additional Lines Determined by Use 540 Mobile Home/Mobile Homeowners 600 Crop Hail 975 All Programs 610 Workers’ Comp (prior app – forms) 980 All Personal Lines 620 Crime (Burglary & Theft) 1000 Risk Retention 630 Fidelity & Surety 650 Glass 660 Boiler & Machinery 700 Commercial Package 800 Aircraft (not filed) 880 Credit 930 Prepaid Legal 940 Financial Guaranty W INTER 2006 Page 14
Chief Financial Examiner Named
James Nixon has been promoted by Director Wagner to the position of Chief Financial Examiner. Jim began his employment with the Department as a field examiner, leaving the field examination staff in 2002 to serve as the Department’s Deputy Chief Examiner. He has held the position of Acting Chief Financial Examiner for the past six months following the retirement of David Krumm.
As Chief Financial Examiner, Jim will be responsible for the primary financial oversight of approxi- mately $300 billion in assets of Nebraska’s domestic insurance industry. He has been and will continue to be active in various committees, task forces, and working groups of the National As- sociation of Insurance Commissioners. “The Chief Financial Examiner position is one of considerable import given the size of our domestic industry. Jim will continue to play a strong role in assuring that we continue Nebraska’s tradition of strong but fair financial regulation.”—Director Tim Wagner

Pre-Need Exams Completed During Fourth Quarter, 2006
Blase-Strauser Memorial Chapel, Inc. Catholic Cemeteries-Archdiocese Forest Lawn Memorial Park Govier Brothers Mortuary, Inc. Livingston-Butler-Volland Funeral Home Metro Cremation, Inc.
Financial Examinations Completed During Fourth Quarter, 2006
German Farmers Mutual Assessment Insurance Association of Hall County German Mutual Insurance Company of Dodge County Polk and Butler Mutual Insurance Company Safeway Property Insurance Company Scandinavian Mutual Insurance Company Woodmen of the World Life Insurance Society
Financial examination reports become public docu-
ments once they have been placed on official file by
the Department. Copies may be obtained from the
Department at the cost of $.50 per page. E XAMINATION D IVISION W INTER 2006 Page 15
Market Conduct Examinations Completed June-December 2006
Assurity Life Insurance Company Blue Cross and Blue Shield of Nebraska Conseco Senior Health Insurance Company Empire Fire and Marine Insurance Company Farmers Mutual Insurance Company of Nebraska M ARKET C ONDUCT D IVISION 2007 NAIC Committee Assignments Co-Chair Climate Change and Global Warming (EX) Task Force
Vice-Chair Life Insurance and Annuities (A) Committee
Member Principles-Based Reserving (EX) Working Group
Member Regulatory Framework (B) Task Force
Member Senior Issues (B) Task Force
Member Property and Casualty Insurance (C) Committee
Member Workers’ Compensation (C) Task Force
Member Antifraud (D) Task Force
Member Accounting Practices and Procedures (E) Task Force
Member Capital Adequacy (E) Task Force
Member Examination Oversight (E) Task Force
Member Valuation of Securities (E) Task Force
Member International Insurance Relations (G) Committee
Member Life and Health Actuarial (Technical) Task Force Prst std U.S. POSTAGE PAID Lincoln, Nebraska Permit No. 212 State of Nebraska
Department of Insurance
941 O Street, Suite 400
Lincoln, Nebraska 68508 Website: http://www.doi.ne.gov Phone: 402-471-2201 Fax: 402-471-4610 Hours: 8:00–5:00 Department Calendar
Feb. 19: Department Closed – President’s Day
April 27: Department Closed – Arbor Day —Save the Date— June 13: Annual Fraud Conference
Mahoney State Park (details available at later date) 22 69 00