Credit History/Territorial Rating Bill Made Less Onerous for Neb. Insurers

The National Association of Independent Insurers (NAII) claimed a major victory for insurers in the recently concluded state legislative session by amending legislation that would have restricted the use of credit and territory in underwriting. The amended bill then was enacted.

According to NAII Counsel Ann Weber, Legislative Bill 444, in its final form, is much less onerous than its initial version. Now, insurers will only be required to disclose to their policyholders the territory on which their rates are based and whether credit was used in determining their rate.

Also enacted were:

LB 51, a producer licensing bill that appears to meet the reciprocity requirements of the federal Gramm-Leach-Bliley Act (GLBA).

LB 52, containing consumer privacy provisions that include health information. NAII opposed the inclusion of health information believing such a provision goes beyond GLBA and will increase the cost of insurance by requiring insurers to set up two separate and distinct systems for handling consumer financial and health information.

LB 55, a structured settlements transfers protection act.

LB 166, lowering the blood alcohol limit from .10 to .08 for anyone operating a motorboat.

Bills that did not pass this session but will be carried over to next year’s session include:

LB 488, which would have created a motor vehicle insurance identification data base and required insurers to report extensive information on insured vehicles and drivers.

LB 167, which would have lowered the blood alcohol limit from .10 to .08 for anyone operating a motor vehicle on state roadways.

LB 234, which would have restricted the use of cellular phones while driving a motor vehicle.

LB 534, which would have authorized the use of red light cameras.