Note To Collision Repair Shops
Please Refer To
Sections 44-1536 – 44-1544
With Particular Attention To Section 1540
 
Nebraska Statutes
Unfair Claims Settlement Act
 
44-1521
Act, how cited.
 
 Sections 44-1521 to 44-1535 shall be known and may be cited as the Unfair Insurance Trade Practices Act.
 
Source:
Laws 1991, LB 234, § 3.
 
44-1522
Purpose of act.
 
 The purpose of the Unfair Insurance Trade Practices Act is to regulate unfair trade practices in the business of insurance, in accordance with the intent of the Congress of the United States as expressed in Public Law 79-15, by defining, or providing for the determination of, all acts and practices in this state which constitute unfair trade practices and by prohibiting the acts and practices so defined or determined.

 
Source:
Laws 1973, LB 349, § 1; Laws 1991, LB 234, § 4.
 
44-1523
Terms, defined.
 
 For purposes of the Unfair Insurance Trade
Practices Act:
 (1) Department shall mean the Department of Insurance;
 (2) Director shall mean the Director of Insurance;
 (3) Insured shall mean the party named on a policy or certificate as the individual with legal rights to the benefits provided by such policy or certificate;
 (4) Insurer shall mean any person, reciprocal exchange, interinsurer, Lloyds-type insurer or other similar group which includes incorporated and individual unincorporated underwriters,fraternal benefit society, and other legal entity engaged in the business of insurance, including agents, brokers, insurance consultants, adjusters, and third-party administrators. Insurer shall also mean health maintenance organizations, prepaid limited health service organizations, and dental, optometric, and other similar health service plans. For purposes of the act, all such insurers shall be deemed to be engaged in the business of insurance;
 (5) Person shall mean any natural or artificial entity, including, but not limited to, an individual, partnership,limited liability company, association, trust, or corporation; and
 (6) Policy or certificate shall include any contract of
insurance, indemnity, suretyship, or annuity issued, proposed for issuance, or intended for issuance by any insurer.

 
Source:
Laws 1973, LB 349, § 2; Laws 1989, LB 92, § 173; Laws 1991, LB 234, § 5;
Laws 1993, LB 121, § 230; Laws 1994, LB 978, § 21.
 
44-1524
Unfair trade practice; prohibited acts.
 
 It shall be an unfair trade practice in the business of insurance for any insurer to commit any act or practice defined in section 44-1525 if the act or practice (1) is
committed flagrantly and in conscious disregard of the Unfair Insurance Trade Practices Act or any rule or regulation adopted pursuant to the act or (2) has been committed with such frequency as to indicate a general business practice to engage in that type of conduct.

 
Source:
Laws 1973, LB 349, § 3; Laws 1991, LB 234, § 6.
 
44-1525
Unfair trade practices; enumerated.
 
 Any of the following acts or practices, if committed in violation of section 44-1524, shall be unfair trade practices in the business of insurance:
 (1) Making, issuing, circulating, or causing to be made, issued, or circulated any estimate, illustration, circular,statement, sales presentation, omission, or comparison which:
 (a) Misrepresents the benefits, advantages, conditions, or terms of any policy;
 (b) Misrepresents the dividends or share of the surplus to be received on any policy;
 (c) Makes any false or misleading statements as to the dividends or share of surplus previously paid on any policy;
 (d) Misleads as to or misrepresents the financial condition of any insurer or the legal reserve system upon which any life insurer operates;
 (e) Uses any name or title of any policy or class of policies which misrepresents the true nature thereof;
 (f) Misrepresents for the purpose of inducing or tending to induce the purchase, lapse, forfeiture, exchange, conversion, or surrender of any policy, including intentionally misquoting any premium rate;
 (g) Misrepresents for the purpose of effecting a pledge or assignment of or effecting a loan against any policy; or
 (h) Misrepresents any policy as being shares of stock;
 (2) Making, publishing, disseminating, circulating, or
placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio or television station, or in any other way, an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the
business of insurance or with respect to any insurer in the conduct of his or her insurance business which is untrue, deceptive, or misleading;
 (3) Making, publishing, disseminating, or circulating,
directly or indirectly, or aiding, abetting, or encouraging the making, publishing, disseminating, or circulating of any oral or written statement or any pamphlet, circular, article, or literature which is false or maliciously critical of or derogatory to the financial condition of any insurer and which is calculated to injure such insurer;
 (4) Entering into any agreement to commit or by any concerted action committing any act of boycott, coercion, or intimidation resulting in or tending to result in unreasonable restraint of or monopoly in the business of insurance;
 (5)(a) Knowingly filing with any supervisory or other public official, or knowingly making, publishing, disseminating, circulating, or delivering to any person, or placing before the public, or knowingly causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement of fact as to the financial condition of an insurer; or
 (b) Knowingly making any false entry of a material fact in any book, report, or statement of any insurer or knowingly omitting to make a true entry of any material fact pertaining to the business of such insurer in any book, report, or statement of such insurer;
 (6) Issuing or delivering or permitting agents, officers, or employees to issue or deliver agency company stock or other capital stock, or benefit certificates or shares in any common-law corporation, or securities or any special or advisory board contracts or other contracts of any kind promising returns and profits as an inducement to insurance;
 (7)(a) Making or permitting any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any life insurance policy or annuity or in the dividends or other benefits payable thereon or in any other of the terms and conditions of such policy or annuity;
 (b) Making or permitting any unfair discrimination
between individuals of the same class involving essentially the same hazards in the amount of premium, policy fees, or rates charged for any sickness and accident insurance policy or in the benefits payable thereunder, in any of the terms or conditions of such policy, or in any other manner, except that this subdivision shall not limit the negotiation of preferred provider policies and contracts under sections 44-4101 to 44-4113;
 (c) Making or permitting any unfair discrimination between individuals or risks of the same class and of essentially the same hazards by refusing to issue, refusing to renew,
canceling, or limiting the amount of insurance coverage on a property or casualty risk because of the geographic location of the risk unless:
 (i) The refusal, cancellation, or limitation is for a business purpose which is not a pretext for unfair discrimination; or
 (ii) The refusal, cancellation, or limitation is required by law, rule, or regulation;
 (d) Making or permitting any unfair discrimination
between individuals or risks of the same class and of essentially the same hazards by refusing to issue, refusing to renew, canceling, or limiting the amount of insurance coverage on a residential property risk, or the personal property contained therein, because of the age of the residential property unless:
 (i) The refusal, cancellation, or limitation is for a business purpose which is not a pretext for unfair discrimination; or
 (ii) The refusal, cancellation, or limitation is
required by law, rule, or regulation;
 (e) Refusing to insure, refusing to continue to insure, or limiting the amount of coverage available to an individual solely because of the sex or marital status of the individual.
This subdivision shall not prohibit an insurer from taking marital status into account for the purpose of defining individuals eligible for dependent benefits; or
 (f) Terminating or modifying coverage or refusing to issue or refusing to renew any property or casualty insurance policy solely because the applicant or insured or any employee of the applicant or insured is mentally or physically impaired unless:
 (i) The termination, modification, or refusal is for a business purpose which is not a pretext for unfair discrimination; or
 (ii) The termination, modification, or refusal is required by law, rule, or regulation.
 This subdivision (f) shall not apply to any sickness and accident insurance policy sold by a casualty insurer and shall not be interpreted to modify any other provision of law relating to the termination, modification, issuance, or renewal of any policy;
 (8)(a) Except as otherwise expressly provided by law:
 (i) Knowingly permitting or offering to make or making any life insurance policy, annuity, or sickness and accident insurance policy, or agreement as to any such policy or annuity,other than as plainly expressed in the policy or annuity issued thereon, or paying, allowing, or giving, or offering to pay, allow, or give, directly or indirectly, as inducement to such policy or annuity, any rebate of premiums payable on the policy or annuity, or any special favor or advantage in the dividends or other benefits thereon, or any valuable consideration or inducement whatever not specified in the policy or annuity; or
 (ii) Giving, selling, purchasing, or offering to give, sell, or purchase as inducement to such policy or annuity or in connection therewith any stocks, bonds, or other securities of any insurer or other corporation, association, partnership, or limited liability company, or any dividends or profits accrued thereon, or anything of value not specified in the policy or annuity.
 (b) Nothing in subdivision (7) or (8)(a) of this section shall be construed as including within the definition of discrimination or rebates any of the following acts or practices:
 (i) In the case of any life insurance policy or annuity, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance if such bonuses or abatement of premiums are fair and equitable to policyholders and for the best interests of the insurer and its policyholders;
 (ii) In the case of life insurance policies issued on the industrial debit plan, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount which fairly represents the saving in collection expenses; or (iii) Readjustment of the rate of premium for a group
insurance policy based on the loss or expense thereunder, at the end of the first or any subsequent policy year of insurance thereunder, which may be made retroactive only for such policy year;
 (9) Failing of any insurer to maintain a complete record of all the complaints received since the date of its last examination conducted pursuant to the Insurers Examination Act.
This record shall indicate the total number of complaints, their classification by line of insurance, the nature of each complaint, the disposition of each complaint, and the time it took to process each complaint. For purposes of this subdivision, complaint shall mean any written communication primarily expressing a grievance;
 (10) Making false or fraudulent statements or representations on or relative to an application for a policy for the purpose of obtaining a fee, commission, money, or other benefit from any insurer, agent, broker, or individual person;
 (11) Failing of any insurer, upon receipt of a written inquiry from the department, to respond to such inquiry or request additional reasonable time to respond within fifteen working days;
 (12) Accepting applications for or writing any policy of insurance sold, negotiated, or solicited by an insurance producer or business entity not licensed or appointed as required by the Insurance Producers Licensing Act; and
 (13) Violating any provision of section 44-320, 44-348,
44-360, 44-361, 44-369, 44-393, 44-515 to 44-518, 44-522, 44-523,
44-2132 to 44-2134, 44-3606, 44-4809, 44-4812, 44-4817, or
44-5266, the Privacy of Insurance Consumer Information Act, or the Unfair Discrimination Against Subjects of Abuse in Insurance Act.

 
Source:
Laws 1973, LB 349, § 4; Laws 1978, LB 766, § 1; Laws 1980, LB 877, § 13;
Laws 1984, LB 902, § 17; Laws 1985, LB 2, § 3; Laws 1989, LB 92, § 174;
Laws 1989, LB 319, § 70; Laws 1991, LB 233, § 46; Laws 1991, LB 235, § 5;
Laws 1991, LB 234, § 7; Laws 1993, LB 121, § 231;
Laws 1993, LB 583, § 74; Laws 1994, LB 978, § 22;
Laws 1994, LB 1222, § 59; Laws 1995, LB 473, § 3;
Laws 1997, LB 53, § 48; Laws 1998, LB 1035, § 4;
Laws 1999, LB 191, § 2; Laws 2001, LB 51, § 28;
Laws 2001, LB 52, § 46.
Note: The Revisor of Statutes has pursuant to section 49-769 correlated LB 51, section 28, with LB 52, section 46, to reflect all amendments.
Note: The changes made by LB 52 became operative
April 5, 2001. The changes made by LB 51 became
effective September 1, 2001.
 
44-1526
Lender or creditor; prohibited acts; director; powers.
 
 (1) No person who lends money or extends
credit shall:
 (a) Require, as a condition precedent to the lending of
money or extension of credit or any renewal thereof, that the borrower, mortgagor, or purchaser to whom such money or credit is extended or whose obligation the creditor is to acquire or finance negotiate any policy or renewal thereof through a particular insurer or group of insurers or agent or broker or group of agents or brokers;
 (b) Solicit insurance for the protection of real
property after a borrower, mortgagor, or purchaser indicates interest in securing a first mortgage credit extension until such borrower, mortgagor, or purchaser has received a commitment in writing from the lender as to a loan or credit extension. This requirement for a commitment shall not apply when the premium for the required insurance is to be financed as part of the loan or extension of credit involving personal property transactions;
 (c) Unreasonably reject a policy furnished by the
borrower, mortgagor, or purchaser for the protection of the
property securing the credit or lien. A rejection shall not be deemed unreasonable if it is based on reasonable standards,uniformly applied, relating to the extent of coverage required and the financial soundness and the services of an insurer. Such standards shall not discriminate against any particular type of insurer and shall not call for rejection of a policy because it
contains coverage in addition to that required in the credit transaction;
 (d) Require that any borrower, mortgagor, purchaser, insurer, broker, or agent pay a separate charge in connection with the handling of any policy required as security for a loan on real property or pay a separate charge to substitute the policy of one insurer for that of another. This subdivision shall not include the interest which may be charged on premium loans or premium advancements in accordance with the terms of the loan or credit document;
 (e) Use or disclose, without the prior written consent of the borrower, mortgagor, or purchaser taken at a time other than the making of the loan or extension of credit, information relative to a policy which is required by the credit transaction for the purpose of replacing such insurance; or
 (f) Require any procedures or conditions of duly licensed agents, brokers, or insurers not customarily required of those agents, brokers, or insurers affiliated or in any way connected with the person who lends money or extends credit.
 (2) The director may examine and investigate those insurance-related activities of any person who the director believes may be in violation of this section. Any affected
person may submit to the director a complaint or material pertinent to the enforcement of this section.
 (3) Nothing in this section shall prevent a person who lends money or extends credit from placing insurance on real or personal property in the event the borrower, mortgagor, or purchaser has failed to provide required insurance in accordance with the terms of the loan or credit document.
 (4) Nothing in this section shall apply to credit life or credit accident and health insurance.

 
Source:
Laws 1973, LB 349, § 5; Laws 1991, LB 234, § 8.
 
44-1527
Director; investigatory powers; costs.
 
 The director may examine and investigate the
affairs of every insurer doing business in this state in order to determine whether such insurer has been or is engaged in any unfair trade practice defined in section 44-1524. An insurer other than an agent, broker, or insurance consultant shall reimburse the department for the expense of examination in the same manner as provided for examination of insurance companies in the Insurers Examination Act.

 
Source:
Laws 1973, LB 349, § 6; Laws 1991, LB 234, § 9; Laws 1993, LB 583, § 75.
 
44-1528
Practices; hearings; witnesses; appearances; production of books;
service of process.
 
 (1) Whenever the director has reason to believe that any insurer has engaged or is engaging in this state in any unfair trade practice whether or not defined in the Unfair Insurance Trade Practices Act and that a proceeding by him or her in respect thereto would be to the interest of the public, he or she shall issue and serve upon such insurer a statement of the charges in that respect and a notice of a hearing thereon to be held at a time and place fixed in the notice, which shall not be less than ten days after the date of the service thereof.
 (2) At the time and place fixed for such hearing, such insurer shall have an opportunity to be heard and to show cause why an order should not be made by the director requiring such insurer to cease and desist from the acts or practices so complained of. Upon good cause shown, the director shall permit any person to intervene, appear, and be heard at such hearing by counsel or in person.
 (3) Nothing contained in the Unfair Insurance Trade Practices Act shall require the observance at any such hearing of formal rules of pleading or evidence.
 (4) The director, upon such hearing, may administer oaths, examine and cross-examine witnesses, receive oral and documentary evidence, subpoena witnesses, compel their
attendance, and require the production of books, papers, records, correspondence, or other documents which he or she deems relevant to the inquiry. The director may, and upon the request of any interested party shall, cause to be made a stenographic record of all the evidence and all the proceedings had at such hearing. If no stenographic record is made and if a judicial review is sought, the director shall prepare a statement of the evidence and proceeding for use on review. In case of a refusal of any
person to comply with any subpoena issued under this section or to testify with respect to any matter concerning which he or she may be lawfully interrogated, the district court of Lancaster County or the county where such party resides, on application of the director, may require such person to comply with such subpoena and to testify, and any failure to obey any such order of the court may be punished by the court as a contempt thereof.
 (5) Statements of charges, notices, orders, and other processes of the director under the act may be served by anyone duly authorized by the director, either in the manner provided by law for service of process in civil actions or by mailing a copy thereof to the person affected by such statement, notice, order,or other process at his, her, or its residence or principal office or place of business by either certified or registered mail, return receipt requested. The verified return by the person so serving such statement, notice, order, or other process, setting forth the manner of such service, shall be proof of the same, and the return receipt for such statement, notice, order, or other process, registered and mailed, shall be proof of the service of the same.

 
Source:
Laws 1973, LB 349, § 7; Laws 1991, LB 234, § 10.
 
44-1529
Cease and desist order; monetary penalty; suspension or
revocation of license or certificate.
 
 If, after the hearing, the director finds that the insurer charged has engaged in an unfair trade practice,he or she shall reduce his or her findings to writing and shall issue and cause to be served upon the insurer charged with the violation a copy of such findings and an order requiring such insurer to cease and desist from engaging in the act or practice and he or she may order any one or more of the following:
 (1) Payment of a monetary penalty of not more than one thousand dollars for each violation, not to exceed an aggregate penalty of thirty thousand dollars, unless the violation was committed flagrantly in conscious disregard of the Unfair Insurance Trade Practices Act, in which case the penalty shall be not more than fifteen thousand dollars for each violation, not to exceed an aggregate penalty of one hundred fifty thousand dollars; and
 (2) Suspension or revocation of the insurer's license
or certificate of authority if the insurer knew or reasonably should have known that he, she, or it was in violation of the act.

 
Source:
Laws 1973, LB 349, § 8; Laws 1991, LB 234, § 11.
 
44-1530
Appeals.
 
 (1) Any insurer subject to an order of the director under section 44-1529 or 44-1532 may appeal the order. The appeal shall be in accordance with the Administrative
Procedure Act.
 (2) An order issued by the director under section 44-1529 shall become final:
 (a) Upon the expiration of the time allowed for filing a petition for review if no such petition has been duly filed,except that the director may thereafter modify or set aside his or her order; or
 (b) Upon the final decision of the court if the court directs that the order of the director be affirmed or the petition for review dismissed.
 (3) No order of the director under the Unfair Insurance Trade Practices Act or order of a court to enforce such order shall in any way relieve or absolve any person affected by such order from any liability under any other laws of this state.

 
Source:
Laws 1973, LB 349, § 9; Laws 1988, LB 352, § 60; Laws 1991, LB 234, § 12.
 
44-1531
Intervenor; appeal.
 
 If, after any hearing as provided by section 44-1528 or 44-1532, the report of the director does not charge a violation of the Unfair Insurance Trade Practices Act, then any intervenor as provided by section 44-1528 may, within ten days after the service of such report, appeal the findings of the director. The appeal shall be in accordance with the Administrative Procedure Act. Upon such appeal, the court may issue appropriate orders and decrees in connection therewith, including, if the court finds that it is in the interest of the public, orders enjoining and restraining the continuance of any act or practice which it finds, notwithstanding such report of the director, constitutes a violation of the Unfair Insurance Trade Practices Act and containing penalties pursuant to section
44-1529.

 
Source:
Laws 1973, LB 349, § 10; Laws 1988, LB 352, § 61;
Laws 1991, LB 234, § 13.
 
44-1532
Cease and desist orders; violations.
 
 Any insurer who violates a cease and desist order of the director under section 44-1529 may after notice and hearing and upon order of the director be subject to:
 (1) A monetary penalty of not more than thirty thousand dollars for each violation, not to exceed an aggregate penalty of one hundred fifty thousand dollars; and
 (2) Suspension or revocation of the insurer's license or certificate of authority.

 
Source:
Laws 1973, LB 349, § 11; Laws 1991, LB 234, § 14.
 
44-1533
Rules and regulations.
 
 The director may adopt and promulgate rules and regulations to carry out the Unfair Insurance Trade Practices Act.

 
Source:
Laws 1973, LB 349, § 12; Laws 1989, LB 92, § 175;
Laws 1991, LB 234, § 15.
 
44-1534
Director; additional powers.
 
 The powers vested in the director by the Unfair Insurance Trade Practices Act shall be additional to any other powers to enforce any penalties, fines, or forfeitures authorized by law with respect to the acts and practices defined and determined by such act to be unfair.

 
Source:
Laws 1973, LB 349, § 13; Laws 1991, LB 234, § 16.
 
44-1535
Immunity from prosecution; when.
 
 If any person asks to be excused from attending and testifying or from producing any books, papers, records, correspondence, or other documents at any hearing on the ground that the testimony or evidence required may tend to incriminate the person or subject the person to a penalty or forfeiture and the person is directed to give such testimony or produce such evidence, the person must comply with such direction but shall not thereafter be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which the person may testify or produce evidence and no testimony so given or evidence produced shall be received against the person upon any criminal action, investigation, or proceeding. No such person so testifying shall be exempt from prosecution or punishment for any perjury
committed while so testifying, and the testimony or evidence so given or produced shall be admissible against the person in any criminal action, investigation, or proceeding concerning such perjury, nor shall the person be exempt from the refusal, revocation, or suspension of any license, permission, or authority conferred, or to be conferred, pursuant to the insurance laws of this state. Any such person may execute, acknowledge, and file in the office of the director a statement expressly waiving such immunity or privilege in respect to any transaction, matter, or thing specified in such statement, and thereupon the testimony of such person or such evidence in
relation to such transaction, matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury, or otherwise, and if so received or produced such person shall not be entitled to any immunity or privilege on account of any testimony the person may so give or evidence so produced.

 
Source:
Laws 1973, LB 349, § 14; Laws 1991, LB 234, § 17.
 
44-1536
Act, how cited.
 
 Sections 44-1536 to 44-1544 shall be known and may be cited as the Unfair Insurance Claims Settlement Practices Act.

 
Source:
Laws 1991, LB 234, § 18.
 
44-1537
Purpose of act.
 
 The purpose of the Unfair Insurance Claims Settlement Practices Act is to set forth standards for the investigation and disposition of claims arising under policies issued to residents of this state.

 
Source:
Laws 1991, LB 234, § 19.
 
44-1538
Terms, defined.
 
 (1) For purposes of the Unfair Insurance Claims Settlement Practices Act:
 (a) Director shall mean the Director of Insurance;
 (b) Insured shall mean the party named on a policy or certificate as the individual with legal rights to the benefits provided by such policy or certificate;
 (c) Insurer shall mean any person, reciprocal exchange, interinsurer, Lloyds-type insurer or other similar group which includes incorporated and individual unincorporated underwriters, fraternal benefit society, and other legal entity engaged in the business of insurance, including agents, brokers, insurance consultants, adjusters, and third-party administrators. Insurer shall also mean health maintenance organizations, prepaid limited health service organizations, and dental, optometric, and other similar health service plans. For purposes of the act, all such insurers shall be deemed to be engaged in the business of insurance;
 (d) Person shall mean any natural or artificial entity, including, but not limited to, an individual, partnership, limited liability company, association, trust, or corporation; and
 (e) Policy or certificate shall include any contract of insurance, indemnity, or annuity issued, proposed for issuance, or intended for issuance by any insurer. Policy or certificate shall not include contracts of workers' compensation, fidelity, suretyship, or boiler and machinery insurance.
 (2) The purpose of the definitions in this section is to include within the act and any rules and regulations adopted pursuant to the act all entities and activities to the extent not preempted by the federal Employee Retirement Income Security Act of 1974, as amended.

 
Source:
Laws 1991, LB 234, § 20; Laws 1993, LB 121, § 232;
Laws 1994, LB 978, § 23.
 
44-1539
Unfair claims settlement practice; conduct prohibited.
 
 It shall be an unfair claims settlement practice for any domestic, foreign, or alien insurer transacting business in this state to commit an act or practice defined in section 44-1540 if the act or practice (1) is committed flagrantly and in conscious disregard of the Unfair Insurance Claims Settlement Practices Act or any rule or regulation adopted pursuant to the act or (2) has been committed with such frequency as to indicate a general business practice to engage in that type of conduct.

 
Source:
Laws 1991, LB 234, § 21.
 
44-1540
Unfair claims settlement practice; acts and practices prohibited.
 
 Any of the following acts or practices by an insurer, if committed in violation of section 44-1539, shall be an unfair claims settlement practice:
 (1) Knowingly misrepresenting to claimants and insureds relevant facts or policy provisions relating to coverages at issue;
 (2) Failing to acknowledge with reasonable promptness pertinent communications with respect to claims arising under its policies;
 (3) Failing to adopt and implement reasonable standards for the prompt investigation and settlement of claims arising under its policies;
 (4) Not attempting in good faith to effectuate prompt, fair, and equitable settlement of claims submitted in which liability has become reasonably clear;
 (5) Not attempting in good faith to effectuate prompt, fair, and equitable settlement of property and casualty claims in which coverage and the amount of the loss are reasonably clear;
 (6) Compelling insureds or beneficiaries to institute litigation to recover amounts due under its policies by offering substantially less than the amounts ultimately recovered in litigation brought by them;
 (7) Refusing to pay claims without conducting a reasonable investigation;
 (8) Failing to affirm or deny coverage of a claim within a reasonable time after having completed its investigation related to such claim;
 (9) Attempting to settle a claim for less than the amount to which a reasonable person would believe the insured or beneficiary was entitled by reference to written or printed advertising material accompanying or made part of an application;
 (10) Attempting to settle claims on the basis of an application which was materially altered without notice to or knowledge or consent of the insured;
 (11) Making a claims payment to an insured or beneficiary without indicating the coverage under which each payment is being made;
 (12) Unreasonably delaying the investigation or payment of claims by requiring both a formal proof-of-loss form and subsequent verification that would result in duplication of
information and verification appearing in the formal proof-of-loss form;
 (13) Failing, in the case of the denial of a claim or the offer of a compromise settlement, to promptly provide a reasonable and accurate explanation of the basis for such action;
 (14) Failing to provide forms necessary to present claims with reasonable explanations regarding their use within fifteen working days of a request;
 (15) Failing to adopt and implement reasonable standards to assure that the repairs of a repairer owned by or affiliated with the insurer are performed in a skillful manner. For purposes of this subdivision, a repairer is affiliated with the insurer if there is a preexisting arrangement, understanding, agreement, or contract between the insurer and repairer for services in connection with claims on policies issued by the insurer; and
 (16) Requiring the insured or claimant to use a particular company or location for motor vehicle repair. Nothing in this subdivision shall prohibit an insurer from entering into discount agreements with companies and locations for motor vehicle repair or otherwise entering into any business arrangements or affiliations which reduce the cost of motor vehicle repair if the insured or claimant has the right to use a particular company or reasonably available location for motor vehicle repair. If the insured or claimant chooses to use a particular company or location other than the one providing the lowest estimate for like kind and quality motor vehicle repair, the insurer shall not be liable for any cost exceeding the lowest estimate. For purposes of this subdivision, motor vehicle repair
shall include motor vehicle glass replacement and motor vehicle glass repair.

 
 
Source:
Laws 1991, LB 234, § 22; Laws 1992, LB 1006, § 16;
Laws 1994, LB 978, § 24; Laws 1997, LB 543, § 1.
 
44-1541
Director; charges against insurer; notice; hearing.
 
 If the director finds that any insurer doing business in this state is engaging in any unfair claims settlement practice and that a proceeding in respect thereto would be in the public interest, he or she shall issue and serve upon such insurer a statement of the charges in that respect and a notice of hearing thereon, which notice shall set a hearing date not less than ten days from the date of the notice.

 
Source:
Laws 1991, LB 234, § 23.
 
44-1542
Director; cease and desist order; other orders; authorized.
 
 If, after the hearing, the director finds an insurer has engaged in an unfair claims settlement practice, he or she shall reduce his or her findings to writing and shall issue and cause to be served upon the insurer charged with the violation a copy of the findings and an order requiring the insurer to cease and desist from engaging in the act or practice and he or she may order any one or more of the following:
 (1) Payment of a monetary penalty of not more than one thousand dollars for each violation, not to exceed an aggregate penalty of thirty thousand dollars, unless the violation was committed flagrantly and in conscious disregard of the Unfair Insurance Claims Settlement Practices Act, in which case the penalty shall not be more than fifteen thousand dollars for each violation, not to exceed an aggregate penalty of one hundred fifty thousand dollars; and (2) Suspension or revocation of the insurer's license or certificate of authority if the insurer knew or reasonably should have known it was in violation of the act.

 
Source:
Laws 1991, LB 234, § 24.
 
44-1543
Violation of cease and desist order; penalties authorized.
 
 Any insurer who violates a cease and desist order of the director under section 44-1542 may after notice and hearing and upon order of the director be subject to:
 (1) A monetary penalty of not more than thirty thousand dollars for each violation, not to exceed an aggregate penalty of one hundred fifty thousand dollars; and
 (2) Suspension or revocation of the insurer's license or certificate of authority.

 
Source:
Laws 1991, LB 234, § 25.
 
44-1544
Director; rules and regulations.
 
The director may adopt and promulgate rules and regulations to carry out the Unfair Insurance Claims Settlement Practices Act.
 
Source:
Laws 1991, LB 234, § 26.