Nebraska Warns of Improper Producer Practices

The Nebraska Department of Insurance Market Conduct Division has responded to several situations recently that involve insurance producers engaging in fraudulent, dishonest practices, and demonstrating financial irresponsibility in their conduct of insurance business. Several situations revealed that the insurers placing the business were aware of the business practices and some, but not all, insurers were terminating the producer’s appointment without properly
notifying the director of the appropriate reason for termination.

As a result, the DOI is reminding producers that Neb.Rev.Stat. §44-4062(1) requires that when an insurer terminates the appointment of an insurance producer that is engaging in any of the reasons stated in section 44-4059 that the insurer notify the director within 30 days following the effective date of the termination of the specific reason for the termination. If an insurance producer is engaging in an action
that would justify the suspension, revocation, or the refusal to
issue or renew an insurance producer’s license, an explanation
of “miscellaneous reasons” is not an adequate or a specific
reason for termination. Allowing an insurance producer to
continue operating in such a manner causes potential harm to
consumers and insurance companies alike.

Source: DOI