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Senate advances bill easing in-state director residency requirement for some insurance companies
Summary
The Legislature advanced LB325, which creates an affidavit-based exception to the statutory requirement that an insurance company domiciled in Nebraska have at least one in-state director. Supporters said the measure helps retain and attract large, publicly traded insurers domiciled in the state without reducing Department of Insurance oversight.
Senator Brad Jacobson, sponsor of LB325, told the Legislature the bill creates an exception to the statutory requirement that at least one director of an insurance corporation domiciled in Nebraska must be a state resident. Under the bill an insurance company may file a written affidavit with the Nebraska Department of Insurance to qualify for the exception if it meets multiple conditions, including having principal corporate executive officers located in Nebraska, being publicly traded or affiliated with a publicly traded company, being domiciled in Nebraska for at least 25 years, employing more than 500 Nebraskans subject to state income tax, and having stable ultimate controlling ownership for 10 years. The affidavit would be filed every five years.
Jacobson said the intent is to remove a regulatory barrier for large, reputable insurers that already pay taxes and employ Nebraskans while preserving tools for state examiners and regulators. He cited well-known insurers domiciled in Nebraska and said the Department of Insurance did not take a position but the director engaged in conversations about regulatory oversight.
The bill advanced to E & R initial on the floor; the clerk recorded 43 ayes and no nays on the advancement vote. Committee members and floor speakers said the bill would likely apply to a limited number of companies that meet the strict affidavit criteria and stressed it was aimed at retaining and attracting employers who pay high wages and taxes in the state.
Supporters urged colleagues to consider the bill as part of a broader strategy to grow Nebraska's insurance sector; some senators asked whether increased domicile would lower consumer premiums, and the sponsor responded that domicile alone is unlikely to change rates but could broaden the tax base and employment in the state.
LB325 will proceed to the Enrolling & Review process; further amendments or fiscal review could follow as the bill continues through the legislative calendar.
