Committee hears bill to let insurers pause suspected exploitative disbursements for seniors
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Summary
LB1138 would create a 'trusted contact'/third‑party framework allowing insurers to delay disbursements or transactions when they suspect financial exploitation of seniors or vulnerable adults, notify permissible third parties and the Department of Insurance, and receive civil and administrative immunities for good‑faith actions.
Senator Bob Holstrom introduced LB1138 as the Nebraska Protection of Seniors from Insurance Exploitation Act, modeled after existing trusted‑contact laws for banks and securities firms. The bill sets processes and timelines for insurers to delay disbursements or transactions when exploitation of an eligible adult is suspected and authorizes the Department of Insurance or a court to extend or modify delays.
Witnesses from insurers and advocacy groups — including Robert Bell (Nebraska Insurance Federation), Eric Dunning (Department of Insurance), and Gina Ragland (AARP‑affiliated testimony) — supported the bill. They argued the measure would protect life insurance proceeds and annuities from scams and give insurers limited authority and training requirements to identify red flags, contact designated permissible third parties, and report to the Department of Insurance.
Committee members probed the scope of immunity provisions and whether the law would create new duties for insurers; supporters said the statute is permissive and modeled on existing banking‑sector protections, not a mandatory program. The hearing closed after broad proponent testimony and no recorded opponents at that session.