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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1035
Introduced by Cavanaugh, M., 6.
Read first time January 14, 2026
Committee: Banking, Commerce and Insurance
A BILL FOR AN ACT relating to the Property and Casualty Insurance Rate1
and Form Act; to amend sections 44-7501 and 44-7508, Reissue Revised2
Statutes of Nebraska; to change provisions relating to rating3
systems under the act; to provide a limitation on the rating system4
an insurer can file for insurance for homeowners; to harmonize5
provisions; to repeal the original sections; and to declare an6
emergency. 7
Be it enacted by the people of the State of Nebraska,8
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Section 1. Section 44-7501, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
44-7501 Sections 44-7501 to 44-7535 and section 2 of this act shall3
be known and may be cited as the Property and Casualty Insurance Rate and4
Form Act. 5
Sec. 2. For any filing or modification of a rating system for6
insurance for homeowners filed with the director on or after July 1,7
2026, an insurer may not seek a rate greater than ten percent above the8
highest rate approved by the director within the previous twelve calendar9
months. 10
Sec. 3. Section 44-7508, Reissue Revised Statutes of Nebraska, is11
amended to read: 12
44-7508 (1) Each insurer to which this section applies as provided13
in section 44-7506 shall file with the director every rating system and14
every modification of such rating system that it chooses to use. Such15
rating system shall comply with section 2 of this act. No insurer shall16
issue a contract or policy except in accordance with the filings that are17
in effect for such insurer as provided in the Property and Casualty18
Insurance Rate and Form Act, except: 19
(a) As provided in subsections (6) and (7) of this section;20
(b) As provided by rules and regulations adopted and promulgated21
pursuant to section 44-7515; or 22
(c) For types of inland marine risks that have, by custom of the23
industry, not been written according to manual rates or rating plans. For24
types of inland marine risks for which the custom of the industry has not25
been established, the director shall consider the similarity of the new26
insurance to existing types of insurance and classes of risk and whether27
it would be reasonably practical to create and file rating systems prior28
to use. 29
(2) Every filing shall state its effective date, which shall not be30
prior to the date that the director receives the filing.31
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(3) Every filing shall provide an objective description of the risks1
and the coverages to which the rating system will apply. If the insurer2
has another rating system on file that applies to some or all of these3
same risks, the filing shall disclose this and shall objectively identify4
those risks to which each rating system will apply. Filings shall include5
a list of manual pages and other rating system elements that will be6
replaced when the approval of a filing will result in the replacement or7
alteration of previously filed rating systems. In addition, insurers8
shall maintain listings of manual pages and other rating system elements9
that have been filed with the director so that such listings can be10
provided upon request. 11
(4) Each insurer shall file or incorporate by reference to material12
filed with the director all supporting information relating to a rating13
system. If a filing is not accompanied by such information or if14
additional information is required to complete review of the filing, the15
director may require such insurer to furnish the information, and in that16
event the review period in subsection (10) of this section shall commence17
on the date such information is received by the director. If an insurer18
fails to furnish the required information within sixty days, the director19
may disapprove the filing based on the insurer's failure to provide the20
requested information. Disapproval shall be by written notice sent to the21
insurer ordering discontinuance of the filing within thirty days after22
the date of notice. 23
(5) An insurer may authorize the director to accept rating system24
filings and prospective loss cost filings made on its behalf by an25
advisory organization. The insurer shall file additional information as26
is necessary to complete its rating systems on file with the director.27
(6) A rate or premium in excess of that provided by a filing28
otherwise applicable may be used on any specific risk upon the prior29
written consent of the insured that describes the insured's unusual or30
extrahazardous exposures that are not otherwise contemplated by the rates31
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on file for that class of risk. Such signed consent shall be filed with1
the director no later than thirty days after the effective date of the2
insurance to which it applies. Insurers may not use the procedure set3
forth in this subsection as a regular means to gain more rate flexibility4
than is otherwise allowed by the Property and Casualty Insurance Rate and5
Form Act. The director shall monitor such rate applications to assure6
compliance with this subsection. The director may, after a hearing,7
require by order that such applications for an insurer that has8
demonstrated a pattern of using this rating device for risks that do not9
possess unusual or extrahazardous exposures or that otherwise fails to10
comply with this subsection shall be subject to prior approval pursuant11
to subdivision (6)(a) of section 44-7511. Upon application by an insurer12
affected by such order, demonstrating that its filings made subsequent to13
the order have been in compliance with this subsection, the director14
shall vacate such order. The director shall consider any such application15
within thirty days after its receipt for any order that has been in16
effect for more than nine months since its inception or since it was last17
reviewed by the director pursuant to an application by the insurer.18
(7) The director may by rules and regulations or by order suspend or19
modify the filing requirements of this section as to any type of20
insurance or class of risk for which rating systems cannot practicably be21
filed before they are used. In making this finding, the director shall22
ascertain whether a system of rating classifications and exposure bases23
that would equitably reflect the differences in expense requirements and24
expected losses between individual risks has been developed or appears25
reasonably capable of being developed. The director may examine insurers26
as is necessary to ascertain whether any rating systems affected by such27
rules and regulations meet the standards contained in this section and in28
section 44-7510. 29
(8) No filing or any supporting information provided pursuant to30
this section shall be open to public inspection pursuant to sections31
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84-712 to 84-712.09 before the date on which the director completes1
review of the filing unless publicly disclosed in an open court, open2
administrative proceeding, or open meeting or disclosed by the director3
pursuant to statute. Correspondence specifically relating to individual4
risks shall be confidential and may not be made public by the director5
except as may be compiled in summaries of such activity.6
(9) The director shall review filings as soon as reasonably possible7
after they have been submitted. The director shall disapprove a filing8
if: 9
(a) Except as provided in section 2 of this act, the The filing10
proposes a rating system that would produce inadequate premiums. A11
premium level is inadequate if it would endanger the solvency of the12
insurer. A premium level that would not be expected to generate a profit13
on a direct basis and that would be likely to have the effect of14
diminishing competition is also inadequate. A premium level that does not15
endanger the solvency of the insurer and is not likely to have the effect16
of diminishing competition is not inadequate; 17
(b) The insurer has more than one rating system applicable to the18
line or type of insurance and the insurer fails to specify objective19
differences between risks to determine the risks and the coverages to20
which the rating system will apply; 21
(c) The filing proposes to discriminate between risks based on22
optional commission differences for agents; 23
(d) The filing proposes to discriminate between risks based on race,24
creed, national origin, or religion of the insured;25
(e) The filing would violate the Unfair Discrimination Against26
Subjects of Abuse in Insurance Act; 27
(f) The filing discriminates between risks based on subjective28
factors, except that an experience rating plan may use loss reserves29
without being considered as subjective; or 30
(g) The filing proposes to discriminate between risks based solely31
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on the fact that the insured is deployed in the military on Title 101
orders that require the insured to be mobilized outside of the United2
States, United States territories, and the District of Columbia for a3
period of six months or greater. 4
(10) Within thirty days after receipt, the director shall disapprove5
a filing that requires disapproval pursuant to subsection (9) of this6
section, except that this review period may be extended for an additional7
period not to exceed thirty days if the director gives written notice8
within the original review period to the insurer. A filing shall be9
deemed to meet the requirements of this section unless disapproved by the10
director within the review period or any extension thereof.11
(11) If, within the review period provided by subsection (10) of12
this section or any extension thereof, the director finds that a filing13
does not meet the requirements of subsection (9) of this section, a14
written disapproval notice shall be sent to the insurer. Such notice15
shall specify in what respects the filing fails to meet these16
requirements and order discontinuance of the filing within thirty days17
after the date of notice. 18
(12) An insurer whose filing is disapproved may, within thirty days19
after receipt of a disapproval notice, request a hearing in accordance20
with section 44-7532. 21
(13) If, at any time after the expiration of the review period22
provided by subsection (10) of this section or any extension thereof, the23
director finds that a rating system or modification thereof does not meet24
or no longer meets the requirements of subsection (9) of this section,25
the director shall hold a hearing in accordance with section 44-7532.26
(14) Any insured aggrieved with respect to any filing may make27
written application to the director for a hearing on such filing. The28
hearing application shall specify the grounds to be relied upon by the29
applicant. If the director finds that the hearing application is made in30
good faith, that a remedy would be available if the grounds are31
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established, or that such grounds otherwise justify holding a hearing,1
the director shall hold a hearing in accordance with section 44-7532.2
(15) If, after a hearing held pursuant to subsection (13) or (14) of3
this section, the director finds that a filing does not meet the4
requirements of subsection (9) of this section, the director shall issue5
an order stating in what respects such filing fails to meet the6
requirements and when, within a reasonable period thereafter, such rating7
system or aspect of a rating system shall no longer be used. Copies of8
the order shall be sent to the applicant, if applicable, and to every9
affected insurer and advisory organization. The order shall not affect10
any contract or policy made or issued prior to the expiration of the11
period set forth in the order. 12
Sec. 4. Original sections 44-7501 and 44-7508, Reissue Revised13
Statutes of Nebraska, are repealed. 14
Sec. 5. Since an emergency exists, this act takes effect when15
passed and approved according to law. 16
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