Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1062
Introduced by Bostar, 29.
Read first time January 14, 2026
Committee: Banking, Commerce and Insurance
A BILL FOR AN ACT relating to insurance; to amend sections 44-150,1
44-4055, 44-4059, and 44-4064, Reissue Revised Statutes of Nebraska,2
and section 44-4605, Revised Statutes Cumulative Supplement, 2024;3
to change provisions relating to reciprocal licenses and retaliatory4
measures; to change provisions relating to nonresident license5
requirements and the process for issuance, verification, and6
termination of such licenses under the Insurance Producers Licensing7
Act; to change fees under the Insurance Producers Licensing Act; to8
provide certain penalties and require notification of certain9
material changes under the Pharmacy Benefit Manager Licensure and10
Regulation Act; and to repeal the original sections.11
Be it enacted by the people of the State of Nebraska,12
LB1062
2026
LB1062
2026
-1-
Section 1. Section 44-150, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
44-150 (1) When by or pursuant to the laws of any other state or3
foreign country any taxes, licenses and other fees, in the aggregate, or4
any fines, penalties, deposit requirements, or other material5
obligations, prohibitions, or restrictions, are or would be imposed upon6
Nebraska insurers, or upon the agents or representatives of such7
insurers, which are in excess of such taxes, licenses and other fees, in8
the aggregate, or which are in excess of the fines, penalties, deposit9
requirements, or other obligations, prohibitions, or restrictions10
directly imposed upon similar insurers, or upon the agents or11
representatives of such insurers, of such other state or country under12
the statutes of this state, so long as such laws of such other state or13
country continue in force or are so applied, the same taxes, licenses and14
other fees, in the aggregate, or fines, penalties, deposit requirements,15
or other material obligations, prohibitions, or restrictions of whatever16
kind shall be imposed by the Director of Insurance upon the insurers, or17
upon the agents or representatives of such insurers, of such other state18
or country doing business or seeking to do business in Nebraska. Any tax,19
license or other fee, or other obligation imposed by any city, county, or20
other political subdivision or agency of such other state or country on21
Nebraska insurers or their agents or representatives shall be deemed to22
be imposed by such state or country within the meaning of this section.23
(2) This section shall not apply as to personal income taxes, nor as24
to ad valorem taxes on real or personal property nor as to special-25
purpose obligations or assessments heretofore imposed by another state in26
connection with particular kinds of insurance, other than property27
insurance; except that deductions, from premium taxes or other taxes28
otherwise payable, allowed on account of real estate or personal property29
taxes paid shall be taken into consideration by the Director of Insurance30
in determining the propriety and extent of retaliatory action under this31
LB1062
2026
LB1062
2026
-2-
section. 1
(3) Nothing in this section shall require retaliatory action because2
of fees, obligations, or prohibitions imposed on Nebraska insurance3
producers licensed pursuant to the Insurance Producers Licensing Act.4
(3) (4) For the purposes of this section the domicile of an alien5
insurer, other than insurers formed under the laws of Canada, shall be6
that state designated by the insurer in writing filed with the Director7
of Insurance at time of admission to this state or within twelve months8
after September 28, 1959, whichever date is the later, and may be any one9
of the following states: (a) That in which the insurer was first10
authorized to transact insurance; (b) that in which is located the11
insurer's principal place of business in the United States; or (c) that12
in which is held the larger deposit of trusteed assets of the insurer for13
the protection of its policyholders and creditors in the United States.14
If the insurer makes no such designation its domicile shall be15
deemed to be that state in which is located its principal place of16
business in the United States. 17
In the case of an insurer formed under the laws of Canada or a18
province thereof, its domicile shall be deemed to be that province in19
which its head office is situated. 20
Sec. 2. Section 44-4055, Reissue Revised Statutes of Nebraska, is21
amended to read: 22
44-4055 (1) Unless denied licensure pursuant to section 44-4059, a23
nonresident person shall receive a nonresident insurance producer license24
if: 25
(a) The person is currently licensed as a resident and in good26
standing in his or her home state; 27
(b) The person has submitted the proper request for licensure and28
has paid the fees required by section 44-4064; 29
(c) The person has submitted or transmitted to the director the30
application for licensure that the person submitted to his or her home31
LB1062
2026
LB1062
2026
-3-
state, or in lieu of the same, a completed uniform application; and1
(d) The person's home state awards nonresident producer licenses to2
residents of this state on the same basis. 3
(2) The director may verify the insurance producer's licensing4
status through the producer database maintained by the National5
Association of Insurance Commissioners , or its affiliates or6
subsidiaries, or any successor, or by contacting the person's home state7
regulator. 8
(3) A nonresident insurance producer who moves from one state to9
another state or a resident producer who moves from this state to another10
state shall file a change of address and provide certification from the11
new resident state within thirty days of the change of legal residence.12
No fee or license application is required for the filing of the change of13
address. 14
(4) Notwithstanding any other provision of the Insurance Producers15
Licensing Act, a person licensed as a surplus lines insurance producer in16
his or her home state shall receive a nonresident surplus lines producer17
license pursuant to subsection (1) of this section. Except as to18
subsection (1) of this section, nothing in this section otherwise amends19
or supersedes any provision of the Surplus Lines Insurance Act.20
(5) Notwithstanding any other provisions of the Insurance Producers21
Licensing Act, a person licensed as a limited line credit insurance22
producer, a limited line pre-need funeral insurance producer, or other23
type of limited lines producer in his or her home state shall receive a24
nonresident limited lines insurance producer license, pursuant to25
subsection (1) of this section, granting the same scope of authority as26
granted under the license issued by the producer's home state.27
(6) If a nonresident licensee's license or authority in the28
licensee's home state is no longer active, whether as a result of29
suspension, revocation, termination, lapse, voluntary surrender, or other30
action by the home state regulator, the director may cancel the31
LB1062
2026
LB1062
2026
-4-
nonresident licensee's license or authority granted in this state by1
sending an order of license revocation to the licensee. The licensee may2
make written demand upon the director within thirty days after receiving3
such order of license revocation for a hearing before the director to (a)4
provide proof the licensee is currently licensed as a resident and in5
good standing in his or her home state or (b) provide proof of a license6
granted in accordance with subsection (3) of this section. Such hearing7
shall be held within thirty days after the date a request for hearing is8
received and shall be held pursuant to the Administrative Procedure Act.9
If no hearing is requested within thirty days after receipt of an order10
of license revocation, the order of license revocation shall become a11
final order. 12
Sec. 3. Section 44-4059, Reissue Revised Statutes of Nebraska, is13
amended to read: 14
44-4059 (1) The director may suspend, revoke, or refuse to issue or15
renew an insurance producer's license or may levy an administrative fine16
in accordance with subsection (5) (4) of this section, or any combination17
of actions, for any one or more of the following causes:18
(a) Providing incorrect, misleading, incomplete, or materially19
untrue information in the license application; 20
(b) Violating any insurance law or violating any rule, regulation,21
subpoena, or order of the director or of another state's insurance22
commissioner or director; 23
(c) Obtaining or attempting to obtain a license through24
misrepresentation or fraud; 25
(d) Improperly withholding, misappropriating, or converting any26
money or property received in the course of doing insurance business;27
(e) Intentionally misrepresenting the terms of an actual or proposed28
insurance contract or application for insurance; 29
(f) Having been convicted of a felony or a Class I, II, or III30
misdemeanor; 31
LB1062
2026
LB1062
2026
-5-
(g) Having admitted or been found to have committed any insurance1
unfair trade practice, any unfair claims settlement practice, or fraud;2
(h) Using fraudulent, coercive, or dishonest practices, or3
demonstrating incompetence, untrustworthiness, or financial4
irresponsibility in the conduct of business in this state or elsewhere;5
(i) Having an insurance producer license, or its equivalent, denied,6
suspended, placed on probation, or revoked in Nebraska or in any other7
state, province, district, or territory; 8
(j) Forging another's name to an application for insurance or to any9
document related to an insurance transaction; 10
(k) Improperly using notes or any other reference material to11
complete an examination for an insurance license; 12
(l) Knowingly accepting insurance business from an individual who is13
not licensed; 14
(m) Failing to comply with an administrative or court order imposing15
a child support obligation pursuant to the License Suspension Act; and16
(n) Failing to pay state income tax or comply with any17
administrative or court order directing payment of state income tax . ;18
and 19
(2) If the director has notice that a nonresident licensee failed to20
maintain, in good standing, a resident license in the insurance21
producer's home state, the nonresident license shall be automatically22
revoked by the director and the director shall not be required to issue23
an order of license revocation in accordance with subsection (6) of24
section 44-4055 or renew such license. 25
(o) Failing to maintain in good standing a resident license in the26
insurance producer's home state. 27
(3) (2) If the director does not renew or denies an application for28
a license, the director shall notify the applicant or licensee and29
advise, in writing, the applicant or licensee of the reason for the30
denial or nonrenewal of the applicant's or licensee's license. The31
LB1062
2026
LB1062
2026
-6-
applicant or licensee may make written demand upon the director within1
thirty days for a hearing before the director to determine the2
reasonableness of the director's action. The hearing shall be held within3
thirty days and shall be held pursuant to the Administrative Procedure4
Act. 5
(4) (3) The license of a business entity may be suspended, revoked,6
or refused if the director finds, after notice and hearing, that an7
individual licensee's violation was known or should have been known by8
one or more of the partners, officers, or managers acting on behalf of9
the business entity and the violation was neither reported to the10
director nor corrective action taken. 11
(5) (4) In addition to or in lieu of any applicable denial,12
suspension, or revocation of a license, any person violating the13
Insurance Producers Licensing Act may, after notice and hearing, be14
subject to an administrative fine of not more than one thousand dollars15
per violation. Such fine may be enforced in the same manner as civil16
judgments. Any person charged with a violation of the act may waive his17
or her right to a hearing and consent to such discipline as the director18
determines is appropriate. The Administrative Procedure Act shall govern19
all hearings held pursuant to such act. 20
(6) (5) The director shall retain the authority to enforce the21
provisions of and impose any penalty or remedy authorized by the22
Insurance Producers Licensing Act against any person who is under23
investigation for or charged with a violation of the act even if the24
person's license or registration has been surrendered or has lapsed by25
operation of law. No disciplinary proceeding shall be instituted against26
any licensed person after the expiration of three years from the27
termination of such license. 28
Sec. 4. Section 44-4064, Reissue Revised Statutes of Nebraska, is29
amended to read: 30
44-4064 (1) Before any license or appointment is issued or renewed31
LB1062
2026
LB1062
2026
-7-
under the Insurance Producers Licensing Act or before any appointment is1
terminated, the person requesting such license shall pay or cause to be2
paid to the director the following fee or fees, if applicable, as3
established by the director: 4
(a) For each insurance producer license, a fee not to exceed one5
hundred dollars , except that if any other state imposes additional or6
greater fees, obligations, or prohibitions on Nebraska resident insurance7
producers, then such additional greater fees, obligations, or8
prohibitions shall be imposed upon similar insurance producers of such9
other state applying for a license in Nebraska; 10
(b) For each annual appointment, a fee not to exceed ten dollars;11
(c) For each termination of an appointment, a fee not to exceed ten12
dollars; 13
(d) A late renewal fee not to exceed one hundred twenty-five14
dollars; 15
(e) A reinstatement fee not to exceed one hundred seventy-five16
dollars; and 17
(f) For each business entity license, a fee not to exceed fifty18
dollars, except that if any other state imposes additional or greater19
fees, obligations, or prohibitions on Nebraska business entities, then20
such additional greater fees, obligations, or prohibitions shall be21
imposed upon similar business entities of such other state applying for a22
license in Nebraska. 23
(2) If a licensed person (a) desires to add a line or lines of24
insurance to his or her existing license, (b) seeks to change any other25
information contained in the license for any reason, or (c) applies for a26
duplicate license, such person shall pay to the director a fee27
established by the director to cover the expense of replacing the28
license. 29
(3) The director shall not prorate fees imposed pursuant to30
subsection (1) of this section and shall not refund fees to any person in31
LB1062
2026
LB1062
2026
-8-
the event of a license denial. The director may refund fees paid pursuant1
to this section if the payment has been made in error.2
Sec. 5. Section 44-4605, Revised Statutes Cumulative Supplement,3
2024, is amended to read: 4
44-4605 (1) A person shall not establish or operate as a pharmacy5
benefit manager in this state for a health benefit plan without first6
obtaining a license from the director under the Pharmacy Benefit Manager7
Licensure and Regulation Act. 8
(2) The director may adopt and promulgate rules and regulations9
establishing the licensing application, financial, and reporting10
requirements for pharmacy benefit managers under the act.11
(3) A person applying for a pharmacy benefit manager license shall12
submit an application for licensure in the form and manner prescribed by13
the director. 14
(4) A person submitting an application for a pharmacy benefit15
manager license shall include with the application a nonrefundable16
application fee. The director shall establish the nonrefundable17
application fee in an amount not to exceed five hundred dollars.18
(5) The director may refuse to issue or renew a license if the19
director determines that the applicant or any individual responsible for20
the conduct of affairs of the applicant is not competent, trustworthy,21
financially responsible, or of good personal and business reputation, has22
been found to have violated the insurance laws of this state or any other23
jurisdiction, or has had an insurance or other certificate of authority24
or license denied or revoked for cause by any jurisdiction.25
(6)(a) Unless surrendered, suspended, or revoked by the director, a26
license issued under this section is valid as long as the pharmacy27
benefit manager continues to do business in this state and remains in28
compliance with the provisions of the act and any applicable rules and29
regulations, including the completion of a renewal application on a form30
prescribed by the director and payment of an annual license renewal fee.31
LB1062
2026
LB1062
2026
-9-
The director shall establish the annual license renewal fee in an amount1
not to exceed two hundred fifty dollars. 2
(b) Such application and renewal fee shall be received by the3
director on or before thirty days prior to the anniversary of the4
effective date of the pharmacy benefit manager's initial or most recent5
license. 6
(c) Subject to subdivision (6)(d) of this section, if a pharmacy7
benefit manager fails to comply with subdivision (6)(b) of this section:8
(i) Such pharmacy benefit manager shall pay a fine of one hundred9
dollars for each day such failure continues and the pharmacy benefit10
manager continues to transact any business in this state; and11
(ii) In addition to the fine required under subdivision (6)(c)(i) of12
this section, if the renewal application and fee are not received prior13
to the anniversary of the effective date of the pharmacy benefit14
manager's initial or most recent license, the pharmacy benefit manager's15
license shall be suspended until the pharmacy benefit manager has16
complied with subdivision (6)(b) of this section, any rules and17
regulations adopted and promulgated under this section, and any orders18
issued under this section. The director shall remit all such fines to the19
State Treasurer for distribution in accordance with Article VII, section20
5, of the Constitution of Nebraska. 21
(d) For good and sufficient cause shown, the director may grant a22
reasonable extension of time not to exceed thirty days within which the23
renewal application and fee may be filed as required under subdivision24
(6)(b) of this section without the fine required under subdivision (6)(c)25
(i) of this section and without any suspension authorized under26
subdivision (6)(c)(ii) of this section. 27
(7) A pharmacy benefit manager shall immediately notify the director28
of any material change in its ownership or control or other fact or29
circumstance affecting its qualification for a license as a pharmacy30
benefit manager in this state. 31
LB1062
2026
LB1062
2026
-10-
Sec. 6. Original sections 44-150, 44-4055, 44-4059, and 44-4064,1
Reissue Revised Statutes of Nebraska, and section 44-4605, Revised2
Statutes Cumulative Supplement, 2024, are repealed.3
LB1062
2026
LB1062
2026
-11-