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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1137
Introduced by Ballard, 21; Hallstrom, 1; Jacobson, 42.
Read first time January 20, 2026
Committee: Banking, Commerce and Insurance
A BILL FOR AN ACT relating to insurance; to amend sections 28-631,1
44-6604, 44-8602, 44-8603, 44-8604, 44-8605, 44-9204, 44-9214, and2
44-9217, Reissue Revised Statutes of Nebraska; to change provisions3
and penalties relating to fraudulent insurance acts; to redefine4
terms, and change provisions relating to residential contracts,5
notice of cancellations, prohibited acts, and post-loss assignment6
of rights or benefits under the Insured Homeowners Protection Act;7
to change provisions relating to licenses, contracts, prohibited8
acts, and fees under the Public Adjusters Licensing Act; to9
harmonize provisions; and to repeal the original sections.10
Be it enacted by the people of the State of Nebraska,11
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Section 1. Section 28-631, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
28-631 (1) A person or entity commits a fraudulent insurance act if3
the person or entity he or she: 4
(a) Knowingly and with intent to defraud or deceive presents, causes5
to be presented, or prepares with knowledge or belief that it will be6
presented to or by an insurer, or any agent of an insurer, any statement7
as part of, in support of, or in denial of a claim for payment or other8
benefit from an insurer or pursuant to an insurance policy knowing that9
the statement contains any false, incomplete, or misleading information10
concerning any fact or thing material to a claim; 11
(b) Assists, abets, solicits, or conspires with another to prepare12
or make any statement that is intended to be presented to or by an13
insurer or person in connection with or in support of any claim for14
payment or other benefit from an insurer or pursuant to an insurance15
policy knowing that the statement contains any false, incomplete, or16
misleading information concerning any fact or thing material to the17
claim; 18
(c) Makes any false or fraudulent representations as to the death or19
disability of a policy or certificate holder or a covered person in any20
statement or certificate for the purpose of fraudulently obtaining money21
or benefit from an insurer; 22
(d) Knowingly and willfully transacts any contract, agreement, or23
instrument which violates this section; 24
(e) Receives money for the purpose of purchasing insurance and25
converts the money to the person's own benefit; 26
(f) Willfully embezzles, abstracts, purloins, misappropriates, or27
converts money, funds, premiums, credits, or other property of an insurer28
or person engaged in the business of insurance; 29
(g) Knowingly and with intent to defraud or deceive issues fake or30
counterfeit insurance policies, certificates of insurance, insurance31
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identification cards, or insurance binders; 1
(h) Knowingly and with intent to defraud or deceive possesses fake2
or counterfeit insurance policies, certificates of insurance, insurance3
identification cards, or insurance binders; 4
(i) Knowingly and with intent to defraud or deceive makes any false5
entry of a material fact in or pertaining to any document or statement6
filed with or required by the Department of Insurance;7
(j) Knowingly and with the intent to defraud or deceive provides8
false, incomplete, or misleading information to an insurer concerning the9
number, location, or classification of employees for the purpose of10
lessening or reducing the premium otherwise chargeable for workers'11
compensation insurance coverage; 12
(k) Knowingly and with intent to defraud or deceive removes,13
conceals, alters, diverts, or destroys assets or records of an insurer or14
person engaged in the business of insurance or attempts to remove,15
conceal, alter, divert, or destroy assets or records of an insurer or16
person engaged in the business of insurance; 17
(l) Willfully operates as or aids and abets another operating as a18
discount medical plan organization in violation of subsection (1) of19
section 44-8306; or 20
(m) Willfully collects fees for purported membership in a discount21
medical plan organization but purposefully fails to provide the promised22
benefits; or . 23
(n) Violates subdivision (13), (14), (15), or (16) of section24
44-6604; 25
(2)(a) A violation of subdivisions (1)(a) through (f) of this26
section is a Class III felony when the amount involved is five thousand27
dollars or more. 28
(b) A violation of subdivisions (1)(a) through (f) of this section29
is a Class IV felony when the amount involved is one thousand five30
hundred dollars or more but less than five thousand dollars.31
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(c) A violation of subdivisions (1)(a) through (f) of this section1
is a Class I misdemeanor when the amount involved is five hundred dollars2
or more but less than one thousand five hundred dollars.3
(d) A violation of subdivisions (1)(a) through (f) of this section4
is a Class II misdemeanor when the amount involved is less than five5
hundred dollars. 6
(e) For any second or subsequent conviction under subdivision (2)(c)7
of this section, the violation is a Class IV felony.8
(f) A violation of subdivisions (1)(g), (i), (j), (k), (l), and (m)9
of this section is a Class IV felony. 10
(g) A violation of subdivision (1)(h) of this section is a Class I11
misdemeanor. 12
(3) Amounts taken pursuant to one scheme or course of conduct from13
one person, entity, or insurer may be aggregated in the indictment or14
information in determining the classification of the offense, except that15
amounts may not be aggregated into more than one offense.16
(4) In any prosecution under this section, if the amounts are17
aggregated pursuant to subsection (3) of this section, the amount18
involved in the offense shall be an essential element of the offense that19
must be proved beyond a reasonable doubt. 20
(5) A prosecution under this section shall be in lieu of an action21
under section 44-6607. 22
(6) For purposes of this section: 23
(a) Insurer means any person or entity transacting insurance as24
defined in section 44-102 with or without a certificate of authority25
issued by the Director of Insurance. Insurer also means health26
maintenance organizations, legal service insurance corporations, prepaid27
limited health service organizations, dental and other similar health28
service plans, discount medical plan organizations, and entities licensed29
pursuant to the Intergovernmental Risk Management Act and the30
Comprehensive Health Insurance Pool Act. Insurer also means an employer31
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who is approved by the Nebraska Workers' Compensation Court as a self-1
insurer; and 2
(b) Statement includes, but is not limited to, any notice,3
statement, proof of loss, bill of lading, receipt for payment, invoice,4
account, estimate of property damages, bill for services, diagnosis,5
prescription, hospital or medical records, X-rays, test result, or other6
evidence of loss, injury, or expense, whether oral, written, or computer-7
generated. 8
Sec. 2. Section 44-6604, Reissue Revised Statutes of Nebraska, is9
amended to read: 10
44-6604 For purposes of the Insurance Fraud Act, a person or entity11
commits a fraudulent insurance act if the person or entity he or she:12
(1) Knowingly and with intent to defraud or deceive presents, causes13
to be presented, or prepares with knowledge or belief that it will be14
presented to or by an insurer, or any agent of an insurer, any statement15
as part of, in support of, or in denial of a claim for payment or other16
benefit from an insurer or pursuant to an insurance policy knowing that17
the statement contains any false, incomplete, or misleading information18
concerning any fact or thing material to a claim; 19
(2) Assists, abets, solicits, or conspires with another to prepare20
or make any statement that is intended to be presented to or by an21
insurer or person in connection with or in support of any claim for22
payment or other benefit from an insurer or pursuant to an insurance23
policy knowing that the statement contains any false, incomplete, or24
misleading information concerning any fact or thing material to the25
claim; 26
(3) Makes any false or fraudulent representations as to the death or27
disability of a policy or certificate holder or a covered person in any28
statement or certificate for the purpose of fraudulently obtaining money29
or benefit from an insurer; 30
(4) Knowingly and willfully transacts any contract, agreement, or31
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instrument which violates this section; 1
(5) Receives money for the purpose of purchasing insurance and2
converts the money to the person's own benefit; 3
(6) Willfully embezzles, abstracts, purloins, misappropriates, or4
converts money, funds, premiums, credits, or other property of an insurer5
or person engaged in the business of insurance; 6
(7) Knowingly and with intent to defraud or deceive issues or7
possesses fake or counterfeit insurance policies, certificates of8
insurance, insurance identification cards, or insurance binders;9
(8) Knowingly and with intent to defraud or deceive makes any false10
entry of a material fact in or pertaining to any document or statement11
filed with or required by the department; 12
(9) Knowingly and with intent to defraud or deceive removes,13
conceals, alters, diverts, or destroys assets or records of an insurer or14
person engaged in the business of insurance or attempts to remove,15
conceal, alter, divert, or destroy assets or records of an insurer or16
person engaged in the business of insurance; 17
(10) Knowingly and with the intent to defraud or deceive provides18
false, incomplete, or misleading information to an insurer concerning the19
number, location, or classification of employees for the purpose of20
lessening or reducing the premium otherwise chargeable for workers'21
compensation insurance coverage; 22
(11) Willfully operates as or aids and abets another operating as a23
discount medical plan organization in violation of subsection (1) of24
section 44-8306; or 25
(12) Willfully collects fees for purported membership in a discount26
medical plan but purposefully fails to provide the promised benefits; .27
(13) Knowingly represents themselves to be a public adjuster without28
having met the requirements of licensure under the Public Adjusters29
Licensing Act; 30
(14) Knowingly conducts business for which a license is required31
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under the Public Adjuster Licensing Act without a license;1
(15) Willfully provides a rebate in violation of subsection (1) of2
section 44-8604 or violates subsection (13) of section 44-9217; or3
(16) Knowingly presents, causes to be presented, or prepares with4
knowledge or belief that it will be presented, to or by an insured, an5
insurer, an insurance producer, or a premium finance company in6
connection with an insurance transaction or premium finance transaction,7
a statement, an estimate, an invoice, a bid, a proposal, a proof of loss,8
or any other document that misrepresents the scope of damages or costs of9
repairs associated with a property insurance claim.10
Sec. 3. Section 44-8602, Reissue Revised Statutes of Nebraska, is11
amended to read: 12
44-8602 For purposes of the Insured Homeowners Protection Act:13
(1) Post-loss assignment means any contract or agreement whereby a14
homeowner, after property damage, transfers, sells, or assigns any or all15
of their insurance claim rights under a property and casualty insurance16
policy, including, but not limited to, payment and negotiations;17
(2) (1) Residential contractor means a person in the business of18
contracting or offering to contract with an owner or possessor of19
residential real estate to: 20
(a) Perform Repair or replace a roof system or perform any other21
exterior repair, replacement, construction, or reconstruction work on22
residential real estate; 23
(b) Perform interior or exterior cleanup services on residential24
real estate; or 25
(c) Arrange for, manage, or process the work referred to in26
subdivision (1)(a) or (b) of this section; or 27
(d) Serve as a representative, agent, or assignee of the owner or28
possessor of residential real estate; 29
(3) (2) Residential real estate means a new or existing building,30
including a detached garage, constructed for habitation by at least one31
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but no more than four families; and 1
(4) (3) Roof system means and includes roof coverings, roof2
sheathing, roof weatherproofing, and insulation. 3
Sec. 4. Section 44-8603, Reissue Revised Statutes of Nebraska, is4
amended to read: 5
44-8603 (1) A person who has entered into a written contract with a6
residential contractor to provide goods or services to be paid from the7
proceeds of a property and casualty insurance policy may cancel the8
contract prior to midnight on the later of the fifth third business day9
after the person has (a) entered into the written contract or (b)10
received written notice from the person's insurer that all or part of the11
claim or contract is not a covered loss under the insurance policy.12
Cancellation shall be evidenced by the person giving written notice of13
the cancellation to the residential contractor at the address of the14
residential contractor's place of business as stated in the contract.15
Written notice of cancellation may be given by delivering or mailing a16
signed and dated copy of the written notice of cancellation to the17
residential contractor at the address of the residential contractor's18
place of business as stated in the contract. The notice of cancellation19
shall include a copy of the written notice from the person's insurer, if20
applicable, to the effect that all or part of the claim or contract is21
not a covered loss under the insurance policy. Notice of cancellation22
given by mail shall be effective upon deposit in the United States mail,23
postage prepaid, if properly addressed to the residential contractor.24
Notice of cancellation may be provided on the form given to the insurer25
pursuant to subsection (2) of this section or in another is not required26
to be in any particular form. Notice and is sufficient if the notice27
indicates, by any form of written expression, the intent of the insured28
not to be bound by the contract. 29
(2) Before entering a contract as provided in subsection (1) of this30
section, the residential contractor shall: 31
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(a) Furnish the insured a statement in boldface type of a minimum1
size of ten points, in substantially the following form:2
'YOU MAY CANCEL THIS CONTRACT AT ANY TIME BEFORE MIDNIGHT ON THE3
FIFTH BUSINESS DAY AFTER YOU HAVE SIGNED THIS CONTRACT OR YOU HAVE4
RECEIVED WRITTEN NOTIFICATION FROM YOUR INSURER THAT ALL OR ANY PART OF5
THE CLAIM OR CONTRACT IS NOT A COVERED LOSS UNDER THE INSURANCE POLICY.6
THIS RIGHT TO CANCEL IS IN ADDITION TO ANY OTHER RIGHTS OF CANCELLATION7
WHICH MAY BE FOUND IN STATE OR FEDERAL LAW OR REGULATION. SEE ATTACHED8
NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT'; and9
(b) Furnish each insured a fully completed form in duplicate,10
captioned 'NOTICE OF CANCELLATION,' which shall be attached to the11
contract but easily detachable, and which shall contain in boldface type12
of a minimum size of ten points, the following statement:13
'NOTICE OF CANCELLATION' 14
IF YOU ARE NOTIFIED BY YOUR INSURER THAT ALL OR ANY PART OF THE15
CLAIM OR CONTRACT IS NOT A COVERED LOSS UNDER THE INSURANCE POLICY, YOU16
MAY CANCEL THE CONTRACT BY MAILING OR DELIVERING A SIGNED AND DATED COPY17
OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE TO (NAME OF18
CONTRACTOR) AT (ADDRESS OF CONTRACTOR'S PLACE OF BUSINESS) AT ANY TIME19
PRIOR TO MIDNIGHT ON THE FIFTH BUSINESS DAY AFTER YOU RECEIVED SUCH20
NOTICE FROM YOUR INSURER. 21
I HEREBY CANCEL THIS TRANSACTION 22
(DATE) 23
(INSURED'S SIGNATURE). 24
(3) (2) Within ten days after a contract to provide goods or25
services to be paid from the proceeds of a property and casualty26
insurance policy has been canceled by notification pursuant to this27
section, the residential contractor shall tender to the person canceling28
the contract any payments, partial payments, or deposits made by the29
person and any note or other evidence of indebtedness, except that if the30
residential contractor has provided any goods or services agreed to by31
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such person in writing to be necessary to prevent damage to the premises,1
the residential contractor shall be entitled to be paid the reasonable2
value of such goods or services. Any provision in a contract to provide3
goods or services to be paid from the proceeds of a property and casualty4
insurance policy that requires the payment of any fee which is not for5
such goods or services shall not be enforceable against any person who6
has canceled a contract pursuant to this section. 7
Sec. 5. Section 44-8604, Reissue Revised Statutes of Nebraska, is8
amended to read: 9
44-8604 (1) A residential contractor shall not promise to rebate any10
portion of an insurance deductible as an inducement to the sale of goods11
or services. A promise to rebate any portion of an insurance deductible12
includes granting any allowance or offering any discount against the fees13
to be charged or paying an insured or a person directly or indirectly14
associated with the residential real estate any form of compensation,15
except for any item of nominal value. 16
(2) Neither a residential contractor nor a person acting as a public17
adjuster under the Public Adjuster Licensing Act, shall solicit or accept18
a post-loss assignment, except that a licensed public adjuster may accept19
an assignment to the extent of its public adjuster fee. A post-loss20
assignment is against public policy and is void and any contract,21
agreement, or written instrument entered into in violation of this22
subsection shall be void and unenforceable. 23
(3) A residential contractor shall not represent or negotiate, or24
offer or advertise to represent or negotiate, on behalf of an owner or25
possessor of residential real estate on any insurance claim. This26
subsection shall not apply to a public adjuster licensed under the Public27
Adjuster Licensing Act. 28
Sec. 6. Section 44-8605, Reissue Revised Statutes of Nebraska, is29
amended to read: 30
44-8605 (1) A post-loss assignment of rights or benefits to a31
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residential contractor under a property and casualty insurance policy1
insuring residential real estate shall comply with the following:2
(a) The assignment may authorize a residential contractor to be3
named as a copayee for the payment of benefits under a property and4
casualty insurance policy covering residential real estate;5
(b) The assignment shall be provided to the insurer of the6
residential real estate within five business days after execution;7
(c) The assignment shall include a statement that the residential8
contractor has made no assurances that the claimed loss will be fully9
covered by an insurance contract and shall include the following notice10
in capitalized fourteen-point type: 11
YOU ARE AGREEING TO ASSIGN CERTAIN RIGHTS YOU HAVE UNDER YOUR12
INSURANCE POLICY. WITH AN ASSIGNMENT, THE RESIDENTIAL CONTRACTOR SHALL BE13
ENTITLED TO PURSUE ANY RIGHTS OR REMEDIES THAT YOU, THE INSURED14
HOMEOWNER, HAVE UNDER YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND15
THIS DOCUMENT BEFORE SIGNING. 16
THE INSURER MAY ONLY PAY FOR THE COST TO REPAIR OR REPLACE DAMAGED17
PROPERTY CAUSED BY A COVERED PERIL, SUBJECT TO THE TERMS OF THE POLICY.18
(d) The assignment shall not impair the interest of a mortgagee19
listed on the declarations page of the property and casualty insurance20
policy which is the subject of the assignment; and21
(e) The assignment shall not prevent or inhibit an insurer from22
communicating with the named insured or mortgagee listed on the23
declarations page of the property and casualty insurance policy that is24
the subject of the assignment. 25
(2) The Department of Insurance shall strictly enforce the26
provisions of subdivision (13) of section 44-1540, which requires27
insurers to provide a named insured a reasonable and accurate explanation28
of the basis for the denial of a claim or an offer of a compromise29
settlement. 30
Sec. 7. Section 44-9204, Reissue Revised Statutes of Nebraska, is31
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amended to read: 1
44-9204 (1) A person shall not act operate as or represent that such2
person is a public adjuster in this state or solicit or negotiate a3
contract to act as a public adjuster unless such person is licensed as a4
public adjuster in accordance with the Public Adjusters Licensing Act.5
(2) A public adjuster shall not misrepresent to any insured that6
such public adjuster is an adjuster representing an insurer in any7
capacity, including acting as an employee of the insurer or acting as an8
independent adjuster unless so appointed by an insurer in writing to act9
on behalf of the insurer for that specific claim or purpose. A public10
adjuster is prohibited from charging any insured a fee when appointed by11
the insurer and the appointment is accepted by the public adjuster.12
(3) A public adjuster shall not, directly or indirectly, solicit, or13
enter into, an agreement for the repair or replacement of damaged14
property on which such public adjuster has engaged to adjust or settle15
claims for losses or damages of the insured. 16
(4) Notwithstanding subsection (1) of this section, licensing as a17
public adjuster shall not be required for: 18
(a) An attorney admitted to practice in this state, when acting in19
the attorney’s professional capacity as an attorney;20
(b) A person who negotiates or settles claims arising under a life21
or health insurance policy or an annuity contract;22
(c) A person employed only for the purpose of obtaining facts23
surrounding a loss or furnishing technical assistance to a licensed24
public adjuster, including, but not limited to, a photographer,25
estimator, private investigator, engineer, or handwriting expert;26
(d) A licensed health care provider, or an employee of a licensed27
health care provider, who prepares or files a health claim form on behalf28
of a patient; or 29
(e) A person who settles subrogation claims between insurers.30
Sec. 8. Section 44-9214, Reissue Revised Statutes of Nebraska, is31
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amended to read: 1
44-9214 (1) Public adjusters shall ensure that all contracts for2
their services are in writing and contain the following terms:3
(a) Legible full name of the public adjuster signing the contract,4
as specified in director records; 5
(b) Home state, business address, and telephone number;6
(c) Public adjuster license number; 7
(d) Title of "Public Adjuster Contract"; 8
(e) Insured’s full name, street address, insurer name, and insurance9
policy number, if known or upon notification; 10
(f) Description of the loss and its location, if applicable;11
(g) Description of services to be provided to the insured;12
(h) Signatures of the public adjuster and the insured;13
(i) Date contract was signed by the public adjuster and date the14
contract was signed by the insured; 15
(j) Attestation language stating that the public adjuster is fully16
bonded pursuant to state law; and 17
(k) The specific amount of compensation, including, but not limited18
to, the full salary, fee, commission, or other consideration the public19
adjuster is to receive for services. 20
(2)(a) The contract may specify that the public adjuster shall be21
named as a co-payee on an insurer’s payment of a claim.22
(b) If the compensation is based on a share of the insurance23
settlement, the exact percentage shall be specified.24
(c) Initial expenses to be reimbursed to the public adjuster from25
the proceeds of the claim payment shall be specified by type and the26
dollar estimates shall be set forth in the contract. Any additional27
expenses shall be approved in writing by the insured.28
(d) Compensation provisions in a public adjuster contract shall not29
be redacted in any copy of the contract provided to the director.30
(3) If the insurer, not later than seventy-two hours after the date31
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on which the loss is reported to the insurer, either pays or commits in1
writing to pay to the insured the policy limit of the insurance policy,2
the public adjuster shall: 3
(a) Not receive a commission that consists of a percentage of the4
total amount paid by an insurer to resolve a claim;5
(b) Inform the insured that the loss recovery amount might not be6
increased by the insurer; and 7
(c) Be entitled only to reasonable compensation from the insured for8
services provided by the public adjuster on behalf of the insured, based9
on the time spent on a claim and expenses incurred by the public10
adjuster, until the claim is paid or the insured receives a written11
commitment to pay from the insurer. 12
(4) A public adjuster contract may not contain any contract term13
that: 14
(a) Allows a percentage fee to be collected by the public adjuster15
when money is due from an insurer, but not paid, or that allows a public16
adjuster to collect the entire fee from the first check issued by an17
insurer, rather than as a percentage of each check issued by an insurer;18
(b) Requires the insured to authorize an insurer to issue a check19
only in the name of the public adjuster; 20
(c) Imposes collection costs or late fees; or21
(d) Precludes a public adjuster from pursuing civil remedies.22
(5) Prior to the signing of the contract the public adjuster shall23
provide the insured with a separate disclosure document regarding the24
claim process that states: 25
(a) Property insurance policies obligate the insured to present a26
claim to his or her insurer for consideration; 27
(b) There are three types of adjusters that could be involved in the28
claim process. The definitions of the three types are as follows:29
(i) Company adjuster means an insurance adjuster who is an employee30
of an insurer. He or she represents the interest of the insurer, is paid31
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by the insurer, and will not charge the insured a fee;1
(ii) Independent adjuster means an insurance adjuster who is hired2
on a contract basis by an insurer to represent the interest of the3
insurer in the settlement of the claim. He or she is paid by the insurer4
and will not charge the insured a fee; and 5
(iii) Public adjuster means an insurance adjuster who does not work6
for any insurer. He or she works for the insured to assist in the7
preparation, presentation, and settlement of the claim. The insured hires8
a public adjuster by signing a contract agreeing to pay a fee or9
commission based on a percentage of the settlement or other method of10
compensation; 11
(c) The insured is not required to hire a public adjuster to help12
the insured meet the insured’s obligations under the policy, but has the13
right to do so; 14
(d) The insured has the right to initiate direct communications with15
the insured’s attorney, the insurer, the company adjuster, and the16
insurer’s attorney, or any other person regarding the settlement of the17
insured’s claim; 18
(e) The public adjuster is not a representative or employee of the19
insurer; and 20
(f) The salary, fee, commission, or other consideration to be paid21
to a public adjuster is the obligation of the insured, not the insurer.22
(6) The contract shall be executed in duplicate to provide an23
original contract to the public adjuster and an original contract to the24
insured. The original contract retained by the public adjuster shall be25
available at all times for inspection without notice by the department.26
(7) The public adjuster shall provide the insurer a notification27
letter, which has been signed by the insured, authorizing the public28
adjuster to represent the insured’s interest. The insurer, upon receipt29
of a notification letter, shall verify the public adjuster holds a valid30
license with the department. 31
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(8) The public adjuster shall give the insured written notice of the1
insured’s rights as provided in this section. 2
(9) The insured has the right to rescind the contract within three3
business days after the date the contract was signed. The rescission4
shall be in writing and mailed or delivered to the public adjuster at the5
address in the contract within the three-business-day period.6
(10) If the insured exercises the right to rescind the contract,7
anything of value given by the insured under the contract will be8
returned to the insured within fifteen days following the receipt by the9
public adjuster of the rescission notice. 10
(11) The director may require a public adjuster to file a contract11
with the department in a manner prescribed by the director.12
Sec. 9. Section 44-9217, Reissue Revised Statutes of Nebraska, is13
amended to read: 14
44-9217 (1) A public adjuster shall serve with objectivity and15
complete loyalty to the interest of the insured and shall, in good faith,16
render to the insured such information, counsel, and service, as within17
the knowledge, understanding, and opinion of such public adjuster will18
best serve the insurance claim needs and interest of the insured.19
(2) A public adjuster or a residential contractor as defined in20
section 44-8602 shall not solicit, nor attempt to solicit, an insured21
during the progress of a loss-producing occurrence, as defined in the22
insured’s insurance contract , or during a fire event while the fire23
department or representatives of the fire department are physically on24
site at the damaged premises. 25
(3) A public adjuster shall not permit an unlicensed employee or26
representative of the public adjuster to conduct business for which a27
license is required under the Public Adjusters Licensing Act.28
(4) A public adjuster shall not have a direct or indirect financial29
interest in any aspect of the claim, other than the salary, fee,30
commission, or other consideration established in the written contract31
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with the insured. Direct or indirect financial interest includes, but is1
not limited to, ownership of, employment by, or other consideration2
received from any business entity or individual that performs any work3
pertaining to damage related to the insured loss. 4
(5) A public adjuster shall not acquire any interest in salvage of5
property subject to the contract with the insured unless the public6
adjuster obtains written permission from the insured after settlement of7
the claim with the insurer. 8
(6) A public adjuster shall abstain from referring or directing the9
insured to obtain needed repairs or services in connection with a loss10
from any person: 11
(a) With whom the public adjuster has a direct or indirect financial12
interest; or 13
(b) From whom the public adjuster may receive direct or indirect14
compensation or other consideration for the referral.15
(7) A public adjuster shall not undertake the adjustment of any16
claim if such public adjuster is not competent and knowledgeable as to17
the terms and conditions of the insurance coverage or if the loss or18
coverage otherwise exceeds the current expertise of the public adjuster.19
(8) A public adjuster shall not knowingly make any false oral or20
written material statements regarding any person engaged in the business21
of insurance to any insured client or potential insured client.22
(9) A public adjuster, while so licensed pursuant to the Public23
Adjusters Licensing Act, shall not represent or act as a company adjuster24
or independent adjuster in any circumstance. 25
(10) A public adjuster shall not enter into a contract or accept a26
power of attorney that vests in such public adjuster the effective27
authority to choose the persons who shall perform repair work.28
(11) A public adjuster shall not agree to any loss settlement29
without the knowledge and consent of the insured. 30
(12) A public adjuster shall not advertise or infer damage unless an31
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inspection of the property has been completed. 1
(13) A public adjuster shall not offer to pay an insured's2
deductible, or claim the insured's deductible will be waived, as an3
inducement to using the services of a public adjuster.4
Sec. 10. Original sections 28-631, 44-6604, 44-8602, 44-8603,5
44-8604, 44-8605, 44-9204, 44-9214, and 44-9217, Reissue Revised Statutes6
of Nebraska, are repealed. 7
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