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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1138
Introduced by Hallstrom, 1.
Read first time January 20, 2026
Committee: Banking, Commerce and Insurance
A BILL FOR AN ACT relating to insurance; to adopt the Nebraska Protection1
of Seniors from Insurance Exploitation Act. 2
Be it enacted by the people of the State of Nebraska,3
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Section 1. Sections 1 to 10 of this act shall be known and may be1
cited as the Nebraska Protection of Seniors from Insurance Exploitation2
Act. 3
Sec. 2. (1) It is the intent of the Legislature to provide legal4
protection to insurers and insurance producers so that they have the5
discretion to take action to assist in detecting and preventing financial6
exploitation. 7
(2) The Legislature recognizes that insurers and insurance producers8
are in a unique position to potentially discover financial exploitation9
when conducting transactions on behalf of and at the request of their10
customers. 11
(3) The Legislature recognizes that insurers and insurance producers12
have duties imposed by contract and duties imposed by both federal and13
state law to conduct transactions requested by their customers faithfully14
and timely in accordance with the customer's instructions.15
(4) The Legislature recognizes that insurers and insurance producers16
do not have a duty to contravene the valid instructions of their17
customers and nothing in the Nebraska Protection of Seniors from18
Insurance Exploitation Act creates such a duty. 19
Sec. 3. For purposes of the Nebraska Protection of Seniors from20
Insurance Exploitation Act, unless the context otherwise requires:21
(1) Director means the Director of Insurance;22
(2) Disbursement means any attempt to withdraw money or access a23
benefit from a life insurance policy or an annuity irrespective of24
whether the request is classified as a surrender, loan, withdrawal,25
partial withdrawal, accelerated benefit, or otherwise;26
(3) Eligible adult means: 27
(a) A senior adult as defined in section 28-366.01; or28
(b) A vulnerable adult as defined in section 28-371.29
(4) Financial exploitation means: 30
(a) The wrongful or unauthorized taking, withholding, appropriation,31
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or use of money, assets, or other property of an eligible adult by any1
person; or 2
(b) Any act or omission taken by a person, including through the use3
of a power of attorney, guardianship, or conservatorship of an eligible4
adult, to: 5
(i) Obtain control, through deception, intimidation, or undue6
influence, over the eligible adult's money, assets, or other property to7
deprive the eligible adult of the ownership, use, benefit, or possession8
of his or her money, assets, or other property; or 9
(ii) Convert money, assets, or other property of the eligible adult10
to deprive such eligible adult of the ownership, use, benefit, or11
possession of his or her money, assets, or other property;12
(5) Permissible third party means any individual previously13
designated by the eligible adult who may be contacted about the eligible14
adult's insurance policy, contract, or account, or a person otherwise15
permitted to be contacted by any state or federal law, rule, or16
regulation; and 17
(6) Trained individual means any of the following:18
(a) An insurance producer who has taken at least two hours of19
continuing education focused on how to identify the suspected or20
attempted financial exploitation of an eligible adult, which included21
identifying common signs indicating the financial exploitation of an22
eligible adult and how to provide notification regarding the suspected or23
attempted financial exploitation of an eligible adult; or24
(b) A person who has received training pursuant to section 8 of this25
act. 26
Sec. 4. An insurer or trained individual who, acting reasonably and27
in good faith, makes a disclosure of information to the director pursuant28
to the Nebraska Protection of Seniors from Insurance Exploitation Act or29
the Insurance Fraud Act shall be immune from administrative or civil30
liability that might otherwise arise from such disclosure or for any31
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failure to notify the eligible adult of the disclosure. This section1
shall not abrogate or modify any existing statutory or common law2
privileges or immunities. 3
Sec. 5. (1) If an insurer or trained individual reasonably believes4
financial exploitation of an eligible adult may have occurred, has been5
attempted, or is being attempted, the insurer or trained individual may6
notify a permissible third party. Notification to a permissible third7
party is not required prior to any insurer's, trained individual's,8
director's, or relevant agency's review or investigation of financial9
exploitation. 10
(2) Insurers and trained individuals shall not notify a permissible11
third party if the insurer or trained individual reasonably suspects that12
such permissible third party has financially exploited or otherwise13
abused the eligible adult. 14
(3) An insurer or trained individual who, acting reasonably and in15
good faith, complies with this section shall be immune from any16
administrative or civil liability that might otherwise arise from such17
notification. 18
Sec. 6. (1) If an insurer or trained individual reasonably believes19
a disbursement or transaction will likely result in or contribute to the20
financial exploitation of an eligible adult, the insurer or trained21
individual may initiate an internal review of the requested disbursement22
or transaction. 23
(2) An insurer may delay a disbursement or transaction from an24
eligible adult's insurance policy, contract, or account on which an25
eligible adult is a beneficiary if all of the following apply:26
(a) The insurer reasonably believes, after an internal review is27
initiated pursuant to subsection (1) of this section, that the requested28
disbursement or transaction will likely result in or contribute to the29
financial exploitation of an eligible adult; 30
(b) Immediately, but in no event more than seven business days after31
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the disbursement or transaction is delayed, the insurer provides written1
notification of the delay and the reason for the delay to all persons2
authorized to transact business on the insurance policy, contract, or3
account. An insurer shall not notify a person authorized to transact4
business on the insurance policy, contract, or account if the insurer5
reasonably believes such person has committed or attempted financial6
exploitation or other abuse of an eligible adult or committed or7
attempted insurance fraud; 8
(c) Within seven business days after the disbursement or transaction9
is delayed, the insurer notifies the director of the delay and provides10
to the director the reason for the delay, including the status of the11
internal review initiated pursuant to subsection (1) of this section; and12
(d) The insurer continues the internal review of the suspected or13
attempted financial exploitation of the eligible adult, as necessary, and14
provides the director with updates of such review upon request.15
(3) Any delay of a disbursement or transaction authorized by this16
section shall expire upon the first to occur of any of the following:17
(a) A final determination by the insurer that the disbursement or18
transaction will not result in or contribute to financial exploitation of19
the eligible adult; 20
(b) Fifteen business days after the date on which the insurer first21
delayed the disbursement or transaction, unless extended pursuant to22
subdivision (3)(c) or (3)(d) of this section; 23
(c) If the internal review initiated pursuant to subsection (1) of24
this section continues to support the insurer's reasonable belief that25
the disbursement or transaction will likely result in or contribute to26
the financial exploitation of an eligible adult, twenty-five business27
days after the date on which the insurer first delayed the disbursement28
or the transaction, unless extended pursuant to subdivision (3)(d) of29
this section; or 30
(d) If the internal review initiated pursuant to subsection (1) of31
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this section continues to support the insurer's reasonable belief that1
the disbursement or transaction will likely result in or contribute to2
the financial exploitation of an eligible adult, fifty-five business days3
after the date on which the insurer first delayed the disbursement or4
transaction. 5
(4) Notwithstanding subsection (3) of this section, upon the6
petition of the director, an insurer who initiated a delay of7
disbursement or transaction pursuant to this section, or another8
interested party, a court of competent jurisdiction may enter an order9
terminating, extending, or modifying the delay of the disbursement or10
transaction and may order other protective relief.11
Sec. 7. (1) An insurer or trained individual who, acting reasonably12
and in good faith, complies with section 6 of this act or the Insurance13
Fraud Act shall be immune from any administrative or civil liability that14
might otherwise arise from such delay in a disbursement or transaction or15
any other actions or omissions related to the administration of Nebraska16
Protection of Seniors from Insurance Exploitation Act. An insurer or17
trained individual shall not be liable for the actions of a permissible18
third party. 19
(2) An insurer or trained individual shall be immune from any civil,20
criminal, or administrative liability for declining to interact with a21
permissible third party if the insurer or trained individual reasonably22
believes that: 23
(a) The permissible third party is, may be, or may have been engaged24
in the financial exploitation of the vulnerable adult or senior adult; or25
(b) Such interaction is not in the best interests of the vulnerable26
adult or senior adult. 27
(3) A permissible third party who acts in good faith and exercises28
reasonable care in providing information to the insurer or trained29
individual, or in assisting the insurer, trained individual, or law30
enforcement in an investigation of suspected financial exploitation,31
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shall be immune from any administrative, civil, or criminal liability1
that might otherwise arise from such actions. 2
Sec. 8. (1) Except for insurance producers described in subdivision3
(6)(a) of section 3 of this act, an insurer shall provide training to all4
supervisors and employees of such insurer appropriate to the job5
responsibilities of supervisors and employees handling or advising on6
complaints, possible fraud, and investigations. Such training shall be7
completed by the later of April 15, 2027, or one year after the date any8
supervisor or employee begins employment with or becomes affiliated or9
associated with the insurer. The training shall include all of the10
following: 11
(a) Instruction on how to identify the suspected or attempted12
exploitation of an eligible adult, including identifying common signs13
indicating the financial exploitation of an eligible adult, and how to14
provide notification regarding the suspected or attempted exploitation of15
an eligible adult; and 16
(b) Instruction regarding privacy and confidentiality requirements.17
(2) An insurer shall provide the training required by this section18
as soon as reasonably practicable. 19
Sec. 9. (1) An insurer shall provide access to or copies of records20
that are relevant to the suspected or attempted financial exploitation of21
an eligible adult to the director and to law enforcement, either as part22
of a referral to the director or law enforcement, or upon the request of23
the director or law enforcement pursuant to an investigation. The records24
may include historical records as well as records relating to the most25
recent transactions and disbursement requests from the insurance policy,26
contract, or account that may comprise financial exploitation of an27
eligible adult. 28
(2) All records made available to the director or law enforcement or29
any other person pursuant to this section, including the National30
Association of Insurance Commissioners and its affiliates and31
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subsidiaries, in the course of an investigation conducted under the1
Nebraska Protection of Seniors from Insurance Exploitation Act, shall be2
confidential, shall not be subject to subpoena, shall not be made public3
by the director or any other person, and shall not be public records4
subject to disclosure pursuant to sections 84-712 to 84-712.09. Such5
workpapers, recorded information, documents, and copies may be provided6
to other state, federal, foreign, and international regulatory and law7
enforcement agencies and the National Association of Insurance8
Commissioners and its affiliates and subsidiaries if the recipient agrees9
in writing to maintain the confidentiality of such workpapers, recorded10
information, documents, and copies. 11
Sec. 10. The director may adopt and promulgate rules and12
regulations to carry out the Nebraska Protection of Seniors from13
Insurance Exploitation Act, including, but not limited to, rules and14
regulations related to: 15
(1) The form and manner of the notifications under section 6 of this16
act; and 17
(2) The specific content and methods of the training required under18
section 8 of this act. 19
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