Bill > LB325

This bill modifies the requirements for the board of directors of an insurance corporation in Nebraska, primarily focusing on residency and qualification provisions. The bill allows insurance corporations that meet specific criteria to be exempt from the requirement of having at least one Nebraska resident on their board of directors for a five-year period. To qualify for this exemption, an insurance corporation must file an affidavit demonstrating that it has its principal corporate offices in Nebraska, is publicly traded or a wholly owned affiliate of a publicly traded company, has been domiciled in Nebraska for at least 25 years, employs over 500 Nebraska-based employees, and has maintained the same ultimate controlling entity for ten years. The bill also strengthens existing director qualifications by mandating that persons convicted of a felony cannot serve as directors, and clarifies that directors must have good moral character and professional ability with practical knowledge of insurance, finance, or investment. For mutual companies or assessment associations, directors must be policyholders. The bill provides a mechanism for the insurance corporation to renew the exemption or return to compliance if it no longer meets the initial criteria, including appointing a Nebraska resident to the board within six months of failing to meet the original requirements.

Business and Industry

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=58789