Nebraska Statutes 44-1991. Diversification requirement
(1) Without the prior written approval of the director, a domestic title insurer shall not accept:
Terms Used In Nebraska Statutes 44-1991
- Director: shall mean the Director of Insurance. See Nebraska Statutes 44-103
- Domestic: when applied to corporations shall mean all those created by authority of this state. See Nebraska Statutes 49-801
- Insurer: shall include all companies, exchanges, societies, or associations whether organized on the stock, mutual, assessment, or fraternal plan of insurance and reciprocal insurance exchanges. See Nebraska Statutes 44-103
- Oversight: Committee review of the activities of a Federal agency or program.
- Person: shall include bodies politic and corporate, societies, communities, the public generally, individuals, partnerships, limited liability companies, joint-stock companies, and associations. See Nebraska Statutes 49-801
- Reinsurance: shall mean a contract by which an insurer procures a third party to insure it against loss or liability by reason of such original insurance. See Nebraska Statutes 44-103
- Year: shall mean calendar year. See Nebraska Statutes 49-801
(a) Additional title insurance business from a title insurance agent that is not affiliated with the title insurer if, when added to other title insurance business written through the title insurance agent during the same calendar year, that title insurance agent’s aggregate premiums written on behalf of the title insurer will exceed twenty percent of the title insurer’s gross premiums written during the prior calendar year as shown on the title insurer’s most recent annual statement on file with the director; or
(b) Additional direct operations from a single source if, when added to other direct operations from the single source during the same calendar year, the aggregate premiums written on the direct operations of the single source will exceed twenty percent of the title insurer’s gross premiums written during the prior calendar year as shown on the title insurer’s most recent annual statement on file with the director. For purposes of this section, single source means a person that refers title insurance business to the title insurer and any other person that controls, is controlled by, or is under common control with that person.
(2) In determining whether prior approval may be given, the director shall consider:
(a) The potential that the acceptance of more title insurance business from the title insurance agent or source may adversely affect the financial solidity of the title insurer;
(b) The availability of competing title insurance agents or additional sources in the territories in which the title insurer accepts risks;
(c) The number of years the title insurer has been in business;
(d) Reinsurance arrangements mitigating the concentration of title insurance business from the title insurance agent or single source;
(e) The comparative profitability of the title insurance agent’s or single source’s book of title insurance business;
(f) The degree of oversight of the title insurance agent’s operations exercised by the title insurer; and
(g) Any other circumstances deemed by the director to be appropriate.