Nebraska Statutes 44-3,143. Life insurance policy proceeds;payment of interest; when
(1) Any insurance company authorized to do business in this state shall pay interest on any proceeds due on a life insurance policy if:
Terms Used In Nebraska Statutes 44-3,143
- Action: shall include any proceeding in any court of this state. See Nebraska Statutes 49-801
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Company: shall include any corporation, partnership, limited liability company, joint-stock company, joint venture, or association. See Nebraska Statutes 49-801
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- State: when applied to different states of the United States shall be construed to extend to and include the District of Columbia and the several territories organized by Congress. See Nebraska Statutes 49-801
- Year: shall mean calendar year. See Nebraska Statutes 49-801
(a) The insured was a resident of this state on the date of death;
(b) The date of death was on or after June 6, 1991;
(c) The beneficiary elects in writing to receive the proceeds in a lump-sum payment; and
(d) The proceeds are not paid to the beneficiary within thirty days of receipt of proof of death of the insured by the insurance company.
(2) Interest shall accrue from the date of receipt of proof of death to the date of payment at the rate calculated pursuant to section 45-103 in effect on January 1 of the calendar year in which occurs the date of receipt of proof of death. For purposes of this section, date of payment shall include the date of the postmark stamped on an envelope, properly addressed and postage prepaid, containing the payment.
(3) If an action is commenced to recover the proceeds, this section shall not require the payment of interest for any period of time for which interest is awarded pursuant to sections 45-103 to 45-103.04.
(4) A violation of this section shall be an unfair claims settlement practice subject to the Unfair Insurance Claims Settlement Practices Act.