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LB 326

Change provisions relating to the Unfair Insurance Trade Practices Act, the Nebraska Property and Liability Insurance Guaranty Association Act, and mutual insurance holding companies and eliminate the provisions of the Health Insurance Access Act and the Health Care Purchasing Pool Act

109th Legislature (2025-2026) Introduced by Mike Jacobson

LB 326 updates Nebraska insurance laws to curb aggressive lead-generation practices, expand guaranty fund coverage (including cyber claims), and clarify accounting options for mutu

Approved by Governor on April 14, 2025
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WeVote Research Nonpartisan
Bill Summary · LB 326

Summary — LB 326 (2025)

Status: Approved by the Governor April 14, 2025 (Introduced Jan 16, 2025; Passed Final Reading Apr 10, 2025 — 47-0-2)
Primary sponsor: Senator Mike Jacobson. Amendment AM836 (Hallstrom) adopted.

Main purpose

LB 326 modernizes and consolidates several insurance laws in Nebraska by:
- Expanding enforcement jurisdiction under the Unfair Insurance Trade Practices Act to cover health insurance lead generators and related marketing practices;
- Amending the Nebraska Property and Liability Insurance Guaranty Association Act to conform with recent NAIC model changes (clarifying covered claims, expressly covering cybersecurity insurance, and adding association powers and procedural provisions); and
- Clarifying accounting options for mutual insurance holding companies (GAAP or Statutory Accounting Principles).
The bill also repeals obsolete laws: the Health Insurance Access Act and the Health Care Purchasing Pool Act.

Key provisions and changes

  • Unfair Insurance Trade Practices Act
    • Defines “health insurance lead generator” and “lead generating device” and brings such entities within the Act’s reach.
    • Adds a definition for “recording” (complete audio reproduction of sales/verification calls, including virtual calls) used in insurance marketing.
    • Subjects insurers, lead generators, and other persons engaged in insurance to the Act when conduct is flagrant or widespread.
  • Nebraska Property and Liability Insurance Guaranty Association Act (NAIC-conforming changes)
    • Revises the definition of “covered claim” to ensure guaranty association coverage continues when a policy is transferred between insurers.
    • Explicitly includes cybersecurity insurance within guaranty fund coverage and defines that coverage (including claim-limit framework as specified in statute).
    • Grants the association additional powers (e.g., access to insurer records, employment authority) and adds express defenses and clarifications regarding settlements, releases, compromises, judgments, and exhaustion of remedies by claimants.
  • Mutual Insurance Holding Company Act
    • Clarifies that mutual insurance holding companies may report using Generally Accepted Accounting Principles (GAAP) or Statutory Accounting Principles (SAP).
  • Repeals
    • Outright repeal of statutes comprising the Health Insurance Access Act and the Health Care Purchasing Pool Act (various sections cited in the bill), deemed obsolete.

Who is affected

  • Health insurance lead generators and companies that buy or use leads (now subject to state unfair-practices enforcement).
  • Insurers, producers, and third-party marketers involved in health insurance marketing.
  • Policyholders and claimants — increased clarity on guaranty fund coverage (including cyber claims) and remedies.
  • Nebraska Property and Liability Insurance Guaranty Association — expanded authority and clarified duties.
  • Mutual insurance holding companies — more flexible accounting/reporting options.
  • Department of Insurance — expanded enforcement scope and duties.

Procedural/timeline notes

  • Committee hearing: Feb 11, 2025 (Banking, Commerce & Insurance Committee). Advanced out of committee (committee vote recorded in favor).
  • Amendment AM836 (filed Mar 27, 2025 by Sen. Hallstrom) was adopted March 28, 2025.
  • Advanced through Select/Final Reading in March–April 2025; presented to Governor Apr 10, 2025; approved Apr 14, 2025.

Practical impact

LB 326 updates regulatory tools to address modern marketing practices (lead generation), aligns state guaranty fund law with national model provisions (including cyber exposures), and reduces regulatory ambiguity for mutual holding companies — while removing obsolete statutory programs. Where the bill references specific coverage definitions and claim limits (particularly for cybersecurity), the statute provides the controlling detail; no new general appropriation or funding amounts are specified in the bill summary.

Compiled from official sources — confirm details with the bill’s official record.

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