In addition to the powers and duties enumerated in the Nebraska Life and Health Insurance Guaranty Association Act: (1) If a domestic insurer is an impaired insurer, the association may, at its discretion and subject to any conditions imposed by the association that do not impair the contractual obligations of the impaired insurer, are approved by the director, and are, except in cases of court-ordered conservation or rehabilitation, approved by the impaired insurer: (a) Guarantee, assume, or reinsure, or cause to be guaranteed, assumed, or reinsured, all the covered policies of the impaired insurer; (b) Provide such money, pledges, notes, guarantees, or other means as are proper to effectuate subdivision (1)(a) of this section and assure payment of the contractual obligations of the impaired insurer pending action under subdivision (1)(a) of this section; and (c) Loan money to the impaired insurer;
(2) If a foreign or alien insurer is an impaired insurer, the association may, in its discretion, or shall on order by the director after notice to the association and a hearing, with respect to the covered policies of residents and subject to any conditions which are imposed by the association other than those which impair the contractual obligations of the impaired insurer and, except in cases of court-ordered conservation or rehabilitation, which are approved by the impaired insurer and approved by the director: (a) Guarantee, assume, or reinsure, or cause to be guaranteed, assumed, or reinsured, the impaired insurer's covered policies of residents; (b) Provide such money, pledges, notes, guarantees, or other means as are proper to effectuate the provisions of subdivision (2)(a) of this section, and assure payment of the impaired insurer's contractual obligations to residents
pending action under the provisions of subdivision (2)(a) of this section; and (c) Loan money to the impaired insurer;
(3) If a domestic insurer is an insolvent insurer, the association shall, subject to the approval of the director: (a) Guarantee, assume, or reinsure, or cause to be guaranteed, assumed, or reinsured, the covered policies of residents; (b) Assure payment of the contractual obligations of the insolvent insurer to residents, including obligations to resident certificate holders of group insurance policies or contracts, regardless of the domicile of the group policy or contract holders; (c) Provide the protections specified in subdivisions
(3)(a) and
(3)(b) of this section to nonresident policy and certificate holders of such domestic insurer if (i) they are not eligible for such protections under the laws of the states in which they reside, (ii) such domestic insurer never held a license or certificate of authority in such states, and (iii) the laws of such states provide protections similar to those provided by this subdivision to the residents of this state who are policy or certificate holders of insurers domiciled in such states; and (d) Provide such money, pledges, notes, guarantees, or other means as are reasonably necessary to discharge such duties, but if the association fails to act within a reasonable period of time under this subdivision, the director shall have the powers and duties of the association under the Nebraska Life and Health Insurance Guaranty Association Act with respect to such domestic insolvent insurer;
(4) If a foreign or alien insurer is an insolvent insurer, the association shall, subject to the approval of the director: (a) Guarantee, assume, or reinsure, or cause to be guaranteed, assumed, or reinsured, the covered policies of residents; (b) Assure payment of the contractual obligations of the insolvent insurer to residents,
including obligations to resident certificate holders of group insurance policies or contracts regardless of the domicile of the group policy or contract holders; and (c) Provide such money, pledges, notes, guarantees, or other means as are reasonably necessary to discharge such duties, but if the association fails to act within a reasonable period of time under this subdivision, the director shall have the powers and duties of the association under the Nebraska Life and Health Insurance Guaranty Association Act with respect to such foreign or alien insolvent insurer. The protection provided by the Nebraska Life and Health Insurance Guaranty Association Act shall not apply to the extent that guaranty protection is provided to residents of this state by the laws of the domiciliary state or jurisdiction of the insolvent insurer other than this state;
(5)(a) In carrying out its duties under subdivisions
(1),
(2),
(3), and
(4) of this section, the association may request that there be imposed policy liens, contract liens, moratoriums on payments, or other similar means and such liens, moratoriums, or similar means may be imposed if the director: (i) Finds that the amounts which can be assessed under the Nebraska Life and Health Insurance Guaranty Association Act are less than the amounts needed to assure full and prompt performance of the impaired or insolvent insurer's contractual obligations, or that the economic or financial conditions as they affect member insurers are sufficiently adverse to render the imposition of policy or contract liens, moratoriums, or similar means to be in the public interest; and (ii) Approves the specific policy liens, contract liens, moratoriums, or similar means to be used. (b) Before being obligated under subdivisions
(1),
(2),
(3), and
(4) of this section, the association may request that there be imposed temporary moratoriums or liens on payments of cash
values and policy loans and such temporary moratoriums and liens may be imposed if they are approved by the director;
(6) The association may render assistance and advice to the director, upon his or her request, concerning rehabilitation, payment of claims, continuations of coverage, or the performance of other contractual obligations of any impaired or insolvent insurer;
(7) The association shall have standing to appear before any court in this state with jurisdiction over an impaired or insolvent insurer concerning which the association is or may become obligated under the Nebraska Life and Health Insurance Guaranty Association Act. Such standing shall extend to all matters germane to the powers and duties of the association, including, but not limited to, proposals for reinsuring or guaranteeing the covered policies of the impaired or insolvent insurer and the determination of the covered policies and contractual obligations;
(8)(a) Any person receiving benefits under the Nebraska Life and Health Insurance Guaranty Association Act shall be deemed to have assigned his or her rights under the covered policy to the association to the extent of the benefits received because of such act whether the benefits are payments of contractual obligations or continuation of coverage. The association may require an assignment to it of such rights by any payee, policy or contract owner, certificate holder, beneficiary, insured, or annuitant as a condition precedent to the receipt of any rights or benefits conferred by such act upon such person. The association shall be subrogated to these rights against the assets of any impaired or insolvent insurer; (b) The subrogation rights of the association under this subdivision shall have the same priority against the assets of the impaired or insolvent insurer as that possessed by the person entitled to receive benefits under such act;
(9) The contractual obligations of the impaired
or insolvent insurer for which the association becomes or may become liable shall be as great as but no greater than the contractual obligations of the impaired or insolvent insurer would have been in the absence of an impairment or insolvency unless such obligations are reduced as permitted by subdivision (5) of this section, but the aggregate liability of the association with respect to any one life shall not exceed: (a) Three hundred thousand dollars in life insurance death benefits, but not more than one hundred thousand dollars in net cash surrender and net cash withdrawal values for life insurance; (b) one hundred thousand dollars in the present value of annuity benefits, including net cash surrender and net cash withdrawal values; or (c) three hundred thousand dollars for all life insurance, health insurance, and annuity benefits, including net cash surrender and net cash withdrawal values; and
(10) The association may: (a) Enter into such contracts as are necessary or proper to carry out the provisions and purposes of the Nebraska Life and Health Insurance Guaranty Association Act; (b) Sue or be sued, including taking any legal actions necessary or proper for recovery of any unpaid assessments under section 44-2708; (c) Borrow money to effect the purposes of the act. Any notes or other evidence of indebtedness of the association not in default shall be legal investments for domestic insurers and may be carried as admitted assets; (d) Employ or retain such persons as are necessary to handle the financial transactions of the association and to perform such other functions as become necessary or proper under the act; (e) Negotiate and contract with any liquidator, rehabilitator, conservator, or ancillary receiver to carry out the powers and duties of the association; (f) Take such legal action as may be necessary to avoid payment of improper claims; (g) Exercise, for the purposes of the act
and to the extent approved by the director, the powers of a domestic life or health insurer, but in no case may the association issue insurance policies or annuity contracts other than those issued to perform the contractual obligations of the impaired or insolvent insurer; and (h) Join an organization of one or more other state associations of similar purposes to further the purposes and administer the powers and duties of the association.
