New insurance producer license advanced

Senators gave first-round approval April 2 to a bill that would authorize a new insurance producer license in Nebraska.

LB458, introduced by Seward Sen. Mark Kolterman, would authorize the state director of Insurance to issue a limited lines travel insurance producer license. This new license would authorize an individual or business entity to sell, solicit or negotiate travel insurance through a licensed insurer.

Kolterman said Nebraska’s licensing framework for travel insurance needs to reflect the modern travel industry, in which it is common for retailers to do business across state lines. More than 30 states have adopted the national standard reflected in the bill, he said, and all remaining states have similar legislation pending this year.

“[LB458] just brings licensing regulation to the state of Nebraska and regulates it consistent with what’s going on in other states,” Kolterman said.

Under the bill, a travel retailer, its employees and authorized representatives could offer travel insurance as a service to customers on behalf of and under the director of a holder of a limited lines travel insurance producer license.

A limited lines travel insurance producer and those registered under the producer’s license would be exempt from examination, prelicensing education and continuing education requirements for producers.

A technical Banking, Commerce and Insurance Committee amendment was adopted 36-0 and the bill was advanced to select file on a 32-0 vote.