Banking cleanup, regulation bill passed

Lawmakers gave final approval to an omnibus banking bill May 14.

LB474, introduced by the Banking, Commerce and Insurance Committee at the request of the Nebraska Department of Banking and Finance, makes a number of changes related to interest, loans and debt under the department’s jurisdiction, effective Oct. 1.

Among other provisions, the bill eliminates the Nebraska Installment Loan Act after merging certain provisions of it with the Nebraska Installment Sales Act and creating a new Nebraska Installment Loan and Sales Act.

Loans made by financial institutions that are serviced by or purchased by a licensee will not be subject to the interest rate limitations of the new Nebraska Installment Loan and Sales Act.

The bill includes provisions of three other measures heard by the committee this session.

Under the provisions of LB232, sponsored by Sen. Bob Hallstrom of Syracuse, life insurance policies issued or delivered on or after Jan. 1, 2026, are required to send notice electronically or by mail to the last known address of the policy owner and any assignee on record at least 15 days prior to policy termination or lapse due to nonpayment of any premium.

An assignee will have the same legal standing as the policy owner with respect to the provision.

LB278, introduced by Elkhorn Sen. R. Brad von Gillern, amends state law that places restrictions on health insurance policies and contracts between preferred providers and insurers by preventing such policies and contracts from excluding a provider solely because the provider holds a visiting faculty permit.

Finally, the amended provisions of LB473, sponsored by the committee, update and modernize the Nebraska Money Transmitters Act.

LB474 passed on a 49-0 vote.