Session Review: Banking, Commerce and Insurance
Insurance and banking industry regulation were among the issues considered by the Legislature this session.
Senators approved insurance coverage for oral cancer medications.
LB882, sponsored by Omaha Sen. Jeremy Nordquist, requires that a health policy, certificate, contract or plan provide coverage for a prescribed, orally administered anticancer medication that is used to kill or slow the growth of cancerous cells on a basis no less favorable than intravenously administered or injected cancer medications that are covered as medical benefits.
The bill also prohibits an insurance provider from reclassifying an anticancer medication or increasing a coinsurance, copayment, deductible or other out-of-pocket expense to offset the cost of complying with the bill.
LB882 takes effect Oct. 1, 2012, and sunsets Dec. 31, 2015.
The bill passed on a 46-0 vote.
Lawmakers also approved a bill meant to clarify the regulatory framework for motor vehicle ancillary product contracts.
LB1054, introduced by Omaha Sen. Beau McCoy, specifies that service contracts for ancillary motor vehicle products are not insurance and not otherwise subject to the state’s insurance code.
The bill defines ancillary products as a protective chemical, substance, device, system or service installed on or applied to a motor vehicle, which is designed to prevent loss or damage from a specific cause.
Such products include, but are not limited to:
• additives;
• alarm systems;
• steering locks;
• fuel and ignition kill switches;
• part marketing products; and
• electronic, radio and satellite tracking devices
Also included in the bill’s ancillary auto product definition are contracts or agreements for repair or replacement of:
• windshields damaged by road hazards;
• inoperable or lost keys or key fobs;
• tires or wheels damaged by road hazards; and
• dents, dings or creases using paintless dent removal.
The bill passed 44-0.
Several banking bills also were approved this session, including a measure that updates and amends the state’s consumer finance laws.
LB965, introduced by Boys Town Sen. Rich Pahls at the request of the state Department of Banking and Finance, makes changes to the Nebraska Installment Sales Act (NISA), the Residential Mortgage Licensing Act (RMLA) and the Nebraska Installment Loan Act (NILA).
Among the provisions, the bill:
• amends NISA to transition the current manual licensing process for installment sales companies onto the electronic Nationwide Mortgage Licensing System and Registry (NMLSR);
• allows a licensee to move its place of business anywhere without having to apply for a new license;
• brings the RMLA into compliance with new federal guidelines related to mortgage bankers and loan originators;
• authorizes the department to grant a certificate of exemption to a nonprofit organization that promotes affordable housing or provides homeownership education;
• authorizes the department to issue a mortgage loan originator license to a person who has had certain misdemeanors or any felony expunged from the record;
• allows the department to issue an emergency order to suspend, limit or restrict a mortgage license under specific circumstances; and
• amends NILA to include other state-regulated financial services entities and industries in the definition of NMLSR.
The bill passed on a 43-1 vote.
LB962, also introduced by Pahls, requires information in a state Department of Revenue review of major tax exemptions to specify categories in relation to sales and use tax.
The bill also names the legislative Tax Rate Review Committee and requires that its annual report be appended to the Department of Revenue’s tax expenditure report.
LB962 passed on a 44-0 vote.
Senators approved a bill aimed at increasing financial literacy among Nebraska youth.
LB269, introduced by Lincoln Sen. Danielle Conrad, increases licensing fees for delayed deposit service providers, also known as payday lenders. Under the bill, renewal fees increase from $150 to $500 for a main office location and from $100 to $500 for each branch office location.
The bill also creates the Financial Literacy Fund to receive the increased portion of the licensing fees, which will be administered by the University of Nebraska to provide financial literacy education to K-12 students in Nebraska.
LB269 passed 48-0.
Also passed was LB836, sponsored by Pahls, which allows state and political subdivisions to use additional programs to redeposit public funds invested in an interest-bearing money market deposit account at multiple insured institutions in amounts up to the FDIC deposit insurance coverage limit.
The bill passed 49-0.
The Banking, Commerce and Insurance Committee heard testimony on two bills that would have established a Nebraska health benefit exchange.
The federal Affordable Care Act requires establishment of an operational state health care exchange by Jan. 1, 2014. Without a plan in place, the federal Department of Health and Human Services would be authorized to develop and operate an exchange within the state.
LB835, sponsored by Nordquist, would have created a health benefit exchange within the state Department of Insurance (DOI) under the control and supervision of an 11-member independent governing board.
LB838, sponsored by Pahls, also would have created a Nebraska health benefit exchange. The DOI director would have been authorized to establish the exchange under the bill, which did not specify a governance structure for a state exchange.
Both bills were held in committee.
The committee also considered bills addressing fraudulent lien filers, coverage for autism spectrum disorders and minimum auto insurance coverage.
LB982, introduced by Omaha Sen. Burke Harr on behalf of the Nebraska Secretary of State, would have changed the powers of the secretary of state’s office regarding removal of fraudulent or suspect financing statements and allow an individual affected by a fraudulent statement to recover damages.
Under LB1129, introduced by Lincoln Sen. Colby Coash, health insurance policies issued in Nebraska would have been required to cover the screening, diagnosis and treatment of autism spectrum disorders in individuals up to 21 years of age.
LB1003, introduced by Columbus Sen. Paul Schumacher, would have increased minimum liability policy limits for auto insurance in Nebraska to $50,000 per person, $100,000 per occurrence and $50,000 for property damage.
The three bills were held in committee.
