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Home » Bulletins » Nebraska Department of Insurance Caps Creditor Compensation at 30% Under Updated Credit Insurance Guidance

Nebraska Department of Insurance Caps Creditor Compensation at 30% Under Updated Credit Insurance Guidance

NE| The Nebraska Department of Insurance Guidance Document IGD-A2 provides updated requirements and prima facie rates for credit life and credit accident and health insurance in Nebraska for 2025, 2026, and 2027. The document details approved premium rate schedules, outlines procedures for filing rates and justifying deviations, and sets limitations on creditor compensation to ensure rates remain reasonable relative to provided benefits. It also specifies definitions, procedural requirements, and compliance expectations for insurers and agents.

  • Prima facie premium rates for credit life and credit accident and health insurance are established for 2025, 2026, and 2027, with insurers required to file these rates and justify any upward deviations.
  • Total compensation to creditors from insurers or agents is capped at 30% of premium; exceeding this is deemed unreasonable and a violation of state law.
  • Detailed guidelines govern joint credit accident and health insurance, agent conduct, permitted compensation forms, and rate filing procedures.

Click here to see NE Guidance Document IDG-A1

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