210 Neb. Admin. Code, ch. 73, § 003

Current through September 17, 2024

Section 210-73-003 - Definitions

For the purposes of Chapter 73, the following definitions apply.

003.01 The definitions set forth in Neb.Rev.Stat. § 44-7504 apply for purposes of this chapter.

003.02 Class RFS policyholder

"Class RFS policyholder" means an exempt commercial policyholder that fulfills either of the two following sets of conditions:

(1)

(A) The policyholder utilizes the services of a qualifying risk manager;

(B) The policyholder generates at least $100,000 in aggregate commercial lines property and casualty insurance premiums per year, and

(C) The policyholder meets at least two of the following conditions:

(i) The policyholder generates aggregate commercial lines property and casualty insurance premiums of at least $250,000 per year, excluding premiums for workers' compensation and medical professional liability insurance, or generates at least $1,000,000 aggregate commercial property and casualty insurance premiums per year, including premiums for workers' compensation and medical professional liability insurance.

(ii) The policyholder's net worth is at least $25,000,000.

(iii) The policyholder's annual net revenues or sales are at least $50,000,000.

(iv) The policyholder employs at least 250 employees.

(v) If the policyholder is a not-for-profit or government entity, the policyholder has an annual operating budget of at least $25,000,000.

(2)

(A) The policyholder generates at least $100,000 in aggregate commercial lines property and casualty insurance premiums per year for all jurisdictions combined, and

(B) In a jurisdiction that generates greater aggregate commercial property and casualty insurance premiums for the policyholder than Nebraska:

(i) No rates for the policyholder are subject to a requirement that the insurer adheres to its rating manuals;

(ii) No policy forms for the policyholder, other than policy forms for workers' compensation and automobile liability insurance, are subject to a requirement that the insurer must use filed forms, and

(iii) Access to surplus lines markets for other than workers' compensation and automobile liability insurance for the policyholder is not subject to any requirement that such coverage is not available from a licensed insurer.

003.03 Class RF policyholder

"Class RF policyholder" means an exempt commercial policyholder that meets any one of the three following sets of conditions:

(1) The policyholder utilizes the services of a qualifying risk manager and generates at least $50,000 in aggregate property and casualty insurance premiums per year.

(2) The policyholder generates aggregate commercial lines property and casualty insurance premiums of at least $250,000 per year, excluding premiums for workers' compensation and medical professional liability insurance, or generates at least $1,000,000 per year in aggregate property and casualty insurance premiums, including premiums for workers' compensation and medical professional liability insurance.

(3)

(A) The policyholder generates at least $50,000 in aggregate commercial lines property and casualty insurance premiums per year for all jurisdictions combined, and

(B) In a jurisdiction that generates greater aggregate commercial property and casualty insurance premiums for the policyholder than Nebraska:

(i) No rates for the policyholder are subject to a requirement that the insurer adhere to its rating manuals, and

(ii) No policy forms for the policyholder, other than policy forms for workers' compensation and automobile liability insurance, are subject to a requirement that the insurer must use filed forms.

003.04 Class R policyholder

"Class R policyholder" means an exempt commercial policyholder that meets any one of the three following sets of conditions:

(1) The policyholder utilizes the services of a qualifying risk manager and generates at least $25,000 in aggregate commercial lines property and casualty insurance premiums per year.

(2) The policyholder generates aggregate property and casualty insurance premiums of at least $75,000 per year excluding premiums for medical professional liability insurance, or generates at least $250,000 in aggregate commercial lines property and casualty insurance premiums per year, including premiums for medical professional liability insurance.

(3) The policyholder generates at least $25,000 in aggregate commercial lines property and casualty insurance premiums per year for all jurisdictions combined and, in a jurisdiction that generates greater aggregate commercial property and casualty insurance premiums for the policyholder than Nebraska, rates for the policyholder are not subject to a requirement that the insurer adheres to its rating manuals.

003.05 Commercial lines property and casualty insurance

"Commercial lines property and casualty insurance" means property and casualty insurance filed pursuant to Neb.Rev.Stat. § 44-7508, and also includes workers' compensation insurance, medical professional liability insurance, and insurance covering farms and ranches, including crop insurance.

003.06 Exempt commercial policyholder

"Exempt commercial policyholder" means a Class RFS, RF, or R policyholder, as defined by this chapter, that may purchase insurance policies for which specific aspects of rate or policy form regulation do not apply or have been relaxed, or that is exempt from those provisions of §§ 44-5510 and 44-5511 that require, as a condition for the purchase of insurance from a nonadmitted insurer, that applicants demonstrate inability to obtain insurance from a licensed insurer.

003.07 Qualifying risk manager

"Qualifying risk manager" means:

(1)

(A) A person that is a full time employee of the policyholder with primary duties consisting of property and casualty risk management and the purchase of insurance, and that meets the qualification standards in paragraph (2); or

(B) A person or persons, operating as a contractor that primarily provides risk management services, that devotes at least one hundred twenty hours per year to the policyholder's risk management and purchase of insurance. No such person shall be an agent for an insurer providing insurance for the policyholder, and shall not receive any compensation from an insurer, or from an agent of an insurer that is providing insurance for the policyholder, or from an agency compensated by the insurer that is providing insurance for the policyholder. Each person whose hours are included in the total hours necessary to meet this requirement is required to meet the qualification standards in paragraph (2).

(2) Who has demonstrated qualification through:

(A) Five or more years of full time experience in property and casualty insurance as a commercial lines underwriter with an insurance company or as an insurance producer dealing primarily with commercial accounts, except that health and employee benefit experience shall not count towards this requirement; or

(B) Three years of full-time experience related to property and casualty insurance or risk management and attainment of one of the following insurance professional designations:

(i) Associate in Risk Management;

(ii) Certified Risk Manager; or

(iii) Chartered Property Casualty Underwriter.

003.08 Workers' compensation insurance

"Workers' compensation insurance" means workers' compensation insurance, as defined in Neb.Rev.Stat. § 44-201(11), and includes insurance written with deductibles. "Workers' compensation insurance" does not include excess workers' compensation insurance provided for policyholders that have qualified with the Nebraska Workers' Compensation Court as approved self-insureds.

210 Neb. Admin. Code, ch. 73, § 003