Procedures for Purchasing Securities for Deposit
- Contact one of the depository banks on the list below and arrange to purchase securities for depository purposes. Be sure to advise the bank that this is to be pledged to the Nebraska Department of Insurance.
- The securities pledged must be in the name of the company and Nebraska Department of Insurance.
- The securities that are most often pledged are U.S. Treasury Notes, however, any security which is registered in the NAIC Valuations of Securities Database will be acceptable. Nebraska requires $100,000.00 market value (HMO's deposit requirement is $300,000.00) to be deposited. Pursuant to Neb.Rev.Stat. §44-150 the required amount for security deposits is subject to retaliation.
- Upon completion of the purchase, the bank is required to send to the Nebraska Department of Insurance the original safekeeping or joint custody trust receipt which gives a description of the security including the maturity date, rate and amount. Our Department will maintain this receipt in our files.
- The Department of Insurance will send to the company a Nebraska Departmental receipt, which the company will maintain until the securities are to be released.
- When the company wishes to release the securities, they must return the Departmental receipt to our office for authorization of release to the bank. The company should also provide our department with a description of the securities that will be used to replace the released securities.
- The Department will then forward to the bank the safekeeping receipt or joint custody trust receipt authorizing the release of the securities.
Any questions regarding these procedures should be directed to Lori Bruss at 402-471-4045.
All of the aforementioned requirements and fees are subject to retaliation.
