What it is

A scam where fake associations sell cheap health policies that don't pay claims.

How the Scam Works

What is the Surplus Lines Market?
It is an insurance marketplace established for the purpose of insuring unique or hard-to-place risks. Rules that apply to surplus lines placements and companies differ from coverage obtained from licensed insurers in Nebraska.

What happens when an insurance company becomes insolvent?
When the Department of Insurance determines an insurance company can no longer meet its contractual obligations, the Director will petition the court for an order to liquidate the company.
Liquidation is like bankruptcy. When the order is issued by the court, the Department will distribute the company’s assets according to established law.

Introduction

The Insurance Complaints Division of the Nebraska Department of Insurance investigates policyholder complaints against insurance companies and insurance agents. If you have an insurance-related concern and you file a complaint, the Insurance Complaints Division will investigate the matter.

What the Insurance Complaints Division (ICD) Can Do

ICD works to assist policyholders and promote compliance with Nebraska insurance laws.

Q. Are the agent and insurance company licensed by the Nebraska Department of Insurance?

A. You are able to look up and see a company or agent's standing in Nebraska by going to our company and producer search page. 

Q. How can I find out the claims history of my home before I buy it?

A. Claims on a home can indicate future risk. Multiple claims on a property could be deemed "higher risk".

Water Backup

Protects against water damage from sources like backed-up sewers and drains

Equipment Breakdown

Covers the repair or replacement of household equipment like HVAC, water heaters, appliances, and electrical panels

Identity Fraud

Reimburses you for costs like legal fees, lost wages, and replacing ID's related to restoring your identity

Flood Insurance

Characteristics of Your Home

Many aspects of your home will determine the amount of premium you pay. This includes:

Deductible

This is the money you have to pay out-of-pocket on a claim before the policy pays the loss. This applies to coverage for your home and personal property and is paid on each claim.

For example, if your roof sustains damages worth $10,000 and you have a $1,000 deductible, you are responsible for $1,000 of the total. Your insurance company will evaluate the other $9,000.

Replacement Cost versus Actual Cash Value

This will determine how much your insurer pays after a loss.

As a note, flooding is NOT covered under a homeowners insurance policy. These are coverages under typical policies. Make sure to read your policy for specific coverages and/or exclusions.

Broad Form (HO-2)

With a broad form policy, your home is protected from: