Neb. legislation could protect insurance policy holders from being dropped
LINCOLN, NE (KTIV/US92) -
Some Siouxland residents have seen their insurance premiums skyrocket or in some cases get canceled because of hail damage. A Nebraska lawmaker hopes to change that.
Senator Jim Scheer of Norfolk introduced the bill that would limit what insurance companies can do to customers who suffer from natural disasters.
If the bill becomes law insurance companies would be prohibited from canceling a policy on individuals that have had weather-related losses.
It would also limit the circumstances with which insurance providers could add surcharges to customers who've suffered weather losses.
Scheer, who owns an insurance agency, says the idea came from the experience many in Norfolk and the surrounding area have had trying to get homeowners' policies after two years' worth of hail damage.
Sen. Jim Scheer, Norfolk said, "You can't move your home out of the way of a wind-storm or a hail-storm or other things that are weather related. I don't think they should be able to dump you as a risk when actually part of their contract is helping to take care of that risk."
Sheer's bill has been co-sponsored by four other senators.
It was referred to the Banking, Commerce and Insurance Committee earlier this week but has not yet been scheduled for a hearing.