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May 12, 2009

Nebraska Bill to Repeal Guest Passenger Statutes Would Lead to Increased Fraud and Higher Costs

LB 216, an initiative of the trial bar, would repeal Nebraska’s guest passenger statutes. The law limits the ability of family members to sue each other in routine automobile negligence cases. It is an important protection against fraud.

NAMIC and our state trade association partner, the Nebraska Insurance Information Service, need your help.

Our state trade partner wants the industry members to clearly communicate to their legislators that this bill should not advance. We are, therefore, asking that you e-mail your senator in a low-keyed approach, as opposed to calling his or her office.

If you do not know who your senator is, visit The link to the senator’s e-mail address can be found on his or her web page.

We ask that in your message you include your name, company, and home address and convey in your own words the following:

  • LB 216 is bad public policy that will lead to increased fraud and higher costs, as there will be an incentive to bring collusive lawsuits.
  • Current guest passenger statutes are a carefully balanced approach, protecting family members in the most severe cases, such as when relatives cause accidents while operating under the influence of alcohol or while driving in a grossly negligent manner.

While this applies only to automobile and aircraft insurance, farm mutual professionals who also work in these areas need to take action, too.

Thank you.

Direct questions to NAMIC State Affairs Manager Mark Johnston.