Neb. Rev. Stat. » Chapter 44
Nebraska Revised Statutes

Neb. Rev. Stat. § 44-508 (2026)

Liability insurance; automobiles; bankruptcy of insured; policy provisions; reciprocity

✓ current as of July 2026
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The policies or contracts of insurance covering legal liability for injury to a person or persons caused by the ownership, operation, use, or maintenance of an automobile issued by any domestic or foreign company shall, if filed with the director pursuant to the Property and Casualty Insurance Rate and Form Act, contain a provision that the insolvency or bankruptcy of the assured shall not release the company from the payment of damages for injury sustained or loss occasioned during the life of the policy, and, in case of such insolvency or bankruptcy, an action may be maintained within the terms and limits of the policy by the injured person or his or her heirs against the insurer.

Notes of Decisions
Cited in 8 cases (2 in the last 5 years), 1979–2025 · leading case: State Farm Mut. Auto. Ins. v. Hildebrand, 502 N.W.2d 469 (Neb. 1993).
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State Farm Mut. Auto. Ins. v. Hildebrand, 502 N.W.2d 469 (Neb. 1993). · cites it 6× “Neb.Rev.Stat. §§ 44-508 and 44-514 to 44-521 (Reissue 1988 & Cum.”
Molina v. Am. Alt. Ins. Corp., 699 N.W.2d 415 (Neb. 2005). · cites it 2× “Our much narrower direct action statute, Neb. Rev. Stat. § 44-508 (Reissue 2004), permits an injured party to bring a direct action against an automobile liability insurer in the event that the insured is insolvent or bankrupt.”
German Mut. Ins. v. Federated Mut. Ins., 606 N.W.2d 856 (Neb. Ct. App. 2000). · cites it 4× “Couch notes a "trend of modern public policy favoring the compensation of innocent victims over the preservation of historic legal rules such as privity.”
State Auto. & Cas. Underwriters v. Farmers Ins. Exch., 282 N.W.2d 601 (Neb. 1979). · cites it 2× “The only relationship between Farmers and Kline, as stated in the petition, is that Farmers “insured Kline at the time of the Accident * * We can only guess that it was a liability policy, which it *418 would have to be before Farmers would have any connection with the case at…”
Robertson v. Motor Club Ins., 602 N.W.2d 27 (Neb. Ct. App. 1999). · cites it 2× “Neb. Rev. Stat. § 44-508 (Reissue 1998) provides an exception to this rule in the event the insured is insolvent or bankrupt.”
German Mut. Ins. v. Federated Mut. Ins., 606 N.W.2d 856 (Neb. Ct. App. 2000). · cites it 4× “Neb. Rev. Stat. § 44-508 (Reissue 1998) provides that a lawsuit may be maintained by an injured person directly against an automobile liability insurance carrier in the event the insured is insolvent or bankrupt.”
Davis v. Gross (D. Neb. 2025). · cites it 2× “CONCLUSION Davis fails to state plausible claims for relief against Domino’s and Sedgwick under § 1983.”
Phillips v. Progressive Ins. Co. (D. Neb. 2025). · cites it 2× “2d 415, 419 (2005) (citing Neb. Rev. Stat. § 44-508 ), this exception does not apply here.”
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