# NE Insurance Company Bulletin CB-49: Payment of Special Costs on Property Losses > Nebraska · Agency guidance · Superseded URL: https://www.frixlaw.com/law-library/statutes/NE_INS_CB_049 ## Section - **Citation:** NE Insurance Company Bulletin CB-49 - **Heading:** Payment of Special Costs on Property Losses - **Jurisdiction:** Nebraska - **Kind:** Agency guidance - **Status:** Superseded - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Nebraska DOI Insurance Guidance Documents and Company Bulletins / Payment of Special Costs on Property Losses ## Text STATE OF NEBRASKA DEPARTMENT OF INSURANCE Jim Wagner Director June 8, 2006 CB-49 (Amended) [LOGO] Dave Heineman Governor ## BULLETIN SUBJECT: PAYMENT OF SPECIAL COSTS ON PROPERTY LOSSES The subject of payment or nonpayment of special costs (such as sales tax, luxury tax, and other applicable taxes or surcharges) on property losses (including total losses) has come to the attention of this Department. This bulletin is designed to address payment of these special costs. The purpose and theory of insurance is indemnification; that is, to put one back into the position they were in before the loss. This indemnification principle is applicable not only to first party claims, but also to third party claims where statutes and case law apply instead of contractual obligations. This Department takes the position that these special costs must be paid whether a first party or third party settlement is involved. It is important to note in Nebraska that there is no sales tax imposed on vehicles used as common or contract carrier purposes. This exemption is found in Neb.Rev.Stat. §77-2704.50. Other types of commercial vehicles can be subject to sales tax, and special costs must be paid on these commercial vehicles. For a stated-value policy, payment of special costs would not prompt payment above a policy's stated value amount. The following guidelines may offer assistance: 1. Special costs must be paid on loss settlements where the property is replaced. The amount reimbursable shall be based on the value of the pre-loss property, not on the value of the replacement property, unless the pre-loss property value is greater than that of the replacement, in which case, payment will be based on the value of the replacement property. 2. Special costs payment need not be a part of the settlement when the property is not replaced. 941 "O" Street • Suite 400 • Lincoln, Nebraska 68508-3639 • Phone (402) 471-2201 • Facsimile (402) 471-4610 http://www.dot.ne.gov An Equal Opportunity/Affirmative Action Employer e is greater than that of the replacement, in which case, payment will be based on the value of the replacement property. 2. Special costs payment need not be a part of the settlement when the property is not replaced. 941 "O" Street • Suite 400 • Lincoln, Nebraska 68508-3639 • Phone (402) 471-2201 • Facsimile (402) 471-4610 http://www.dot.ne.gov An Equal Opportunity/Affirmative Action Employer CB-49 (Amended) Page two 3. Reimbursement may be made as a supplemental payment when actual replacement occurs. 4. If the actual cash value settlement amount has met the stated value shown on the declarations page of a stated value policy, then special costs need not be paid. Failure to comply with the above requirements will be considered a violation of the Nebraska Unfair Insurance Claims Settlement Practices Act. Questions may be directed to the Consumer Affairs Division. L. Tim Wagner Director ## Nearby sections - [NE Insurance Company Bulletin CB-4 Motorcycle Liability Insurance for Passengers](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_004.md) - [NE Insurance Company Bulletin CB-22 Title Insurance Companies, Mortgage Policies, Fees](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_022.md) - [NE Insurance Company Bulletin CB-26 Agency Billed Renewals](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_026.md) - [NE Insurance Company Bulletin CB-38 Schedule of Fees](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_038.md) - [NE Insurance Company Bulletin CB-40 Underwriting Refusals Based Solely on Previous Non-Renewal, Rejection or Cancellation of Property and Casualty Insurance](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_040.md) - [NE Insurance Company Bulletin CB-45 Assessment Companies - Limit on Assessments](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_045.md) - [NE Insurance Company Bulletin CB-49 Payment of Special Costs on Property Losses](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_049.md) - [NE Insurance Company Bulletin CB-50 Filing Procedures for Property and Casualty Insurance Companies](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_050.md) - [NE Insurance Company Bulletin CB-51 Use of Nebraska Company and NAIC Numbers](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_051.md) - [NE Insurance Company Bulletin CB-53 Submission of Life and/or Health Forms](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_053.md) - [NE Insurance Company Bulletin CB-56 Replacement of Life Insurance and Annuities](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_056.md) - [NE Insurance Company Bulletin CB-58 Aircraft as Qualified Investments](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_058.md) - [NE Insurance Company Bulletin CB-59 Actuarial Opinions](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_059.md) - [NE Insurance Company Bulletin CB-60 Quarterly Statement Filings](https://www.frixlaw.com/law-library/statutes/NE_INS_CB_060.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/NE_INS_CB_049. Check the current official text before relying on it. Not legal advice.