N.D. Cent. Code § 26.1-40-17 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-17
26.1-40-17. Establishment of primary and excess automobile liability coverages in certain instances
Status: in_force

26.1-40-17. Establishment of primary and excess automobile liability coverages in

certain instances.

When an automobile insurance policy which includes only automobile liability coverage,

uninsured motorist coverage, underinsured motorist coverage, automobile medical payments

coverage, and basic or optional excess no-fault benefits is in force for anyone engaged in the

business of selling, repairing, servicing, storing, leasing, renting, or parking motor vehicles and

the owner of the vehicles loans, rents, or leases a vehicle to any other person or organization

and the vehicle is involved in an accident out of which bodily injury or property damage arises,

the following is applicable:

1. If no other automobile insurance policy is in force at the time of the accident for the

person or organization to whom the vehicle was loaned, rented, or leased, the

coverage provided by the motor vehicle owner's automobile policy extends to the

borrower, rentee, or lessee in the event the owner's automobile insurance policy

extends coverage to the borrower, rentee, or lessee.

2. If another automobile insurance policy is in force for the person or organization to

whom the vehicle was loaned, rented, or leased, any coverage provided by the motor

vehicle owner's automobile insurance policy is excess coverage only but limited,

however, by the terms of the owner's applicable automobile insurance policy. The

policy afforded the person or organization to whom the vehicle was loaned, rented, or

leased is primary.

Any policy provisions at variance with this section must be interpreted so as to comply with this

section.
N.D. Cent. Code § 26.1-35-09 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-09
26.1-35-09. Reserve calculation - Valuation net premium exceeding the gross premium charged
Status: in_force

26.1-35-09. Reserve calculation - Valuation net premium exceeding the gross

premium charged.

1. If in any contract year the gross premium charged by an insurer on any policy or

contract is less than the valuation net premium for the policy or contract calculated by

the method used in calculating the reserve but using the minimum valuation standards

of mortality and rate of interest, the minimum reserve required for the policy or contract

is the greater of either the reserve calculated according to the mortality table, rate of

interest, and method actually used for the policy or contract, or the reserve calculated

by the method actually used for the policy or contract but using the minimum valuation

standards of mortality and rate of interest and replacing the valuation net premium by

the actual gross premium in each contract year for which the valuation net premium

exceeds the actual gross premium. The minimum valuation standards of mortality and

rate of interest referred to in this section are those standards stated in sections

26.1-35-02 and 26.1-35-04.

2. For a life insurance policy issued after December 31, 1986, for which the gross

premium in the first policy year exceeds that of the second year and for which no

comparable additional benefit is provided in the first year for the excess and which

provides an endowment benefit or a cash surrender value or a combination thereof in

an amount greater than the excess premium, the provisions of this section must be

applied as if the method actually used in calculating the reserve for the policy was the

method described in section 26.1-35-05, ignoring subsection 2 of that section. The

minimum reserve at each policy anniversary must be the greater of the minimum

reserve calculated in accordance with section 26.1-35-05, including subsection 2 of

that section, and the minimum reserve calculated in accordance with this section.
N.D. Cent. Code § 26.1-40.1-07 — ND Code / Title 26.1 / Chapter 26.1-40.1 / Section 26.1-40.1-07
26.1-40.1-07. Discretionary personal insurance where offered by personal automobile insurer
Status: in_force

26.1-40.1-07. Discretionary personal insurance where offered by personal automobile

insurer.

A personal automobile insurer may offer an automobile liability insurance policy, or an

amendment or endorsement to an existing policy that covers a private passenger vehicle or

similar type of vehicle with a passenger capacity of less than eight persons, including the driver,

while used in connection with a transportation network company's online-enabled application or

platform.
N.D. Cent. Code § 26.1-36.6-02 — ND Code / Title 26.1 / Chapter 26.1-36.6 / Section 26.1-36.6-02
26.1-36.6-02. Self-insurance health plans - Regulation
Status: in_force

26.1-36.6-02. Self-insurance health plans - Regulation

The commissioner shall regulate the financial condition, integrity, and equitable

administration of a self-insurance health plan established under chapter 54-52.1. All powers

granted to the commissioner to regulate insurance companies and insurers under title 26.1

apply to the commissioner to regulate a self-insurance health plan.
N.D. Cent. Code § 26.1-07-05.1 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-05.1
26.1-07-05.1. Hearing on petition - General duties of commissioner
Status: in_force

26.1-07-05.1. Hearing on petition - General duties of commissioner

The commissioner shall hold a hearing on the petition and determine whether the

consolidation or reinsurance will be allowed. The hearing must be conducted under chapter
N.D. Cent. Code § 26.1-11-18 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-18
26.1-11-18. Attorney's fees
Status: in_force

26.1-11-18. Attorney's fees

In any action against an unauthorized foreign or alien insurance company upon an

insurance contract issued or delivered in this state to a resident of this state or to a corporation

or limited liability company authorized to do business in this state, if the insurance company has

failed for thirty days after demand prior to the commencement of the action to make payment in

accordance with the terms of the contract, and it appears to the court that refusal was vexatious

and without reasonable cause, the court may allow to the plaintiff a reasonable attorney's fee

and include the fee in any judgment that may be rendered in the action. The fee may not exceed

twelve and one-half percent of the amount which the court or jury finds the plaintiff is entitled to

recover against the insurance company, but the fee awarded may not be less than twenty-five

dollars. Failure of an insurance company to defend any action is prima facie evidence that its

failure to make payment was vexatious and without reasonable cause.
N.D. Cent. Code § 26.1-06.1-49 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-49
26.1-06.1-49. Conservation of property of foreign or alien insurers found in this state
Status: in_force

26.1-06.1-49. Conservation of property of foreign or alien insurers found in this state

1. If a domiciliary liquidator has not been appointed, the commissioner may apply to the

district court by verified petition for an order directing the commissioner to act as

conservator to conserve the property of an alien insurer not domiciled in this state or a

foreign insurer on any one or more of the following grounds:

a. Any of the grounds in section 26.1-06.1-11;

b. That any of its property has been sequestered by official action in its domiciliary

state, or in any other state;

c. That enough of its property has been sequestered in a foreign country to give

reasonable cause to fear that the insurer is or may become insolvent; and

d. (1) That its certificate of authority to do business in this state has been revoked

or that none was ever issued; and

(2) That there are residents of this state with outstanding claims or outstanding

policies.

2. When an order is sought under subsection 1, the court shall cause the insurer to be

given such notice and time to respond thereto as is reasonable under the

circumstances.

3. The court may issue the order in whatever terms it deems appropriate. The filing or

recording of the order with the recorder, unless the board of county commissioners

designates a different official, of the county in which the principal business of the

company is located, imparts the same notice as a deed, bill of sale, or other evidence

of title duly filed or recorded with that recorder, or designated official.

4. The conservator may at any time petition for and the court may grant an order under

section 26.1-06.1-50 to liquidate assets of a foreign or alien insurer under

conservation, or, if appropriate, an order to be appointed ancillary receiver under

section 26.1-06.1-52.

5. The conservator may at any time petition the court for an order terminating

conservation of an insurer. If the court finds that the conservation is no longer

necessary, it shall order that the insurer be restored to possession of its property and

the control of its business. The court may also make such finding and issue such order

at any time upon motion of any interested party, but if the motion is denied, all costs

must be assessed against the moving party.
N.D. Cent. Code § 26.1-06-03 — ND Code / Title 26.1 / Chapter 26.1-06 / Section 26.1-06-03
26.1-06-03. Takeover - Offer - Terms
Status: in_force

26.1-06-03. Takeover - Offer - Terms

No offeror may make a takeover bid not made to all resident holders of the equity security

that is the subject of the takeover bid, or not made to the holders on the same terms as the

takeover bid is made to nonresident holders of the equity security. If an offeror makes a tender

offer or request or invitation for tenders for less than all the outstanding equity securities of a

class, and if a greater number of securities is deposited pursuant thereto within ten days after

copies of the offer or request or invitation for tenders are first published or sent or given to

securityholders than the offeror is bound or willing to take up and pay for, the securities taken up

must be taken up as nearly as may be pro rata, disregarding fractions, according to the number

of securities deposited by each offeree. If the terms of a takeover bid are changed before its

expiration by increasing the consideration offered to offerees, the offeror shall pay the increased

consideration for all equity securities taken up, whether or not the securities are deposited or

taken up before or after the change in the terms of the takeover bid. The pro rata requirement

applies to securities deposited within ten days after notice of an increase in the consideration

offered to securityholders is first published or sent or given to securityholders.
N.D. Cent. Code § 26.1-53.1-19 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-19
26.1-53.1-19. Prohibited conduct
Status: in_force

26.1-53.1-19. Prohibited conduct

A discount plan organization may not:

1. Except as otherwise provided in this chapter, or as a disclaimer of any relationship

between discount plan benefits and insurance, or as a description of an insurance

product connected with a discount plan, use the term "insurance" in any

advertisement, marketing material, brochure, or discount plan cards;

2. Use in any advertisements, marketing materials, brochures, or discount plan cards the

terms "health plan", "coverage", "copay", "copayments", "deductible", "preexisting

conditions", "guaranteed issue", "premium", "PPO", "preferred provider organization",

or other terms in a manner that could reasonably mislead an individual into believing

the discount plan is health insurance;

3. Use language in any advertisements, marketing materials, brochures, or discount plan

cards with respect to being licensed or registered by the state insurance department in

a manner that could reasonably mislead an individual into believing the discount plan

is insurance or has been endorsed by the state;

4. Make misleading, deceptive, or fraudulent representations regarding the discount or

range of discounts offered by the discount plan;

5. Have restrictions on access to discount plan providers, including, except for hospital

services, waiting periods and notifications periods; or

6. Pay providers any fees for medical or ancillary services or collect or accept money

from a member to pay a provider for medical or ancillary services provided, unless the

discount plan organization has an active certificate of authority to act as a third-party

administrator in accordance with chapter 26.1-27.
N.D. Cent. Code § 26.1-35-14 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-14
26.1-35-14. Confidentiality
Status: in_force

26.1-35-14. Confidentiality

1. For purposes of this section, "confidential information" means:

a. A memorandum in support of an opinion submitted under section 26.1-35-01.1

and any other documents, materials, and other information, including all working

papers, and copies thereof, created, produced, or obtained by or disclosed to the

commissioner or any other person in connection with such memorandum;

b. All documents, materials, and other information, including all working papers and

copies of working papers, created, produced, or obtained by or disclosed to the

commissioner or any other person in the course of an examination made under

subsection 5 of section 26.1-35-00.2. However, if an examination report or other

material prepared in connection with an examination made under chapter 26.1-03

is not held as private and confidential information under chapter 26.1-03, an

examination report or other material prepared in connection with an examination

made under subsection 5 of section 26.1-35-00.2 may not be confidential

information to the same extent as if such examination report or other material had

been prepared under chapter 26.1-03;

c. Any reports, documents, materials, and other information developed by an insurer

in support of, or in connection with, an annual certification by the insurer under

subdivision b of subsection 2 of section 26.1-35-12 evaluating the effectiveness

of the insurer's internal controls with respect to a principle-based valuation and

any other documents, materials, and other information, including all working

papers and copies of working papers created, produced, or obtained by or

disclosed to the commissioner or any other person in connection with such

reports, documents, materials, and other information;

d. Any principle-based valuation report developed under subdivision c of

subsection 2 of section 26.1-35-12 and any other documents, materials, and

other information, including all working papers and copies of working papers

created, produced, or obtained by or disclosed to the commissioner or any other

person in connection with such report; and

e. Any documents, materials, data, and other information submitted by an insurer

under section 26.1-35-13, collectively referred to as experience data, and any

other documents, materials, data, and other information, including all working

papers and copies of working papers created or produced in connection with

such experience data, in each case that include any potentially insurer-identifying

or personally identifiable information, that is provided to or obtained by the

commissioner, together with any experience data, the experience materials, and

any other documents, materials, data, and other information, including all working

papers and copies of working papers created, produced, or obtained by or

disclosed to the commissioner or any other person in connection with such

experience materials.

2. a. Except as provided in this section, an insurer's confidential information is

confidential and privileged, and is not subject to section 44-04-18, is not subject

to subpoena, and is not subject to discovery or admissible in evidence in any

private civil action. However, the commissioner may use the confidential

information in the furtherance of any regulatory or legal action brought against the

insurer as a part of the commissioner's official duties.

b. Neither the commissioner nor any person that received confidential information

while acting under the authority of the commissioner is permitted or required to

testify in any private civil action concerning any confidential information.

c. In order to assist in the performance of the commissioner's duties, the

commissioner may share confidential information with other state, federal, and

international regulatory agencies and with the national association of insurance

commissioners and its affiliates and subsidiaries, and in the case of confidential

information specified in subdivisions a and d of subsection 1 only, with the

actuarial board for counseling and discipline or its successor upon request stating

that the confidential information is required for the purpose of professional

disciplinary proceedings and with state, federal, and international law

enforcement officials, provided that such recipient agrees, and has the legal

authority to agree, to maintain the confidentiality and privileged status of such

documents, materials, data, and other information in the same manner and to the

same extent as required for the commissioner.

d. The commissioner may receive documents, materials, data, and other

information, including otherwise confidential and privileged documents, materials,

data, or information, from the national association of insurance commissioners

and its affiliates and subsidiaries, from regulatory or law enforcement officials of

other foreign or domestic jurisdictions, and from the actuarial board for counseling

and discipline or its successor and shall maintain as confidential or privileged any

document, material, data, or other information received with notice or the

understanding that it is confidential or privileged under the laws of the jurisdiction

that is the source of the document, material, or other information.

e. The commissioner may enter agreements governing sharing and use of

information consistent with this subsection.

f. A waiver of any applicable privilege or claim of confidentiality in the confidential

information may not occur as a result of disclosure to the commissioner under

this section or as a result of sharing as authorized in subdivision c.

g. A privilege established under the law of any state or jurisdiction which is

substantially similar to the privilege established under this subsection is available

and must be enforced in any proceeding in and in any court of this state.

h. In this section, reference to regulatory agency, law enforcement agency, and the

national association of insurance commissioners, includes the employees,

agents, consultants, and contractors of these entities.

3. Notwithstanding subsection 2, any confidential information specified in subdivisions a

and d of subsection 1:

a. May be subject to subpoena for the purpose of defending an action seeking

damages from the appointed actuary submitting the related memorandum in

support of an opinion submitted under section 26.1-35-01.1 or principle-based

valuation report developed under subdivision c of subsection 2 of section

26.1-35-12 by reason of an action required by this chapter or by rules adopted

under this chapter;

b. May otherwise be released by the commissioner with the written consent of the

insurer; and

c. Once any portion of a memorandum in support of an opinion submitted under

section 26.1-35-01.1 or a principle-based valuation report developed under

subdivision c of subsection 2 of section 26.1-35-12 is cited by the insurer in its

marketing or is publicly volunteered to or before a governmental agency other

than a state insurance department or is released by the insurer to the news

media, all portions of such memorandum or report are no longer confidential.
N.D. Cent. Code § 26.1-34.2-01.1 — ND Code / Title 26.1 / Chapter 26.1-34.2 / Section 26.1-34.2-01.1
26.1-34.2-01.1. Scope
Status: in_force

26.1-34.2-01.1. Scope

This chapter applies to a sale or recommendation of an annuity. This chapter may not be

construed to create or imply a private cause of action for a violation of this chapter or to subject

a producer to civil liability under the best interest standard of care outlined in section

26.1-34.2-03 or under standards governing the conduct of a fiduciary or a fiduciary relationship.
N.D. Cent. Code § 26.1-07-03 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-03
26.1-07-03. Profit by officer or employee prohibited
Status: in_force

26.1-07-03. Profit by officer or employee prohibited

An officer of a company petitioning for the right to consolidate or to reinsure and an officer

or employee of the state may not receive any compensation or gratuity, either directly or

indirectly, for aiding, promoting, or in any manner assisting in the consolidation or reinsurance.
N.D. Cent. Code § 26.1-07-15 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-15
26.1-07-15. Commissioner may appoint special deputies and employ counsel in receivership proceedings - Compensation - Powers
Status: repealed

26.1-07-15. Commissioner may appoint special deputies and employ counsel in

receivership proceedings - Compensation - Powers.

Repealed by S.L. 1991, ch. 305, § 14.
N.D. Cent. Code § 26.1-21-11 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-11
26.1-21-11. Claims - Limitation on filing of claims against fund - Register of claims - Review and payment of claims
Status: in_force

26.1-21-11. Claims - Limitation on filing of claims against fund - Register of claims -

Review and payment of claims.

1. Within sixty days after the discovery of any default or wrongful act on the part of any

public employee or public official for which the fund is or may become liable, the state

auditor, county auditor, city auditor, township clerk, or business manager of the school

district; the treasurer of the state or state agency or political subdivision if the

defaulting officer is the auditor or clerk of the state or state agency or political

subdivision; and any other officer having supervision of a defaulting public employee or

public official shall file a claim with the office against the fund.

2. The office may prescribe the forms for claims.

3. The office may administer oaths and examine witnesses in connection with a claim

presented to the office.

4. The office shall maintain a register of all claims filed against the fund, including a brief

description of each claim, the name of the public entity, the amount and character of

the claim, the action taken upon the claim, and the date action was taken.

5. The office shall retain claims and documents relating to claims as provided by law.

6. The office shall review all claims presented to the office. The office shall notify the

state auditor if any public employee or public official defaults or creates a liability

against the fund, and the state auditor may conduct an investigation under section

26.1-21-12.

7. The office shall determine the allowable amount of the claim. The office may delay a

determination of the allowable amount of the claim until receipt of the auditor's report

under section 26.1-21-12. The office shall present all records relating to the claim,

including the allowable amount determined by the office, to the attorney general for

review.

8. The attorney general shall review the validity of the claim and the allowable amount

determined by the office. Upon approval by the attorney general, the office shall pay

the allowable amount to the claimant from the fund.
N.D. Cent. Code § 26.1-26.8-08 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-08
26.1-26.8-08. Exemptions from examination
Status: in_force

26.1-26.8-08. Exemptions from examination

1. An individual who applies for a resident public adjuster license in this state who was

previously licensed as a public adjuster in another state is not required to complete an

examination. This exemption is available only if:

a. The applicant is currently licensed in another state; or

b. The commissioner receives the application within ninety days of the cancellation

of the applicant's previous license and the prior state issues a certification that, at

the time of cancellation, the applicant was in good standing in the state or the

state's public adjuster database records, maintained by the national association

of insurance commissioners or the association's affiliates or subsidiaries, indicate

the applicant is or was licensed in good standing.

2. To become a resident licensee pursuant to section 26.1-26.8-04, an individual licensed

as a public adjuster in another state who moves to this state shall apply within ninety

days of establishing legal residence in this state. An examination may not be required

of that individual to obtain a resident public adjuster license unless the commissioner

determines otherwise by rule.

3. If an individual who applies for a resident public adjuster license previously was

licensed as either a resident public adjuster or a nonresident public adjuster in this

state, the commissioner may not require the individual to complete an examination if:

a. The application is received within twelve months of the termination of the

previous license in this state; and

b. At the time of the termination, the applicant was in good standing in this state.
N.D. Cent. Code § 26.1-25-04.3 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-04.3
26.1-25-04.3. Disclosure of accident surcharge and loss of discount
Status: in_force

26.1-25-04.3. Disclosure of accident surcharge and loss of discount

Before, or at the time of issuance of a policy, an insurer insuring a motor vehicle must notify

the insured in writing of the insurer's underwriting and rating procedures applicable to accident

surcharges and loss of discounts.
N.D. Cent. Code § 26.1-33.4-01 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-01
26.1-33.4-01. Definitions
Status: in_force

26.1-33.4-01. Definitions

As used in this chapter, unless the context requires otherwise:

1. "Advertisement" means any written, electronic, or printed communication or any

communication by means of recorded telephone messages or transmitted on radio;

television; the internet; or similar communications media, including filmstrips, motion

pictures, and videos; published, disseminated, circulated, or placed before the public,

directly or indirectly, for the purpose of creating an interest in or inducing a person to

purchase or sell, assign, devise, bequest, or transfer the death benefit or ownership of

a life insurance policy or an interest in a life insurance policy pursuant to a life

settlement contract.

2. "Broker" means an individual who, on behalf of an owner and for a fee, commission, or

other valuable consideration, offers or attempts to negotiate life settlement contracts

between an owner and providers. A broker represents only the owner and owes a

fiduciary duty to the owner to act according to the owner's instructions, and in the best

interest of the owner, notwithstanding the manner in which the broker is compensated.

The term does not include an attorney, certified public accountant, or financial planner

retained in the type of practice customarily performed in that individual's professional

capacity to represent the owner whose compensation is not paid directly or indirectly

by the provider or any other person, except the owner.

3. "Business of life settlements" includes an activity involved in offering to enter, soliciting,

negotiating, procuring, effectuating, monitoring, or tracking of life settlement contracts.

4. "Chronically ill" means:

a. Being unable to perform at least two activities of daily living, such as eating,

toileting, transferring, bathing, dressing, or continence;

b. Requiring substantial supervision to protect the individual from threats to health

and safety due to severe cognitive impairment; or

c. Having a level of disability similar to that described in subdivision a as determined

by the United States secretary of health and human services.

5. "Financing entity" means an underwriter, a placement agent, a lender, a purchaser of

securities, a purchaser of a policy or certificate from a provider, a credit enhancer, or

any entity that has a direct ownership in a policy or certificate that is the subject of a

life settlement contract, but whose principal activity related to the transaction is

providing funds to effect the life settlement contract or purchase of one or more

policies, and who has an agreement in writing with one or more providers to finance

the acquisition of life settlement contracts. The term does not include a nonaccredited

investor or purchaser.

6. "Financing transaction" means a transaction in which a licensed provider obtains

financing from a financing entity, including any secured or unsecured financing, any

securitization transaction, or any securities offering which either is registered or

exempt from registration under federal and state securities law.

7. "Fraudulent life settlement act" includes:

a. Any act or omission committed by any person that, knowingly and with intent to

defraud, for the purpose of depriving another of property or for pecuniary gain,

commits or permits the person's employees or agents to engage in acts,

including:

(1) Presenting, causing to be presented, or preparing with knowledge and belief

that it will be presented to or by a provider, premium finance lender, broker,

insurer, insurance producer, or any other person, false material information,

or concealing material information, as part of, in support of, or concerning a

fact material to one or more of the following:

(a) An application for the issuance of a life settlement contract or

insurance policy;

(b) The underwriting of a life settlement contract or insurance policy;

(c) A claim for payment or benefit pursuant to a life settlement contract or

insurance policy;

(d) Premiums paid on an insurance policy;

(e) Payments and changes in ownership or beneficiary made in

accordance with the terms of a life settlement contract or insurance

policy;

(f) The reinstatement or conversion of an insurance policy;

(g) In the solicitation, offer to enter, or effectuation of a life settlement

contract or insurance policy;

(h) The issuance of written evidence of life settlement contracts or

insurance;

(i) Any application for, the existence of, or any payments related to a loan

secured directly or indirectly by any interest in a life insurance policy;

or

(j) Enter into any practice or plan which involves stranger-originated life

insurance;

(2) Failing to disclose to the insurer where the request for such disclosure has

been asked for by the insurer that the prospective insured has undergone a

life expectancy evaluation by any individual or entity other than the insurer

or the insurer's authorized representatives in connection with the issuance

of the policy.

(3) Employing any device, scheme, or artifice to defraud in the business of life

settlements.

(4) In the solicitation, application, or issuance of a life insurance policy,

employing any device, scheme, or artifice in violation of state insurable

interest laws.

b. In the furtherance of a fraud or to prevent the detection of a fraud, any person

commits or permits the person's employees or agents to:

(1) Remove, conceal, alter, destroy, or sequester from the commissioner the

assets or records of a licensee or other person engaged in the business of

life settlements;

(2) Misrepresent or conceal the financial condition of a licensee, financing

entity, insurer, or other person;

(3) Transact the business of life settlements in violation of laws requiring a

license, certificate of authority, or other legal authority for the transaction of

the business of life settlements;

(4) File with the commissioner or the chief insurance regulatory official of

another jurisdiction a document containing false information or otherwise

concealing information about a material fact from the commissioner;

(5) Engage in embezzlement, theft, misappropriation, or conversion of moneys,

funds, premiums, credits, or other property of a provider, an insurer, an

insured, an owner, an insurance, a policyowner, or any other person

engaged in the business of life settlements or insurance;

(6) Knowingly and with intent to defraud, enter, broker, or otherwise deal in a life

settlement contract, the subject of which is a life insurance policy that was

obtained by presenting false information concerning any fact material to the

policy or by concealing, for the purpose of misleading another, information

concerning any fact material to the policy, where the owner or the owner's

agent intended to defraud the policy's issuer;

(7) Attempt to commit, assist, aid, or abet in the commission of or conspiracy to

commit the acts or omissions specified in this subsection; or

(8) Misrepresent the state of residence of an owner to be a state or jurisdiction

that does not have a law substantially similar to this chapter for the purpose

of evading or avoiding the provisions of this chapter.

8. "Insured" means the individual covered under the policy being considered for sale in a

life settlement contract.

9. "Life expectancy" means the arithmetic mean of the number of months the insured

under the life insurance policy to be settled can be expected to live as determined by a

life expectancy company considering medical records and appropriate experiential

data.

10. "Life insurance producer" means any person licensed in this state as a resident or

nonresident insurance producer that has received qualification or authority for life

insurance coverage or a life line of coverage pursuant to chapter 26.1-26.

11. "Life settlement contract" means a written agreement entered between a provider, or

any affiliate of the provider, and an owner establishing the terms under which

compensation or anything of value will be paid, which compensation or thing of value

is less than the expected death benefit of the insurance policy or certificate, in return

for the owner's present or future assignment, transfer, sale, devise, or bequest of the

death benefit or ownership of any portion of an insurance policy or certificate of

insurance for compensation; provided, however, that the minimum value for a life

settlement contract must be greater than a cash surrender value or accelerated death

benefit available at the time of an application for a life settlement contract. The term

includes the transfer for compensation or value of ownership or beneficial interest in a

trust or other entity that owns such policy if the trust or other entity was formed or

availed of for the principal purpose of acquiring one or more life insurance contracts,

which life insurance contract insures the life of an individual residing in this state.

a. "Life settlement contract" also includes:

(1) A written agreement for a loan or other lending transaction, secured

primarily by an individual or group life insurance policy; or

(2) A premium finance loan made for a policy on or before the date of issuance

of the policy when:

(a) The loan proceeds are not used solely to pay premiums for the policy

and any costs or expenses incurred by the lender or the borrower in

connection with the financing;

(b) The owner receives on the date of the premium finance loan a

guarantee of the future life settlement value of the policy; or

(c) The owner agrees on the date of the premium finance loan to sell the

policy or any portion of the policy's death benefit on any date following

the issuance of the policy.

b. "Life settlement contract" does not include:

(1) A policy loan by a life insurance company pursuant to the terms of the life

insurance policy or accelerated death benefits provisions contained in the

life insurance policy, whether issued with the original policy or as a rider;

(2) A premium finance loan, as defined herein, or any loan made by a bank or

other licensed financial institution, provided that neither default on such loan

nor the transfer of the policy in connection with such default is pursuant to

an agreement or understanding with any other person for the purpose of

evading regulation under this chapter;

(3) A collateral assignment of a life insurance policy by an owner;

(4) A loan made by a lender that does not violate chapter 26.1-20.1, provided

the loan is not described in paragraph 1, and is not otherwise within the

definition of life settlement contract;

(5) An agreement in which all the parties:

(a) Are closely related to the insured by blood or law; or

(b) Have a lawful substantial economic interest in the continued life,

health, and bodily safety of the individual insured, or are trusts

established primarily for the benefit of such parties;

(6) Any designation, consent, or agreement by an insured who is an employee

of an employer in connection with the purchase by the employer, or trust

established by the employer, of life insurance on the life of the employee;

(7) A bona fide business succession planning arrangement:

(a) Between one or more shareholders in a corporation or between a

corporation and one or more of the corporation's shareholders or one

or more trusts established by the corporation's shareholders;

(b) Between one or more partners in a partnership or between a

partnership and one or more of the partnership's partners or one or

more trusts established by the partnership's partners; or

(c) Between one or more members in a limited liability company or

between a limited liability company and one or more of the limited

liability company's members or one or more trusts established by the

limited liability company's members;

(8) An agreement entered by a service recipient, or a trust established by the

service recipient, and a service provider, or a trust established by the

service provider, who performs significant services for the service recipient's

trade or business; or

(9) Any other contract, transaction, or arrangement from the definition of life

settlement contract that the commissioner determines is not of the type

intended to be regulated by this chapter.

12. "Net death benefit" means the amount of the life insurance policy or certificate to be

settled less any outstanding debt or lien.

13. "Owner" means the owner of a life insurance policy or a certificate holder under a

group policy, with or without a terminal illness, who enters or seeks to enter a life

settlement contract. For the purposes of this definition, an owner is not limited to an

owner of a life insurance policy or a certificate holder under a group policy that insures

the life of an individual with a terminal or chronic illness or condition except where

specifically addressed. The term does not include:

a. Any provider or other licensee under this chapter;

b. A qualified institutional buyer as defined in rule 144A of the federal Securities Act

of 1933, as amended [15 U.S.C. 77a et seq.];

c. A financing entity;

d. A special purpose entity; or

e. A related provider trust.

14. "Patient identifying information" means an insured's address, telephone number,

facsimile number, electronic mail address, photograph or likeness, employer,

employment status, social security number, or any other information that is likely to

lead to the identification of the insured.

15. "Policy" means an individual or group policy, group certificate, contract, or

arrangement of life insurance owned by a resident of this state, regardless of whether

delivered or issued for delivery in this state.

16. "Premium finance loan" means a loan made primarily for the purposes of making

premium payments on a life insurance policy, which loan is secured by an interest in

such life insurance policy.

17. "Provider" means a person, other than an owner, that enters or effectuates a life

settlement contract with an owner. The term does not include:

a. Any bank, savings bank, savings and loan association, or credit union;

b. A licensed lending institution, creditor, or secured party pursuant to a premium

finance loan agreement which takes an assignment of a life insurance policy or

certificate issued pursuant to a group life insurance policy as collateral for a loan;

c. The insurer of a life insurance policy or rider to the extent of providing accelerated

death benefits or riders or cash surrender value;

d. Any individual who enters or effectuates no more than one agreement in a

calendar year for the transfer of a life insurance policy or certificate issued

pursuant to a group life insurance policy, for compensation or anything of value

less than the expected death benefit payable under the policy;

e. A purchaser;

f. Any authorized or eligible insurer that provides stop-loss coverage to a provider,

purchaser, financing entity, special purpose entity, or related provider trust;

g. A financing entity;

h. A special purpose entity;

i. A related provider trust;

j. A broker; or

k. An accredited investor or qualified institutional buyer as defined respectively in

regulation D, rule 501 or rule 144A of the federal Securities Act of 1933, as

amended [15 U.S.C. 77a et seq.], that purchases a life settlement policy from a

provider.

18. "Purchased policy" means a policy or group certificate that has been acquired by a

provider pursuant to a life settlement contract.

19. "Purchaser" means a person that pays compensation or anything of value as

consideration for a beneficial interest in a trust which is vested with, or for the

assignment, transfer, or sale of, an ownership or other interest in a life insurance policy

or a certificate issued pursuant to a group life insurance policy which has been the

subject of a life settlement contract.

20. "Related provider trust" means a titling trust or other trust established by a licensed

provider or a financing entity for the sole purpose of holding the ownership or

beneficial interest in purchased policies in connection with a financing transaction. In

order to qualify as a related provider trust, the trust must have a written agreement

with the licensed provider under which the licensed provider is responsible for

ensuring compliance with all statutory and regulatory requirements and under which

the trust agrees to make all records and files relating to life settlement transactions

available to the insurance department as if those records and files were maintained

directly by the licensed provider.

21. "Settled policy" means a life insurance policy or certificate that has been acquired by a

provider pursuant to a life settlement contract.

22. "Special purpose entity" means an organization formed solely to provide either directly

or indirectly access to institutional capital markets for a financing entity or provider; or

in connection with a transaction in which the securities in the special purpose entity

are acquired by the owner or by a "qualified institutional buyer" as defined in rule 144

promulgated under the federal Securities Act of 1933, as amended [15 U.S.C. 77a

et seq.]; or the securities pay a fixed rate of return commensurate with established a

set-backed institutional capital markets.

23. "Stranger-originated life insurance" is a practice or plan to initiate a life insurance

policy for the benefit of a third-party investor that at the time of policy origination has

no insurable interest in the insured. Stranger-originated life insurance practices include

cases in which life insurance is purchased with resources or guarantees from or

through a person that at the time of policy inception could not lawfully initiate the policy

on its own, and in which at the time of inception there is an arrangement or agreement,

whether verbal or written, to directly or indirectly transfer the ownership of the policy or

the policy benefits or both to a third party. Trusts that are created to give the

appearance of insurable interest, and are used to initiate policies for investors, violate

insurable interest laws and the prohibition against wagering on life. Stranger-originated

life insurance arrangements do not include those practices set forth in subdivision b of

subsection 11.

24. "Terminally ill" means having an illness or sickness that can reasonably be expected to

result in death in twenty-four months or less.
N.D. Cent. Code § 26.1-06.1-45 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-45
26.1-06.1-45. Termination of proceedings
Status: in_force

26.1-06.1-45. Termination of proceedings

1. When all assets justifying the expense of collection and distribution have been

collected and distributed under this chapter, the liquidator shall apply to the court for

discharge. The court may grant the discharge and make any other orders, including an

order to transfer any remaining funds that are uneconomic to distribute, as may be

deemed appropriate.

2. Any other person may apply to the court at any time for an order under subsection 1. If

the application is denied, the applicant shall pay the costs and expenses of the

liquidator in resisting the application, including a reasonable attorney's fee.
N.D. Cent. Code § 26.1-29-02 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-02
26.1-29-02. Insurer and insured defined
Status: in_force

26.1-29-02. Insurer and insured defined

An insurer is a person who undertakes to indemnify another by an insurance contract and

the insured is the person indemnified.
N.D. Cent. Code § 26.1-40.2-05 — ND Code / Title 26.1 / Chapter 26.1-40.2 / Section 26.1-40.2-05
26.1-40.2-05. Proof of insurance
Status: in_force

26.1-40.2-05. Proof of insurance

1. A delivery network driver shall carry proof of insurance required at all times while using

a personal vehicle in connection with a digital network. If an accident occurs, a delivery

network driver shall, upon request, provide insurance coverage information to a

directly interested party, automobile insurer, and investigating law enforcement officer.

2. The insurance coverage information may be displayed or provided in either paper or

electronic form. A delivery network driver shall, upon request, disclose to a directly

interested party, automobile insurer, and investigating law enforcement officer whether

the driver was operating during the delivery available period or the delivery service

period at the time of the accident.
N.D. Cent. Code § 26.1-02-11 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-11
26.1-02-11. Service of process - How made
Status: in_force

26.1-02-11. Service of process - How made

Service of process is made by delivering to the secretary of state, or some person in

apparent charge of the secretary of state's office, two copies thereof and by payment to the

secretary of state of the fee prescribed by law. The secretary of state immediately shall forward

by registered mail one copy to the defendant in a court proceeding, or to whom the process is

addressed or directed in an administrative proceeding, at its last reasonably ascertainable

address. The secretary of state shall keep a record of the date and hour of service. This service

is sufficient if notice of the service and a copy of the process is mailed within ten days thereafter

by certified mail to the defendant by the plaintiff or the plaintiff's attorney in a court proceeding,

or to whom the process is addressed or directed by the commissioner in an administrative

proceeding, at its last reasonably ascertainable address, and the defendant's receipt issued by

the post office with which the letter is registered, showing the name of the sender of the letter

and the name and address of the person or insurer to whom the letter is addressed, and an

affidavit of mailing showing compliance herewith is filed with the clerk of the court in which the

proceeding is pending, or with the commissioner in an administrative proceeding. No judgment

or determination by default may be entered in any proceeding until the expiration of forty-five

days from the date of filing of the affidavit of compliance.

This section does not limit or affect the right to serve any process upon any person or

insurer in any other manner permitted by law.
N.D. Cent. Code § 26.1-16-17 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-17
26.1-16-17. Notice of annual meeting - Voting rights of members
Status: in_force

26.1-16-17. Notice of annual meeting - Voting rights of members

Each member of a benevolent society organized under this chapter must be notified of the

time and place of the annual meetings of the society by a notice incorporated in the certificate of

membership issued by the society. Each member of the society is entitled to one vote and may

vote in person or by proxy.
N.D. Cent. Code § 26.1-21-23 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-23
26.1-21-23. Additional bond coverage
Status: in_force

26.1-21-23. Additional bond coverage

1. If a bond or bond coverage for a public employee or public official is canceled under

section 26.1-21-19, the public official or public employee may purchase a bond from

an authorized surety company for a coverage amount determined by the office. The

public official or public employee may not use public funds to pay for the bond.

2. In lieu of the bond provided for in this chapter, a public officer or public employee may

secure a bond from an authorized surety company for a coverage amount determined

by the office. The public official or public employee may not use public funds to pay for

the bond.

3. A state agency or political subdivision may purchase a bond from an authorized surety

company to provide coverage in addition to the bond provided by the fund.

4. Evidence of a bond purchased under this section must be filed with the office.
N.D. Cent. Code § 26.1-40-14 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-14
26.1-40-14. Uninsured and underinsured motorist coverage - Compulsory - Stacking not permitted
Status: repealed

26.1-40-14. Uninsured and underinsured motorist coverage - Compulsory - Stacking

not permitted.

Repealed by S.L. 1989, ch. 375, § 8.
N.D. Cent. Code § 26.1-36.12-09 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-09
26.1-36.12-09. Retrospective denial
Status: in_force

26.1-36.12-09. Retrospective denial

A prior authorization review organization may not revoke, limit, condition, or restrict a prior

authorization if care is provided within forty-five business days from the date the health care

provider received the prior authorization unless there is evidence the prior authorization was

based on fraud.
N.D. Cent. Code § 26.1-22-01 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-01
26.1-22-01. Definitions
Status: in_force

26.1-22-01. Definitions

As used in this chapter:

1. "Fund" means the state fire and tornado fund.

2. "Indirect loss" means a loss in income or the additional expenses incurred because of

a property loss.

3. "International peace garden" means an entity located upon the international boundary

line between the United States and Canada used and maintained as a memorial to

commemorate the long-existing relationship of peace and good will between the

people and the governments of the United States and Canada and to further

international peace among the nations of the world.

4. "North Dakota insurance reserve fund" means the public risk pool established under

section 26.1-23.1-01 regardless of any name change or dissolution and

reincorporation if the risk pool continues to provide coverage to a majority of eligible

political subdivisions in the state.

5. "Office" means the office of management and budget.

6. "Permanent contents" refers only to such public property, either owned or leased,

usually kept or used in or about public buildings insured in the fund, and to all public

personal property usually kept or used in or about all buildings used for public

purposes, or within one hundred feet [30.48 meters] of all such buildings, or while on

sidewalks, streets, alleys, yards, detached platforms, and in or on railway cars. The

term includes similar property owned by an international peace garden or a winter

show. The term does not include automobiles, trucks, tractors, road machinery, or

similar property used principally outside such buildings.

7. "Political subdivision" means a county, township, park district, school district, city, or

any other unit of local government which is created either by statute or by the

Constitution of North Dakota for local government or other public purposes.

8. "Replacement cost" is the cost to replace a building or its permanent contents with a

similar structure of like materials or a similar product at current prices.

9. "State agency" means a state board, bureau, commission, department, agency,

industry, or institution and the international peace garden.

10. "Winter show" means an agricultural exhibition sponsored each year in March by a

nonprofit corporation.
N.D. Cent. Code § 26.1-36.4-01 — ND Code / Title 26.1 / Chapter 26.1-36.4 / Section 26.1-36.4-01
26.1-36.4-01. Application and scope
Status: in_force

26.1-36.4-01. Application and scope

This chapter applies to all policies issued or renewed after July 31, 1995. The provisions of

chapter 26.1-36 apply when not in conflict with this chapter.
N.D. Cent. Code § 26.1-40.2-06 — ND Code / Title 26.1 / Chapter 26.1-40.2 / Section 26.1-40.2-06
26.1-40.2-06. Authorized or eligible carrier
Status: in_force

26.1-40.2-06. Authorized or eligible carrier

Insurance coverage required by this chapter may be obtained from an insurance company

licensed to transact business under title 26.1.
N.D. Cent. Code § 26.1-22-02 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-02
26.1-22-02. State fire and tornado fund - Office of management and budget - Continuing appropriation
Status: in_force

26.1-22-02. State fire and tornado fund - Office of management and budget -

Continuing appropriation.

1. There is created in the state treasury the state fire and tornado fund to insure state

agencies, political subdivisions, and winter shows against direct and indirect losses

under this chapter. The fund consists of all assessments, interest, investment

earnings, and other income collected under this chapter.

2. The office shall manage the fund. The office may use any information on file in the

state fire marshal program and may delegate responsibilities according to a contract

for administrative services from the North Dakota insurance reserve fund or another

entity to assist with the management of the fund. A contract for administrative services

must have a two-year term ending on June thirtieth of odd-numbered years, and the

contract may not be terminated except at the end of the two-year term. If either party

does not anticipate renewing the contract for another two-year term, notice must be

given by September thirtieth of the even-numbered year during the two-year term.

3. Moneys in the fund are appropriated to the office on a continuing basis for paying

claims against the fund for losses, including loss adjustment expenses; contracting for

services under subsection 2; paying loss prevention inspection and rating inspection

expenses to determine the proper assessment rates for property insured by the fund;

and paying reinsurance expenses under section 26.1-22-21.
N.D. Cent. Code § 26.1-26-30 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-30
26.1-26-30. Contents of license
Status: in_force

26.1-26-30. Contents of license

The license must state the name, address, personal identification number of the licensee,

date of issue, and the line or lines of insurance covered by the license, and any other

information the commissioner determines to be proper for inclusion in the license.
N.D. Cent. Code § 26.1-06.1-41 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-41
26.1-06.1-41. Priority of distribution
Status: in_force

26.1-06.1-41. Priority of distribution

The priority of distribution of claims from the insurer's estate must be in accordance with the

order in which each class of claims is herein set forth. Every claim in each class must be paid in

full or adequate funds retained for such payment before the members of the next class receive

any payment. No subclasses may be established within any class. The order of distribution of

claims must be:

1. Class 1. The costs and expenses of administration during rehabilitation and liquidation,

including the following:

a. The actual and necessary costs of preserving or recovering the assets of the

insurer;

b. Compensation for all authorized services rendered in the rehabilitation and

liquidation;

c. Any necessary filing fees;

d. The fees and mileage payable to witnesses;

e. Authorized reasonable attorney's fees and other professional services rendered

in the rehabilitation and liquidation; and

f. The reasonable expenses of a guaranty association or foreign guaranty

association for unallocated loss adjustment expenses.

2. Class 2. All claims under policies including such claims of the federal or any state or

local government for losses incurred, ("loss claims") including third-party claims and all

claims of a guaranty association or foreign guaranty association. All claims under life

insurance and annuity policies, whether for death proceeds, annuity proceeds, or

investment values must be treated as loss claims. That portion of any loss,

indemnification for which is provided by other benefits, or advantages recovered by the

claimant, may not be included in this class, other than benefits or advantages

recovered or recoverable in discharge of familial obligation of support or by way of

succession at death or as proceeds of life insurance, or as gratuities. No payment by

an employer to employees may be treated as a gratuity.

3. Class 3. Claims of the federal government not included in class 2.

4. Class 4. Reasonable compensation to employees for services performed to the extent

that they do not exceed two months of monetary compensation and represent

payment for services performed within one year before the filing of the petition for

liquidation or if rehabilitation preceded liquidation, within one year before the filing of

the petition for rehabilitation. Principal officers and directors are not entitled to the

benefit of this priority except as otherwise approved by the liquidator and the court.

Such priority must be in lieu of any other similar priority which may be authorized by

law as to wages or compensation of employees.

5. Class 5. Claims under nonassessable policies for unearned premium or other premium

refunds and claims of general creditors, including claims of ceding and assuming

companies in their capacity as such.

6. Class 6. Claims of any state or local government except those paid under class 2.

Claims, including those of any state or local governmental body for a penalty or

forfeiture, may be allowed in this class only to the extent of the pecuniary loss

sustained from the act, transaction, or proceeding out of which the penalty or forfeiture

arose, with reasonable and actual costs occasioned thereby. The remainder of the

claims must be postponed to the class of claims under subsection 9.

7. Class 7. Claims filed late or any other claims other than claims under subsections 8

and 9.

8. Class 8. Surplus or contribution notes, or similar obligations, and premium funds on

assessable policies. Payment to members of domestic mutual insurance companies

must be limited in accordance with law.

9. Class 9. The claims of shareholders or other owners in their capacity as shareholders.

If any provision of this section or the application of any provision of this section to any person or

circumstance is held invalid, the invalidity does not affect other provisions or applications of this

section, and to this end the provisions are severable.
N.D. Cent. Code § 26.1-40-05 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-05
26.1-40-05. Nonrenewal - Notice - Statement of reasons - Nonrenewal not to be based on certain facts
Status: in_force

26.1-40-05. Nonrenewal - Notice - Statement of reasons - Nonrenewal not to be based

on certain facts.

1. No insurer may fail to renew a policy unless a written notice of nonrenewal is mailed or

delivered to the named insured, at the address shown in the policy, at least thirty days

prior to the expiration date of the policy or anniversary date of a policy written for a

term longer than one year or with no fixed expiration date. The insurer shall include a

statement of the reasons for nonrenewal with the notice or shall furnish it upon the

written request of the insured mailed or delivered to the insurer at least ten days prior

to the expiration date of the policy. The insurer shall comply with such a request within

ten days after receipt thereof.

2. Subsection 1 does not apply:

a. If the insurer has manifested in any way its willingness to renew;

b. In case of nonpayment of premium for the expiring policy; or

c. If the insured fails to pay the premium as required by the insurer for renewal.
N.D. Cent. Code § 26.1-09-13 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-13
26.1-09-13. Solicitation without certificate of authority - Limitation
Status: in_force

26.1-09-13. Solicitation without certificate of authority - Limitation

For the purpose of organization, and upon the issuance of a permit by the commissioner,

powers of attorney may be solicited without a license or certificate of authority, but an attorney,

insurance producer, or other person may not effect any insurance contract under this chapter

until in compliance with this chapter.
N.D. Cent. Code § 26.1-21-19 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-19
26.1-21-19. Cancellation of liability of fund - Cancellation of coverage - Appeal proceeding
Status: in_force

26.1-21-19. Cancellation of liability of fund - Cancellation of coverage - Appeal

proceeding.

1. After an investigation, the office may cancel the bond for the acts of any public

employee or public official. The cancellation takes effect thirty days after written notice.

2. The office shall notify the public entity employing the public employee or public official

immediately by certified mail when the bond or coverage under a blanket bond is

canceled.
N.D. Cent. Code § 26.1-03.1-06 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-06
26.1-03.1-06. Mandatory control level event
Status: in_force

26.1-03.1-06. Mandatory control level event

1. "Mandatory control level event" means any of the following events:

a. The filing of a risk-based capital report that indicates that the insurer's total

adjusted capital is less than its mandatory control level risk-based capital;

b. Notification by the commissioner to the insurer of an adjusted risk-based capital

report that indicates the event in subdivision a, provided the insurer does not

challenge the adjusted risk-based capital report under section 26.1-03.1-07; or

c. If, under section 26.1-03.1-07, the insurer challenges an adjusted risk-based

capital report that indicates the event in subdivision a, notification by the

commissioner to the insurer that, after a hearing, the commissioner has rejected

the insurer's challenge.

2. In the event of a mandatory control level event:

a. With respect to a life insurer or fraternal benefit society, the commissioner shall

take actions as are necessary to place the insurer under regulatory control under

chapter 26.1-06.1. In that event, the mandatory control level event must be

deemed sufficient grounds for the commissioner to take action under chapter

26.1-06.1, and the commissioner has the rights, powers, and duties in chapter

26.1-06.1 with respect to the insurer. If the commissioner takes action pursuant to

an adjusted risk-based capital report, the insurer is entitled to the protection of

chapter 26.1-06.1 pertaining to summary proceedings. Notwithstanding any of the

foregoing, the commissioner may forego action for up to ninety days after the

mandatory control level event if the commissioner finds there is a reasonable

expectation that the mandatory control level event may be eliminated within the

ninety-day period.

b. With respect to a property and casualty insurer, the commissioner may take such

actions as are necessary to place the insurer under regulatory control under

chapter 26.1-06.1, or, in the case of an insurer that is not writing business and

that is running off its existing business, may allow the insurer to continue its runoff

under the supervision of the commissioner. In either event, the mandatory control

level event must be deemed sufficient grounds for the commissioner to take

action under chapter 26.1-06.1 and the commissioner has the rights, powers, and

duties in chapter 26.1-06.1 with respect to the insurer. If the commissioner takes

action pursuant to an adjusted risk-based capital report, the insurer is entitled to

the protection of chapter 26.1-06.1 pertaining to summary proceedings.

Notwithstanding any of the foregoing, the commissioner may forego action for up

to ninety days after the mandatory control level event if the commissioner finds

there is a reasonable expectation that the mandatory control level events may be

eliminated within the ninety-day period.
N.D. Cent. Code § 26.1-26-13.3 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-13.3
26.1-26-13.3. Application for license
Status: in_force

26.1-26-13.3. Application for license

1. An individual applying for a resident insurance producer license shall make application

to the commissioner on the uniform application and declare under penalty of refusal,

suspension, or revocation of the license that the statements made in the application

are true, correct, and complete to the best of the individual's knowledge and belief.

Before approving the application, the commissioner must find that the individual:

a. Is at least eighteen years of age;

b. Has not committed any act that is a ground for denial, suspension, or revocation

set forth in section 26.1-26-42;

c. Has paid to the commissioner or the commissioner's designee the fees set forth

in section 26.1-01-07; and

d. Has successfully passed the examinations for the lines of authority for which the

individual has applied.

2. An individual applying for a resident producer license shall complete a criminal history

record check as provided in section 12-60-24. All costs associated with the criminal

history record check are the responsibility of the applicant. This subsection does not

apply to license continuation under section 26.1-26-13.4 or individuals who apply for

an insurance producer license within twelve months following the cancellation or

expiration of a valid resident insurance producer license issued by the North Dakota

insurance department, unless the license was suspended or revoked.

3. The commissioner may make arrangements, including contracting with an outside

service, for the collection and transmission of fingerprints for conducting criminal

history record checks.

4. A business entity acting as an insurance producer must obtain an insurance producer

license. Application must be made using the uniform business entity application.

Before approving the application, the commissioner must find that:

a. The business entity has paid the fee set forth in section 26.1-01-07;

b. The business entity has designated a licensed individual principal insurance

producer responsible for the business entity's compliance with the insurance

laws, rules, and regulations of this state; and

c. The individual designated as the licensed principal insurance producer of the

business entity has taken the examination required by section 26.1-26-13.2. The

business entity may only be licensed for those lines of insurance for which one or

more of its principal insurance producers is licensed. The business entity shall

inform the commissioner within ten working days of any change in the status of its

principal insurance producer or producers.

d. The commissioner may require any documents reasonably necessary to verify

the information contained in an application.
N.D. Cent. Code § 26.1-34.1-03 — ND Code / Title 26.1 / Chapter 26.1-34.1 / Section 26.1-34.1-03
26.1-34.1-03. Segregated account
Status: in_force

26.1-34.1-03. Segregated account

1. Every corporation possessing a certificate of exemption shall maintain a segregated

account for all of its gift annuity liabilities.

2. The assets of the segregated account are not liable for any debts of the corporation

other than those incurred pursuant to this chapter.

3. The segregated account must be adequate to meet the future payments under all

outstanding annuity agreements.
N.D. Cent. Code § 26.1-17-27 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-27
26.1-17-27. Disapproval of rate filings
Status: in_force

26.1-17-27. Disapproval of rate filings

1. If the commissioner finds that a rate filing does not meet the requirements of this

chapter, the commissioner shall disapprove the rate filing pursuant to section

26.1-30-21.

2. If at any time subsequent to the applicable waiting period or extension thereof the

commissioner finds that a rate filing does not meet the requirements of this chapter,

the commissioner shall issue, pursuant to section 26.1-30-21, an order to that effect

after a hearing. Copies of the order must be sent to the corporation.

3. Any person or organization aggrieved with respect to any filing which is in effect,

except the health service corporation which made the filing, may make written

application to the commissioner for a hearing thereon. The application must specify the

grounds relied upon by the applicant. If the commissioner finds that the application is

made in good faith, that the applicant would be so aggrieved if the applicant's grounds

were established, and that the grounds otherwise justify holding a hearing, the

commissioner shall hold, within thirty days after receipt of the application, a hearing

upon not less than ten days' written notice to the applicant and to each corporation

which made the filing. If after a hearing the commissioner finds that the filing does not

meet the requirements of this chapter, the commissioner shall issue an order pursuant

to section 26.1-30-21. Copies of this order must be sent to the applicant and to each

corporation.

4. A manual of classifications, rules, rating plans, rating formulas, or modifications of any

of the foregoing which establish standards for measuring variations in hazards or

expense provisions, or both, and which has been filed pursuant to the requirements of

section 26.1-17-26, may not be disapproved if the rates thereby produced meet the

requirements of this chapter.
N.D. Cent. Code § 26.1-03.2-05 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-05
26.1-03.2-05. Authorized control level event
Status: in_force

26.1-03.2-05. Authorized control level event

1. "Authorized control level event" means any of the following events:

a. The filing of a risk-based capital report by the health organization which indicates

that the health organization's total adjusted capital is greater than or equal to its

mandatory control level risk-based capital but less than its authorized control

level risk-based capital;

b. The notification by the commissioner to the health organization of an adjusted

risk-based capital report that indicates the event in subdivision a, provided the

health organization does not challenge the adjusted risk-based capital report

under section 26.1-03.2-07;

c. If, pursuant to section 26.1-03.2-07, the health organization challenges an

adjusted risk-based capital report that indicates the event in subdivision a,

notification by the commissioner to the health organization that the commissioner,

after a hearing, has rejected the health organization's challenge;

d. The failure of the health organization to respond, in a manner satisfactory to the

commissioner, to a corrective order, provided the health organization has not

challenged the corrective order under section 26.1-03.2-07; or

e. If the health organization has challenged a corrective order under section

26.1-03.2-07 and the commissioner, after a hearing, has rejected the challenge or

modified the corrective order, the failure of the health organization to respond, in

a manner satisfactory to the commissioner, to the corrective order subsequent to

rejection or modification by the commissioner.

2. In the event of an authorized control level event with respect to a health organization,

the commissioner shall:

a. Take such actions as are required under section 26.1-03.2-04 regarding a health

organization with respect to which a regulatory action level event has occurred; or

b. If the commissioner deems it to be in the best interests of the policyholders and

creditors of the health organization and of the public, take such actions as are

necessary to cause the health organization to be placed under regulatory control

under chapter 26.1-06.1. If the commissioner takes such actions, the authorized

control level event must be deemed sufficient grounds for the commissioner to

take action under chapter 26.1-06.1 and the commissioner shall have the rights,

powers, and duties with respect to the health organization as are set forth in

chapter 26.1-06.1. If the commissioner takes actions under this subdivision

pursuant to an adjusted risk-based capital report, the health organization is

entitled to such protections as are afforded to health organizations under the

provisions of chapter 26.1-06.1 pertaining to summary proceedings.
N.D. Cent. Code § 26.1-43-03 — ND Code / Title 26.1 / Chapter 26.1-43 / Section 26.1-43-03
26.1-43-03. Legal plans and contracts excepted from insurance code
Status: in_force

26.1-43-03. Legal plans and contracts excepted from insurance code

Unless otherwise provided, this title does not apply to:

1. Plans licensed under chapter 26.1-19.

2. Retainer contracts made by attorneys with individual clients with fees based upon an

estimate of the nature and amount of services to be provided to a specific client and

similar contracts made with a group of clients involved in the same or closely related

legal matters.

3. Employee welfare benefit plans as defined by the Employee Retirement Income

Security Act of 1974 [Pub. L. 93-406; 88 Stat. 829].

4. Plans that do not include the assumption of risk or obligation to pay or reimburse for

specified legal services or specified legal expenses. Under this subsection, the

payment of only an administrative fee to an attorney is not considered reimbursement

of the beneficiary or on behalf of the beneficiary for all or a portion of the beneficiary's

fees, costs, or expenses related to or arising out of services by or under the

supervision of an attorney licensed to practice law in this state.
N.D. Cent. Code § 26.1-03-17 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-17
26.1-03-17. Commissioner to collect premium tax - Insurance companies generally - Computation - Credits - Penalty - Estimated tax
Status: in_force

26.1-03-17. Commissioner to collect premium tax - Insurance companies generally -

Computation - Credits - Penalty - Estimated tax.

1. Before issuing the annual certificate required by law, the commissioner shall collect

from every stock and mutual insurance company, nonprofit health service corporation,

health maintenance organization, and prepaid legal service organization, except

fraternal benefit and benevolent societies, doing business in this state, a tax on the

gross amount of premiums, assessments, membership fees, subscriber fees, policy

fees, service fees collected by any third-party administrator providing administrative

services to a group that is self-insured for health care benefits, and finance and

service charges received in this state during the preceding calendar year, at the rate of

two percent with respect to life insurance, one and three-fourths percent with respect

to accident and health insurance, and one and three-fourths percent with respect to all

other lines of insurance. This tax does not apply to considerations for annuities. The

total tax is payable on or before March first following the year for which the tax is

assessable. If the due date falls on a Saturday or legal holiday, the tax is payable on

the next succeeding business day. Collections from this tax must be deposited in the

insurance tax distribution fund under sections 18-04-04.1 and 18-04-05. Collections

from this tax exceeding the sum of the amount deposited in the insurance tax

distribution fund must be deposited in the general fund in the state treasury.

2. An insurance company, nonprofit health service corporation, health maintenance

organization, or prepaid legal service organization subject to the tax imposed by

subsection 1 is entitled to a credit against the tax due for the amount of any

assessment paid as a member of a comprehensive health association under

subsection 3 of section 26.1-08-09 for which the member may be liable for the year in

which the assessment was paid, a credit against the tax due for the amount of any

assessment paid as a member of the reinsurance association of North Dakota under

section 26.1-36.7-06 for which the member may be liable for the year in which the

assessment is paid, a credit as provided under section 26.1-38.1-10, a credit against

the tax due for an amount equal to the examination fees paid to the commissioner

under sections 26.1-01-07, 26.1-02-02, 26.1-03-19.6, 26.1-03-22, 26.1-17-32, and

26.1-18.1-18, and a credit against the tax due for an amount equal to the ad valorem

taxes, whether direct or in the form of rent, on that proportion of premises occupied as

the principal office in this state for over one-half of the year for which the tax is paid.

The credits under this subsection must be prorated on a quarterly basis and may not

exceed the total tax liability under subsection 1.

3. Any company failing to pay the tax imposed by subsection 1, within the time required,

is subject to a penalty of one hundred dollars plus twenty-five dollars per day,

excepting the first day after the tax became due. Any company failing to file the

appropriate tax statement required by rule if the tax is zero is subject to a penalty of

twenty-five dollars per day for each day's neglect not to exceed five hundred dollars.

The commissioner, if satisfied that the delay was excusable, may waive, and if paid,

issue a premium tax credit for all or any part of the penalty and interest.

4. Every stock and mutual insurance company, nonprofit health service corporation,

health maintenance organization, and prepaid legal service organization, except

fraternal benefit or benevolent societies, doing business in this state required to pay

premium taxes in this state shall make and file a statement of estimated premium

taxes. The statement and payment must be made on a quarterly basis as prescribed

by the commissioner. Failure of a company to make payments of at least one-fourth of

the total tax paid during the previous calendar year, or eighty percent of the actual tax

for the quarter being reported of the current calendar year, shall subject the company

to the penalty and interest provided in subsection 3.

5. If an amount of tax, penalty, or interest has been paid which was not due under the

provisions of this section, a refund may be issued to the taxpayer who made the

erroneous payment. The refund is allowed as a credit against any tax due or to

become due under this section or as a cash refund, at the discretion of the

commissioner. The taxpayer who made the erroneous payment shall present a claim

for refund to the commissioner not later than two years after the due date of the return

for the period for which the erroneous payment was made.

6. In lieu of the tax required by subsection 1, the commissioner shall collect from each

entity subject to this section an annual filing fee in the amount of two hundred dollars,

provided the total tax liability of the entity pursuant to subsection 1 is less than two

hundred dollars. No annual filing fee is due or may be collected from an entity if its

total tax liability pursuant to subsection 1 is in excess of two hundred dollars. The

annual filing fee may be reduced by any credits available pursuant to subsections 2

and 5. Failure of a company to pay the two hundred dollar filing fee subjects the

company to the penalty as provided in subsection 3.
N.D. Cent. Code § 26.1-36-35 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-35
26.1-36-35. Medicare supplement policy disclosure standards
Status: repealed

26.1-36-35. Medicare supplement policy disclosure standards

Repealed by S.L. 1991, ch. 304, § 14.
N.D. Cent. Code § 26.1-12-18 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-18
26.1-12-18. Premiums and contingent liabilities to be stated in bylaws and on policy - Collection of premiums
Status: in_force

26.1-12-18. Premiums and contingent liabilities to be stated in bylaws and on policy -

Collection of premiums.

A mutual insurance company, other than a mutual life insurance company, shall charge and

collect the full mutual premium upon its policies in cash or in the form of a note. It may fix in its

bylaws the contingent mutual liability of its members for the payment of losses and expenses

not provided for by the cash funds of the company, but the contingent liability of a member, if

any, may not be less than a sum equal, and in addition to, the cash premium written in the

policy. The total amount of the liability of a policyholder must be stated clearly and legibly upon

the face of each policy. A policy may not be issued for a cash premium without an additional

contingent premium unless the company has a surplus which is not less in amount than the

surplus required of domestic stock insurance companies transacting the same kinds of

insurance.
N.D. Cent. Code § 26.1-25-10.4 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-10.4
26.1-25-10.4. Advisory organizations - Filing requirements
Status: in_force

26.1-25-10.4. Advisory organizations - Filing requirements

Every advisory organization shall file with the commissioner for approval all prospective loss

costs and all supplementary rating information and every change or amendment or modification

of any of the foregoing proposed for use in this state. The filings are subject to the provisions of

this chapter relating to filings made by insurers.
N.D. Cent. Code § 26.1-53.1-07 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-07
26.1-53.1-07. Internet website to be established
Status: in_force

26.1-53.1-07. Internet website to be established

Before registration by the commissioner, each discount plan organization shall establish an

internet website. The internet website must have an up-to-date list of names and addresses of

the providers with which the organization has contracted directly or through a provider network.

The internet website address must be displayed prominently on all of the discount plan

organization's advertisements, marketing materials, brochures, and discount plan cards.
N.D. Cent. Code § 26.1-35-04 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-04
26.1-35-04. Computation of minimum standard by calendar year of issue
Status: in_force

26.1-35-04. Computation of minimum standard by calendar year of issue

1. The interest rates used in determining the minimum standard for the valuation of the

following are the calendar year statutory valuation interest rates as defined in this

section:

a. Life insurance policies issued in a particular calendar year, on or after the earlier

of a specified date filed by an insurer with the commissioner in a written notice of

the insurer's election to comply with this chapter or January 1, 1989.

b. Individual annuity and pure endowment contracts issued in a particular calendar

year on or after January 1, 1984.

c. Annuities and pure endowments purchased in a particular calendar year on or

after January 1, 1984, under group annuity and pure endowment contracts.

d. The net increase, if any, in a particular calendar year after January 1, 1984, in

amounts held under guaranteed interest contracts.

2. The calendar year statutory valuation interest rates, I, must be determined as follows

and the results rounded to the nearer one-quarter of one percent:

a. For life insurance:

I = .03 + W (R - .03) + W (R - .09)

1 2

2

b. For single premium immediate annuities and for annuity benefits involving life

contingencies arising from other annuities with cash settlement options and from

guaranteed interest contracts with cash settlement options:

I = .03 + W (R - .03)

where R is the lesser of R and .09, R is the greater of R and .09, R is the

1 2

reference interest rate defined in this section, and W is the weighting factor

defined in this section.

c. For other annuities with cash settlement options and guaranteed interest

contracts with cash settlement options, valued on an issue year basis, except as

stated in subdivision b, the formula for life insurance stated in subdivision a

applies to annuities and guaranteed interest contracts with guarantee durations in

excess of ten years and the formula for single premium immediate annuities

stated in subdivision b applies to annuities and guaranteed interest contracts with

guarantee duration of ten years or less.

d. For other annuities with no cash settlement options and for guaranteed interest

contracts with no cash settlement options, the formula for single premium

immediate annuities stated in subdivision b applies.

e. For other annuities with cash settlement options and guaranteed interest

contracts with cash settlement options, valued on a change in fund basis, the

formula for single premium immediate annuities stated in subdivision b applies.

However, if the calendar year statutory valuation interest rate for a life insurance policy

issued in any calendar year determined without reference to this sentence differs from

the corresponding actual rate for similar policies issued in the immediately preceding

calendar year by less than one-half of one percent, the calendar year statutory

valuation interest rate for the life insurance policies must equal the corresponding

actual rate for the immediately preceding calendar year. For purposes of applying the

preceding sentence, the calendar year statutory valuation interest rate for life

insurance policies issued in a calendar year must be determined for 1980 by using the

reference interest rate defined for 1979, and must be determined for each subsequent

calendar year regardless of when section 26.1-33-24 becomes operative.

3. The weighting factors referred to in the formulas in subsection 2 are given in the

following tables:

a. The weighting factors for life insurance are:

Guarantee Duration Weighting Factors

10 years or less .50

More than 10 years, but not more than 20 years .45

More than 20 years .35

For life insurance, the guarantee duration is the maximum number of years the

life insurance can remain in force on a basis guaranteed in the policy or under

options to convert to plans of life insurance with premium rates or nonforfeiture

values or both which are guaranteed in the original policy.

b. The weighting factor for single premium immediate annuities and for annuity

benefits involving life contingencies arising from other annuities with cash

settlement options and guaranteed interest contracts with cash settlement options

is eighty hundredths.

c. The weighting factors for other annuities and for guaranteed interest contracts,

except as stated in subdivision b, are as specified in paragraphs 1, 2, and 3,

according to the requirements and definitions in paragraphs 4, 5, and 6:

(1) For annuities and guaranteed interest contracts valued on an issue year

basis:

Guarantee Weighting Factor

Duration for Plan Type

A B C

5 years or less .80 .60 .50

More than 5 years, but not more than 10 years .75 .60 .50

More than 10 years, but not more than 20 years .65 .50 .45

More than 20 years .45 .35 .35

(2) For annuities and guaranteed interest

contracts valued on a change in fund basis,

the factors shown in paragraph 1 increased by .15 .25 .05

(3) For annuities and guaranteed interest

contracts valued on an issue year basis,

other than those with no cash settlement

options, which do not guarantee interest on

considerations received more than one year

after issue or purchase and for annuities and

guaranteed interest contracts valued on a

change in fund basis which do not guarantee

interest rates on considerations received

more than twelve months beyond the valuation

date, the factors shown in paragraph 1 or

derived in paragraph 2 increased by .05 .05 .05

(4) For other annuities with cash settlement options and guaranteed interest

contracts with cash settlement options, the guarantee duration is the

number of years for which the contract guarantees interest rates in excess

of the calendar year statutory valuation interest rate for life insurance

policies with guarantee duration in excess of twenty years. For other

annuities with no cash settlement options and for guaranteed interest

contracts with no cash settlement options, the guaranteed duration is the

number of years from the date of issue or date of purchase to the date

annuity benefits are scheduled to commence.

(5) The plan type as used in the tables in this subsection is defined as follows:

(a) Plan type A: At any time the policyholder may withdraw funds only with

an adjustment to reflect changes in interest rates or asset values since

receipt of the funds by the insurer, without such adjustment but in

installments over five years or more, as an immediate life annuity, or

no withdrawal permitted.

(b) Plan type B: Before expiration of the interest rate guarantee, the

policyholder may withdraw funds only with an adjustment to reflect

changes in interest rates or asset values since receipt of the funds by

the insurer, without an adjustment but in installments over five years or

more, or no withdrawal permitted. At the end of the interest rate

guarantee, funds may be withdrawn without an adjustment in a single

sum or installments over less than five years.

(c) Plan type C: The policyholder may withdraw funds before expiration of

the interest rate guarantee in a single sum or installments over less

than five years either without adjustment to reflect changes in interest

rates or asset values since receipt of the funds by the insurer, or

subject only to a fixed surrender charge stipulated in the contract as a

percentage of the fund.

(6) An insurer may elect to value guaranteed interest contracts with cash

settlement options and annuities with cash settlement options on either an

issue year basis or on a change in fund basis. Guaranteed interest contracts

with no cash settlement options and other annuities with no cash settlement

options must be valued on an issue year basis. As used in this section, an

issue year basis of valuation refers to a valuation basis under which the

interest rate used to determine the minimum valuation standard for the

entire duration of the annuity or guaranteed interest contract is the calendar

year valuation interest rate for the year of issue or year of purchase of the

annuity or guaranteed interest contract. A change in fund basis of valuation

refers to a valuation basis under which the interest rate used to determine

the minimum valuation standard applicable to each change in the fund held

under the annuity or guaranteed interest contract is the calendar year

valuation interest rate for the year of the change in the fund.

4. The reference interest rate referred to in subsection 2 is defined as follows:

a. For life insurance, the lesser of the average over a period of thirty-six months and

the average over a period of twelve months, ending on June thirtieth of the

calendar year next preceding the year of issue, the monthly average of the

composite yield on seasoned corporate bonds, as published by Moody's

investors service, incorporated.

b. For single premium immediate annuities and for annuity benefits involving life

contingencies arising from other annuities with cash settlement options and

guaranteed interest contracts with cash settlement options, the average over a

period of twelve months, ending on June thirtieth of the calendar year of issue or

year of purchase, the monthly average of the composite yield on seasoned

corporate bonds, as published by Moody's investors service, incorporated.

c. For other annuities with cash settlement options and guaranteed interest

contracts with cash settlement options, valued on a year of issue basis, except as

stated in subdivision b with guarantee duration in excess of ten years, the lesser

of the average over a period of thirty-six months and the average over a period of

twelve months, ending on June thirtieth of the calendar year of issue or purchase,

of the monthly average of the composite yield on seasoned corporate bonds, as

published by Moody's investors service, incorporated.

d. For other annuities with cash settlement options and guaranteed interest

contracts with cash settlement options, valued on a year of issue basis, except as

stated in subdivision b with guaranteed duration of ten years or less, the average

over a period of twelve months, ending on June thirtieth of the calendar year of

issue or purchase, of the monthly average of the composite yield on seasoned

corporate bonds, as published by Moody's investors service, incorporated.

e. For other annuities with no cash settlement options and for guaranteed interest

contracts with no cash settlement options, the average over a period of twelve

months, ending on June thirtieth of the calendar year of issue or purchase, of the

monthly average of the composite yield on seasoned corporate bonds, as

published by Moody's investors service, incorporated.

f. For other annuities with cash settlement options and guaranteed interest

contracts with cash settlement options, valued on a change in fund basis, except

as stated in subdivision b the average over a period of twelve months, ending on

June thirtieth of the calendar year of the change in the fund, of the monthly

average of the composite yield on seasoned corporate bonds, as published by

Moody's investors service, incorporated.

5. If the monthly average of the composite yield on seasoned corporate bonds is no

longer published by Moody's investors service, incorporated, or if the national

association of insurance commissioners determines that the monthly average of the

composite yield on seasoned corporate bonds as published by Moody's investors

service, incorporated, is no longer appropriate for the determination of the reference

interest rate, then an alternative method for determination of the reference interest rate

adopted by the national association of insurance commissioners and approved by rule

adopted by the commissioner, may be substituted.
N.D. Cent. Code § 26.1-03-15 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-15
26.1-03-15. Limitation of liability
Status: repealed

26.1-03-15. Limitation of liability

Repealed by S.L. 2003, ch. 245, § 4.
N.D. Cent. Code § 26.1-28-04 — ND Code / Title 26.1 / Chapter 26.1-28 / Section 26.1-28-04
26.1-28-04. Suspension, revocation, or refusal of license - Notice and opportunity to be heard
Status: in_force

26.1-28-04. Suspension, revocation, or refusal of license - Notice and opportunity to

be heard.

The license for each vending machine is subject to expiration, suspension, or revocation

coincidentally with that of the insurance producer or the insurer. The commissioner also may

suspend, revoke, or refuse to renew the license as to any vending machine concerning which

the commissioner finds any conditions upon which the machine was licensed or referred to in

section 26.1-28-02 have been violated, or no longer exist, or that the machine is being used or

operated by the insurance producer in violation of the laws of this state. Before suspending,

revoking, or refusing to renew a license for a vending machine, the commissioner shall conduct

a hearing and shall make a determination upon the basis of the standards, conditions, and

requirements of this section.
N.D. Cent. Code § 26.1-06.1-40 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-40
26.1-06.1-40. Secured creditor's claims
Status: in_force

26.1-06.1-40. Secured creditor's claims

1. The value of any security held by a secured creditor must be determined in one of the

following ways, as the court may direct:

a. By converting the same into money according to the terms of the agreement

pursuant to which the security was delivered to such creditors; or

b. By agreement, arbitration, compromise, or litigation between the creditor and the

liquidator.

2. The determination must be under the supervision and control of the court with due

regard for the recommendation of the liquidator. The amount so determined must be

credited upon the secured claim, and any deficiency must be treated as an unsecured

claim. If the claimant surrenders the security to the liquidator, the entire claim must be

allowed as if unsecured.
N.D. Cent. Code § 26.1-09-05 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-05
26.1-09-05. Attorney to file statement authorizing suit and consenting to service
Status: in_force

26.1-09-05. Attorney to file statement authorizing suit and consenting to service

Concurrently with the filing of the declaration provided for by section 26.1-09-04, the

attorney shall file with the commissioner a written statement executed by the attorney for the

subscribers conditioned that upon the issuance of the certificate of authority:

1. Civil actions may be brought in connection with the policies, contracts, or agreements

entered into under this chapter in the county in which any property insured in the

policies, contracts, or agreements is located or in which any accident insured against

occurs.

2. Service of process may be made upon the commissioner in all civil actions arising in

this state out of the policies, contracts, or agreements entered into under this chapter.
N.D. Cent. Code § 26.1-25.1-10 — ND Code / Title 26.1 / Chapter 26.1-25.1 / Section 26.1-25.1-10
26.1-25.1-10. Severability
Status: in_force

26.1-25.1-10. Severability

If any provision of this chapter is declared invalid due to an interpretation of or a future

change in the federal Fair Credit Reporting Act [Pub. L. 90-321; 15 U.S.C. 1681 et seq.], the

remaining provisions of this chapter are not affected and remain in effect.
N.D. Cent. Code § 26.1-17-01 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-01
26.1-17-01. Definitions
Status: in_force

26.1-17-01. Definitions

As used in this chapter, unless the context requires otherwise:

1. "Dental service" means the general and usual service rendered and the care

administered by licensed dentists.

2. "Health service" means service performed for and rendered to persons to restore,

maintain, and promote personal health, to treat injuries and cure diseases, both

physical and mental, by any lawful means, and includes hospital service, medical

service, dental service, or optometric service, or any combination of these services.

However, health service is limited to those services rendered by physicians, surgeons,

practitioners, nurses, hospitals, nursing homes, or any other provider of health service

who is licensed or registered under the laws of this state.

3. "Health service contract" means a contract which provides for the furnishing of one or

more kinds of health service to a subscriber.

4. "Health service corporation" means a nonprofit corporation organized for the purposes

of establishing a health service plan whereby one or more kinds of health service is

provided to subscribers under a prepaid health service contract entitling each

subscriber to certain specified health services, but does not include a health

maintenance organization organized under chapter 26.1-18.1.

5. "Hospital service" includes bed and board, general nursing care, use of the operating

room, use of the delivery room, ordinary medications and dressings, and other

customary routine care, and nursing home services and health care and related

services furnished by vendors of the services, but does not include the practice of

medicine.

6. "Medical service" means the general and usual services rendered and care

administered by physicians and oral surgeons.

7. "Optometric service" means the general and usual services rendered and care

administered by practitioners.

8. "Oral surgeon" means a dentist who has met all of the formal requirements to be

certified by the American board of oral surgery.

9. "Practitioner" includes an optometrist, a physician, a chiropractor, or an advanced

registered nurse practitioner duly licensed to practice one's profession under North

Dakota law.
N.D. Cent. Code § 26.1-21-17 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-17
26.1-21-17. Allowed liability claims payable from fund - Administrative expenses - Methods of payment
Status: repealed

26.1-21-17. Allowed liability claims payable from fund - Administrative expenses -

Methods of payment.

Repealed by S.L. 2025, ch. 274, § 19.
N.D. Cent. Code § 26.1-14-15 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-15
26.1-14-15. Optional membership in insurance guaranty association
Status: in_force

26.1-14-15. Optional membership in insurance guaranty association

The company may not be a member insurer under chapter 26.1-42.1 unless the board of

directors by appropriate resolution, certified to and filed with the commissioner on or before

December thirty-first following the issuance of its certificate of authority, elects to become a

member. If there is an affirmative election, the company becomes a member of the insurance

guaranty association effective July first of the following year. The election is irrevocable. In

absence of a timely election, no policyholder, claimant, or creditor of the company may receive

any payment by the insurance guaranty association.
N.D. Cent. Code § 26.1-06.1-21 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-21
26.1-06.1-21. Notice to creditors and others
Status: in_force

26.1-06.1-21. Notice to creditors and others

1. Unless the court otherwise directs, the liquidator shall give or cause to be given notice

of the liquidation order as soon as possible:

a. By first-class mail and either by telegram or telephone to the insurance

commissioner of each jurisdiction in which the insurer is doing business;

b. By first-class mail to any guaranty association or foreign guaranty association

which is or may become obligated as a result of the liquidation;

c. By first-class mail to all insurance producers of the insurer;

d. By first-class mail to all persons known or reasonably expected to have claims

against the insurer including all policyholders, at their last-known address as

indicated by the records of the insurer; and

e. By publication in a newspaper of general circulation in the county in which the

insurer has its principal place of business and in such other locations as the

liquidator deems appropriate.

2. Except as otherwise established by the liquidator with approval of the court, notice to

potential claimants under subsection 1 shall require claimants to file with the liquidator

their claims together with proper proofs thereof under section 26.1-06.1-35, on or

before a date the liquidator shall specify in the notice. The liquidator need not require

persons claiming cash surrender values or other investment values in life insurance

and annuities to file a claim. All claimants shall have a duty to keep the liquidator

informed of any changes of address.

3. a. Notice under subsection 1 to insurance producers of the insurer and to potential

claimants who are policyholders must include, when applicable, notice that

coverage by state guaranty associations may be available for all or part of policy

benefits in accordance with applicable state guaranty laws.

b. The liquidator shall promptly provide to the guaranty associations any information

concerning the identities and addresses of the policyholders and their policy

coverages in the liquidator's possession or control, and otherwise cooperate with

guaranty associations to assist them in providing to the policyholders timely

notice of the guaranty associations' coverage of policy benefits, including, as

applicable, coverage of claims and continuation or termination of coverages.

4. If notice is given in accordance with this section, the distribution of assets of the

insurer under this chapter shall be conclusive with respect to all claimants, whether or

not they received notice.
N.D. Cent. Code § 26.1-27.1-08 — ND Code / Title 26.1 / Chapter 26.1-27.1 / Section 26.1-27.1-08
26.1-27.1-08. Enforcement
Status: in_force

26.1-27.1-08. Enforcement

1. All powers granted to the commissioner under title 26.1 and chapter 28-32 are

available in enforcing chapter 26.1-27.1, including subpoena power.

2. This section does not limit the attorney general from investigating and prosecuting

violations of the law.

3. This section does not prohibit the commissioner, state board of pharmacy, or

department of health and human services from collaborating through joint exercise of

common powers agreements.
N.D. Cent. Code § 26.1-26.8-01 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-01
26.1-26.8-01. Scope
Status: in_force

26.1-26.8-01. Scope

This chapter governs the qualifications and procedures for licensing public adjusters in this

state and specifies the duties of and restrictions on public adjusters, including limitation of

licensure to assisting only insureds with first-party claims.
N.D. Cent. Code § 26.1-36.7-10 — ND Code / Title 26.1 / Chapter 26.1-36.7 / Section 26.1-36.7-10
26.1-36.7-10. Rulemaking
Status: in_force

26.1-36.7-10. Rulemaking

The commissioner may adopt rules for the implementation and administration of this

chapter.
N.D. Cent. Code § 26.1-26.7-04 — ND Code / Title 26.1 / Chapter 26.1-26.7 / Section 26.1-26.7-04
26.1-26.7-04. Authority of vendors of portable electronic devices
Status: in_force

26.1-26.7-04. Authority of vendors of portable electronic devices

1. An employee and an authorized representative of a vendor may sell or offer portable

electronics insurance to customers and are not subject to licensure as an insurance

producer under this chapter if:

a. The vendor obtains a limited lines license to authorize the vendor's employees or

authorized representatives to sell or offer portable electronics insurance under

this chapter.

b. The vendor files an acknowledgment with the commissioner in a form and

manner directed by the commissioner which the vendor's counter sales personnel

and authorized representatives act on the vendor's behalf and the vendor is

responsible for any representations made by the counter sales personnel or

authorized representatives relating to insurance products offered through the

vendor. The acknowledgment must state the commissioner may take any

administrative action contemplated in this title.

c. The insurer issuing the portable electronics insurance either directly supervises or

the vendor supervises the development of a training program for employees and

authorized representatives of the vendors. The training required by this

subdivision must comply with the following:

(1) The training must be delivered to employees and authorized representatives

of vendors who are directly engaged in the activity of selling or offering

portable electronics insurance, and the training materials must be

maintained by the vendor and be made available to the commissioner for

inspection upon request; and

(2) Each employee and authorized representative shall receive basic instruction

about the portable electronics insurance offered to customers and the

disclosures required under section 26.1-26.7-03; and

d. An employee or authorized representative of a vendor of portable electronic

devices may not advertise, represent, or otherwise hold out to the public as a

nonlimited lines-licensed insurance producer.

2. A vendor's employees and authorized representatives may not be paid directly by an

insurance company, a commission, or any other compensation for the sale of

insurance. However, this section does not prevent a vendor from including the

insurance products in an overall employee performance compensation incentive

program.

3. The vendor of portable electronic devices may bill and collect charges for portable

electronic devices insurance coverage. Any charge to the enrolled customer for

coverage that is not included in the cost associated with the purchase or lease of a

portable electronic device or related service must be separately itemized on the

enrolled customer's bill. If the portable electronics insurance coverage is included with

the purchase or lease of a portable electronic device or related services, the vendor

clearly and conspicuously shall disclose to the enrolled customer any portable

electronics insurance coverage included with the portable electronic device or related

service, and the stand-alone cost of the premium for the same or similar insurance

must be made on the customer's bill and in any marketing materials made available at

the point of sale. A vendor billing and collecting the charges are not required to

maintain the funds in a segregated account if the vendor is authorized by the insurer to

hold the funds in an alternative manner. All funds received by a vendor from an

enrolled customer for the sale of portable electronics insurance must be considered

funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. A

vendor may receive compensation for billing and collection services.
N.D. Cent. Code § 26.1-01-07.5 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-07.5
26.1-01-07.5. Fire district maps - Insurance applications to show fire district in which property is located - Penalty
Status: in_force

26.1-01-07.5. Fire district maps - Insurance applications to show fire district in which

property is located - Penalty.

Before December first of each year, the insurance commissioner shall publish maps of the

fire districts of the state for use by insurers under this section for the following calendar year.

The state firefighter's association and the state fire marshal shall assist the insurance

commissioner in preparing the maps. After December 31, 1993, no insurer may issue or renew

a policy for fire, allied lines, homeowner's multiple peril, farmowner's multiple peril, commercial

multiple peril, or crop hail insurance coverage for property in this state unless the application

identifies each fire district in which the insured property is located. The application must identify

the property and insured value of the property located within each fire district if the policy

provides coverage for property that is not all within a single district. For purposes of this section,

"fire district" means rural fire protection district, city, or area served by a certified rural fire

department. An insurer that is found by the commissioner to be in violation of this section is

subject to a penalty of one hundred dollars for each violation to be deposited in the fire

insurance tax distribution fund. The insurance commissioner may adopt rules necessary for

administration of this section, including rules governing preparation, charges for, and use of

maps under this section.
N.D. Cent. Code § 26.1-26-03 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-03
26.1-26-03. License required - Acting as insurance producer or consultant without license prohibited - Penalty
Status: in_force

26.1-26-03. License required - Acting as insurance producer or consultant without

license prohibited - Penalty.

No person may act as or hold oneself out to be an insurance producer, insurance

consultant, or surplus lines insurance producer unless licensed under this chapter. A person

may not sell, solicit, or negotiate insurance in this state for any class of insurance unless the

person is licensed for that line of authority in accordance with this chapter. Any person willfully

violating this section is guilty of a class C felony.
N.D. Cent. Code § 26.1-25-04.2 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-04.2
26.1-25-04.2. Motor vehicle accident surcharge
Status: in_force

26.1-25-04.2. Motor vehicle accident surcharge

Concerning motor vehicle accidents occurring after August 1, 1993:

1. An insurer may not assess an accident surcharge on the policy of any insured as a

result of a comprehensive coverage claim or when the insured's unattended vehicle

was legally parked when the damage occurred.

2. An insurer may not assess an accident surcharge on the policy of any insured when a

claim has been paid pursuant to section 26.1-40-17.1 unless the insurer is not entitled

to recover damages from the party at fault.
N.D. Cent. Code § 26.1-12.1-05 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-05
26.1-12.1-05. Retention of experts
Status: in_force

26.1-12.1-05. Retention of experts

The commissioner may retain, at the reorganizing insurer's reasonable expense, any

qualified experts if the commissioner determines that staff not otherwise a part of the

commissioner's staff is necessary to assist in reviewing the plan.
N.D. Cent. Code § 26.1-36.3-03 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-03
26.1-36.3-03. Establishment of classes of business
Status: in_force

26.1-36.3-03. Establishment of classes of business

1. A small employer carrier may establish a separate class of business only to reflect

substantial differences in expected claims experience or administrative costs resulting

from:

a. The small employer carrier using more than one type of system for the marketing

and sale of health benefit plans to small employers.

b. The small employer carrier having acquired a class of business from another

small employer carrier.

c. The small employer carrier providing coverage to one or more association groups

that meet the requirements set forth in rules adopted by the commissioner.

2. A small employer carrier may establish up to nine separate classes of business under

subsection 1.

3. The commissioner may adopt rules to provide for a period of transition in order for a

small employer carrier to come into compliance with subsection 2 if the small employer

carrier acquires an additional class of business from another small employer carrier.

4. The commissioner may approve the establishment of additional classes of business if

the carrier applies to the commissioner and the commissioner determines that the

action would enhance the efficiency and fairness of the small employer marketplace.
N.D. Cent. Code § 26.1-55-03 — ND Code / Title 26.1 / Chapter 26.1-55 / Section 26.1-55-03
26.1-55-03. Rulemaking
Status: in_force

26.1-55-03. Rulemaking

The commissioner may adopt rules to limit an insurer's death master file comparisons and

revised death master file comparisons required under this chapter to the insurer's electronic

searchable files, to allow the commissioner to approve an insurer's plan and timeline for

conversion of the insurer's files to electronic searchable files, and to allow for phasing-in

compliance with this chapter according to an insurer's plan and timeline approved by the

commissioner.
N.D. Cent. Code § 26.1-10.2-06 — ND Code / Title 26.1 / Chapter 26.1-10.2 / Section 26.1-10.2-06
26.1-10.2-06. Contents of an own risk and solvency assessment summary report
Status: in_force

26.1-10.2-06. Contents of an own risk and solvency assessment summary report

1. The own risk and solvency assessment summary report must be prepared consistent

with the own risk and solvency assessment guidance manual subject to the

requirements of subsection 2. Documentation and supporting information must be

maintained and made available upon examination or upon request of the

commissioner.

2. The review of the own risk and solvency assessment summary report and any

additional request for information must be made using similar procedures used in the

analysis and examination of multi-state or global insurers and insurance groups.
N.D. Cent. Code § 26.1-36-08 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-08
26.1-36-08. Group health policy and health service contract substance abuse coverage
Status: in_force

26.1-36-08. Group health policy and health service contract substance abuse

coverage.

1. An insurance company, nonprofit health service corporation, or health maintenance

organization may not deliver, issue, execute, or renew any health insurance policy or

health service contract on a group, blanket, franchise, or association basis unless the

policy or contract provides benefits, of the same type offered under the policy or

contract for other illnesses, for health services to any individual covered under the

policy or contract, for the diagnosis, evaluation, and treatment of alcoholism, drug

addiction, or other related illness, which benefits meet or exceed the benefits provided

in subsection 2.

2. The benefits must be provided for inpatient treatment, treatment by partial

hospitalization, and outpatient treatment:

a. In the case of benefits provided for inpatient treatment, the benefits must be

provided for a minimum of sixty days of services covered under this section and

section 26.1-36-09 in any calendar year. Services provided under this subdivision

must be provided by an addiction treatment program licensed under chapter

50-31.

b. In the case of benefits provided for partial hospitalization, the benefits must be

provided for a minimum of one hundred twenty days of services covered under

this section and section 26.1-36-09 in any calendar year. Services provided under

this subdivision must be provided by an addiction treatment program licensed

under chapter 50-31. For services provided in state-operated behavioral health

clinics, charges must be reasonably similar to the charges for care provided by

hospitals as defined in this subsection.

c. Benefits may also be provided for a combination of inpatient and partial

hospitalization treatment. For the purpose of computing the period for which

benefits are payable, each day of inpatient treatment is equivalent to two days of

treatment by partial hospitalization, provided that no more than forty-six days of

the inpatient treatment benefits required by this section may be traded for

treatment by partial hospitalization.

d. In the case of benefits provided for outpatient treatment, the benefits must be

provided for a minimum of twenty visits for services covered under this section in

any calendar year, provided the diagnosis, evaluation, and treatment services are

provided within the scope of licensure by a licensed physician, a licensed

psychologist who is eligible for listing on the national register of health service

providers in psychology, or the treatment services are provided within the scope

of licensure by a licensed addiction counselor. The insurance company, nonprofit

health service corporation, or health maintenance organization may not establish

a deductible or a copayment for the first five visits in any calendar year, and may

not establish a copayment greater than twenty percent for the remaining visits.

The deductible limitation of this subdivision does not apply to a high-deductible

health plan used to establish a health savings account pursuant to and as defined

in section 223 of the Internal Revenue Code [26 U.S.C. 223].

e. If the services are provided by a provider outside a preferred provider network

without a referral from within the network, the insurance company, nonprofit

health service corporation, or health maintenance organization may establish a

copayment greater than twenty percent for only those visits after the first five

visits in any calendar year.

f. As used in this section and section 26.1-36-08.1, partial hospitalization means

continuous treatment for at least three hours, but not more than twelve hours, in

any twenty-four-hour period and includes the medically necessary treatment

services provided by licensed professionals under the supervision of a licensed

physician.

3. This section does not prevent any insurance company, nonprofit health service

corporation, or health maintenance organization from issuing, delivering, or renewing,

at its option, any policy or contract containing provisions similar to those required by

this section, when the policy or contract is not subject to such provisions.
N.D. Cent. Code § 26.1-44-03.4 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-03.4
26.1-44-03.4. Surplus lines insurance policies
Status: in_force

26.1-44-03.4. Surplus lines insurance policies

A surplus lines insurer may not issue a policy designed to satisfy any law mandating

insurance coverage by a licensed insurance company.
N.D. Cent. Code § 26.1-36-38 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-38
26.1-36-38. Rulemaking authority
Status: in_force

26.1-36-38. Rulemaking authority

The commissioner may adopt reasonable rules necessary, proper, or advisable to

administer this chapter.
N.D. Cent. Code § 26.1-36.9-02 — ND Code / Title 26.1 / Chapter 26.1-36.9 / Section 26.1-36.9-02
26.1-36.9-02. Dental benefit plans - Prior authorization
Status: in_force

26.1-36.9-02. Dental benefit plans - Prior authorization

A dental benefit plan may not deny a claim subsequently submitted by a dental provider for

procedures specifically included in a prior authorization, unless at least one of the following

circumstances applies for each procedure denied:

1. Benefit limitations, such as annual maximums and frequency limitations not applicable

at the time of the prior authorization, are reached due to utilization after issuance of

the prior authorization.

2. The documentation for the claim provided by the dental provider submitting the claim

clearly fails to support the claim as originally authorized.

3. If, after the issuance of the prior authorization, new procedures are provided to the

patient or a change in the condition of the patient occurs such that the prior authorized

procedure would no longer be considered medically necessary, based on the

prevailing standard of care.

4. If, after the issuance of the prior authorization, new procedures are provided to the

patient or a change in the patient's condition occurs such that the prior authorized

procedure would at that time require disapproval pursuant to the terms and conditions

for coverage under the patient's plan in effect at the time the prior authorization was

used.

5. The denial of the payment was due to one of the following:

a. Another payor is responsible for payment.

b. The dental provider already has been paid for the procedures identified on the

claim.

c. The claim was submitted fraudulently.

d. The individual receiving the procedure was not eligible to receive the procedure

on the date of service.
N.D. Cent. Code § 26.1-39-25 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-25
26.1-39-25. Notice of transfer
Status: in_force

26.1-39-25. Notice of transfer

The insurer transferring a policy to another insurer within the same insurance holding

company system shall give notice to the policyholder of the transfer.
N.D. Cent. Code § 26.1-22-09 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-09
26.1-22-09. Buildings reported to office - Replacement cost appraisal
Status: in_force

26.1-22-09. Buildings reported to office - Replacement cost appraisal

1. In each odd-numbered year, or upon application for insurance, every state agency,

political subdivision, and winter show insured under the fund shall report to the office

the insurable value of each building, excluding buildings insured by private insurance

companies, and the value of the fixtures and permanent contents insured under the

fund, excluding fixtures and permanent contents insured by private insurance

companies. State agencies, political subdivisions, and winter shows shall report any

additional information required by the office to administer this chapter. The office shall

provide forms for reporting.

2. Once every six years, each state agency insured under the fund shall obtain a

replacement cost appraisal on all buildings, fixtures, and permanent contents under

the agency's custody which are insured under this chapter. The office shall determine

the manner of conducting the appraisal. Annually, except for any year an appraisal is

conducted, each state agency insured under the fund shall adjust the appraised value

as required by the office and the amount must be considered the replacement value. If

an appraisal results in a substantial premium increase the office determines may not

be paid through existing agency appropriations, the amount must be considered an

earned receivable of the fund, and the agency shall seek a deficiency or general

appropriation sufficient for payment during the next legislative session.
N.D. Cent. Code § 26.1-18.1-20 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-20
26.1-18.1-20. Rehabilitation, liquidation, or conservation of health maintenance organizations
Status: in_force

26.1-18.1-20. Rehabilitation, liquidation, or conservation of health maintenance

organizations.

1. Any rehabilitation, liquidation, or conservation of a health maintenance organization

must be deemed to be the rehabilitation, liquidation, or conservation of an insurance

company and must be conducted under the supervision of the commissioner pursuant

to the law governing the rehabilitation, liquidation, or conservation of insurance

companies. The commissioner may apply for an order directing the commissioner to

rehabilitate, liquidate, or conserve a health maintenance organization upon any one or

more grounds set out in chapter 26.1-06; or when in the commissioner's opinion the

continued operation of the health maintenance organization would be hazardous either

to the enrollees or to the people of this state. Enrollees have the same priority in the

event of liquidation or rehabilitation as the law provides to policyholders of an insurer.

2. For purposes of determining the priority of distribution of general assets, claims of

enrollees and enrollees' beneficiaries have the same priority as established by chapter

26.1-06.1 for policyholders and beneficiaries of insureds of insurance companies. If an

enrollee is liable to any provider for services provided pursuant to and covered by the

health care plan, that liability has the status of an enrollee claim for distribution of

general assets. Any provider who is obligated by statute or agreement to hold

enrollees harmless from liability for services provided pursuant to and covered by a

health care plan has a priority of distribution of the general assets immediately

following that of enrollees and enrollees' beneficiaries as described herein, and

immediately preceding the priority of distribution described in chapter 26.1-06.1.
N.D. Cent. Code § 26.1-40.2-02 — ND Code / Title 26.1 / Chapter 26.1-40.2 / Section 26.1-40.2-02
26.1-40.2-02. Required disclosures
Status: in_force

26.1-40.2-02. Required disclosures

A delivery network company shall disclose in writing or electronic form to a participating

delivery network driver, as part of the delivery network company's agreement with the driver:

1. The insurance coverage, including the types of coverage and the limits for each

coverage, the delivery network company provides while the driver uses a personal

vehicle in connection with a delivery network company's digital network; and

2. That the driver's automobile insurance policy might not provide any coverage during

the delivery available period, if it applies, or the delivery service period.
N.D. Cent. Code § 26.1-06.1-23 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-23
26.1-06.1-23. Actions by and against liquidator
Status: in_force

26.1-06.1-23. Actions by and against liquidator

1. Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien

insurer domiciled in this state, no action at law or equity or in arbitration may be

brought against the insurer or liquidator, whether in this state or elsewhere, nor may

any existing actions be maintained or further presented after issuance of the order.

The courts of this state shall give full faith and credit to injunctions against the

liquidator or the company or the continuation of existing actions against the liquidator

or the company, when the injunctions are included in an order to liquidate an insurer

issued pursuant to corresponding provisions in other states. Whenever, in the

liquidator's judgment, protection of the estate of the insurer necessitates intervention in

an action against the insurer that is pending outside this state, the liquidator may

intervene in the action. In any action in which the liquidator intervenes under this

section, the liquidator may defend the action at the expense of the estate of the

insurer.

2. The liquidator may, upon or after an order for liquidation, within two years or such other

longer time as applicable law may permit, institute an action or proceeding on behalf of

the estate of the insurer upon any cause of action against which the period of limitation

fixed by applicable law has not expired at the time of the filing of the petition upon

which such order is entered. If, by any agreement, a period of limitation is fixed for

instituting a suit or proceeding upon any claim, or for filing any claim, proof of claim,

proof of loss, demand, notice, or the like, or if in any proceeding, judicial or otherwise,

a period of limitation is fixed, either in the proceeding or by applicable law, for taking

any action, filing any claim or pleading, or doing any act, and if in any such case the

period had not expired at the date of the filing of the petition, the liquidator may, for the

benefit of the estate, take any action or do any act, required of or permitted to the

insurer, within a period of one hundred eighty days subsequent to the entry of an order

for liquidation, or within such further period as is shown to the satisfaction of the court

not to be unfairly prejudicial to the other party.

3. No statute of limitation or defense of laches runs with respect to any action against an

insurer between the filing of a petition for liquidation against an insurer and the denial

of the petition. Any action against the insurer that might have been commenced when

the petition was filed may be commenced for at least sixty days after the petition is

denied.

4. Any guaranty association or foreign guaranty association shall have standing to

appear in any court proceeding concerning the liquidation of an insurer if the

association is or may become liable to act as a result of the liquidation.
N.D. Cent. Code § 26.1-19-04 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-04
26.1-19-04. Establishment of a prepaid legal services organization
Status: in_force

26.1-19-04. Establishment of a prepaid legal services organization

1. Notwithstanding any law of this state to the contrary, any person may apply to the

commissioner for and obtain a certificate of authority to establish and operate a

prepaid legal services organization in compliance with this chapter. A person may not

establish or operate a prepaid legal services organization in this state, or sell, offer to

sell, or solicit offers to purchase or receive advance or periodic considerations in

conjunction with a prepaid legal services plan without obtaining a certificate of

authority under this chapter. A foreign corporation may similarly apply for a certificate

of authority under this chapter, subject to obtaining a certificate of authority as a

foreign corporation under section 10-19.1-136.

2. Every prepaid legal services organization as of July 1, 1981, shall submit an

application for a certificate of authority under subsection 3. The applicant may continue

to operate until the commissioner acts upon the application. If the application is denied

under section 26.1-19-06, the applicant must be treated as a prepaid legal services

organization whose certificate of authority has been revoked.

3. The application for a certificate of authority must be made in a form prescribed by the

commissioner and be verified by an officer or authorized representative of the

applicant and must set forth or be accompanied by:

a. A copy of the basic organizational documents of the applicant, if any, including

articles of incorporation, articles of organization, partnership agreements, trust

agreements, or other applicable documents.

b. A copy of the bylaws, regulations, or similar documents, if any, regulating the

conduct of the internal affairs of the applicant.

c. A list of the names, addresses, and official capacities within the organization of all

persons who are responsible for the conduct of the affairs of the applicant,

including all members of the governing body, the officers and directors in the case

of a corporation, the managers and governors in the case of a limited liability

company, the partners under a partnership, the trustees under a trust agreement,

and the members or owners under any other organizational form.

d. A statement generally describing the organization, its enrollment process, its

administrative operations, any cost and quality control assurance mechanisms, its

internal grievance procedure, the method it proposes to use to enroll members,

the geographic area or areas to be served, the location of its office or offices, the

number of providers to be utilized, and the recordkeeping system which will

provide documentation of the utilization of plan benefits by enrolled participants.

e. A power of attorney duly executed by the applicant, if not domiciled in the state,

appointing the commissioner and the commissioner's successors in office and

duly authorized deputies as the true and lawful attorneys of the applicant in and

for this state upon whom all lawful process may be served in any legal action or

proceeding against the organization on a claim for relief arising in this state.

f. Copies of all contract forms the organization proposes to furnish to enrolled

participants.

g. Copies of all contract forms the organization proposes to enter into with

providers.

h. Copies of the forms evidencing coverage to be issued to enrolled participants.

i. Copies of the forms of group contracts, if any, which are to be issued to

employers, unions, trustees, or other organizations.

j. A statement of the financial condition of the organization, including income

statement, balance sheet, and sources of funds.

k. A description of the proposed marketing techniques and copies of any proposed

advertising materials.

l. A schedule of rates with any available actuarial and other data.

m. Any other information the commissioner requires to make the determinations

required under section 26.1-19-06.
N.D. Cent. Code § 26.1-02-22 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-22
26.1-02-22. Accepting reinsurance of unauthorized company prohibited
Status: in_force

26.1-02-22. Accepting reinsurance of unauthorized company prohibited

An insurance or surety company may not assume the whole or any part of any risk covering

property located in this state, as a reinsurance company or in any other manner, insured by any

insurance company not authorized to transact business in this state.
N.D. Cent. Code § 26.1-33-16 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-16
26.1-33-16. Policy provisions exceptions for variable life contracts
Status: in_force

26.1-33-16. Policy provisions exceptions for variable life contracts

Except for subsections 2, 6, 7, 8, and 10 of section 26.1-33-05, and except as otherwise

provided in sections 26.1-33-13 through 26.1-33-15, all pertinent provisions of this title apply to

separate accounts and variable life insurance contracts. Any individual variable life insurance

contract, delivered or issued for delivery in this state, must contain grace, reinstatement, and

nonforfeiture provisions appropriate to the contract. The reserve liability for variable contracts

must be established in accordance with actuarial procedures that recognize the variable nature

of the benefits provided and any mortality guarantees.
N.D. Cent. Code § 26.1-02-14 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-14
26.1-02-14. List of reciprocal states
Status: in_force

26.1-02-14. List of reciprocal states

The commissioner shall determine which states qualify as reciprocal states and shall

maintain at all times an up-to-date list of reciprocal states.
N.D. Cent. Code § 26.1-06.1-48 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-48
26.1-06.1-48. External audit of the receiver's books
Status: in_force

26.1-06.1-48. External audit of the receiver's books

The district court may, as it deems necessary, cause audits to be made of the books of the

commissioner relating to any receivership established under this chapter, and a report of each

audit must be filed with the commissioner and with the court. The books, records, and other

documents of the receivership must be made available to the auditor at any time without notice.

The expense of each audit must be considered a cost of administration of the receivership.
N.D. Cent. Code § 26.1-07-04 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-04
26.1-07-04. Notice of petition for consolidation or reinsurance
Status: in_force

26.1-07-04. Notice of petition for consolidation or reinsurance

When a petition is filed, the commissioner, within thirty days after filing of the petition, shall

issue an order requiring notice by mail to each policyholder of the domestic company if any of its

policyholders are being reinsured or it is proposing to consolidate with another company, of the

pendency of the petition and of the time when and place where a hearing on the petition will be

held. The hearing must be scheduled not more than ninety days from the date of the order. The

commissioner shall publish the order of notice and the petition in five newspapers, one of which

must be a daily newspaper published at the state capital, at least two weeks before the hearing

upon the petition. By mutual agreement between the petitioning company and the

commissioner, the time frame set forth in this section may be modified, changed, or extended.
N.D. Cent. Code § 26.1-16-24 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-24
26.1-16-24. Annual statement required - Renewal of certificate of authority
Status: in_force

26.1-16-24. Annual statement required - Renewal of certificate of authority

Every benevolent society shall transmit to the commissioner, not later than March first of

each year, an annual statement as of the previous December thirty-first. The statement must be

on any forms required by the commissioner and must show:

1. All income of the society by sources.

2. All disbursements of the society detailed as to nature.

3. A listing of the assets of the society.

4. The liabilities of the society.

5. The number of members in the society.

6. Any other information required by the commissioner.

If it appears from the statement that the society has a membership at least equal in number to

that required as a condition precedent to authorization and that it is otherwise qualified under

the requirements of this chapter, a renewal certificate of authority must be issued on the

succeeding April thirtieth. The fees for the filing of the statement and the issuance of the

certificate are those specified in section 26.1-01-07.
N.D. Cent. Code § 26.1-49-04 — ND Code / Title 26.1 / Chapter 26.1-49 / Section 26.1-49-04
26.1-49-04. Provider contracts
Status: in_force

26.1-49-04. Provider contracts

A health provider cooperative and its members may execute service contracts permitting the

provider members to provide some or all of their health care services through the health

provider cooperative to the enrollees, members, subscribers, or insureds of a nonprofit health

service plan, health maintenance organization, accident and health insurance company, or the

state medical assistance program. Each purchaser may execute contracts for the purchase of

health services from a health provider cooperative in accordance with this section. A contract

between a health provider cooperative and a purchaser must provide for payment by the

purchaser on a substantially capitated or similar risk-sharing basis.

1. Every contract between a health provider cooperative and a purchaser must be in

writing and must provide that if the purchaser fails to pay for health care services as

set forth in the contract, the enrollee is not liable to the provider for any sums owed by

the purchaser.

2. A member provider, agent, or trustee, or assignee thereof, may not maintain any action

at law against an enrollee to collect sums owed by the purchaser.
N.D. Cent. Code § 26.1-30-19 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-19
26.1-30-19. Policy forms to be filed with and approved by commissioner
Status: in_force

26.1-30-19. Policy forms to be filed with and approved by commissioner

1. No insurance policy, contract, agreement, or rate schedule may be issued or delivered

in this state until the form of that policy, contract, agreement, or rate schedule has

been filed with and approved by the commissioner.

2. No life insurance policy, certificate, contract, or agreement or annuity contract may be

issued for delivery or delivered to any person in this state nor may any application,

rider, or endorsement be used in connection therewith until the form thereof has been

filed with and approved by the commissioner and is in compliance with chapters

26.1-33, 26.1-34, 26.1-35, and 26.1-37.

3. No insurance policy, certificate, contract, or agreement or notice of proposed insurance

against loss or expense from the sickness, bodily injury, or death by accident of the

insured may be issued for delivery or delivered to any person in this state nor may any

application, rider, or endorsement be used in connection therewith until the form

thereof and the classification of risks and the premium rates, or in the case of

cooperatives or assessment companies the estimated costs pertaining thereto, have

been filed with and approved by the commissioner. A form must be disapproved if the

benefits provided are unreasonable in relation to the premium charge or if the benefits

do not comply with chapters 26.1-36 and 26.1-37.

4. No casualty or fire and property insurance policy, certificate, contract, or agreement

may be issued for delivery or delivered to any person in this state nor may any

application, rider, or endorsement be used in connection therewith until the form

thereof has been filed and approved by the commissioner to the extent rates are filed

and approved pursuant to chapter 26.1-25.

5. A filing and any supporting information is not open to public inspection or subject to the

provisions of chapter 44-04 unless the filing is approved by the commissioner.
N.D. Cent. Code § 26.1-21-15 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-15
26.1-21-15. Limitation of time for bringing action against the fund - Interest - Limitation on time for fund liability
Status: repealed

26.1-21-15. Limitation of time for bringing action against the fund - Interest -

Limitation on time for fund liability.

Repealed by S.L. 2025, ch. 274, § 19.
N.D. Cent. Code § 26.1-26.8-18 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-18
26.1-26.8-18. Investigation by commissioner
Status: in_force

26.1-26.8-18. Investigation by commissioner

Within a reasonable time after receipt of a properly completed application for a license

under this chapter, the commissioner may conduct an investigation and propound

interrogatories concerning the applicant's qualifications, residence, business affiliations, and any

other matter the commissioner believes necessary or advisable to determine compliance with

this chapter or for the protection of the public.
N.D. Cent. Code § 26.1-36.3-02 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-02
26.1-36.3-02. Applicability and scope
Status: in_force

26.1-36.3-02. Applicability and scope

1. This chapter and section 26.1-36-37.2 apply to any health benefit plan that provides

coverage to the employees of a small employer in this state if:

a. Any portion of the premium or benefits is paid by or on behalf of the small

employer;

b. An eligible employee or dependent is reimbursed, whether through wage

adjustments or otherwise, by or on behalf of the small employer for any portion of

the premium; or

c. The health benefit plan is treated by the employer or any of the eligible

employees or dependents as part of a plan or program for the purposes of

section 106, 125, or 162 of the United States Internal Revenue Code.

2. a. Except as provided in subdivision b, carriers that are affiliated companies or that

are eligible to file a consolidated tax return must be treated as one carrier and

any restrictions or limitations imposed by this chapter and section 26.1-36-37.2

apply as if all health benefit plans delivered or issued for delivery to small

employers in this state by the affiliated carriers were issued by one carrier.

b. An affiliated carrier that is a health maintenance organization having a certificate

of authority may be considered to be a separate carrier for the purposes of this

chapter and section 26.1-36-37.2.

c. Unless otherwise authorized by the commissioner, a small employer carrier may

not enter into one or more ceding arrangements with respect to health benefit

plans delivered or issued for delivery to small employers in this state if the

arrangements would result in less than fifty percent of the insurance obligation or

risk for the health benefit plans being retained by the ceding carrier.

3. a. A Taft Hartley trust, or a carrier with the written authorization of that trust, may

make a written request to the commissioner for a waiver from the application of

any of the provisions of subsection 1 of section 26.1-36.3-04 with respect to a

health benefit plan provided to the trust.

b. The commissioner may grant the waiver if the commissioner finds that application

of subsection 1 of section 26.1-36.3-04, with respect to the trust:

(1) Would have a substantial adverse effect on the participants and

beneficiaries of that trust; and

(2) Would require significant modifications to one or more collective bargaining

arrangements under which the trust is established or maintained.

c. A waiver granted under this section does not apply to a person who participates

in the trust as an associate member of an employee organization.
N.D. Cent. Code § 26.1-26-13.5 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-13.5
26.1-26-13.5. Application deemed withdrawn
Status: in_force

26.1-26-13.5. Application deemed withdrawn

An application for a license under this chapter may be deemed withdrawn if the

commissioner contacts an applicant in writing regarding an incomplete application and the

commissioner does not receive a response from the applicant within twenty days of the date of

the written communication. A withdrawn application under this section is not a refusal to issue a

producer license and is not an administrative action. All fees accompanying the application for

license are not refundable.
N.D. Cent. Code § 26.1-40-10 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-10
26.1-40-10. Notification and reasons for a declination
Status: in_force

26.1-40-10. Notification and reasons for a declination

1. Upon declining an application or written request for a policy, the insurer making the

declination shall either provide the insurance applicant with the specific reasons in

writing for the declination at the time of the declination or advise the applicant in writing

that specific written reasons for the declination will be provided within twenty-one days

of the timely receipt by the insurer making the declination of the applicant's written

request for the reasons. An applicant's written request is timely under this subsection if

received within ninety days of the date of the notice to the applicant.

2. No insurer not represented by an insurance producer may refuse to provide an

insurance application form or other means of making a written request for insurance to

a prospective applicant who requests insurance coverage from the insurer.

3. No insurance producer, for any reason set out in section 26.1-40-11, may refuse to

provide an insurance application form or other means of making a written request for

insurance to a prospective applicant who requests insurance coverage from the

insurance producer or insurer.
N.D. Cent. Code § 26.1-58-06 — ND Code / Title 26.1 / Chapter 26.1-58 / Section 26.1-58-06
26.1-58-06. Policy
Status: in_force

26.1-58-06. Policy

1. Notwithstanding any other provision of title 26.1, travel insurance must be classified

and filed for purposes of rates and forms under an inland marine line of insurance.

2. Eligibility and underwriting standards for travel insurance may be developed and

provided based on travel protection plans designed for individual or identified

marketing or distribution channels, provided those standards also meet the state's

underwriting standards for inland marine.
N.D. Cent. Code § 26.1-06.1-34 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-34
26.1-06.1-34. Filing of claims
Status: in_force

26.1-06.1-34. It may be allowed and may participate in all distributions declared after it

is filed to the extent that it does not prejudice the orderly administration of the

liquidation.

3. Claims that are due except for the passage of time must be treated as absolute claims

are treated, except that such claims may be discounted at the legal rate of interest.

4. Claims made under employment contracts by directors, principal officers, or persons in

fact performing similar functions or having similar powers are limited to payment for

services rendered prior to the issuance of any order of rehabilitation or liquidation

under section 26.1-06.1-12 or 26.1-06.1-17.
N.D. Cent. Code § 26.1-12-09 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-09
26.1-12-09. Temporary capital on organization of mutual life insurance company - Retirement
Status: in_force

26.1-12-09. Temporary capital on organization of mutual life insurance company -

Retirement.

A mutual life insurance company may be organized with, and an existing mutual life

insurance company may establish, a temporary capital of not less than one hundred thousand

dollars which must be invested in the manner provided for the investment of its other funds. Out

of the net surplus of the company, the holders of the temporary capital stock may receive a

dividend of not more than eight percent per annum, and the dividend may be cumulative. The

capital stock may not be a liability of the company except that it must be retired as soon as, but

not before, the surplus of the company remaining after its retirement will equal at least the

amount of the temporary capital. At the time for the retirement of the capital stock, the holders

must receive from the company the par value thereof and any dividends thereon due and

unpaid, and the stock must be surrendered and canceled, and the right to vote thereon ceases.
N.D. Cent. Code § 26.1-12.1-08 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-08
26.1-12.1-08. Notice to eligible members
Status: in_force

26.1-12.1-08. Notice to eligible members

Following approval or conditional approval of the plan by the commissioner, all eligible

members shall be given notice of a regular or special meeting of the policyholders called for the

purpose of considering the plan and any corporate action that is a part of, or is reasonably

attendant to, the accomplishment of the plan. A copy of the plan or a summary of the plan must

accompany the notice. A notice approved by the commissioner must be mailed to each eligible

member's last-known address, as shown on the reorganizing insurer's records, within forty-five

days of the commissioner's approval of the plan, unless the commissioner directs an earlier

date for mailing. The meeting to vote upon a plan of reorganization must be set for a date no

less than forty-five days after the date when the notice of the meeting is mailed by the

reorganizing insurer, unless the commissioner directs an earlier date for the meeting. If the

meeting to vote upon the plan of reorganization is held coincident with the reorganizing insurer's

annual meeting of policyholders or members, only one combined notice of meeting is required.

If the reorganizing insurer complies substantially and in good faith with the notice requirements

of this section, the reorganizing insurer's failure to give any member or members any required

notice does not impair the validity of any action taken under this section.
N.D. Cent. Code § 26.1-40.1-09 — ND Code / Title 26.1 / Chapter 26.1-40.1 / Section 26.1-40.1-09
26.1-40.1-09. Financial responsibility
Status: in_force

26.1-40.1-09. Financial responsibility

Transportation network company insurance that meets the requirements of this chapter is

deemed to satisfy the financial responsibility requirements of chapter 39-16.
N.D. Cent. Code § 26.1-12.2-13 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-13
26.1-12.2-13. Limitation on actions
Status: in_force

26.1-12.2-13. Limitation on actions

Any action challenging the validity of or arising out of acts taken or proposed to be taken

under this chapter must be commenced on or before the later of:

1. Sixty days after the approval of the plan of conversion by the commissioner; or

2. Thirty days after notice of the meeting of voting members to approve the plan of

conversion is first mailed or delivered to voting members or posted on the website of

the converting mutual company.
N.D. Cent. Code § 26.1-13-19 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-19
26.1-13-19. Reinsurance of excessive losses
Status: in_force

26.1-13-19. Reinsurance of excessive losses

Upon approval by the commissioner, any county mutual insurance company may reinsure in a

single contract, with other county mutual insurance companies, against excessive losses on all

insurance contracts written.
N.D. Cent. Code § 26.1-12-22 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-22
26.1-12-22. Investments
Status: in_force

26.1-12-22. Investments

A mutual insurance company organized under this chapter may invest its assets only in

accordance with the provisions of the laws of this state relating to the investment of the assets

of domestic stock companies transacting the same kind or kinds of insurance business.
N.D. Cent. Code § 26.1-24-02 — ND Code / Title 26.1 / Chapter 26.1-24 / Section 26.1-24-02
26.1-24-02. Receipt for premium in policy - Effect
Status: in_force

26.1-24-02. Receipt for premium in policy - Effect

An acknowledgment in a policy of the receipt of premium is conclusive evidence of its

payment so far as to make the policy binding, notwithstanding any stipulation in the policy that it

is not binding until the premium actually is paid.
N.D. Cent. Code § 26.1-17-03 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-03
26.1-17-03. Articles of incorporation and bylaws - Filing
Status: in_force

26.1-17-03. Articles of incorporation and bylaws - Filing

The articles of incorporation of a health service corporation, and all amendments, are to be

filed with the secretary of state. A certified copy of the articles of incorporation and the bylaws,

and all amendments, is to be filed with the commissioner.
N.D. Cent. Code § 26.1-12-11 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-11
26.1-12-11. Authority to insure or reinsure - Types of insurance open to mutual insurance company
Status: in_force

26.1-12-11. Authority to insure or reinsure - Types of insurance open to mutual

insurance company.

Any mutual insurance company organized under this chapter may make insurance

contracts, and may reinsure or accept reinsurance on any portion thereof, to the extent specified

in its articles of incorporation, for the following lines of insurance:

1. Life and annuity means insurance coverage on human lives, including benefits of

endowment, annuities, and credit life.

2. Accident and health means insurance coverage for sickness, disease, injury,

accidental death, and disability.

3. Property means insurance coverage for direct and consequential loss of or damage to

property of every kind.

4. Casualty means insurance coverage against legal liability, including that for death,

injury, or disability or damage to real or personal property.

5. Variable life and annuity means insurance coverage provided under variable life

insurance contracts, variable annuities, or any other life insurance or annuity that

reflects the investment experience of a separate account.
N.D. Cent. Code § 26.1-02.2-04 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-04
26.1-02.2-04. Investigation of a cybersecurity event
Status: in_force

26.1-02.2-04. Investigation of a cybersecurity event

1. If a licensee learns a cybersecurity event has or may have occurred, the licensee, an

outside vendor, or service provider designated to act on behalf of the licensee, shall

conduct a prompt investigation.

2. During the investigation, the licensee or an outside vendor or service provider

designated to act on behalf of the licensee, at a minimum shall:

a. Determine whether a cybersecurity event has occurred;

b. Assess the nature and scope of the cybersecurity event;

c. Identify any nonpublic information that may have been involved in the

cybersecurity event; and

d. Perform or oversee reasonable measures to restore the security of the

information systems compromised in the cybersecurity event in order to prevent

further unauthorized acquisition, release, or use of nonpublic information in the

licensee's possession, custody, or control.

3. If a licensee learns a cybersecurity event has or may have occurred in a system

maintained by a third-party service provider, the licensee shall complete the

requirements provided under subsection 2 or confirm and document that the

third-party service provider has completed the requirements.

4. The licensee shall maintain records concerning all cybersecurity events for a period of

at least five years from the date of the cybersecurity event and shall produce the

records upon demand of the commissioner.
N.D. Cent. Code § 26.1-07-13 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-13
26.1-07-13. Commissioner to be appointed receiver
Status: repealed

26.1-07-13. Commissioner to be appointed receiver

Repealed by S.L. 1991, ch. 305, § 14.
N.D. Cent. Code § 26.1-34.2-05 — ND Code / Title 26.1 / Chapter 26.1-34.2 / Section 26.1-34.2-05
26.1-34.2-05. Recordkeeping
Status: in_force

26.1-34.2-05. Recordkeeping

1. Insurers, general agents, independent agencies, and producers shall maintain or be

able to make available to the commissioner a record of the information collected from

the consumer, disclosures made to the consumer, including summaries of oral

disclosures, and other information used in making the recommendations that were the

basis for insurance transactions for ten years after the insurance transaction is

completed by the insurer. An insurer is permitted, but is not required, to maintain

documentation on behalf of a producer.

2. Records required to be maintained by this chapter may be maintained in paper,

photographic, microprocess, magnetic, mechanical, or electronic media, or by any

process that accurately reproduces the actual document.
N.D. Cent. Code § 26.1-25.1-03 — ND Code / Title 26.1 / Chapter 26.1-25.1 / Section 26.1-25.1-03
26.1-25.1-03. Use of credit information
Status: in_force

26.1-25.1-03. Use of credit information

An insurer authorized to do business in this state which uses credit information to

underwrite or rate risks may not:

1. Use an insurance score that is calculated using income, gender, address, zip code,

ethnic group, religion, marital status, or nationality of the consumer as a factor.

2. Deny, cancel, or nonrenew a policy of personal insurance solely on the basis of credit

information, without consideration of any other applicable underwriting factor

independent of credit information and not expressly prohibited by this section.

3. Take an adverse action against a consumer solely because the consumer does not

have a credit card account without consideration of any other applicable factor

independent of credit information.

4. Consider an absence of credit information or an inability to calculate an insurance

score in underwriting or rating personal insurance unless the insurer does one of the

following:

a. Treats the consumer as otherwise approved by the insurance commissioner if the

insurer presents information that such an absence or inability relates to the risk

for the insurer.

b. Treats the consumer as if the applicant or insured had neutral credit information,

as defined by the insurer.

c. Excludes the use of credit information as a factor and use only other underwriting

criteria.

5. Take an adverse action against a consumer based on credit information, unless an

insurer obtains and uses a credit report issued or an insurance score calculated within

one hundred twenty days from the date the policy is first written or renewal is issued.

6. Use credit information unless not later than every thirty-six months following the last

time that the insurer obtained current credit information for the insured, the insurer

recalculates the insurance score, or obtains an updated credit report. Notwithstanding

this section:

a. At annual renewal, upon the request of a consumer or the consumer's agent, the

insurer shall reunderwrite and rerate the policy based upon a current credit report

or insurance score. An insurer need not recalculate the insurance score or obtain

the updated credit report of a consumer more frequently than once in a

twelve-month period.

b. The insurer may obtain current credit information upon any renewal before the

thirty-six months if consistent with the insurer's underwriting guidelines.

c. An insurer need not obtain current credit information for an insured, despite the

requirements of subdivision a, if one of the following applies:

(1) The insurer is treating the consumer as otherwise approved by the

commissioner.

(2) The insured is in the most favorably priced tier of the insurer, within a group

of affiliated insurers. However, the insurer may order such report if

consistent with the insurer's underwriting guidelines.

(3) Credit was not used for underwriting or rating such insured when the policy

was initially written. However, the insurer may use credit for underwriting or

rating such insured upon renewal if consistent with the insurer's underwriting

guidelines.

(4) The insurer re-evaluates the insured beginning no later than thirty-six

months after inception and thereafter based upon other underwriting or

rating factors, excluding credit information.

7. Use the following as a negative factor in any insurance scoring methodology or in

reviewing credit information for the purpose of underwriting or rating a policy of

personal insurance:

a. Credit inquiries not initiated by the consumer or inquiries requested by the

consumer for the consumer's own credit information.

b. Inquiries relating to insurance coverage if so identified on a consumer's credit

report.

c. Collection accounts with a medical industry code if so identified on the

consumer's credit report.

d. Multiple lender inquiries, if coded by the consumer reporting agency on the

consumer's credit report as being from the home mortgage industry and made

within thirty days of one another, unless only one inquiry is considered.

e. Multiple lender inquiries, if coded by the consumer reporting agency on the

consumer's credit report as being from the automobile lending industry and made

within thirty days of one another, unless only one inquiry is considered.
N.D. Cent. Code § 26.1-01-04 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-04
26.1-01-04. Service of process upon commissioner - Procedure
Status: in_force

26.1-01-04. Service of process upon commissioner - Procedure

When a consent to service of any process, notice, order, or demand upon the commissioner

is provided under this title, the service is to be in duplicate. The commissioner immediately shall

forward one copy by registered mail to the person against whom the process, notice, order, or

demand is directed at that person's last reasonably ascertainable address and shall file the

other copy in the office of the commissioner. The commissioner shall keep a record of the date

and hour of service.
N.D. Cent. Code § 26.1-53.1-21 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-21
26.1-53.1-21. Written agreement with member
Status: in_force

26.1-53.1-21. Written agreement with member

Each new member must be provided a written document that contains the terms and

conditions of the discount plan that clearly provides:

1. The name of the member;

2. The benefits to be provided under the discount plan;

3. Any processing fees and periodic charges associated with the discount plan, including

any limitations or restrictions on the refund of any processing fees and periodic

charges;

4. The mode of payment of any processing fees and periodic charges, such as monthly

or quarterly, and procedures for changing the mode of payment;

5. Any limitations, exclusions, or exceptions regarding the receipt of discount plan

benefits;

6. Any waiting periods for certain medical or ancillary services under the discount plan;

7. Procedures for obtaining discounts under the discount plan, such as requiring

members to contact the discount plan organization to make an appointment with a

provider on the member's behalf;

8. Cancellation procedures, including information on the member's thirty-day cancellation

rights and refund requirements and procedures for obtaining refunds;

9. Renewal, termination, and cancellation terms and conditions;

10. Procedures for adding new members to a family discount plan, if applicable;

11. Procedures for filing complaints under the discount plan organization's complaint

system and information that, if the member remains dissatisfied after completing the

organization's complaint system, the plan member may contact the plan member's

state insurance department; and

12. The name and mailing address of the registered discount plan organization where the

member can make inquiries about the plan, send cancellation notices, and file

complaints.
N.D. Cent. Code § 26.1-37-15 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-15
26.1-37-15. Enforcement
Status: in_force

26.1-37-15. Enforcement

The commissioner may adopt rules to implement this chapter. Whenever the commissioner

finds that there has been a violation of this chapter or any rules adopted pursuant to this

chapter, and after written notice thereof and hearing given to the insurer or other person

authorized or licensed by the commissioner, the commissioner shall set forth the details of the

findings together with an order for compliance by a specified date. The order is binding on the

insurer and other person authorized or licensed by the commissioner on the date specified

unless sooner withdrawn by the commissioner or a stay has been ordered by a court of

competent jurisdiction.
N.D. Cent. Code § 26.1-17-10 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-10
26.1-17-10. Nonprofit corporation tax exempt - Insurance premium tax - Law governing charitable organizations applicable
Status: in_force

26.1-17-10. Nonprofit corporation tax exempt - Insurance premium tax - Law

governing charitable organizations applicable.

Every nonprofit health service corporation is a charitable and benevolent organization and is

exempt from taxation by the state or any political subdivision thereof, except that the tax

imposed by section 26.1-03-17 is applicable to a corporation subject to this chapter and the real

property of a nonprofit health service corporation is subject to ad valorem taxes and special

assessments for special improvements. Except as otherwise provided in this chapter, the laws

of this state relating to and affecting nonprofit charitable and benevolent corporations are

applicable to all nonprofit health service corporations writing health service contracts.
N.D. Cent. Code § 26.1-11-07 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-07
26.1-11-07. Countersignature requirement - Commissions - Reciprocity
Status: in_force

26.1-11-07. Countersignature requirement - Commissions - Reciprocity

Notwithstanding any other provision of this title or policy forms to the contrary, there may not

be any requirement that an insurance producer resident in this state sign or countersign an

insurance policy covering a subject of insurance resident, located, or to be performed in this

state. However, if the laws or rules of another state require a signature or countersignature by

an insurance producer resident in that state on an insurance policy written by a nonresident

insurance producer of that state, then any insurance policy written by an insurance producer

resident of that state licensed as a nonresident insurance producer in this state covering a

subject of insurance resident, located, or to be performed in this state must be signed or

countersigned in writing by an insurance producer resident in this state. An insurance policy

may not be deemed invalid because of the absence of the required signature or

countersignature. If the laws or rules of another state require an insurance producer resident in

that state to retain a portion of the commission paid on a like insurance policy written,

countersigned, or delivered by the insurance producer in that state at the request of a

nonresident insurance producer of that state, then the insurance producer resident in this state

who signed or countersigned an insurance policy written by a resident of that state licensed as a

nonresident insurance producer in this state covering a subject of insurance resident, located, or

to be performed in this state shall retain an equal pro rata portion of any commission on the

insurance policy.
N.D. Cent. Code § 26.1-40.1-04 — ND Code / Title 26.1 / Chapter 26.1-40.1 / Section 26.1-40.1-04
26.1-40.1-04. Insurance coverage during the application on stage with no passengers in vehicle
Status: in_force

26.1-40.1-04. Insurance coverage during the application on stage with no passengers

in vehicle.

1. During the application on stage and during the engaged stage, the transportation

network company insurance must include:

a. Motor vehicle liability coverage that is primary coverage. The coverage must

include at least fifty thousand dollars per person and one hundred thousand

dollars per incident for death and bodily injury and at least twenty-five thousand

dollars for property damage.

b. Uninsured motorist coverage under section 26.1-40-15.2 which is primary

coverage.

c. Underinsured motorist coverage under section 26.1-40-15.3 which is primary

coverage.

d. Personal injury protection under chapter 26.1-41 which is primary coverage.

2. The requirements for coverage under this section may be satisfied by:

a. Transportation network company insurance maintained by a participating driver;

b. Transportation network company insurance maintained by a transportation

network company; or

c. Any combination of subdivisions a and b.

3. The following apply to insurance requirements under this section:

a. The primary insurer, in the case of insurance coverage provided under

subdivision a of subsection 1, has the sole duty to defend and indemnify the

insured.

b. Coverage under a transportation network company insurance policy may neither

be dependent on a driver's personal automobile insurance policy carrier first

denying a claim nor a personal automobile insurance policy carrier being required

to first deny a claim.

c. If transportation network company insurance maintained by a participating driver

to fulfill the insurance obligations of this section has excluded coverage according

to its policy or ceased to exist, the transportation network company shall provide

the coverage required by this section beginning with the first dollar of a claim.
N.D. Cent. Code § 26.1-39-18 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-18
26.1-39-18. Declination or termination requirements for property and casualty policies - Enforcement - Penalties
Status: in_force

26.1-39-18. Declination or termination requirements for property and casualty policies

- Enforcement - Penalties.

1. Whenever the commissioner, upon the filing of a complaint or through the

commissioner's own investigation has reason to believe that an insurer or insurance

producer has engaged in practices which violate sections 26.1-39-10 through

26.1-39-21 and that a proceeding would be in the public interest, the commissioner

shall conduct a hearing.

2. If after hearing the commissioner determines that an insurer has violated subsection 1

of section 26.1-39-13, section 26.1-39-16, or section 26.1-39-17, the commissioner

may require the insured to accept the application or written request for insurance

coverage at a rate and on the same terms and conditions as are available to other

risks similarly situated, or reinstate insurance coverage to the end of the policy period,

or continue insurance coverage at a rate and on the same terms and conditions as are

available to other risks similarly situated.

3. If the commissioner after hearing determines that any person has violated sections

26.1-39-10 through 26.1-39-21, the commissioner may issue a cease and desist order

to restrain the person from engaging in practices that violate these sections or assess

a penalty against the person of up to five hundred dollars for each violation of the

sections or for each willful and knowing violation of these sections assess a penalty

against such person of up to five thousand dollars or cancel, revoke, or refuse to

renew a company's certificate of authority to do business in this state.

4. If the commissioner determines in a final order that an insurer has violated

subsection 1 of section 26.1-39-13, section 26.1-39-16, or section 26.1-39-17, the

applicant or named insured aggrieved by the violation may bring an action in a court of

competent jurisdiction in this state to recover from the insurer any loss not otherwise

recovered through insurance which would have been paid under the insurance

coverage that was declined or terminated in violation of these sections.

5. Any amount recovered may not be duplicative of any recovery obtained through the

exercise of any other statutory or common-law claim for relief arising out of the same

occurrence. No action under this section may be brought two years after the date of a

final order of the commissioner finding a violation of subsection 1 of section 26.1-39-13

or section 26.1-39-16.
N.D. Cent. Code § 26.1-39-23 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-23
26.1-39-23. Temporary insurance - Use of binders
Status: in_force

26.1-39-23. Temporary insurance - Use of binders

A binder or contract for temporary property lines of insurance may be made orally or in

writing and is deemed to include all the terms of a standard fire insurance policy and all

applicable endorsements as may be designated in the binder. However, the cancellation clause

of the standard fire insurance policy and the clause specifying the hour of the day at which the

insurance commences may be superseded by the express terms of the binder. A duly

authorized binder must be accepted as evidence of insurance coverage required as a condition

of financing the purchase of property, except that a mortgagee or lender is not required to

accept a renewal or extension of the binder. Any insurance producer who has express authority

to bind property and casualty lines of insurance coverage, and who orally agrees on behalf of an

insurer to provide insurance coverage, if requested, shall execute and deliver a written

memorandum or binder containing the terms of the oral agreement to the insured within three

business days from the time of the oral agreement.
N.D. Cent. Code § 26.1-38.1-10 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-10
26.1-38.1-10. Credits for assessments paid - Tax offsets
Status: in_force

26.1-38.1-10. Credits for assessments paid - Tax offsets

1. A member insurer may offset against its premium tax liability to this state an

assessment described in section 26.1-38.1-06 to the extent of twenty percent of the

amount of such assessment for each of the five calendar years following the year in

which such assessment was paid. In the event a member insurer should cease doing

business, all uncredited assessments may be credited against its premium tax liability

for the year it ceases doing business.

2. A member insurer that is exempt from taxes referenced in subsection 1 may recoup

that member insurer's assessments by a surcharge on that member insurer's

premiums in a sum reasonably calculated to recoup the assessments over a

reasonable period of time, as approved by the commissioner. Amounts recouped may

not be considered premiums for any other purpose, including the computation of gross

premium tax, the medical loss ratio, or agent commission. If a member insurer collects

excess surcharges, the insurer shall remit the excess amount to the association, and

the excess amount must be applied to reduce future assessments in the appropriate

account.

3. Any sums that are acquired by refund, pursuant to section 26.1-38.1-06, from the

association by member insurers, and which have been offset against premium taxes

as provided in subsection 1, must be paid by the member insurers to this state in such

manner as the tax authorities may require. The association shall notify the

commissioner that such refunds have been made.
N.D. Cent. Code § 26.1-35-00.1 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-00.1
26.1-35-00.1. Definitions
Status: in_force

26.1-35-00.1. Definitions

In this chapter, the following definitions apply on or after the operative date of the valuation

manual:

1. "Accident and health insurance" means a contract that incorporates morbidity risk and

provides protection against economic loss resulting from accident, sickness, or

medical conditions and as may be specified in the valuation manual.

2. "Appointed actuary" means a qualified actuary who is appointed in accordance with

the valuation manual to prepare the actuarial opinion required in subsection 2 of

section 26.1-35-01.1.

3. "Deposit-type contract" means a contract that does not incorporate mortality or

morbidity risks and as may be specified in the valuation manual.

4. "Insurer" means an entity that has written, issued, or reinsured life insurance contracts,

accident and health insurance contracts, or deposit-type contracts in this state:

a. And has at least one such policy in force or on claim; or

b. Is required to hold a certificate of authority to write life insurance, accident and

health insurance, or deposit-type contracts in this state.

5. "Life insurance" means a contract that incorporates mortality risk, including annuity

and pure endowment contracts, and as may be specified in the valuation manual.

6. "Policyholder behavior" means any action a policyholder, contract holder, or any other

person with the right to elect options, such as a certificate holder, may take under a

policy or contract subject to this chapter, including lapse, withdrawal, transfer, deposit,

premium payment, loan, annuitization, or benefit elections prescribed by the policy or

contract. The term does not include events of mortality or morbidity that result in

benefits prescribed in their essential aspects by the terms of the policy or contract.

7. "Principle-based valuation" means a reserve valuation that uses one or more methods

or one or more assumptions determined by the insurer and is required to comply with

section 26.1-35-12 as specified in the valuation manual.

8. "Qualified actuary" means an individual who is qualified to sign the applicable

statement of actuarial opinion in accordance with the American academy of actuaries

qualification standards for actuaries signing such statements and who meets the

requirements specified in the valuation manual.

9. "Tail risk" means a risk that occurs either when the frequency of low probability events

is higher than expected under a normal probability distribution or when there are

observed events of very significant size or magnitude.

10. "Valuation manual" means the manual of valuation instructions adopted by the national

association of insurance commissioners and approved by the commissioner as

specified in this chapter.
N.D. Cent. Code § 26.1-17-22 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-22
26.1-17-22. Health service for needy persons - Payments
Status: in_force

26.1-17-22. Health service for needy persons - Payments

A health service corporation may contract with state, federal, or other governmental

agencies, private agencies, corporations, associations, groups, or individuals to provide health

services for needy or other persons. A health service corporation may receive from these

entities payments covering the cost of all or any part of the contracts.
N.D. Cent. Code § 26.1-20-06 — ND Code / Title 26.1 / Chapter 26.1-20 / Section 26.1-20-06
26.1-20-06. Judgment against corporation - Enforcement
Status: in_force

26.1-20-06. Judgment against corporation - Enforcement

If a corporation fails to satisfy any judgment against it arising out of its liability under any title

insurance policy, issued, insured, or assumed by it, within thirty days after the finality of the

judgment becomes fixed, the judgment may be enforced against its guaranty fund deposit

through the following procedure:

1. The judgment creditor shall petition the court wherein the judgment is entered and as

part of the same cause, truthfully setting forth the facts regarding the failure to satisfy

the judgment as required by this section.

2. Upon the petition the court shall direct the issuance of a special execution directed to

the sheriff of Burleigh County, requiring that the sheriff sell so much of the securities on

deposit as may be required to satisfy the judgment and pay the costs of the levy.

3. The special execution must be executed by the sheriff by delivering to the state

treasurer and to the commissioner a certified copy of the writ of execution together

with a certified copy of the judgment and of the petition and order, and within ten days

thereafter there must be delivered to the sheriff sufficient securities to satisfy the

judgment in full. The sheriff shall sell the securities upon execution as in the case of

sales of personal property upon execution generally.
N.D. Cent. Code § 26.1-26-55 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-55
26.1-26-55. Rulemaking
Status: in_force

26.1-26-55. Rulemaking

The commissioner may adopt rules for the implementation and administration of this

chapter.
N.D. Cent. Code § 26.1-34.2-04 — ND Code / Title 26.1 / Chapter 26.1-34.2 / Section 26.1-34.2-04
26.1-34.2-04. Compliance mitigation - Enforceability - Penalty
Status: in_force

26.1-34.2-04. Compliance mitigation - Enforceability - Penalty

1. An insurer is responsible for compliance with this chapter. If a violation occurs, either

because of the action or inaction of the insurer or the insurer's producer, the

commissioner may order:

a. An insurer to take reasonably appropriate corrective action for any consumer

harmed by a failure to comply with this chapter by the insurer or by the producer;

b. A general agency, independent agency, or the producer to take reasonably

appropriate corrective action for any consumer harmed by the producer's

violation of this chapter; and

c. Appropriate penalties and sanctions.

2. Any applicable penalty under section 26.1-01-03.3 for a violation of this chapter may

be reduced or eliminated, according to a schedule adopted by the commissioner, if

corrective action for the consumer was taken promptly after a violation was

discovered.

3. The authority to enforce compliance with this section is vested exclusively with the

commissioner.
N.D. Cent. Code § 26.1-20.1-08 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-08
26.1-20.1-08. Delinquency and cancellation charges
Status: in_force

26.1-20.1-08. Delinquency and cancellation charges

A premium finance agreement may provide for the payment by the insured of a delinquency

charge for any payment that is in default for a period of ten days or more. The amount of the

delinquency charge may not exceed five dollars. If the default results in the cancellation of any

insurance policy listed in the premium finance agreement, the premium finance agreement may

provide for a cancellation charge of ten dollars in addition to the delinquency charge.
N.D. Cent. Code § 26.1-04-05.1 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-05.1
26.1-04-05.1. Visual acuity prohibited as factor in life or accident and sickness contracts
Status: in_force

26.1-04-05.1. Visual acuity prohibited as factor in life or accident and sickness

contracts.

No insurance company, benevolent society, nonprofit health service corporation, or health

maintenance organization may issue any policy, certificate, or contract on life, accident and

sickness, health services, or health care protection for which visual acuity is used as a criteria

for accepting or rejecting risks or for setting of rates charged for that coverage.
N.D. Cent. Code § 26.1-11-15 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-15
26.1-11-15. Defense of action by unauthorized company
Status: in_force

26.1-11-15. Defense of action by unauthorized company

Before any unauthorized foreign or alien insurance company may file or cause to be filed

any pleading in any action, suit, or proceeding instituted against it, the company shall deposit

with the clerk of the court in which the action, suit, or proceeding is pending, cash or securities,

or file with the clerk a bond with good and sufficient sureties approved by the court in an amount

fixed by the court sufficient to secure the payment of any final judgment which may be rendered

in the action. The court may, in its discretion, dispense with the deposit or bond if the company

makes a showing satisfactory to the court that it maintains in the United States funds or

securities, in trust or otherwise, sufficient and available to satisfy any final judgment which may

be entered in the action, suit, or proceeding, and that the company will pay any final judgment

rendered without requiring suit to be brought on the judgment in the state where the securities

are located, or procure a certificate of authority to transact insurance business in this state.
N.D. Cent. Code § 26.1-39-20 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-20
26.1-39-20. Duplicate coverage - Termination of coverage when another policy in force - Notice
Status: in_force

26.1-39-20. Duplicate coverage - Termination of coverage when another policy in

force - Notice.

Notwithstanding the failure of an insurer to comply with sections 26.1-39-13 through

26.1-39-16, if an insured obtains a replacement policy providing equal or more extensive

coverage for a property covered in both policies, the first insurer's coverage of that property may

be terminated either by cancellation or nonrenewal. The termination is effective on the effective

date of the second policy providing duplicate replacement coverage. Upon termination, the

insured is entitled to a refund of the premium and written notice must be mailed or delivered to

the named insured.
N.D. Cent. Code § 26.1-58-05 — ND Code / Title 26.1 / Chapter 26.1-58 / Section 26.1-58-05
26.1-58-05. Travel administrators
Status: in_force

26.1-58-05. Travel administrators

1. Notwithstanding any other provisions of title 26.1, a person may not act or represent

itself as a travel administrator for travel insurance in this state unless that person:

a. Is a licensed property and casualty insurance producer in this state for activities

permitted under that producer license; or

b. Holds a valid third-party administrator license in this state.

2. An insurer is responsible for the acts of a travel administrator administering travel

insurance underwritten by the insurer, and is responsible for ensuring the travel

administrator maintains all books and records relevant to the insurer to be made

available by the travel administrator to the commissioner upon request.
N.D. Cent. Code § 26.1-06.1-19 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-19
26.1-06.1-19. Dissolution of insurer
Status: in_force

26.1-06.1-19. Dissolution of insurer

The commissioner may petition for an order dissolving the corporate existence of a

domestic insurer or the United States branch of an alien insurer domiciled in this state at the

time of application for a liquidation order. The court shall order dissolution of the corporation

upon petition by the commissioner upon or after the granting of a liquidation order. If the

dissolution has not previously been ordered, it shall be effected by operation of law upon the

discharge of the liquidator if the insurer is insolvent but may be ordered by the court upon the

discharge of the liquidator if the insurer is under a liquidation order for some other reason.
N.D. Cent. Code § 26.1-27-12 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-12
26.1-27-12. Maintenance of information
Status: in_force

26.1-27-12. Maintenance of information

Every administrator shall maintain at its principal administrative office for the duration of the

written agreement and five years thereafter adequate books and records of all transactions

between it, insurers, and insureds. The books and records must be maintained in accordance

with prudent standards of insurance recordkeeping. The commissioner shall have access to

such books and records for the purpose of examination, audit, and inspection. Any trade secrets

contained therein, including the identity and addresses of policyholders and certificate holders,

are confidential, except the commissioner may use such information in any proceedings

instituted against the administrator. The insurer shall retain the right to continuing access to the

books and records of the administrator sufficient to permit the insurer to fulfill all of its

contractual obligations to insured persons, subject to any restrictions in the written agreement

between the insurer and administrator on the proprietary rights of the parties in the books and

records.
N.D. Cent. Code § 26.1-40.1-03 — ND Code / Title 26.1 / Chapter 26.1-40.1 / Section 26.1-40.1-03
26.1-40.1-03. Insurance coverage required during the passenger on-board stage
Status: in_force

26.1-40.1-03. Insurance coverage required during the passenger on-board stage

A transportation network company and any participating driver shall maintain transportation

network company insurance that provides for the following requirements that apply to

transportation network company insurance during the passenger on-board stage.

1. Transportation network company liability insurance is primary and in the amount of one

million dollars for death, bodily injury, and property damage. The requirements for the

coverage required by this subsection may be satisfied by:

a. Transportation network company insurance maintained by a participating driver.

b. Transportation network company insurance maintained by a transportation

network company.

c. Any combination of subdivisions a and b.

2. Transportation network company insurance coverage provided under this section for

uninsured motorist coverage must meet the requirements under section 26.1-40-15.2,

which is primary coverage.

3. Transportation network company insurance coverage provided under this section for

underinsured motorist coverage must meet the requirements under section

26.1-40-15.3, which is primary coverage.

4. Transportation network company insurance coverage must provide primary personal

injury protection to drivers, passengers, and pedestrians under chapter 26.1-41.

5. The primary insurer, in the case of insurance coverage provided under subsection 1,

has the sole duty to defend and indemnify the insured.

6. Coverage under a transportation network company insurance policy may neither be

dependent on a driver's personal automobile insurance policy carrier first denying a

claim nor a personal automobile insurance policy carrier being required to first deny a

claim.

7. If transportation network company insurance maintained by a participating driver to

fulfill the insurance obligations of this section has excluded coverage according to its

policy or ceased to exist, the transportation network company shall provide the

coverage required by this section beginning with the first dollar of a claim.