N.D. Cent. Code § 26.1-15.1-10 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-10
26.1-15.1-10. Organization
Status: in_force

26.1-15.1-10. Organization

A domestic society organized after December 31, 1987, must be formed as follows:

1. Seven or more citizens of the United States, a majority of whom are citizens of this

state, who desire to form a fraternal benefit society, may make, sign, and acknowledge

before some officer competent to take acknowledgment of deeds, articles of

incorporation, which must contain:

a. The proposed corporate name of the society, which must not so closely resemble

the name of any society or insurance company as to be misleading or confusing.

b. The purposes for which it is being formed and the mode in which its corporate

powers are to be exercised, within the powers granted by this chapter.

c. The names and residences of the incorporators and the names, residences, and

official titles of all the officers, trustees, directors, or other persons who are to

exercise the general management of the affairs and funds of the society for the

first year or until election of officers by the supreme governing body to be held not

later than one year from the date of issuance of the permanent certificate of

authority.

2. The articles of incorporation, duly certified copies of the bylaws and rules, copies of all

proposed forms of certificates, applications therefor, circulars to be issued by the

society, and a bond conditioned upon the return to applicants of the advanced

payments if the organization is not completed within one year must be filed with the

commissioner, who may require further information as the commissioner deems

necessary. The bond with sureties approved by the commissioner must be in an

amount of not less than three hundred thousand dollars nor more than one million five

hundred thousand dollars, as required by the commissioner. All documents filed must

be in the English language. If the purposes of the society conform to the requirements

of this chapter and all provisions of the law have been complied with, the

commissioner shall so certify, retain and file the articles of incorporation, and furnish

the incorporators a preliminary certificate of authority authorizing the society to solicit

members as hereinafter provided.

3. No preliminary certificate of authority granted under this section is valid after one year

from its issuance, except as may be authorized by the commissioner upon cause

shown for not more than one additional year, unless the five hundred applicants

required under subsection 4 have been secured and the organization has been

completed as herein provided. The articles of incorporation and all other proceedings

under this chapter become void one year from the date of the preliminary certificate of

authority, or at the expiration of the extended period, unless the society has completed

its organization and received a certificate of authority to do business as hereinafter

provided.

4. Upon receipt of a preliminary certificate of authority from the commissioner, the society

may solicit members for the purpose of completing its organization, shall collect from

each applicant the amount of not less than one regular monthly premium in

accordance with its table of rates, and shall issue to each such applicant a receipt for

the amount so collected. No society may incur any liability other than for the return of

such advance premium, nor issue any certificate, nor pay, allow, offer, or promise to

pay any benefit to any person until:

a. Actual bona fide applications for benefits have been secured from not fewer than

five hundred applicants and any necessary evidence of insurability has been

furnished to and approved by the society.

b. At least ten subordinate lodges have been established into which the five

hundred applicants have been admitted.

c. There has been submitted to the commissioner, under oath of the president or

secretary, or corresponding officer of the society, a list of the applicants,

containing their names, addresses, date each was admitted, name and number of

the subordinate lodge of which each applicant is a member, and amount of

benefits to be granted and premiums thereof.

d. It has been shown to the commissioner, by sworn statement of the treasurer, or

corresponding officer of such society, that at least five hundred applicants have

each paid in cash at least one regular monthly premium, which premiums in the

aggregate must amount to at least one hundred fifty thousand dollars. The

advance premiums must be held in trust during the period of organization and if

the society does not qualify for a certificate of authority, the premiums must be

returned to the applicants.

5. The commissioner may make such examination and require such further information

as the commissioner deems advisable. Upon presentation of satisfactory evidence that

the society has complied with all the provisions of law, the commissioner shall issue to

the society a certificate of authority allowing the society to transact business under this

chapter. The certificate of authority is prima facie evidence of the existence of the

society at the date of the certificate. A certified copy of the certificate may be given in

evidence with like effect as the original certificate of authority.
N.D. Cent. Code § 26.1-26.5-03 — ND Code / Title 26.1 / Chapter 26.1-26.5 / Section 26.1-26.5-03
26.1-26.5-03. Minimum standards
Status: in_force

26.1-26.5-03. Minimum standards

1. a. The provisions of this section apply if, in any calendar year, the aggregate

amount of gross written premium on business placed with a controlled insurer by

a controlling insurance broker is equal to or greater than five percent of the

admitted assets of the controlled insurer, as reported in the controlled insurers'

quarterly statement filed as of September thirtieth of the prior year.

b. Notwithstanding subdivision a, the provisions of this section do not apply if:

(1) The controlling insurance broker places insurance only with the controlled

insurer, or only with the controlled insurer and a member or members of the

controlled insurer's holding company system, or the controlled insurer's

parent, affiliate, or subsidiary and receives no compensation based upon the

amount of premiums written in connection with such insurance; and accepts

insurance placements only from nonaffiliated insurance brokers, and not

directly from insureds.

(2) The controlled insurer, except for insurance business written through a

residual market facility, accepts insurance business only from a controlling

insurance broker, an insurance broker controlled by the controlled insurer, or

an insurance broker that is a subsidiary of the controlled insurer.

2. A controlled insurer may not accept business from a controlling insurance broker and a

controlling insurance broker may not place business with a controlled insurer unless

there is a written contract between the controlling insurance broker and the insurer

specifying the responsibilities of each party, which contract has been approved by the

board of directors of the insurer and contains the following minimum provisions:

a. The controlled insurer may terminate the contract for cause, upon written notice

to the controlling insurance broker. The controlled insurer shall suspend the

authority of the controlling insurance broker to write business during the

pendency of any dispute regarding the cause for the termination.

b. The controlling insurance broker shall render accounts to the controlled insurer

detailing all material transactions, including information necessary to support all

commissions, charges, and other fees received by, or owing to, the controlling

insurance broker.

c. The controlling insurance broker shall remit all funds due under the terms of the

contract to the controlled insurer on at least a monthly basis. The due date must

be fixed so that premiums or installments thereof collected shall be remitted no

later than ninety days after the effective date of any policy placed with the

controlled insurer under this contract.

d. All funds collected for the controlled insurer's account must be held by the

controlling insurance broker in a fiduciary capacity, in one or more appropriately

identified bank accounts in banks that are members of the federal reserve

system, in accordance with the provisions of the insurance law as applicable.

However, funds of a controlling insurance broker not required to be licensed in

this state must be maintained in compliance with the requirements of the

controlling insurance broker's domiciliary jurisdiction.

e. The controlling insurance broker shall maintain separately identifiable records of

business written for the controlled insurer.

f. The contract may not be assigned, in whole or in part, by the controlling

insurance broker.

g. The controlled insurer shall provide the controlling insurance broker with its

underwriting standards, rules and procedures, manuals setting forth the rates to

be charged, and the conditions for the acceptance or rejection of risks. The

controlling insurance broker shall adhere to the standards, rules, procedures,

rates, and conditions. The standards, rules, procedures, rates, and conditions

must be the same as those applicable to comparable business placed with the

controlled insurer by an insurance broker other than the controlling insurance

broker.

h. The rates and terms of the controlling insurance broker's commissions, charges,

or other fees and the purposes for those charges or fees. The rates of the

commissions, charges, and other fees must be no greater than those applicable

to comparable business placed with the controlled insurer by insurance brokers

other than controlling insurance brokers. For purposes of this subdivision and

subdivision g, examples of "comparable business" include the same lines of

insurance, same kinds of insurance, same kinds of risks, similar policy limits, and

similar quality of business.

i. If the contract provides that the controlling insurance broker, on insurance

business placed with the insurer, is to be compensated contingent upon the

insurer's profits on that business, then such compensation may not be

determined and paid until at least five years after the premiums on liability

insurance are earned and at least one year after the premiums are earned on any

other insurance. In no event may the commissions be paid until the adequacy of

the controlled insurer's reserves on remaining claims has been independently

verified pursuant to subdivision a of subsection 4.

j. A limit on the controlling insurance broker's writings in relation to the controlled

insurer's surplus and total writings. The insurer may establish a different limit for

each line or subline of business. The controlled insurer shall notify the controlling

insurance broker when the applicable limit is approached and may not accept

business from the controlling insurance broker if the limit is reached. The

controlling insurance broker may not place business with the controlled insurer if

it has been notified by the controlled insurer that the limit has been reached.

k. The controlling insurance broker may negotiate but may not bind reinsurance on

behalf of the controlled insurer on business the controlling insurance broker

places with the controlled insurer, except that the controlling insurance broker

may bind facultative reinsurance contracts pursuant to obligatory facultative

agreements if the contract with the controlled insurer contains underwriting

guidelines including, for both reinsurance assumed and ceded, a list of reinsurers

with which such automatic agreements are in effect, the coverages and amounts

or percentages that may be reinsured, and commission schedules.

3. Every controlled insurer shall have an audit committee of the board of directors

composed of independent directors. The audit committee shall annually meet with

management, the insurer's independent certified public accountants, and an

independent casualty actuary or other independent loss reserve specialist acceptable

to the commissioner to review the adequacy of the insurer's loss reserves.

4. a. In addition to any other required loss reserve certification, the controlled insurer

shall annually, on April first of each year, file with the commissioner an opinion of

an independent casualty actuary, or such other independent loss reserve

specialist acceptable to the commissioner, reporting loss ratios for each line of

business written and attesting to the adequacy of loss reserves established for

losses incurred and outstanding as of yearend, including incurred but not

reported, on business placed by the insurance broker.

b. The controlled insurer shall annually report to the commissioner the amount of

commissions paid to the insurance broker, the percentage such amount

represents of the net premiums written, and comparable amounts and percentage

paid to noncontrolling insurance brokers for placements of the same kinds of

insurance.
N.D. Cent. Code § 26.1-36.12-05 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-05
26.1-36.12-05. Prior authorization - Nonurgent circumstances
Status: in_force

26.1-36.12-05. Prior authorization - Nonurgent circumstances

1. If a prior authorization review organization requires prior authorization of a health care

service, the prior authorization review organization shall make a prior authorization or

adverse determination and notify the enrollee and the enrollee's health care provider of

the decision within seven calendar days of obtaining all necessary information to make

the decision. For purposes of this section, "necessary information" includes the results

of any face-to-face clinical evaluation or second opinion that may be required.

2. A prior authorization review organization shall have written procedures to address the

failure of a health care provider or enrollee to provide the necessary information to

make a determination on the request. If the health care provider or enrollee fails to

provide the necessary information to the prior authorization review organization within

fourteen calendar days of a written request for all necessary information, the prior

authorization review organization may make an adverse determination.

3. A prior authorization review organization shall allow an enrollee and the enrollee's

health care provider at least fourteen business days to request an updated prior

authorization following an unforeseen change in the circumstances or care needs for

the enrollee following a nonurgent circumstance or provision of health care services for

the enrollee.
N.D. Cent. Code § 26.1-42.1-14 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-14
26.1-42.1-14. Immunity
Status: in_force

26.1-42.1-14. Immunity

There is no liability on the part of and no claim for relief may arise against any member

insurer, the association or the association's agents or employees, the board of directors, or any

person serving as a representative of any director, or the commissioner or the commissioner's

representatives for any action taken or any failure to act by these entities in the performance of

their powers and duties under this chapter.
N.D. Cent. Code § 26.1-12.2-18 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-18
26.1-12.2-18. Amendment of policies
Status: in_force

26.1-12.2-18. Amendment of policies

A mutual company, by endorsement or rider approved by the commissioner and sent to the

policyholder, may simultaneously with or at any time after the effective date of the conversion

amend any outstanding insurance policy for the purpose of extinguishing the membership rights

of such policyholder.
N.D. Cent. Code § 26.1-09-01 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-01
26.1-09-01. Reciprocal or interinsurance exchange authorized
Status: in_force

26.1-09-01. Reciprocal or interinsurance exchange authorized

Individuals, partnerships, and corporations of this state, in this chapter referred to as

subscribers, may exchange reciprocal or interinsurance contracts other than life insurance, with

each other or with individuals, partnerships, and corporations of other states and countries to

provide indemnity among themselves against any loss which may be insured against under

authority of law.
N.D. Cent. Code § 26.1-36.12-08 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-08
26.1-36.12-08. No prior authorization for medication-assisted treatment
Status: in_force

26.1-36.12-08. No prior authorization for medication-assisted treatment

A prior authorization review organization may not require prior authorization for the provision

of medication-assisted treatment for the treatment of opioid use disorder.
N.D. Cent. Code § 26.1-34.2-02 — ND Code / Title 26.1 / Chapter 26.1-34.2 / Section 26.1-34.2-02
26.1-34.2-02. Definitions
Status: in_force

26.1-34.2-02. Definitions

1. "Annuity" means an annuity that is an insurance product under state law which is

individually solicited, whether the product is classified as an individual or group

annuity.

2. "Cash compensation" means a discount, concession, fee, service fee, commission,

sales charge, loan, override, or cash benefit received by a producer in connection with

the recommendation or sale of an annuity from an insurer or intermediary or directly

from the consumer.

3. "Comparable standards":

a. With respect to a broker-dealer and registered representative of a broker-dealer,

applicable federal securities and exchange commission and financial industry

regulatory authority rules pertaining to best interest obligations and supervision of

annuity recommendations and sales, including Regulation Best Interest

[17 CFR 240];

b. With respect to an investment adviser registered under federal or state securities

laws or an investment adviser representative, the fiduciary duties and all other

requirements imposed on such investment advisers or investment adviser

representatives by contract or under the federal Investment Advisers Act of 1940

[15 U.S.C. 80b-1 et seq.] or applicable state securities law, including, the form

ADV and interpretations; and

c. With respect to plan fiduciaries or fiduciaries, the duties, obligations, prohibitions,

and all other requirements attendant to such status under the federal Employee

Retirement Income Security Act of 1974 [29 U.S.C. 1001 et seq.] or the federal

Internal Revenue Code as amended.

4. "Consumer profile information" means information that is reasonably appropriate to

determine whether a recommendation addresses the consumer's financial situation,

insurance needs, and financial objectives, including, at a minimum, the following:

a. Age;

b. Annual income;

c. Financial situation and needs, including debts and other obligations;

d. Financial experience;

e. Insurance needs;

f. Financial objectives;

g. Intended use of the annuity;

h. Financial time horizon;

i. Existing assets or financial products, including investment, annuity, and insurance

holdings;

j. Liquidity needs;

k. Liquid net worth;

l. Risk tolerance, including willingness to accept nonguaranteed elements in the

annuity;

m. Financial resources used to fund the annuity; and

n. Tax status.

5. "Continuing education credit" means one continuing education credit as provided for

under section 26.1-26-31.1.

6. "Continuing education provider" means an individual or entity approved to offer

continuing education courses pursuant to section 26.1-26-31.1.

7. "Financial professional" means a producer that is regulated and acting as:

a. A broker-dealer registered under federal or state securities laws or a registered

representative of a broker-dealer;

b. An investment adviser registered under federal or state securities laws or an

investment adviser representative associated with the federal or state registered

investment adviser; or

c. A plan fiduciary under section 3(21) of the federal Employee Retirement Income

Security Act of 1974 [29 CFR 2510.3-21] or fiduciary under section 4975(e)(3) of

the Internal Revenue Code [26 U.S.C. 4975(e)(3)] as amended.

8. "Insurer" means a company required to be licensed under the laws of this state to

provide insurance products, including annuities.

9. "Intermediary" means an entity contracted directly with an insurer or with another entity

contracted with an insurer to facilitate the sale of the insurer's annuities by producers.

10. "Material conflict of interest" means a financial interest of the producer in the sale of an

annuity which a reasonable person would expect to influence the impartiality of a

recommendation. The term does not include cash compensation or noncash

compensation.

11. "Noncash compensation" means any form of compensation that is not cash

compensation, including health insurance, office rent, office support, and retirement

benefits.

12. "Nonguaranteed elements" means the premiums, credited interest rates, including a

bonus, benefits, values, dividends, noninterest based credits, charges, or elements of

formulas used to determine any of these which are subject to company discretion and

are not guaranteed at issue. An element is considered nonguaranteed if any of the

underlying nonguaranteed elements are used in the element's calculation.

13. "Producer" means an individual or entity required to be licensed under the laws of this

state to sell, solicit, or negotiate insurance, including annuities. The term includes an

insurer if no producer is involved.

14. "Recommendation" means advice provided by a producer to an individual consumer

which was intended to result or results in a purchase, a replacement, or an exchange

of an annuity in accordance with that advice. The term does not include general

communication to the public, generalized customer services assistance or

administrative support, general educational information and tools, prospectuses, or

other product and sales material.

15. "Replacement" means a transaction in which a new annuity is to be purchased, and it

is known or should be known to the proposing producer, or to the proposing insurer

whether or not a producer is involved, that by reason of the transaction, an existing

annuity or other insurance policy has been or is to be any of the following:

a. Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing

insurer, or otherwise terminated;

b. Converted to reduced paid-up insurance, continued as extended term insurance,

or otherwise reduced in value by the use of nonforfeiture benefits or other policy

values;

c. Amended so as to effect either a reduction in benefits or in the term for which

coverage would otherwise remain in force or for which benefits would be paid;

d. Reissued with any reduction in cash value; or

e. Used in a financed purchase.
N.D. Cent. Code § 26.1-20.1-11 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-11
26.1-20.1-11. Exemption from filing
Status: in_force

26.1-20.1-11. Exemption from filing

No filing or recording of an insurance premium finance agreement is necessary to perfect

the validity of the agreement as a secured transaction against creditors, subsequent

purchasers, pledgees, encumbrances, successors, or assigns.
N.D. Cent. Code § 26.1-02-05.2 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-05.2
26.1-02-05.2. Nonprofit agricultural membership organizations
Status: in_force

26.1-02-05.2. Nonprofit agricultural membership organizations

1. Except as provided under this section, a nonprofit agricultural membership

organization is not subject to this title or the jurisdiction of the commissioner. Health

care coverage provided by a nonprofit agricultural membership organization to

members of the organization is not insurance regulated under this title.

2. Any risk arising out of the health care coverage provided by a nonprofit agricultural

membership organization or an affiliate of the organization must be reinsured by a

company authorized to conduct insurance in this state.

3. A nonprofit agricultural membership organization may not provide health care

coverage under this section unless the organization has filed with the commissioner

verification the organization meets the requirements of this section.

4. Health care coverage under this section may be sold only by an insurance producer

who is both appointed by the nonprofit agricultural membership organization and

licensed as an insurance producer to sell or solicit health insurance in this state.

5. Health care coverage under this section must provide benefits under a self-funded

arrangement administered by an entity that holds a certificate of authority under

section 26.1-27-03.

6. A health care coverage application for coverage under this section and any related

contract provided to the member prominently must state the health care coverage is

not insurance, is not provided by an insurance company, is not subject to the laws and

rules governing insurance, and is not subject to the jurisdiction of the commissioner.

7. As used in this section, "nonprofit agricultural membership organization" means an

organization incorporated under the laws of this state before August 1, 2023, for the

purpose of promoting the interests of farmers in the state, or an affiliate of the

organization, which organization or affiliate provides health care coverage for

members and the families of the members pursuant to a contract between the member

and the organization or affiliate.
N.D. Cent. Code § 26.1-12-27 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-27
26.1-12-27. Licensing foreign mutual insurance company - Prerequisites
Status: in_force

26.1-12-27. Licensing foreign mutual insurance company - Prerequisites

Any mutual insurance company organized outside of this state and authorized to transact

insurance business on the mutual plan in any state, district, or territory must be admitted and

licensed to transact the kinds of insurance authorized by its charter or articles, to the extent and

with the powers and privileges specified in this chapter and subject to all the provisions of law

relating to information to, and examinations by, the commissioner, the making of annual reports,

the payment of taxes, and the renewal of licenses applicable to stock insurance companies

transacting the same kinds of insurance business except as otherwise provided in this chapter,

when it is solvent under this chapter and when it has:

1. Filed with the commissioner a certified copy of its charter or articles of association;

2. Filed with the commissioner a copy of its bylaws certified by its secretary;

3. Appointed the commissioner its agent for the service of process in any action, suit, or

proceeding in any court of this state, for as long as any liability remains outstanding in

this state;

4. Filed a financial statement under oath, in the form required by the commissioner, and

complied with other provisions of law applicable to the filing of papers and furnishing

information by stock companies on application for authority to transact the same kind

of insurance business;

5. Made and maintained, if organized without the United States, the deposit required of

stock insurance companies formed without the United States transacting the same

kinds of insurance business;

6. Adopted a name which is not so similar to a name already in use by an existing

corporation, limited liability company, company, or association organized or licensed in

this state as to be confusing or misleading; and

7. Accumulated assets in excess of all of its liabilities in an amount not less than five

hundred thousand dollars, except if the minimum surplus requirement for the company

is more than the minimum requirement provided by this subsection at the time the

company was originally issued a license to do business, the company may maintain

surplus which satisfies the requirements in effect at that time.
N.D. Cent. Code § 26.1-04-14 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-14
26.1-04-14. Penalty
Status: in_force

26.1-04-14. Penalty

Any person who violates a cease and desist order of the commissioner under section

26.1-04-13, after it has become final, and while it is in effect, shall, upon proof thereof to the

satisfaction of the court, forfeit and pay to the state of North Dakota a sum not to exceed a

monetary penalty of not more than ten thousand dollars for each and every act or violation.
N.D. Cent. Code § 26.1-12.2-07 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-07
26.1-12.2-07. Conversion of a mutual holding company
Status: in_force

26.1-12.2-07. Conversion of a mutual holding company

1. If a mutual holding company converts from a mutual to stock form, the conversion

must comply with the provisions of this chapter.

2. If a mutual holding company seeks to convert to stock form under this chapter and it

has previously completed one or more minority stock offerings in which policyholders

were granted subscription rights pursuant to this chapter, the valuation required by

subsection 4 of section 26.1-12.2-03 must take into account the existence of this

minority interest as provided in this section. The amount of capital stock required to be

offered by the mutual holding company or another corporation that is participating in

the plan of conversion as provided in item 3 of subparagraph a of paragraph 2 of

subdivision c of subsection 1 of section 26.1-12.2-03 may be expressed as a range of

value and must equal: the pro forma fair market value of the mutual holding company,

multiplied by one minus a quotient equal to the number of issued minority shares,

divided by the sum of the issued minority shares and the number of shares held by the

mutual holding company.

3. The plan of conversion of a mutual holding company must provide that any

outstanding issued minority shares must be exchanged for stock issued by the

converting mutual company or the stock of any corporation participating in the

conversion of the mutual holding company pursuant to subparagraph a of paragraph 2

of subdivision c of subsection 1 of section 26.1-12.2-03. The mutual holding company

shall demonstrate to the satisfaction of the commissioner that the basis for the

exchange is fair and reasonable. An exchange in which the holders of outstanding

issued minority shares retain approximately the same percentage ownership in the

resulting company as the quotient of the number of issued minority shares, divided by

the sum of issued minority shares and the number of shares held by the mutual

holding company, is presumed to be fair and reasonable.

4. If a mutual holding company seeking to convert under this chapter previously

completed one or more minority stock offerings, the conversion of the mutual holding

company to stock form may not be consummated unless a majority of the shares

issued and outstanding to persons other than the mutual holding company vote in

favor of the conversion. This vote requirement is in addition to the required

policyholder vote.
N.D. Cent. Code § 26.1-34.1-07 — ND Code / Title 26.1 / Chapter 26.1-34.1 / Section 26.1-34.1-07
26.1-34.1-07. Other applicable code provisions
Status: in_force

26.1-34.1-07. Other applicable code provisions

Except as prescribed in this chapter, the corporation is otherwise exempt from the

provisions of this code and other insurance laws.
N.D. Cent. Code § 26.1-03.2-13 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-13
26.1-03.2-13. Phasein provision
Status: in_force

26.1-03.2-13. Phasein provision

For risk-based capital reports required to be filed by health organizations with respect to

1999, the following requirements apply in lieu of the provisions of sections 26.1-03.2-03,

26.1-03.2-04, 26.1-03.2-05, and 26.1-03.2-06:

1. In the event of a company action level event with respect to a domestic health

organization, the commissioner shall take no regulatory action under this chapter.

2. In the event of a regulatory action level event under subdivision a, b, or c of

subsection 1 of section 26.1-03.2-04, the commissioner shall take the actions required

under section 26.1-03.2-03.

3. In the event of a regulatory action level event under subdivision d, e, f, g, h, or i of

subsection 1 of section 26.1-03.2-04 or an authorized control level event, the

commissioner shall take the actions required under section 26.1-03.2-04 with respect

to the health organization.

4. In the event of a mandatory control level event with respect to a health organization,

the commissioner shall take the actions required under section 26.1-03.2-05 with

respect to the health organization.
N.D. Cent. Code § 26.1-39-30 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-30
26.1-39-30. Notice of property insurance claim
Status: in_force

26.1-39-30. Notice of property insurance claim

1. As used in this section:

a. "Reopened claim" means a claim an insurer closed and reopened upon an

insured's request for additional reimbursement of damage arising out of the

original occurrence, and not previously identified or disclosed to the insurer.

b. "Supplemental claim" means a claim for additional loss or costs from the same

occurrence the insurer previously compensated the insured.

2. A reopened claim under an insurance policy that provides property insurance,

including a policy issued by an eligible surplus lines insurer, for loss or damage is

barred unless notice of the claim was given to the insurer within one year after the

date of loss. A supplemental claim is barred unless notice of the supplemental claim

was given to the insurer of the policy within twelve months after the date of the last

payment issued by the insurer for that element of the loss.

3. The time limitations under subsection 2 are tolled during any term of deployment for a

named insured service member to a combat zone or combat support posting that

materially affects the ability of the named insured to file a claim, supplemental claim, or

reopened claim.
N.D. Cent. Code § 26.1-02-28 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-28
26.1-02-28. Child support insurance data match
Status: in_force

26.1-02-28. Child support insurance data match

1. As used in this section:

a. "Claimant" means a resident of this state over fourteen years of age who:

(1) Is a beneficiary under a life insurance policy;

(2) Is an individual who brings a third-party claim against an insured or under an

insurance policy for compensation under insurance coverage for bodily

injury or workers' compensation; or

(3) Is an individual who brings a first-party claim under an insurance policy for

uninsured or underinsured motorist benefits.

b. "Department" means the department of health and human services and any

designee of the department.

c. "Insurer" includes a government self-insurance pool and any designee of an

insurer or government self-insurance pool, but does not include any health

insurer participating in a data match under section 50-09-37.

d. "Personal information" means the name, address, and date of birth of a person;

the person's social security number, current motor vehicle operator's license

number issued to the claimant by the department of transportation under title 39,

or the last four digits of the person's social security number; and any other

relevant and available information regarding the person that is requested by the

department.

2. Before paying a claim to a claimant for a claim occurring in this state under a contract

of insurance issued in this state, an insurer may exchange personal information about

the claimant with the department, but a government self-insurance pool shall

exchange personal information about the claimant with the department. The

information must be exchanged as soon as reasonably possible after the first

submission of the claim, but not less than ten days prior to making a payment to a

claimant. This section applies notwithstanding any provision of law making the

information confidential.

3. Any personal information that is exchanged under this section is confidential and may

only be used to establish or enforce a child support or medical support obligation, or

as otherwise permitted or required by law. To the extent feasible, the department shall

provide secure electronic processes for exchanging personal information under this

section. An insurer shall not be assessed any fee by the department for exchanging

claim information under this section.

4. An insurer that exchanges personal information with the department under

subsection 2 also shall provide the telephone number of a facsimile machine or

electronic mail address to which a lien or demand may be sent to the insurer by the

department under chapter 35-34.

5. Notwithstanding anything to the contrary in section 35-34-06, upon agreement of the

insurer and the department, if the department files a lien against a claim that is

identified under this section:

a. The department may delay sending the claimant a copy of the notice of the lien

until requested by the insurer or until a payment to the claimant is delayed as a

result of the lien, whichever occurs first; or

b. The insurer may provide the claimant with the copy of the notice of lien that is

required under section 35-34-06 no later than the date a payment to the claimant

is delayed as a result of the lien.

If a claimant's receipt of notice of a lien is delayed under this subsection, the time for

seeking a review of the lien under section 50-09-14 does not begin until the date the

notice is mailed or otherwise provided to the claimant.

6. A person is immune from suit or any liability under any federal or state law, including

chapter 12.1-13 or 44-04, for acting in good faith under this section. The court shall

award reasonable attorney's fees and costs against any person that commences an

action that is subsequently dismissed by reason of the immunity granted by this

section.

7. A government self-insurance pool that complies with this section is not subject to

subsection 1 of section 50-09-08.2.

8. Nothing in this section shall require an insurer to make a payment that is not otherwise

required under the contract of insurance.

9. A claimant who refuses to provide to an insurer the personal information that the

insurer is required to exchange with the department under this section may not receive

payment on the claim and may not pursue a suit against the insured or the insurer in

this state for the amount of the claim until the information is provided.

10. An individual who willfully fails to comply with this section is subject to the same

liabilities as an income payer under section 14-09-09.3 unless the context indicates

otherwise.
N.D. Cent. Code § 26.1-25-17 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-17
26.1-25-17. Hearing procedure and judicial review
Status: in_force

26.1-25-17. Hearing procedure and judicial review

Any insurer or advisory organization aggrieved by any order or decision of the

commissioner made without a hearing, within thirty days after notice of the order to the insurer

or organization, may make written request to the commissioner for a hearing thereon. The

commissioner shall hear the party within twenty days after receipt of the request and shall give

not less than ten days' written notice of the time and place of the hearing. Within fifteen days

after the hearing, the commissioner shall affirm, reverse, or modify the previous action,

specifying the reasons therefor. Pending the hearing and decision thereon the commissioner

may suspend or postpone the effective date of the previous action. This chapter does not

require the observance at any hearing of formal rules of pleading or evidence.
N.D. Cent. Code § 26.1-42.1-11 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-11
26.1-42.1-11. Examination of the association
Status: in_force

26.1-42.1-11. Examination of the association

The association is subject to examination and regulation by the commissioner. The board of

directors shall submit, by March thirty-first of each year, a financial report for the preceding

calendar year in a form approved by the commissioner.
N.D. Cent. Code § 26.1-04-16 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-16
26.1-04-16. Penalty for violating provisions relating to misrepresentation and discrimination
Status: in_force

26.1-04-16. Penalty for violating provisions relating to misrepresentation and

discrimination.

Any officer, agent, insurance producer, or representative of any insurance or surety

company, reciprocal, benevolent society, or any other insurance organization, or association, or

any other person, who violates section 26.1-04-05, 26.1-04-06, 26.1-04-07, or 26.1-04-17 is

guilty of a class A misdemeanor. The commissioner may, after a hearing upon fifteen days'

notice, revoke the license to transact business in this state of any insurance organization

violating section 26.1-04-05 or 26.1-04-06.
N.D. Cent. Code § 26.1-39-12 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-12
26.1-39-12. Notification and reasons for declination of property and casualty policies
Status: in_force

26.1-39-12. Notification and reasons for declination of property and casualty policies

1. Upon declining to insure any property subject to sections 26.1-39-10 through

26.1-39-21, the insurer making the declination shall either provide the insurance

applicant with a written explanation of the specific reasons for the declination at the

time of the declination or advise the applicant that a written explanation of the specific

reasons for the declination will be provided within twenty-one days of the time of the

receipt of the applicant's written request for such an explanation. An applicant's written

request is timely under this section if received within ninety days of the date of that

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 requires insurance coverage from the insurer.

3. No insurance producer, for any reason set out in section 26.1-39-17, 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 § 26.1-26.8-11 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-11
26.1-26.8-11. Proof of bond
Status: in_force

26.1-26.8-11. Proof of bond

1. At the time of issuance of a resident public adjuster license or a nonresident public

adjuster license and for the duration of the license, an applicant shall maintain a surety

bond satisfactory to the commissioner for the use and benefit of the commissioner for

insureds that have remitted fees, retainers, compensation, deposits, or other things of

value to the public adjuster in the course of the public adjuster's business. The bond:

a. Must be a minimum of twenty thousand dollars; and

b. May not be terminated by the surety company or public adjuster unless written

notice has been filed with the commissioner and submitted to the public adjuster

at least thirty days before the termination.

2. The commissioner may request the evidence of financial responsibility at any time the

commissioner deems relevant.

3. A public adjuster immediately shall notify the commissioner if evidence of financial

responsibility terminates or becomes impaired. The authority to act as a public adjuster

automatically terminates if the evidence of financial responsibility terminates or

becomes impaired.
N.D. Cent. Code § 26.1-44-03.1 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-03.1
26.1-44-03.1. Surplus lines tax
Status: in_force

26.1-44-03.1. Surplus lines tax

1. If the insured's home state is this state, every surplus lines producer shall pay to the

commissioner a sum equal to one and three-fourths percent of the gross premiums

charged, assessments, membership fees, subscriber fees, policy fees, and service

fees, less any return premiums, for surplus lines insurance provided by the surplus

lines producer.

2. The tax on any portion of the premium unearned at termination of insurance having

been credited or refunded by the state to the surplus lines producer must be returned

to the policyholder directly by the surplus lines producer. The surplus lines producer is

prohibited from rebating, for any reason, any part of the tax.

3. At the time of filing the annual tax statement as set forth in section 26.1-44-06.1, each

surplus lines producer shall pay the premium tax due for the policies written during the

period covered by the annual tax statement.
N.D. Cent. Code § 26.1-12-14 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-14
26.1-12-14. Membership in domestic mutual insurance company - Votes of members - Notice of meetings
Status: in_force

26.1-12-14. Membership in domestic mutual insurance company - Votes of members -

Notice of meetings.

Every member of a domestic mutual insurance company organized under this chapter is a

member of the company while the policy is in force. A member may be an insured or owner of a

policy as provided in the bylaws of the company. Every member of the company is entitled to

one vote. Every member must be notified of the time and place of the holding of the meetings of

the company by a written notice or by an imprint on each policy, receipt, or certificate of renewal

as follows:

The member is hereby notified that by virtue of this policy you are a member of

___________ mutual insurance company, and that the annual meetings of such company

are held at its home office on the ________ day of __________ in each year at _____

o'clock.

When the blanks in the notice are properly filled, the notice is sufficient.
N.D. Cent. Code § 26.1-16-21 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-21
26.1-16-21. Mortuary fund - Credits to and use
Status: in_force

26.1-16-21. Mortuary fund - Credits to and use

A benevolent society shall credit to its mortuary fund that part of any postmortem

assessment in excess of the amount required to pay the death claim for which the assessment

was levied. If the society has more than one unit of membership, the mortuary fund must be

kept separately by units. The fund must be used toward the payment of claims for deaths

occurring within the unit from which the fund arose, and no assessment levy may be made

unless the balance in the fund is insufficient to pay a claim on which notice and proof of death

has been received. No expenses may be paid from the mortuary fund.
N.D. Cent. Code § 26.1-36.12-17 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-17
26.1-36.12-17. Annual report to insurance commissioner
Status: in_force

26.1-36.12-17. Annual report to insurance commissioner

1. A prior authorization review organization shall report to the insurance commissioner by

September first of each year information regarding prior authorization requests for the

previous calendar year.

2. The report must be available online and in a form specified by the commissioner.

3. The report must include the:

a. Total number of prior authorization requests received;

b. Number of prior authorization requests for which an authorization was issued;

c. Number of prior authorization requests for which an adverse determination was

issued;

d. Number of adverse determinations reversed on appeal;

e. Reasons an adverse determination was issued, expressed as a percentage of all

adverse determinations, which must include:

(1) The patient did not meet prior authorization criteria;

(2) Incomplete information was submitted by the provider to the prior

authorization review organization;

(3) The treatment program changed; or

(4) The patient is no longer covered by the health benefit plan;

f. Number of prior authorization requests submitted but not necessary;

g. Number of prior authorization requests submitted by electronic means; and

h. Number of prior authorization requests submitted by nonelectronic means,

including mail and facsimile.
N.D. Cent. Code § 26.1-47-10 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-10
26.1-47-10. Preferred provider arrangements - Requirements for accessing air ambulance providers
Status: in_force

26.1-47-10. Preferred provider arrangements - Requirements for accessing air

ambulance providers.

1. In addition to the other preferred provider arrangement requirements under this

chapter, a preferred provider arrangement must require the health care insurer and

health care provider comply with this section.

2. Except as otherwise provided under this section, before a health care provider

arranges for air ambulance services for an individual the health care provider knows to

be a covered person, the health care provider shall request a prior authorization from

the covered person's health care insurer for the air ambulance services to be provided

to the covered person. If the health care provider is unable to request or obtain prior

authorization from the covered person's health care insurer:

a. The health care provider shall provide the covered person or the covered

person's authorized representative an out-of-network services written disclosure

stating the following:

(1) Certain air ambulance providers may be called upon to render care to the

covered person during the course of treatment;

(2) These air ambulance providers might not have contracts with the covered

person's health care insurer and are, therefore, considered to be out of

network;

(3) If these air ambulance providers do not have contracts with the covered

person's health care insurer, the air ambulance services will be provided on

an out-of-network basis;

(4) A description of the range of the charges for the out-of-network air

ambulance services for which the covered person may be responsible;

(5) A notification the covered person or the covered person's authorized

representative may agree to accept and pay the charges for the

out-of-network air ambulance services, contact the covered person's health

care insurer for additional assistance, or rely on other rights and remedies

that may be available under state or federal law; and

(6) A statement indicating the covered person or the covered person's

authorized representative may obtain a list of air ambulance providers from

the covered person's health care insurer which are preferred providers and

the covered person or the covered person's representative may request

those participating air ambulance providers be accessed by the health care

provider.

b. Before air ambulance services are accessed for the covered person, the health

care provider shall provide the covered person or the covered person's

authorized representative the written disclosure, as outlined by subdivision a and

obtain the covered person's or the covered person's authorized representative's

signature on the disclosure document acknowledging the covered person or the

covered person's authorized representative received the disclosure document

before the air ambulance services were accessed. If the health care provider is

unable to provide the written disclosure or obtain the signature required under

this subdivision, the health care provider shall document the reason, which may

include the health and safety of the patient. The health care provider

documentation satisfies the requirement under this subdivision.

3. The rights and remedies provided under this section to covered persons are in addition

to and may not preempt any other rights and remedies available to covered persons

under state or federal law.

4. The department shall enforce this section and shall report a violation of this section by

a facility to the department of health and human services.

5. This section does not apply to a policy or certificate of insurance, whether written on a

group or individual basis, which provides coverage limited to:

a. A specified disease, a specified accident, or accident-only coverage;

b. Credit;

c. Dental;

d. Disability;

e. Hospital;

f. Long-term care insurance as defined by chapter 26.1-45;

g. Vision care or any other limited supplemental benefit;

h. A Medicare supplement policy of insurance, as defined by the commissioner by

rule or coverage under a plan through Medicare;

i. Medicaid;

j. The federal employees health benefits program and any coverage issued as a

supplement to that coverage;

k. Coverage issued as supplemental to liability insurance, workers' compensation,

or similar insurance; or

l. Automobile medical payment insurance.

6. A health care provider is exempt from complying with this section if the health care

provider determines and documents that due to emergency circumstances,

compliance might jeopardize the health or safety of the patient.

7. The commissioner may adopt rules to implement this section.
N.D. Cent. Code § 26.1-51-08 — ND Code / Title 26.1 / Chapter 26.1-51 / Section 26.1-51-08
26.1-51-08. Privilege - Burden of proof - Stipulation
Status: in_force

26.1-51-08. Privilege - Burden of proof - Stipulation

An insurer asserting the insurance compliance self-critical analysis privilege set forth in this

chapter has the burden of demonstrating the applicability of the privilege. Once an insurer has

established the applicability of the privilege, a party seeking disclosure has the burden of

proving that the privilege is asserted for a fraudulent purpose. The commissioner, state's

attorney, or attorney general seeking disclosure of the privilege has the burden of proving the

elements set forth in subdivisions a and c of subsection 3 of section 26.1-51-06.

The parties may at any time stipulate in proceedings under section 26.1-51-06 or

26.1-51-07 to entry of an order directing whether the specific information contained in an

insurance compliance self-critical analysis audit document is or is not subject to the privilege

provided under this chapter. Any such stipulation may be limited to the instant proceeding and,

absent specific language to the contrary, is not applicable to any other proceeding.
N.D. Cent. Code § 26.1-01-09 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-09
26.1-01-09. Salary of commissioner
Status: in_force

26.1-01-09. Salary of commissioner

The annual salary of the commissioner is one hundred thirty-nine thousand two hundred

fifty-six dollars through June 30, 2026, and one hundred forty-three thousand four hundred

thirty-four dollars thereafter.
N.D. Cent. Code § 26.1-12.1-17 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-17
26.1-12.1-17. Concurrent reorganization - Domestic or foreign
Status: in_force

26.1-12.1-17. Concurrent reorganization - Domestic or foreign

The concurrent reorganization of a domestic mutual insurance company with one or more

mutual insurance companies, whether domestic or foreign, into a single mutual insurance

holding company structure, whether domestic or foreign, may be accomplished by a joint

application and a joint plan of reorganization and may be approved by complying with the

requirements and standards of section 26.1-12.1-06 by the commissioner following a hearing as

provided for in this chapter. The commissioner may allow such other procedures to avoid

unnecessary or duplicative costs and efforts in satisfying the requirements of this chapter and

effectuating the reorganization.
N.D. Cent. Code § 26.1-26-25 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-25
26.1-26-25. Exceptions from examination
Status: in_force

26.1-26-25. Exceptions from examination

The requirement for a written examination is subject to the following exceptions:

1. An individual who applies for an insurance producer license in this state who was

previously licensed for the same lines of authority in another state may not be required

to complete any prelicensing education or examination. This exemption is only

available if the person is currently licensed in that state or if the application is received

within ninety days of the cancellation of the applicant's previous license and if the prior

state issues a certification that, at the time of cancellation, the applicant was in good

standing in that state or the state's insurance producer database records, maintained

by the national association of insurance commissioners, its affiliates, or subsidiaries,

indicate that the insurance producer is or was licensed in good standing for the line of

authority requested.

2. A person licensed as an insurance producer in another state who moves to this state

shall make application within ninety days of establishing legal residence in this state to

become a resident licensee pursuant to section 26.1-26-13.2. A prelicensing education

or examination may not be required of that person to obtain any line of authority

previously held in the prior state unless the commissioner determines otherwise by

rule.

3. An applicant may be licensed without examination to market a specific product type if

the commissioner finds by rule the specific product type does not require the same

professional competency demanded for other product types.

4. An applicant for a license to write only a specific product type may be licensed subject

to reduced examination requirements if the commissioner finds by rule that the

requirements for licensure would otherwise be too burdensome and unrelated to that

specific product type.
N.D. Cent. Code § 26.1-53.1-02 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-02
26.1-53.1-02. Application
Status: in_force

26.1-53.1-02. Application

1. This chapter applies to all discount plan organizations conducting business in this

state.

2. A discount plan organization that is a health insurer licensed pursuant to title 26.1:

a. Is not required to be registered as a discount plan organization. However, any of

the organization's affiliates that operate as a discount plan organization in this

state shall comply with all provisions of this chapter and must be registered as a

discount plan organization.

b. Is required to comply with sections 26.1-53.1-14 through 26.1-53.1-21.
N.D. Cent. Code § 26.1-41-11 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-11
26.1-41-11. Mental and physical examinations
Status: in_force

26.1-41-11. Mental and physical examinations

1. Whenever the mental or physical condition of an individual is material to any claim that

has been or may be made for past or future basic or optional excess no-fault benefits,

the individual shall submit to mental or physical examination by a physician designated

by the basic no-fault insurer at a reasonably convenient location. Basic no-fault

insurers are authorized to include reasonable provisions of this nature in policies

providing basic or excess no-fault benefits.

2. If an individual refuses to submit to a mental or physical examination, a court at the

request of the insurer may enter an order requiring the individual to submit to the

examination. If the court finds that the individual failed to appear for the examination

without good cause, the court shall order the insured to reimburse the insurer for any

reasonably demonstrable cancellation charges for the examination.
N.D. Cent. Code § 26.1-44-03.2 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-03.2
26.1-44-03.2. Domestic surplus lines insurers
Status: in_force

26.1-44-03.2. Domestic surplus lines insurers

1. A North Dakota domestic insurer may be designated a domestic surplus lines insurer

if:

a. The insurer possesses a policyholder surplus of at least fifteen million dollars;

b. The designation is in compliance with a resolution of the insurer's board of

directors; and

c. The commissioner has provided written approval of the designation.

2. A domestic surplus lines insurer may write surplus lines insurance in North Dakota and

any other jurisdiction in which the insurer is eligible. A domestic surplus lines insurer

may insure in this state any risk if:

a. Produced pursuant to chapter 26.1-44; and

b. The premium is subject to surplus lines premium tax pursuant to section

26.1-44-03.1.

3. For purposes of the federal Nonadmitted and Reinsurance Reform Act of 2010

[15 U.S.C. 8201 et seq.], a domestic surplus lines insurer is considered a nonadmitted

insurer as defined under that Act, with respect to risks insured in this state.

4. A domestic surplus lines insurer may not issue a policy designed to satisfy the motor

vehicle financial responsibility requirements in chapter 26.1-41 or any other law

mandating insurance coverage by a licensed insurance company.

5. Except as specifically exempted from such requirements, a domestic surplus lines

insurer is subject to compliance with all financial examination and solvency

requirements that apply to domestic insurers under chapter 26.1-03 regarding

examinations and reports.

6. A domestic surplus lines insurer is not subject to the provisions of chapter 26.1-38.1

regarding the life and health insurance guaranty association nor to chapter 26.1-39

regarding property and casualty insurance.
N.D. Cent. Code § 26.1-12.1-11 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-11
26.1-12.1-11. Membership interest
Status: in_force

26.1-12.1-11. Membership interest

A membership interest in a domestic mutual insurance holding company does not constitute

a security as defined in section 10-04-02. No member of a mutual insurance holding company

may transfer or pledge membership in the mutual insurance holding company or any right

arising from the membership except as attendant to the valid transfer or assignment of the

member's policy in any reorganized insurer which gave rise to the member's membership

interest. A member of a mutual insurance holding company is not, as a member, personally

liable for the acts, debts, liabilities, or obligations of the reorganized insurer. No assessment of

any kind may be imposed upon the members of a mutual insurance holding company by the

directors or members, or because of any liability of any company owned or controlled by the

mutual insurance holding company, or because of any act, debt, or liability of the reorganized

company. A member's interest in the mutual insurance holding company automatically

terminates upon cancellation, nonrenewal, expiration, or termination of the member's policy in

any reorganized company which gave rise to the member's membership interest.
N.D. Cent. Code § 26.1-16-13 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-13
26.1-16-13. Licensing of insurance producers
Status: in_force

26.1-16-13. Licensing of insurance producers

All insurance producers of a benevolent society must be licensed in the same manner as

insurance producers for insurance companies generally are licensed.
N.D. Cent. Code § 26.1-53.1-08 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-08
26.1-53.1-08. Investigation by commissioner
Status: in_force

26.1-53.1-08. Investigation by commissioner

Within a reasonable time after receipt of a properly completed application for registration

under this chapter, the commissioner may conduct investigations 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 § 26.1-37-11 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-11
26.1-37-11. Approval of credit life and health forms
Status: repealed

26.1-37-11. Approval of credit life and health forms

Repealed by S.L. 2001, ch. 278, § 12.
N.D. Cent. Code § 26.1-26.9-03 — ND Code / Title 26.1 / Chapter 26.1-26.9 / Section 26.1-26.9-03
26.1-26.9-03. Sale of self-service storage insurance - Requirements
Status: in_force

26.1-26.9-03. Sale of self-service storage insurance - Requirements

1. At every location where self-service storage insurance is offered to occupants, the

owner shall make available to occupants brochures or other written or electronic

materials that:

a. Disclose that self-service storage insurance may provide a duplication of

coverage already provided by an occupant's homeowner's insurance policy,

renter's insurance policy, or other source of coverage.

b. State the purchase by the occupant of the self-service storage insurance offered

by the owner is not required to lease a space at the self-service storage facility.

c. Provide the actual terms of the self-service storage insurance coverage, or

summarize the material terms of the insurance coverage, including:

(1) The identity of the insurer;

(2) The identity of the supervising entity;

(3) The amount of any applicable deductible and how the deductible is to be

paid;

(4) Benefits of the coverage; and

(5) Key terms and conditions of the coverage.

d. Summarize the process for filing a claim.

e. State an occupant that purchases self-service storage insurance may cancel

enrollment for the occupant's coverage at any time, and the person paying the

premium shall receive a refund of any applicable unearned premium.

2. The written materials required by this section are not subject to filing or approval

requirements with the commissioner.

3. Self-service storage insurance may be provided under an individual policy or a

commercial, corporate, group, or master policy. Form, policy, and rate filings for

self-service storage insurance must be made with the commissioner in accordance

with this chapter and section 26.1-30-19.

4. Eligibility and underwriting standards for occupants electing to purchase self-service

storage insurance coverage must be established for the self-service storage insurance

program.

5. The owner is exempt from the examination and education requirements in chapter

26.1-26.
N.D. Cent. Code § 26.1-36-14 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-14
26.1-36-14. Minimum accident and health policy language simplification standards
Status: in_force

26.1-36-14. Minimum accident and health policy language simplification standards

1. No policy form may be delivered or issued for delivery in this state unless:

a. The text achieves a minimum score of forty on the Flesch reading ease test or an

equivalent score on any other comparable test as provided in subsection 3.

b. It is printed, except for specification pages, schedules, and tables, in not less than

ten-point type, one point leaded.

c. The style, arrangement, and overall appearance of the policy give no undue

prominence to any portion of the text of the policy or to any endorsement or rider.

d. It contains a table of contents or an index of the principal sections of the policy, if

the policy has more than three thousand words printed or three or fewer pages of

text, or if the policy has more than three pages regardless of the number of

words.

2. The commissioner may authorize a lower score than the Flesch reading ease score

required in subdivision a of subsection 1 whenever the commissioner finds that a lower

score:

a. Will provide a more accurate reflection of the readability of a policy form.

b. Is warranted by the nature of a particular policy form or type or class of policy

forms.

c. Is caused by certain policy language which is drafted to conform to the

requirements of any state law or rule, or agency interpretation.

3. A Flesch reading ease test score is measured by the following method:

a. For policy forms containing ten thousand words or less of text, the entire form

must be analyzed. For policy forms containing more than ten thousand words, the

readability of two 200-word samples per page may be analyzed instead of the

entire form. The samples must be separated by at least twenty printed lines.

b. The number of words and sentences in the text must be counted and the total

number of words divided by the total number of sentences. The figure obtained

must be multiplied by a factor of one and fifteen thousandths.

c. The total number of syllables must be counted and divided by the total number of

words. The figure obtained must be multiplied by a factor of eighty-four and

six-tenths.

d. The sum of the figures computed under subdivisions b and c subtracted from two

hundred six and eight hundred thirty-five thousandths equals the Flesch reading

ease score for the policy form.

e. For purposes of subdivisions b, c, and d, the following procedures must be used:

(1) A contraction, hyphenated word, or numbers and letters, when separated by

spaces, shall be counted as one word.

(2) A unit of words ending with a period, semicolon, or colon, but excluding

headings and captions, shall be counted as a sentence.

(3) A syllable means a unit of spoken language consisting of one or more letters

of a word as divided by an accepted dictionary. When the dictionary shows

two or more equally acceptable pronunciations of a word, the pronunciation

containing fewer syllables may be used.

4. As used in this section, "text" includes all printed matter except:

a. The name and address of the insurer, the name, number, or title of the policy, the

table of contents or index, captions and subcaptions, specification pages,

schedules, and tables.

b. Any policy language drafted to conform to the requirements of any federal law,

regulation, or agency interpretation, any policy language required by any

collectively bargained agreement, any medical terminology, any words defined in

the policy, and any policy language required by law or rule, provided, however,

the insurer identifies the language or terminology excepted by this subdivision

and certifies, in writing, that the language or terminology is entitled to be excepted

by this subdivision.

5. The commissioner may approve any other reading test for use as an alternative to the

Flesch reading ease test if the other test is comparable in result to the Flesch reading

ease test.

6. Filings subject to this section must provide the minimum reading ease score or a

statement that the score is lower than the minimum required but should be approved in

accordance with subsection 2. To confirm the accuracy of any statement, the

commissioner may require the submission of further information to verify the

certification in question.

7. At the option of the insurance company, nonprofit health service corporation, fraternal

benefit society, or health maintenance organization, riders, endorsements,

applications, and other forms made a part of the policy may be scored as separate

forms or as part of the policy with which they may be used.
N.D. Cent. Code § 26.1-16-25 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-25
26.1-16-25. Examination
Status: in_force

26.1-16-25. Examination

The commissioner has the same power and authority as to visitation and examination over

all benevolent societies subject to this chapter as are given to the commissioner by this title over

domestic insurance companies. The society examined shall pay the expenses of any

examination. The commissioner may require a deposit in advance of an examination to

guarantee payment of the estimated necessary expense to be incurred.
N.D. Cent. Code § 26.1-10-12 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-12
26.1-10-12. Rulemaking
Status: in_force

26.1-10-12. Rulemaking

The commissioner may adopt rules and issue orders necessary to carry out this chapter.
N.D. Cent. Code § 26.1-36.3-01 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-01
26.1-36.3-01. Definitions
Status: in_force

26.1-36.3-01. Definitions

As used in this chapter and section 26.1-36-37.2, unless the context otherwise requires:

1. "Actuarial certification" means a written statement by a member of the American

academy of actuaries, or other individual acceptable to the insurance commissioner,

that a small employer carrier is in compliance with section 26.1-36.3-04, based upon

the person's examination of the small employer carrier, including a review of the

appropriate records and the actuarial assumptions and methods used by the small

employer carrier in establishing premium rates for applicable health benefit plans.

2. "Affiliate" or "affiliated" means any entity or person who directly or indirectly through

one or more intermediaries, controls or is controlled by, or is under common control

with, a specified entity or person.

3. "Association" means, with respect to health insurance coverage offered in this state,

an association that:

a. Has been actively in existence for at least five years;

b. Has been formed and maintained in good faith for purposes other than obtaining

insurance;

c. Does not condition membership in the association on any health status-related

factor relating to an individual, including an employee or dependent of an

employee;

d. Makes health insurance coverage offered through the association available to all

members regardless of any health status-related factor relating to the members,

or individuals eligible for coverage through a member; and

e. Does not make health insurance coverage offered through the association

available other than in connection with a member of the association.

4. "Base premium rate" means, for each class of business as to a rating period, the

lowest premium rate charged or that could have been charged under the rating system

for that class of business by the small employer carrier to small employers with similar

case characteristics for health benefit plans with the same or similar coverage.

5. "Case characteristics" means demographic or other objective characteristics of a small

employer that are considered by the small employer carrier in the determination of

premium rates for the small employer; however, claim experience, health status, and

duration of coverage are not case characteristics.

6. "Church plan" has the meaning given the term under section 3(33) of the Employee

Retirement Income Security Act of 1974 [Pub. L. 93-406; 88 Stat. 829; 29 U.S.C. 1001

et seq.].

7. "Class of business" means all or a separate grouping of small employers established

under section 26.1-36.3-03.

8. "Control" is as defined in section 26.1-10-01.

9. "Dependent" means a spouse, an unmarried child, including a dependent of an

unmarried child, under the age of twenty-two, an unmarried child who is a full-time

student under the age of twenty-six and who is financially dependent upon the

enrollee, and an unmarried child, including a dependent of an unmarried child, of any

age who is medically certified as disabled and dependent upon the enrollee as set

forth in section 26.1-36-22.

10. "Eligible employee" means an employee who works on a full-time basis and has a

normal workweek of thirty or more hours. The term includes a sole proprietor, a partner

of a partnership, and an independent contractor, if the sole proprietor, partner, or

independent contractor is included as an employee under a health benefit plan of a

small employer. The term does not include an employee who works on a part-time,

temporary, or substitute basis.

11. "Enrollee" means a person covered under a small employer health benefit plan.

12. "Established geographic service area" means a geographic area, as approved by the

insurance commissioner and based on the carrier's certificate of authority to transact

insurance in this state, within which the carrier is authorized to provide coverage.

13. "Governmental plan" means an employee welfare benefit plan as defined in

section 3(32) of the Employee Retirement Income Security Act of 1974

[Pub. L. 93-406; 88 Stat. 829; 29 U.S.C. 1001 et seq.] or any federal government plan.

14. "Group health benefit plan" means an employee welfare benefit plan as defined in

section 3(1) of the Employee Retirement Income Security Act of 1974 [Pub. L. 93-406;

88 Stat. 829; 29 U.S.C. 1001 et seq.] to the extent that the plan provides medical care

as defined in this section and including items and services paid for as medical care to

employees or their dependents as defined under the terms of the plan directly or

through insurance, reimbursement, or otherwise. For purposes of this chapter:

a. A plan, fund, or program that would not be, but for this section, an employee

welfare benefit plan and which is established or maintained by a partnership, to

the extent that the plan, fund, or program provides medical care, including items

and services paid for as medical care, to present or former partners in the

partnership, or to their dependents, as defined under the terms of the plan, fund,

or program, directly or through insurance, reimbursement, or otherwise, must be

treated as an employee welfare benefit plan which is a group health benefit plan;

b. In the case of a group health benefit plan, the term "employer" also includes the

partnership in relationship to any partner; and

c. In the case of a group health benefit plan, the term "participant" also includes:

(1) In connection with a group health benefit plan maintained by a partnership,

an individual who is a partner in relation to the partnership; or

(2) In connection with a group health benefit plan maintained by a

self-employed individual, under which one or more employees are

participants, the self-employed individual, if the individual is, or may

become, eligible to receive benefits under the plan or the beneficiaries may

be eligible to receive any benefit.

15. a. "Health benefit plan" means any hospital or medical or major medical policy,

certificate, or subscriber contract.

b. "Health benefit plan" does not include one or more, or any combination of, the

following:

(1) Coverage only for accident, or disability income insurance, or any

combination thereof;

(2) Coverage issued as a supplement to liability insurance;

(3) Liability insurance, including general liability insurance and automobile

liability insurance;

(4) Workforce safety and insurance or similar insurance;

(5) Automobile medical payment insurance;

(6) Credit-only insurance;

(7) Coverage for onsite medical clinics; and

(8) Other similar insurance coverage, specified in federal regulations, under

which benefits for medical care are secondary or incidental to other

insurance.

c. "Health benefit plan" does not include the following benefits if they are provided

under a separate policy, certificate, or contract of insurance or are otherwise not

an integral part of the plan:

(1) Limited scope dental or vision benefits;

(2) Benefits for long-term care, nursing home care, home health care,

community-based care, or any combination thereof; or

(3) Such other similar, limited benefits as are specified in federal regulations.

d. "Health benefit plan" does not include the following benefits if the benefits are

provided under a separate policy, certificate, or contract of insurance, there is no

coordination between the provision of the benefits, and any exclusion of benefits

under any group health benefit plan maintained by the same plan sponsor, and

the benefits are paid with respect to an event without regard to whether benefits

are provided with respect to such an event under any group health plan

maintained by the same plan sponsor:

(1) Coverage only for specified disease or illness; or

(2) Hospital indemnity or other fixed indemnity insurance.

e. "Health benefit plan" does not include the following if offered as a separate policy,

certificate, or contract of insurance:

(1) Medicare supplemental health insurance as defined under section 1882(g)

(1) of the Social Security Act;

(2) Coverage supplemental to the coverage provided under 10 U.S.C. 55; and

(3) Similar supplemental coverage provided under a group health plan.

f. A carrier offering a policy or certificate of specified disease, hospital confinement

indemnity, or limited benefit health insurance shall comply with the following:

(1) File with the insurance commissioner on or before March first of each year a

certification that contains:

(a) A statement from the carrier certifying that the policy or certificate is

being offered and marketed as supplemental health insurance and not

as a substitute for hospital or medical expense insurance or major

medical expense insurance.

(b) A summary description of the policy or certificate, including the

average annual premium rates, or range of premium rates in cases

when premiums vary by age, gender, or other factors, charged for the

policy and certificate in this state.

(2) When the policy or certificate is offered for the first time in this state on or

after August 1, 1993, file with the commissioner the information and

statement required in paragraph 1 at least thirty days before the date the

policy or certificate is issued or delivered in this state.

16. "Health carrier" or "carrier" means any entity that provides health insurance in this

state. For purposes of this chapter, health carrier includes an insurance company, a

prepaid limited health service corporation, a fraternal benefit society, a health

maintenance organization, nonprofit health service corporation, and any other entity

providing a plan of health insurance or health benefits subject to state insurance

regulation.

17. "Health status-related factor" means any of the following factors:

a. Health status;

b. Medical condition, including both physical and mental illness;

c. Claims experience;

d. Receipt of health care;

e. Medical history;

f. Genetic information;

g. Evidence of insurability, including condition arising out of acts of domestic

violence; or

h. Disability.

18. "Index rate" means, for each class of business as to a rating period for small

employers with similar case characteristics, the arithmetic average of the applicable

base premium rate and the corresponding highest premium rate.

19. "Late enrollee" means an eligible employee or dependent who requests enrollment in

a health benefit plan of a small employer following the initial enrollment period during

which the individual is entitled to enroll under the terms of the health benefit plan,

provided that the initial enrollment period is a period of at least thirty days. An eligible

employee or dependent may not be considered a late enrollee, however, if:

a. The individual:

(1) Was covered under qualifying previous coverage at the time of the initial

enrollment;

(2) Lost coverage under qualifying previous coverage as a result of termination

of employment or eligibility, the involuntary termination of the qualifying

previous coverage, death of a spouse, or divorce; and

(3) Requests enrollment within thirty days after termination of the qualifying

previous coverage.

b. The individual is employed by an employer that offers multiple health benefit

plans and the individual elects a different plan during an open enrollment period.

c. A court has ordered coverage be provided for a spouse or minor or dependent

child under a covered employee's health benefit plan and request for enrollment

is made within thirty days after issuance of the court order.

d. The individual had coverage under a Consolidated Omnibus Budget

Reconciliation Act [Pub. L. 99-272; 100 Stat. 82] continuation provision and the

coverage under that provision was exhausted.

20. "Medical care" means amounts paid for:

a. The diagnosis, care, mitigation, treatment, or prevention of disease, or amounts

paid for the purpose of affecting any structure or function of the body;

b. Transportation primarily for and essential to medical care referred to in

subdivision a; and

c. Insurance covering medical care referred to in subdivisions a and b.

21. "Network plan" means health insurance coverage offered by a health carrier under

which the financing and delivery of medical care, including items and services paid for

as medical care, are provided, in whole or in part, through a defined set of providers

under contract with the carrier.

22. "New business premium rate" means, for each class of business as to a rating period,

the lowest premium rate charged or offered, or which could have been charged or

offered, by the small employer carrier to small employers with similar case

characteristics for newly issued health benefit plans with the same or similar coverage.

23. "Plan sponsor" has the meaning given the term under section 3(16)(B) of the

Employee Retirement Income Security Act of 1974 [Pub. L. 93-406; 88 Stat. 829;

29 U.S.C. 1001 et seq.].

24. "Premium" means money paid by a small employer and eligible employees as a

condition of receiving coverage from a small employer carrier, including any fees or

other contributions associated with the health benefit plan.

25. "Producer" means insurance producer.

26. "Qualifying previous coverage" and "qualifying existing coverage" mean, with respect

to an individual, health benefits or coverage provided under any of the following:

a. A group health benefit plan;

b. A health benefit plan;

c. Medicare;

d. Medicaid;

e. Civilian health and medical program for uniformed services;

f. A medical care program of the Indian health service or of a tribal organization;

g. A state health benefit risk pool, including coverage issued under chapter 26.1-08;

h. A health plan offered under 5 U.S.C. 89;

i. A public health plan as defined in federal regulations, including a plan maintained

by a state government, the United States government, or a foreign government;

j. A health benefit plan under section 5(e) of the Peace Corps Act [Pub. L. 87-293;

75 Stat. 612; 22 U.S.C. 2504(e)]; and

k. A state's children's health insurance program funded through title XXI of the

federal Social Security Act [42 U.S.C. 1397aa et seq.].

The term "qualifying previous coverage" does not include coverage of benefits

excepted from the definition of a "health benefit plan".

27. "Rating period" means the calendar period for which premium rates established by a

small employer carrier are assumed to be in effect.

28. "Reinsuring carrier" means a small employer carrier which reinsures individuals or

groups with the program.

29. "Restricted network provision" means any provision of a health benefit plan that

conditions the payment of benefits, in whole or in part, on the use of health care

providers that have entered into a contractual arrangement with the carrier under

chapters 26.1-17, 26.1-18, and 26.1-47 to provide health care services to covered

individuals.

30. "Small employer" means, in connection with a group health plan with respect to a

calendar and a plan year, an employer who employed an average of at least two but

not more than fifty eligible employees on business days during the preceding calendar

year and who employs at least two employees on the first day of the plan year.

31. "Small employer carrier" means any carrier that offers health benefit plans covering

eligible employees of one or more small employers in this state.
N.D. Cent. Code § 26.1-12.2-09 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-09
26.1-12.2-09. Rights of members whose policies are issued after adoption of the plan of conversion and before effective date
Status: in_force

26.1-12.2-09. Rights of members whose policies are issued after adoption of the plan

of conversion and before effective date.

1. All members whose policies are issued after the proposed plan of conversion has

been adopted by the governing body and before the effective date of the plan of

conversion must be sent a written notice regarding the plan of conversion upon

issuance of such policy.

2. Except as provided in subsection 3, each member of a property or casualty insurance

company entitled to receive the notice provided for in subsection 1 must be advised of

the member's right of cancellation and to a pro rata refund of unearned premiums.

3. A member of a property or casualty insurance company who has made or filed a claim

under such member's insurance policy is not entitled to any right to receive any refund

under subsection 2. A person that has exercised the rights provided by subsection 2 is

not entitled to make or file any claim under such person's insurance policy.
N.D. Cent. Code § 26.1-12.2-01 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-01
26.1-12.2-01. Definitions
Status: in_force

26.1-12.2-01. Definitions

As used in this chapter:

1. "Capital stock" means common or preferred stock or any hybrid security or other

equity security issued by a converted stock company or other company or entity

pursuant to the exercise of subscription rights granted pursuant to the provisions of

subdivision c of subsection 1 of section 26.1-12.2-03.

2. "Converted stock company" means a mutual company or mutual holding company that

has converted to a stock company under this chapter.

3. "Converting mutual company" means a mutual company or mutual holding company

that has adopted a plan of conversion under this chapter.

4. "Eligible member" means a member of a converting mutual company whose policy is

in force on the date the governing body of the converting mutual company adopts a

plan of conversion or such earlier date as the converting mutual company may

establish with the consent of the commissioner. A person insured under a group policy

is not an eligible member. A person whose policy becomes effective after the

governing body adopts the plan of conversion but before the effective date of the plan

of conversion is not an eligible member but has those rights established under section

26.1-12.2-09.

5. "Issued minority shares" means the number of shares issued by a subsidiary

insurance company or subsidiary holding company of a mutual holding company in all

minority stock offerings.

6. "Minority stock offering" means an offering of capital stock by a subsidiary insurance

company or subsidiary holding company controlled by a mutual holding company in

which less than fifty percent of the voting stock of the subsidiary insurance company or

subsidiary holding company is offered and sold under this chapter or chapter

26.1-12.1.

7. "Mutual company" means a mutual property and casualty insurance company

domiciled in this state.

8. "Mutual holding company" means:

a. A corporation resulting from a reorganization of a mutual company under chapter

26.1-12.1; or

b. A domestic corporation surviving or resulting from a merger or consolidation with

a corporation that resulted from a reorganization of a mutual insurer under the

laws of any other jurisdiction as provided by section 26.1-12.1-03.

9. "Participating policy" means a policy that grants a holder the right to receive dividends

if, as, and when declared by the mutual company.

10. "Plan of conversion" or "plan" means a plan adopted by the governing body of a

mutual company or mutual holding company to convert into a stock company or stock

insurance holding company in accordance with the requirements of this chapter.

11. "Policy" means an insurance policy.

12. "Standby investor" means any person that has agreed in writing to purchase all or a

portion of the capital stock to be sold in a conversion which is not subscribed by

eligible members.

13. "Subscription right" means the nontransferable right to purchase, for a period of not

less than forty-five days, the stock of the converted stock company, its proposed

subsidiary holding company, or an unaffiliated stock insurance company or other

corporation or entity that will acquire the stock of the converted stock company.

14. "Voting member" means a member who is an eligible member and is also a member of

the converting mutual company as of a date not more than ninety days before the date

of the meeting at which the plan of conversion must be voted upon by members.
N.D. Cent. Code § 26.1-20-04 — ND Code / Title 26.1 / Chapter 26.1-20 / Section 26.1-20-04
26.1-20-04. Limitation on risks
Status: in_force

26.1-20-04. Limitation on risks

1. Except as provided in subsection 2, a title insurance company may issue a title

insurance policy on property located in this state involving a potential policy liability up

to ninety percent of the sum of the company's surplus as regards policyholders and

statutory premium reserves as stated in the most recent annual statement of the

company.

2. A title insurance company may exceed the limit established in subsection 1 if the

excess liability is reinsured in due course with an authorized title insurance company

or in compliance with subsection 3 or 4.

3. Notwithstanding contrary provisions of this section, a title insurance company may

acquire reinsurance on an individual policy or facultative basis from a title insurance

company not authorized to engage in the business of title insurance in this state if the

title insurance company from which the reinsurance is acquired:

a. Has a combined capital and surplus of at least twenty million dollars as stated in

the company's most recent annual statement preceding the acceptance of

reinsurance; and

b. Is domiciled in another state and is authorized to engage in the business of title

insurance in one or more states.

4. Notwithstanding contrary provisions in this section, a title insurance company may

obtain reinsurance by a reinsurance treaty or other reinsurance agreement from an

assuming insurer with a financial strength rating of B+ or better from the A.M. Best

Company, Inc., or with an alternative rating the commissioner may approve which the

commissioner determines is an equivalent rating by another recognized rating

organization.
N.D. Cent. Code § 26.1-06.1-54 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-54
26.1-06.1-54. Claims of nonresidents against insurers domiciled in this state
Status: in_force

26.1-06.1-54. Claims of nonresidents against insurers domiciled in this state

1. In a liquidation proceeding begun in this state against an insurer domiciled in this

state, claimants residing in foreign countries or in states not reciprocal states must file

claims in this state, and claimants residing in reciprocal states may file claims either

with the ancillary receivers, if any, in their respective states, or with the domiciliary

liquidator. Claims must be filed on or before the last date fixed for the filing of claims in

the domiciliary liquidation proceeding.

2. Claims belonging to claimants residing in reciprocal states may be proved either in the

liquidation proceeding in this state as provided in this chapter, or in ancillary

proceedings, if any, in the reciprocal states. If notice of the claims and opportunity to

appear and be heard is afforded the domiciliary liquidator of this state as provided in

subsection 2 of section 26.1-06.1-55 with respect to ancillary proceedings, the final

allowance of claims by the courts in ancillary proceedings in reciprocal states is

conclusive as to amount and as to priority against special deposits or other security

located in such ancillary states, but is not conclusive with respect to priorities against

general assets under section 26.1-06.1-41.
N.D. Cent. Code § 26.1-02.2-06 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-06
26.1-02.2-06. Power of commissioner
Status: in_force

26.1-02.2-06. Power of commissioner

1. The commissioner may examine and investigate the affairs of any licensee to

determine whether the licensee has been or is engaged in any conduct in violation of

this chapter. This power is in addition to the powers the commissioner has under

chapter 26.1-03. Any investigation or examination must be conducted pursuant to

2. If the commissioner has reason to believe a licensee has been or is engaged in

conduct in this state which violates this chapter, the commissioner may take action that

is necessary or appropriate to enforce the provisions of this chapter.
N.D. Cent. Code § 26.1-50-06 — ND Code / Title 26.1 / Chapter 26.1-50 / Section 26.1-50-06
26.1-50-06. Tax credit
Status: in_force

26.1-50-06. Tax credit

If the requirements of this chapter are met, an insurer is entitled to a credit against taxes

due under section 26.1-03-17 or 26.1-11-06 as determined under this section. If the insurer is a

member of an insurance holding company system, the insurer or any affiliate insurer is entitled

to a credit against taxes under section 26.1-03-17 or 26.1-11-06 as determined under this

section.

1. An insurer making or participating in a loan under this chapter or an affiliate insurer

under this chapter is entitled to a premium tax credit calculated for each calendar year

the loan is in place. The amount of the credit is the difference between:

a. The participating insurer's share of the interest earned on the loan during the

calendar year; and

b. The participating insurer's share of an amount of interest that would have been

earned during the same period by applying an interest rate, calculated by adding

three hundred basis points to a comparable treasury security rate at the date of

the issuance of the loan.

2. The maximum credit allowed an insurer for any calendar year is the amount of interest

that would have been earned during the period by applying an interest rate of three

hundred basis points. A credit may not be allowed if the interest earned exceeds the

interest that would have been earned by applying the calculation in subdivision b of

subsection 1.

3. The credit may not exceed the total amount of the insurer's tax liability under

subsection 1 of section 26.1-03-17 and no unused credit may be carried forward.

4. Credits under this section for all insurers may not exceed seven hundred fifty thousand

dollars in a calendar year.
N.D. Cent. Code § 26.1-29-27 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-27
26.1-29-27. Time to which representation refers
Status: in_force

26.1-29-27. Time to which representation refers

A representation must be presumed to refer to the time of the completion of the insurance

contract.
N.D. Cent. Code § 26.1-30-03.1 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-03.1
26.1-30-03.1. Issuance of foreign language policies
Status: in_force

26.1-30-03.1. Issuance of foreign language policies

An insurance carrier or producer licensed to provide insurance under this title may provide

insurance policies, endorsements, or riders in a language other than English. All policies,

endorsements, and riders written in languages other than English must be filed pursuant to

sections 26.1-30-19, 26.1-30-20, and 26.1-30-21 and must include a written certification

declaring to the commissioner that the non-English documents are accurate translations of the

benefits provided in the English version pursuant to sections 26.1-30-19, 26.1-30-20, and
N.D. Cent. Code § 26.1-24-03 — ND Code / Title 26.1 / Chapter 26.1-24 / Section 26.1-24-03
26.1-24-03. When insured entitled to return of premium
Status: in_force

26.1-24-03. When insured entitled to return of premium

A person insured is entitled to a return of premium, including all policy fees in excess of two

dollars, on any one policy, and all other sums of money paid in consideration of the insurance

policy, as follows:

1. To the whole premium, fee, or other sums if no part of the insured's interest in the thing

insured is exposed to any of the perils insured against.

2. To the whole of the premium when the contract is voidable on account of the fraud or

misrepresentation of the insurer or on account of facts of the existence of which the

insured was ignorant without the insured's fault, or when by any default of the insured

other than actual fraud, the insurer never incurred any liability under the policy.

3. Except as provided for in a policy form filed with and approved by the commissioner,

when insurance other than life is made for a definite period of time and the insured

surrenders the policy, to such proportion of the premium, fee, or other sum as

corresponds with the unexpired time upon the amount of the policy remaining after

deducting therefrom any claim for loss or damage under the policy which has accrued

previously.
N.D. Cent. Code § 26.1-22-21 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-21
26.1-22-21. Excess loss reinsurance - Insurance broker of record
Status: in_force

26.1-22-21. Excess loss reinsurance - Insurance broker of record

1. The office shall procure and shall keep in force excess loss reinsurance naming the

fund as the reinsured. The excess loss reinsurance must be in an amount and for a

period determined by the office to be sufficient for the fund. The reinsurance contract

must reimburse the fund for losses incurred by the fund under policies issued by the

fund and arising out of each occurrence of a covered cause of loss and include at least

a sixty-day cancellation notice.

2. The cost of the excess loss reinsurance must be paid out of the assessment income of

the fund and must be assessed against the policyholders that benefit from the

reinsurance. Excess loss reinsurance must be written only by a company or

companies authorized to do business within this state. The contract must be

countersigned by a licensed North Dakota resident insurance producer.

3. The office may contract for insurance broker of record services to assist in procuring

excess loss reinsurance. The insurance broker must be licensed and authorized to do

business in the state.
N.D. Cent. Code § 26.1-29-01 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-01
26.1-29-01. Insurance contract defined
Status: in_force

26.1-29-01. Insurance contract defined

An insurance contract is a contract whereby one undertakes to indemnify another against

loss, damage, or liability arising from an unknown or contingent event.
N.D. Cent. Code § 26.1-58-02 — ND Code / Title 26.1 / Chapter 26.1-58 / Section 26.1-58-02
26.1-58-02. Scope
Status: in_force

26.1-58-02. Scope

1. This chapter applies to travel insurance that covers any resident of this state, and is

sold, solicited, negotiated, or offered in this state, and policies and certificates

delivered or issued for delivery in this state. This chapter does not apply to cancellation

fee waivers or travel assistance services, except as expressly provided in this chapter.

2. All other applicable provisions of this state's insurance laws continue to apply to travel

insurance, except the specific provisions of this chapter supersede any general

provisions of law that otherwise would be applicable to travel insurance.
N.D. Cent. Code § 26.1-26-25.1 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-25.1
26.1-26-25.1. Assumed names
Status: in_force

26.1-26-25.1. Assumed names

An insurance producer doing business under any name other than the insurance producer's

legal name is required to notify the commissioner before using the assumed name.
N.D. Cent. Code § 26.1-37-10 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-10
26.1-37-10. Minimum credit life and health policy language simplification standards
Status: repealed

26.1-37-10. Minimum credit life and health policy language simplification standards

Repealed by S.L. 2001, ch. 278, § 12.
N.D. Cent. Code § 26.1-12.2-19 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-19
26.1-12.2-19. Prohibition on acquisitions of control
Status: in_force

26.1-12.2-19. Prohibition on acquisitions of control

Except as otherwise specifically provided in section 26.1-12.2-03, from the date a plan of

conversion is adopted by the governing body of a converting mutual company until three years

after the effective date of the plan of conversion, a person may not directly or indirectly offer to

acquire, make any announcement to acquire, or acquire in any manner, including making a filing

with the insurance department for such acquisition under a statute or regulation of this state, the

beneficial ownership of ten percent or more of a class of a voting security of the converted stock

company or of a person that controls the voting securities of the converted stock company,

unless the converted stock company or a person that controls the voting securities of the

converted stock company consents to such acquisition and such acquisition is otherwise

approved by the commissioner.
N.D. Cent. Code § 26.1-36.7-12 — ND Code / Title 26.1 / Chapter 26.1-36.7 / Section 26.1-36.7-12
26.1-36.7-12. Federal funding - Administration of the association - Continuing appropriation
Status: in_force

26.1-36.7-12. Federal funding - Administration of the association - Continuing

appropriation.

Federal funding received by the association under the innovation waiver approved under

section 1332 of the federal Patient Protection and Affordable Care Act [Pub. L. 111-148; 119

Stat. 124; 42 U.S.C. 1801 et seq.] is appropriated to the insurance commissioner on a

continuing basis for the purposes of this chapter.
N.D. Cent. Code § 26.1-36.1-02 — ND Code / Title 26.1 / Chapter 26.1-36.1 / Section 26.1-36.1-02
26.1-36.1-02. Standards for Medicare supplement policies
Status: in_force

26.1-36.1-02. Standards for Medicare supplement policies

1. The commissioner shall adopt reasonable rules to establish specific standards for

provisions of Medicare supplement policies. The standards are in addition to and in

accordance with applicable laws of this state, and may include coverage of:

a. Terms of renewability.

b. Initial and subsequent conditions of eligibility.

c. Nonduplication of coverage.

d. Probationary periods.

e. Benefit limitations, exceptions, and reductions.

f. Elimination periods.

g. Requirements for replacement.

h. Recurrent conditions.

i. Definition of terms.

2. The commissioner may adopt rules that specify prohibited Medicare supplement policy

provisions not otherwise specifically authorized by statute which, in the opinion of the

commissioner, are unjust, unfair, or unfairly discriminatory to any person insured or

proposed for coverage under a Medicare supplement policy or certificate.

3. Notwithstanding any other law, a Medicare supplement policy or certificate may not

deny a claim for losses incurred for more than six months from the effective date of

coverage for a pre-existing condition. The policy or certificate may not define a pre-

existing condition more restrictively than a condition for which medical advice was

given or treatment was recommended by or received from a physician within six

months before the effective date of coverage.

4. No Medicare supplement insurance policy, contract, or certificate in force in the state

may contain benefits that duplicate benefits provided by Medicare.
N.D. Cent. Code § 26.1-10-06.1 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-06.1
26.1-10-06.1. Supervisory colleges
Status: in_force

26.1-10-06.1. Supervisory colleges

1. With respect to any insurer registered under section 26.1-10-04, and in accordance

with subsection 3, the commissioner may participate in a supervisory college for any

domestic insurer that is part of an insurance holding company system with

international operations to determine compliance by the insurer with this chapter. The

powers of the commissioner with respect to a supervisory college include:

a. Initiating the establishment of a supervisory college;

b. Clarifying the membership and participation of other supervisors in the

supervisory college;

c. Clarifying the functions of the supervisory college and the role of other regulators,

including the establishment of a groupwide supervisor;

d. Coordinating the ongoing activities of the supervisory college, including planning

meetings, supervisory activities, and establishing processes for information

sharing; and

e. Establishing a crisis management plan.

2. Each registered insurer subject to this section shall pay the reasonable expenses of

the commissioner's participation in a supervisory college in accordance with

subsection 3, including reasonable travel expenses. For purposes of this section, a

supervisory college may be convened as either a temporary or permanent forum for

communication and cooperation between the regulators charged with the supervision

of the insurer or the insurer's affiliates, and the commissioner may establish a regular

assessment to the insurer for the payment of expenses.

3. To assess the business strategy, financial position, legal and regulatory position, risk

exposure, risk management, and governance processes, and as part of the

examination of an individual insurer in accordance with section 26.1-10-06, the

commissioner may participate in a supervisory college with other regulators charged

with supervision of the insurer or the insurer's affiliates, including other state, federal,

and international regulatory agencies. The commissioner may enter an agreement in

accordance with subsection 3 of section 26.1-10-07 providing the basis for cooperation

between the commissioner and the other regulatory agencies, and the activities of the

supervisory college. This section does not delegate to the supervisory college the

authority of the commissioner to regulate or supervise the insurer or the insurer's

affiliates within the commissioner's jurisdiction.
N.D. Cent. Code § 26.1-40-13 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-13
26.1-40-13. Definitions applicable to sections 26.1-40-13 through 26.1-40-15
Status: repealed

26.1-40-13. Definitions applicable to sections 26.1-40-13 through 26.1-40-15

Repealed by S.L. 1989, ch. 375, § 8.
N.D. Cent. Code § 26.1-33.4-15 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-15
26.1-33.4-15. Penalties
Status: in_force

26.1-33.4-15. Penalties

1. It is a violation of this chapter for any person, provider, broker, or any other party

related to the business of life settlements to commit a fraudulent life settlement act.

2. For criminal liability purposes, a person that commits a fraudulent life settlement act is

guilty of committing insurance fraud.

3. The commissioner may levy a civil penalty not exceeding fifty thousand dollars per

violation and the amount of the claim for each violation upon any person, including

those persons and their employees licensed pursuant to this chapter, who is found to

have committed a fraudulent life settlement act or violated any other provision of this

chapter.

4. The license of a person licensed under this chapter which commits a fraudulent life

settlement act must be revoked.
N.D. Cent. Code § 26.1-05-16 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-16
26.1-05-16. Capital stock reduced - Examination and certificate of commissioner
Status: in_force

26.1-05-16. Capital stock reduced - Examination and certificate of commissioner

When the capital stock of an insurance company is impaired, the company, upon a vote of a

majority of the stock represented at a meeting legally called for that purpose, may reduce its

capital stock, and the number of shares thereof, to an amount not less than the minimum

required by law. No part of its assets and property, however, may be distributed to its

stockholders. Within ten days after the meeting, the company shall submit to the commissioner

a certificate setting forth the proceedings, the amount of the reduction, and the assets and

liabilities of the company, signed and sworn to by its president, secretary, and a majority of its

directors. The commissioner shall examine the facts in the case. If the facts conform to law and

in the commissioner's judgment the proposed reduction may be made without prejudice to the

public, the commissioner shall endorse the commissioner's approval upon the certificate. Upon

the filing of the certificate so endorsed, the company's articles of incorporation are deemed to

be amended to conform to the certificate, the commissioner's certificate must be issued to that

effect, and the company may transact business upon the basis of such reduced capital as

though the same were its original capital. The company, by a majority vote of its directors after

the reduction, may require the return of the original certificates of stock held by each

stockholder in exchange for new certificates in lieu thereof for the number of shares each

stockholder is entitled to in the proportion that the reduced capital bears to the original capital.
N.D. Cent. Code § 26.1-16-01 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-01
26.1-16-01. Benevolent society defined
Status: in_force

26.1-16-01. Benevolent society defined

A "benevolent society" is a domestic corporation, association, or society which operates on

the voluntary assessment or contribution plan for the sole purpose of providing, through

assessments of its members, for the payment of a death benefit to the beneficiary of a

deceased member.
N.D. Cent. Code § 26.1-48-01 — ND Code / Title 26.1 / Chapter 26.1-48 / Section 26.1-48-01
26.1-48-01. Definitions
Status: in_force

26.1-48-01. Definitions

As used in this chapter:

1. "Aftermarket risk insurance" means aircraft and aircraft component product and

completed operations liability insurance that conforms with sections 26.1-48-02 and

26.1-48-03.

2. "Aircraft" means general aviation light craft that is powered and intended to fly above

the ground; is designed to carry one person or more, but with a maximum seating

capacity of fewer than twenty passengers; and weighs less than twelve thousand five

hundred pounds [5669.9 kilograms].

3. "Aircraft component" means a manufactured part or assembly intended for use in the

construction, replacement, or repair of an aircraft. The term includes any complete

aircraft subsystem, including the aircraft engine, that carries its own manufacturer's

warranty or services provided separately from the warranty of the manufacturer of the

aircraft.

4. "Aviation manufacturer" means a manufacturer of aircraft or aircraft components who

has its place of manufacture and place of production of aircraft or aircraft components

located within this state. The term includes a manufacturer located in this state who

imports raw materials, components, and aircraft subassemblies from outside the state

for manufacturing purposes. The term also includes a person who modifies, maintains,

alters, repairs, or installs aircraft components in aircraft in accordance with federal

aviation administration regulations and holds a repair station certificate issued by the

federal aviation administration.
N.D. Cent. Code § 26.1-23.1-02 — ND Code / Title 26.1 / Chapter 26.1-23.1 / Section 26.1-23.1-02
26.1-23.1-02. Government self-insurance pools not insurers
Status: in_force

26.1-23.1-02. Government self-insurance pools not insurers

Any government self-insurance pool organized under chapter 32-12.1 is not an insurance

company or insurer. The coverages provided by the pools and the administration of the pools do

not constitute the transaction of insurance business. Participation in a government

self-insurance pool under this chapter does not constitute a waiver of any existing immunities

otherwise provided by the constitution or laws of this state. In all respects not specifically

provided for under this chapter, a government self-insurance pool is subject to chapters 26.1-01,

26.1-02, 26.1-04, 26.1-25, and 26.1-26 with the exception of sections 26.1-26-06, 26.1-26-07,

and 26.1-26-13.1 relating to insurance companies generally.
N.D. Cent. Code § 26.1-16-08 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-08
26.1-16-08. Deposit maintained by society
Status: in_force

26.1-16-08. Deposit maintained by society

Before the commissioner may issue a certificate of authority to a benevolent society, the

commissioner shall ascertain that the deposit required by section 26.1-16-07 has been made.

The society shall maintain the deposit until the membership of the society reaches one

thousand. Thereafter, the deposit maintained with the commissioner must be equal in amount to

at least twenty-five cents per member in good standing.
N.D. Cent. Code § 26.1-02-24.2 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-24.2
26.1-02-24.2. Immunity from liability
Status: in_force

26.1-02-24.2. Immunity from liability

In the absence of fraud or bad faith, no person is subject to civil liability of any kind,

including for libel and slander, by virtue of filing reports, without malice, or furnishing other

information, without malice, required by the insurance laws of this state or required by the

commissioner, and no civil cause of action of any nature may arise against such person for any

of the following:

1. Any information relating to suspected fraudulent insurance acts furnished to or

received from law enforcement officials, their agents and employees.

2. Any information relating to suspected fraudulent insurance acts furnished to or

received from other persons subject to the provisions of section 26.1-02-24.1 and this

section.

3. Any such information furnished in reports to the insurance fraud bureau, national

association of insurance commissioners, or any organization established to detect and

prevent fraudulent insurance acts, their agents, employees or designees, nor is the

commissioner or any employee of the insurance fraud bureau, in the absence of fraud

or bad faith, subject to civil liability and no civil cause of actions of any nature may

arise against such person by virtue of the publication of any report or bulletin related to

the official activities of the insurance fraud bureau. Nothing herein is intended to

abrogate or modify in any way any common law or statutory privilege or immunity

heretofore enjoyed by any person.
N.D. Cent. Code § 26.1-57-07 — ND Code / Title 26.1 / Chapter 26.1-57 / Section 26.1-57-07
26.1-57-07. Commercial transactions exempted
Status: in_force

26.1-57-07. Commercial transactions exempted

Subsection 3 of section 26.1-57-03, section 26.1-57-05, and section 26.1-57-06, are not

applicable to a guaranteed asset protection waiver offered in connection with a lease or retail

installment sale associated with a commercial transaction.
N.D. Cent. Code § 26.1-06.1-36 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-36
26.1-06.1-36. Special claims
Status: in_force

26.1-06.1-36. Special claims

1. The claim of a third party which is contingent only on first obtaining a judgment against

the insured must be considered and allowed as if there were no such contingency.

2. A claim may be allowed even if contingent, if it is filed in accordance with section
N.D. Cent. Code § 26.1-07-11 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-11
26.1-07-11. Preliminary hearing on petition - Transfer of proceedings - Bond
Status: repealed

26.1-07-11. Preliminary hearing on petition - Transfer of proceedings - Bond

Repealed by S.L. 1991, ch. 305, § 14.
N.D. Cent. Code § 26.1-48-02 — ND Code / Title 26.1 / Chapter 26.1-48 / Section 26.1-48-02
26.1-48-02. North Dakota aftermarket risk contract
Status: in_force

26.1-48-02. North Dakota aftermarket risk contract

The sale of aircraft and aircraft components sold by an aviation manufacturer and the

performance of any modification, maintenance, alteration, repair, or installation of components

in aircraft in this state are governed by an aftermarket risk contract. The contract between the

seller or aviation manufacturer and the purchaser must be executed at the time of purchase and

reconsidered at each subsequent resale. The first and subsequent seller or aviation

manufacturer shall agree to be bound by North Dakota law and the aftermarket risk contract or

to provide a fully paid aftermarket product liability insurance policy that covers exposure to tort

liability within the United States. The option of providing the insurance policy applies only to

aircraft or aircraft components that sell for more than two thousand dollars.
N.D. Cent. Code § 26.1-06.1-02 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-02
26.1-06.1-02. Persons covered
Status: in_force

26.1-06.1-02. Persons covered

The proceedings authorized by this chapter may be applied to:

1. All insurers who are doing, or have done, an insurance business in this state, and

against whom claims arising from that business may exist now or in the future.

2. All insurers who purport to do an insurance business in this state.

3. All insurers who have insureds residing in this state.

4. All persons subject to examination by the commissioner.

5. All other persons organized or in the process of organizing with the intent to do an

insurance business in this state.

6. All nonprofit health service corporations subject to chapter 26.1-17.

7. All fraternal benefit societies subject to chapter 26.1-15.1.

8. All title insurance companies subject to chapter 26.1-20.

9. All health maintenance organizations subject to chapter 26.1-18.1.

10. All prepaid legal service companies subject to chapter 26.1-19.
N.D. Cent. Code § 26.1-30.1-02 — ND Code / Title 26.1 / Chapter 26.1-30.1 / Section 26.1-30.1-02
26.1-30.1-02. Midterm cancellation of commercial insurance
Status: in_force

26.1-30.1-02. Midterm cancellation of commercial insurance

No insurer may cancel a policy of commercial insurance during the term of the policy,

except for one or more of the following reasons:

1. Nonpayment of premiums;

2. Misrepresentation or fraud made by or with the knowledge of the insured in obtaining

the policy or in pursuing a claim under the policy;

3. Actions by the insured that have substantially increased or substantially changed the

risk insured;

4. Refusal of the insured to eliminate known conditions that increase the potential for loss

after notification by the insurer that the condition must be removed;

5. Substantial change in the risk assumed, except to the extent that the insurer should

reasonably have foreseen the change or contemplated the risk in writing the contract;

6. Loss of reinsurance by the insurer which provided coverage to the insurer for a

significant amount of the underlying risk insured. Any notice of cancellation pursuant to

this subsection must advise the policyholder that the policyholder has ten days from

the date of receipt of the notice to appeal the cancellation to the insurance

commissioner and that the commissioner will render a decision as to whether the

cancellation is justified because of the loss of reinsurance within five business days

after receipt of the appeal;

7. A determination by the insurance commissioner that the continuation of the policy

could place the insurer in violation of the insurance laws of this state;

8. Nonpayment of dues to an association or organization, other than an insurance

association or organization, when payment of dues is a prerequisite to obtaining or

continuing such insurance; except this provision for cancellation for failure to pay dues

does not apply to persons who are retired at sixty-two years of age or older or to any

person who is disabled according to social security standards; or

9. A violation of any local fire, health, safety, building, or construction regulation or

ordinance with respect to any insured property or the occupancy thereof which

substantially increases any hazard insured against.
N.D. Cent. Code § 26.1-26-54 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-54
26.1-26-54. Insurance licenses for limited lines travel insurance producers
Status: in_force

26.1-26-54. Insurance licenses for limited lines travel insurance producers

1. Travel insurance, as that term is defined in this section, is a limited line of insurance.

2. As used in this section:

a. "Limited lines travel insurance producer" means a:

(1) Licensed third-party administrator;

(2) Licensed insurance producer, including a limited lines producer; or

(3) Travel administrator, as defined in section 26.1-58-01.

b. "Offer and disseminate" means to provide general information, including a

description of the coverage and price, as well as to process the application,

collect premiums, and perform other nonlicensable activities permitted by the

state.

c. "Travel insurance" means insurance coverage for personal risks incident to

planned travel, including interruption or cancellation of a trip or event; loss of

baggage or personal effects; damages to accommodations or rental vehicles;

sickness, accident, disability, or death occurring during travel; emergency

evacuation; repatriation of remains; or any other contractual obligations to

indemnify or pay a specified amount to the traveler upon determinable

contingencies related to travel as approved by the commissioner. The term does

not include a major medical plan that provides comprehensive medical protection

for an individual on a trip lasting at least six months, including an individual

working or residing overseas as an expatriate, or any other product that requires

a specific insurance producer license.

d. "Travel retailer" means a business entity that makes, arranges, or offers travel

services and which may offer and disseminate travel insurance as a service to

customers on behalf of and under the direction of a limited lines travel insurance

producer.

3. Notwithstanding any other provision of law:

a. The commissioner may issue a limited lines travel insurance producer license to

an individual or business entity that files an application with the commissioner in a

form and manner prescribed by the commissioner. A licensed limited lines travel

insurance producer may sell, solicit, or negotiate travel insurance through a

licensed insurer. A person may not act as a limited lines travel insurance producer

or travel insurance retailer unless properly licensed or registered.

b. A travel retailer may offer and disseminate travel insurance under a limited lines

travel insurance producer business entity license only if the following conditions

are met:

(1) The limited lines travel insurance producer or travel retailer provides to

purchasers of travel insurance:

(a) A description of the material terms or the actual material terms of the

insurance coverage;

(b) A description of the claim filing process;

(c) A description of the policy review or cancellation process for the travel

insurance policy; and

(d) The identity and contact information of the insurer and limited lines

producer.

(2) At the time of licensure, the limited lines travel insurance producer

establishes and maintains a register of each travel retailer that offers

insurance on the behalf of the producer. The register must be on a form

prescribed by the commissioner. Annually, the register must be updated by

the limited lines travel insurance producer. The register must include the

name, address, and contact information of the travel retailer and a person

that controls the travel retailer's operations. The register must include the

travel retailer's federal tax identification number. Upon request, the limited

lines travel insurance producer shall submit the register to the insurance

department. The limited lines producer shall certify that the travel retailer

registered complies with the Violent Crime and Law Enforcement Act of

1994 [Pub. L. 103-322; 108 Stat. 1796; 18 U.S.C. 1033 et seq.]. The

grounds for the suspension, revocation, and penalties applicable to resident

insurance producers under this chapter, must be applicable to limited lines

travel insurance producers and travel retailers.

(3) The limited lines travel insurance producer designates one of the producer's

licensed insurance employees as the individual responsible for the

compliance with the state's travel insurance laws, rules, and regulations.

(4) The designated employee, president, secretary, treasurer, or any other

individual who controls the producer's insurance operations complies with

the fingerprinting requirements applicable to insurance producers in the

resident state of the limited lines travel insurance producer.

(5) The limited lines travel insurance producer pays all applicable licensing fees

as set forth in state law.

(6) The limited lines travel insurance producer requires each employee and

authorized representative of the travel retailer, who offer and disseminate

travel insurance, to receive training, which is subject, at the discretion of the

commissioner, to review and approval. The training material must contain

instructions on the type of insurance offered, ethical sales practices, and

required disclosures to prospective customers.

4. If the insurance commissioner determines that a travel retailer, or a travel retailer's

employee has violated any provision of this chapter or any other provision of this title,

the commissioner may:

a. Direct the limited lines travel insurance producer to implement a corrective action

plan with the travel retailer; or

b. Revoke the authorization of the travel retailer to transact travel insurance on

behalf of the limited lines travel insurance producer under its license and direct

the limited lines travel insurance producer to remove the travel retailer's name

from its register.

5. If the insurance commissioner determines that a travel retailer, or a travel retailer's

employee, has violated any provision in this chapter or any other provision of this title,

the commissioner may:

a. Suspend or revoke the license of the limited lines travel insurance producer;

b. Issue a cease and desist order against the license of the limited lines travel

insurance producer; and

c. Impose a monetary fine on the limited lines travel insurance producer.

6. Limited lines travel insurance producers, and those registered under the producer's

license, are exempt from continuing education requirements.

7. A travel retailer shall make brochures or other written materials that have been

approved by the travel insurer available to prospective purchasers. The materials must

include information that, at a minimum:

a. Provides the identity and contact information of the insurer and the limited lines

travel insurance producer;

b. Explains the purchase of travel insurance is not required in order to purchase any

other product or service from the travel retailer; and

c. Explains an unlicensed travel retailer may provide only general information about

the insurance offered by the travel retailer, including a description of the coverage

and price. An unlicensed travel retailer is not qualified or authorized to answer

technical questions about the terms and conditions of the insurance offered by

the travel retailer or evaluate the adequacy of existing insurance coverage.

8. An unlicensed employee or authorized representative of a travel retailer may not:

a. Evaluate or interpret the technical terms, benefits, or conditions of the offered

travel insurance coverage;

b. Evaluate or advise a prospective purchaser regarding existing insurance

coverage;

c. Be held out as a licensed insurer, licensed producer, or insurance expert; or

d. Be directly paid a commission or any other compensation by an insurer for the

sale of insurance, except in accordance with this chapter and chapter 26.1-58.

9. Notwithstanding any other provision of law, a travel retailer whose insurance-related

activities, and those of the travel retailer's employees and authorized representatives,

are limited to offering and disseminating travel insurance on behalf of and under the

direction of a limited lines travel insurance producer meeting the conditions in this

section, is authorized to receive related compensation, upon registration by the limited

lines travel insurance producer as described in paragraph 2 of subdivision b of

subsection 3.

10. Travel insurance may be provided under an individual policy or under a group or

blanket policy.

11. The limited lines travel insurance producer is responsible for the acts of the travel

retailer. The limited lines travel insurance producer shall ensure the travel retailer

complies with this chapter and chapter 26.1-58.

12. A person licensed in a major line of authority as an insurance producer is authorized to

sell, solicit, and negotiate travel insurance. A property and casualty insurance producer

is not required to become appointed by an insurer in order to sell, solicit, or negotiate

travel insurance.
N.D. Cent. Code § 26.1-02.1-05.1 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-05.1
26.1-02.1-05.1. Administrative penalty and enforcement
Status: reserved

26.1-02.1-05.1. Administrative penalty and enforcement

1. Upon a showing by a preponderance of evidence that a violation of this chapter

occurred, and with the consent of the county state's attorney, the commissioner may

impose an administrative penalty not to exceed ten thousand dollars for each

fraudulent insurance act. Assessment of the administrative penalty must be

determined by the nature, circumstances, extent, and gravity of the fraudulent

insurance act or acts, any prior history of such act or acts, the degree of culpability,

and such other matters as justice may require. The commissioner shall determine the

administrative penalty, such as fines, restitution, or both.

2. In the event of nonpayment of the administrative penalty after all rights of appeal have

been waived or exhausted, the commissioner may bring a civil action in district court

for the collection of the administrative penalty and any other expenses incurred,

including interest, attorney's fees, and costs, in the following manner:

a. A summons and complaint must be filed in the district court of Burleigh County

setting forth that administrative action was taken against the defendant in

accordance with this chapter, that the defendant either voluntarily entered a

consent order that called for the payment of a specified monetary penalty, or in

the alternative, that after proper notice and hearing, the defendant was

determined to be in violation of this chapter and that by order of the commissioner

a specified monetary penalty had been assessed against the defendant, that all

rights of appeal have been waived or exhausted, and that payment in full has not

been made in accordance with the terms of the consent order or other order of

the commissioner. The insurance department shall attach to the complaint a

certified copy of that consent order or other order of the commissioner.

b. The court shall enter judgment in favor of the department for the amount specified

in the complaint if the department establishes:

(1) The defendant is the same person against which the consent order or other

order of the commissioner applies; and

(2) Payment in full has not been made by or on behalf of the defendant

according to the terms of the consent or other order of the commissioner.

c. Except as otherwise provided in this section the North Dakota Rules of Civil

Procedure govern the civil proceedings.

3. A person that is found to have committed a fraudulent insurance act and assessed an

administrative penalty or a person that violated an order of the commissioner pursuant

to a hearing or consent order in relation to an administrative penalty associated with a

fraudulent insurance act, may be liable for expenses incurred by the insurance

department at the discretion of the commissioner. The assessment for costs may not

exceed fifteen percent of each penalty assessed under this section.

4. The commissioner may order restitution to the insurer or self-insured employer of any

insurance proceeds paid pursuant to a fraudulent insurance act. Restitution ordered

must be paid by the owing party to the insurance regulatory trust fund under section

26.1-01-07.1 and from that fund be paid to the victim insurer or self-insured employee.

5. The expenses or administrative penalties collected by the commissioner under this

chapter are appropriated to the insurance department in accordance with this section

and section 26.1-01-07.1. All such moneys that are deposited in the insurance

regulatory trust fund under this chapter may be appropriated for use in the education

and enforcement of insurance fraud, except funds ordered as restitution to a victim.

Restitution funds must be reallocated to the victim. In the discretion of the department,

the department may pay a reward drawn from the assessed administrative penalty to

an individual who reports to the insurance department an incident of fraudulent

insurance act that results in either an admission or finding of fraud. The reward may

not exceed the lesser of the assessed administrative penalty or twenty-five thousand

dollars. In order to be eligible to receive a reward under this subsection, a reporting

individual shall sign a written complaint that subjects the person to the sanctions of

section 26.1-02.1. Persons required to report fraudulent insurance acts under

subsection 1 of section 26.1-02.1-06 are not eligible to receive a reward pursuant to

this subsection.

6. The insurance department may collect moneys for use by the department for fraud

education and enforcement purposes.

a. The following amounts must be deposited in the insurance regulatory trust fund

for use by the department for fraud education and enforcement purposes, all

sums received from:

(1) Fines assessed in accordance with this chapter; and

(2) Assessment of department costs under subsection 3.

b. The moneys received under this subsection are reserved for the use by the

insurance department to defray the expenses of the department in the

performance of the various functions and duties associated with fraud

enforcement, fund specialized training of department personnel tasked with

working within fraud enforcement, and provide the funding for specialized

equipment, specialized technology, and insurance fraud public service and

prevention campaigns and rewards.

c. The moneys deposited for this purpose are subject to the provisions of section

26.1-01-07.1.
N.D. Cent. Code § 26.1-38.1-05 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-05
26.1-38.1-05. Powers and duties of the association
Status: in_force

26.1-38.1-05. Powers and duties of the association

1. If a member insurer is an impaired insurer, the association may, in its discretion, and

subject to any conditions imposed by the association that do not impair the contractual

obligations of the impaired insurer, and that are approved by the commissioner:

a. Guarantee, assume, reissue, or reinsure, or cause to be guaranteed, assumed,

reissued, or reinsured, any or all of the policies or contracts of the impaired

insurer; or

b. Provide such moneys, pledges, loans, notes, guarantees, or other means as are

proper to effectuate subdivision a and assure payment of the contractual

obligations of the impaired insurer pending action under subdivision a.

2. If a member insurer is an insolvent insurer, the association, in its discretion, shall:

a. Guarantee, assume, reissue, or reinsure, or cause to be guaranteed, assumed,

reissued, or reinsured, the policies or contracts of the insolvent insurer;

b. Assure payment of the contractual obligations of the insolvent insurer;

c. Provide moneys, pledges, loans, notes, guarantees, or other means reasonably

necessary to discharge the association's duties; or

d. Provide benefits and coverage in accordance with the following provisions:

(1) With respect to policies and contracts, assure payment of benefits that

would have been payable under the policies or contracts of the insolvent

insurer, for claims incurred:

(a) With respect to group policies and contracts, not later than the earlier

of the next renewal date under those policies or contracts or forty-five

days, but in no event less than thirty days, after the date on which the

association becomes obligated with respect to the policies and

contracts.

(b) With respect to nongroup policies, contracts, and annuities, not later

than the earlier of the next renewal date, if any, under such policies or

contracts or one year, but in no event less than thirty days, from the

date on which the association becomes obligated with respect to the

policies or contracts.

(2) Make diligent efforts to provide all known insureds, enrollees, or annuitants

for nongroup policies and contracts, or group policy or contract owners with

respect to group policies and contracts, thirty days' notice of the termination

pursuant to paragraph 1 of the benefits provided.

(3) With respect to nongroup policies and contracts covered by the association,

make available to each known insured, enrollee, or annuitant, or owner if

other than the insured or annuitant, and with respect to an individual

formerly an insured, enrollee, or annuitant under a group policy or contract

who is not eligible for replacement group coverage, make available

substitute coverage on an individual basis in accordance with the provisions

of paragraph 4, if the insureds, enrollees, or annuitants had a right under

law or the terminated policy, contract, or annuity to convert coverage to

individual coverage or to continue an individual policy, contract, or annuity in

force until a specified age or for a specified time, during which the insurer or

health maintenance organization had no right unilaterally to make changes

in any provision of the policy, contract, or annuity or had a right only to make

changes in premium by class.

(a) In providing the substitute coverage required under this paragraph, the

association may offer either to reissue the terminated coverage or to

issue an alternative policy or contract at actuarially justified rates,

subject to the prior approval of the commissioner.

(b) Alternative or reissued policies or contracts shall be offered without

requiring evidence of insurability, and shall not provide for any waiting

period or exclusion that would not have applied under the terminated

policy or contract.

(c) The association may reinsure any alternative or reissued policy or

contract.

(4) Alternative policies or contracts adopted by the association shall be subject

to the approval of the commissioner. The association may adopt alternative

policies or contracts of various types for future issuance without regard to

any particular impairment or insolvency.

(5) Alternative policies or contracts must contain at least the minimum statutory

provisions required in this state and provide benefits that are not

unreasonable in relation to the premium charged. The association shall set

the premium in accordance with a table of rates which it shall adopt. The

premium must reflect the amount of insurance to be provided and the age

and class of risk of each insured, but may not reflect any changes in the

health of the insured after the original policy or contract was last

underwritten.

(6) Any alternative policy or contract issued by the association shall provide

coverage of a type similar to that of the policy or contract issued by the

impaired or insolvent insurer, as determined by the association.

(7) If the association elects to reissue terminated coverage at a premium rate

different from that charged under the terminated policy or contract, the

premium must be actuarially justified and set by the association in

accordance with the amount of insurance or coverage provided and the age

and class of risk, subject to prior approval of the commissioner.

(8) The association's obligations with respect to coverage under any policy or

contract of the impaired or insolvent insurer or under any reissued or

alternative policy or contract shall cease on the date the coverage or policy

or contract is replaced by another similar policy or contract by the policy or

contract owner, the insured, the enrollee, or the association.

3. When proceeding under subsection 2 with respect to any policy or contract carrying

guaranteed minimum interest rates, the association shall assure the payment or

crediting of a rate of interest consistent with subdivision c of subsection 3 of section

26.1-38.1-01.

4. Nonpayment of premiums within thirty-one days after the date required under the

terms of any guaranteed, assumed, alternative, or reissued policy or contract or

substitute coverage terminates the association's obligations under the policy, contract,

or coverage under this chapter with respect to the policy, contract, or coverage, except

with respect to any claims incurred or any net cash surrender value which may be due

in accordance with the provisions of this chapter.

5. Premiums due for coverage after entry of an order of liquidation of an insolvent insurer

belong to and are payable at the direction of the association. If the liquidator of an

insolvent insurer requests, the association shall provide a report to the liquidator

regarding the premium collected by the association. The association is liable for

unearned premiums due to policy or contract owners arising after the entry of the

order.

6. The protection provided by this chapter does not apply when any guaranty protection

is provided to residents of this state by the laws of the domiciliary state or jurisdiction

of the impaired or insolvent insurer other than this state.

7. In carrying out its duties under subsection 2, the association may:

a. Subject to approval by a court in this state, impose permanent policy or contract

liens in connection with any guarantee assumption or reinsurance agreement, if

the association finds that the amounts which can be assessed under this chapter

are less than the amounts needed to assure full and prompt performance of the

association's duties under this chapter, or that the economic or financial

conditions as they affect member insurers are sufficiently adverse to render the

imposition of such permanent policy or contract liens, to be in the public interest.

b. Subject to approval by a court in this state, impose temporary moratoriums or

liens on payments of cash values and policy loans, or any other right to withdraw

funds held in conjunction with policies or contracts, in addition to any contractual

provisions for deferral or cash or policy loan value. In addition, in the event of a

temporary moratorium or moratorium charge imposed by the receivership court

on payment of cash values or policy loans, or on any other right to withdraw funds

held in conjunction with policies or contracts, out of the assets of the impaired or

insolvent insurer, the association may defer the payment of cash values, policy

loans, or other rights by the association for the period of the moratorium or

moratorium charge imposed by the receivership court, except for claims covered

by the association to be paid in accordance with a hardship procedure

established by the liquidator or rehabilitator and approved by the receivership

court.

8. A deposit in this state, held according to law or as required by the commissioner for

the benefits of creditors, including policy or contract owners, not turned over to the

domiciliary liquidator upon the entry of a final order of liquidation or order approving a

rehabilitation plan of a member insurer domiciled in this state or in a reciprocal state,

under section 26.1-06.1-50, must be paid promptly to the association. The association

may retain a portion of any amount received equal to the percentage determined by

dividing the aggregate amount of policy or contract owners' claims related to that

insolvency for which the association has provided statutory benefits by the aggregate

amount of all policy or contract owners' claims in this state related to that insolvency

and shall remit to the domiciliary receiver the amount so paid to the association, less

the amount retained pursuant to this subsection. Any amount paid to the association

and retained by it is treated as a distribution of estate assets pursuant to section

26.1-06.1-43 or similar provision of the state of domicile of the impaired or insolvent

insurer.

9. If the association fails to act within a reasonable period of time with respect to an

insolvent insurer, as provided in subsection 2, the commissioner shall have the powers

and duties of the association under this chapter with respect to insolvent insurers.

10. The association may render assistance and advice to the commissioner, upon request,

concerning rehabilitation, payment of claims, continuance of coverage, or the

performance of other contractual obligations of any impaired or insolvent insurer.

11. The association shall have standing to appear or intervene before any court or agency

in this state with jurisdiction over an impaired or insolvent insurer concerning which the

association is or may become obligated under this chapter or with jurisdiction over any

person or property against which the association may have rights through subrogation

or otherwise. Such standing extends to all matters germane to the powers and duties

of the association, including proposals for reinsuring, reissuing, modifying, or

guaranteeing the policies or contracts of the impaired or insolvent insurer and the

determination of the policies or contracts and contractual obligations. The association

shall also have the right to appear or intervene before a court or agency in another

state with jurisdiction over an impaired or insolvent insurer for which the association is

or may become obligated or with jurisdiction over any person or property against

whom the association may have rights through subrogation or otherwise.

12. Any person receiving benefits under this chapter must be deemed to have assigned

the rights under, and any causes of action against any person for losses arising under,

resulting from, or otherwise relating to, the covered policy or contract to the

association to the extent of the benefits received because of this chapter, whether the

benefits are payments of or on account of contractual obligations, continuation of

coverage, or provision of substitute or alternative policies, contracts, or coverages. The

association may require an assignment to it of such rights and causes of action by any

enrollee, payee, policy or contract owner, beneficiary, insured, or annuitant as a

condition precedent to the receipt of any right or benefits conferred by this chapter

upon such person.

13. The subrogation rights of the association under this section have the same priority

against the assets of the impaired or insolvent insurer as that possessed by the person

entitled to receive benefits under this chapter.

14. In addition to subsections 12 and 13, the association shall have all common-law rights

of subrogation and other equitable or legal remedy that would have been available to

the impaired or insolvent insurer or owner, beneficiary, enrollee, or payee of a policy or

contract with respect to such policy or contract, including, in the case of a structured

settlement annuity, any rights of the owner, beneficiary, or payee of the annuity, to the

extent of benefits received under this chapter, against a person originally or by

succession responsible for the losses arising from the personal injury relating to the

annuity or payment for the personal injury, except any such person responsible solely

by reason of serving as an assignee in respect of a qualified assignment under section

130 of the Internal Revenue Code.

15. If subsections 12, 13, and 14 are invalid or ineffective with respect to any person or

claim for any reason, the amount payable by the association with respect to the related

covered obligations must be reduced by the amount realized by any other person with

respect to the person or claim that is attributable to the policies or contracts or portion

of the policies or contracts covered by the association. If the association has provided

benefits with respect to a covered obligation and a person recovers amounts as to

which the association has rights as described in the preceding paragraphs of this

subsection, the person shall pay to the association the portion of the recovery

attributable to the policies or contracts or portion of the policies or contracts covered

by the association.

16. In addition to any other rights and powers under this chapter, the association may:

a. Enter into such contracts as are necessary or proper to carry out the provisions

and purposes of this chapter;

b. Sue or be sued, including taking any legal actions necessary or proper to recover

any unpaid assessments under section 26.1-38.1-06 and to settle claims or

potential claims against it;

c. Borrow money to effect the purposes of this chapter and any notes or other

evidences of indebtedness of the association not in default shall be legal

investments for domestic member insurers and may be carried as admitted

assets;

d. Employ or retain such persons as are necessary or appropriate to handle the

financial transactions of the association, and to perform such other functions as

become necessary or proper under this chapter;

e. Take such legal action as may be necessary or appropriate to avoid or recover

payment of improper claims;

f. Exercise, for the purposes of this chapter and to the extent approved by the

commissioner, the powers of a domestic life insurer, health insurer, or health

maintenance organization, but in no case may the association issue policies or

contracts other than those issued to perform its obligations under this chapter;

g. Organize itself as a corporation or in other legal form permitted by the laws of this

state;

h. Request information from a person seeking coverage from the association in

order to aid the association in determining its obligations under this chapter with

respect to the person, and the person promptly shall comply with the request;

i. Unless prohibited by law, in accordance with the terms and conditions of the

policy or contract, file for actuarially justified rate or premium increases for any

policy or contract for which the association provides coverage under this chapter;

and

j. Take other necessary or appropriate action to discharge its duties and obligations

under this chapter or to exercise its powers under this chapter.

17. The association may join an organization of one or more state associations of similar

purposes, to further the purposes and administer the powers and duties of the

association.

18. At any time within one year after the date on which the association becomes

responsible for the obligations of a member insurer, the association may elect to

succeed to the rights and obligations of the member insurer which accrue on or after

this coverage date and which relate to contracts covered in whole or in part by the

association under any indemnity reinsurance agreement entered by the member

insurer as a ceding insurer and selected by the association. However, the association

may not exercise an election with respect to a reinsurance agreement if the receiver,

rehabilitator, or liquidator of the member insurer previously and expressly has

disaffirmed the reinsurance agreement. The election is effected by a notice to the

receiver, rehabilitator, or liquidator and to the affected reinsurers. If the association

makes an election, subdivisions a through d apply with respect to the agreements

selected by the association.

a. The association is responsible for all unpaid premiums due under the

agreements, for periods both before and after the coverage date, and is

responsible for the performance of all other obligations to be performed after the

coverage date, in each case which relate to contracts covered, in whole or in part,

by the association. The association may charge contracts covered in part by the

association, through reasonable allocation methods, the costs for reinsurance in

excess of the obligations of the association.

b. The association is entitled to any amounts payable by the reinsurer under the

agreements with respect to losses or events that occur in periods after the

coverage date and that relate to contracts covered by the association, in whole or

in part, provided that, upon receipt of any of these amounts, the association is

obliged to pay to the beneficiary under the policy or contract on account of which

the amounts were paid a portion of the amount equal to the excess of the amount

received by the association, over the benefits paid by the association on account

of the policy or contract less the retention of the impaired or insolvent member

insurer applicable to the loss or event.

c. Within thirty days following the association's election, the association and each

indemnity reinsurer shall calculate the net balance due to or from the association

under each reinsurance agreement as of the date of the association's election,

giving full credit to every item paid by the member insurer or its receiver,

rehabilitator, or liquidator, or the indemnity reinsurer during the period between

the coverage date and the date of the association's election. The association or

indemnity reinsurer shall pay the net balance due the other within five days of the

completion of the aforementioned calculation. If the receiver, rehabilitator, or

liquidator received any amounts due the association pursuant to subdivision b,

the receiver, rehabilitator, or liquidator shall remit the amounts to the association

as promptly as practicable.

d. If the association, within sixty days of the election, pays the premiums due for

periods both before and after the coverage date that relate to contracts covered

by the association, in whole or in part, the reinsurer may not terminate the

reinsurance agreements, to the extent the agreements relate to contracts covered

by the association, in whole or in part, and may not set off any unpaid premium

due for periods before the coverage date against amounts due the association.

19. If the association transfers its obligations to another insurer, and if the association and

the other insurer agree, the other insurer shall succeed to the rights and obligations of

the association under subsection 18 effective as of the date agreed by the association

and the other insurer and regardless of whether the association made the election,

provided that:

a. The indemnity reinsurance agreements automatically terminate for new

reinsurance unless the indemnity reinsurer and the other insurer agree to the

contrary;

b. The obligations described in the proviso to subdivision b of subsection 18 no

longer apply on and after the date the indemnity reinsurance agreement is

transferred to the third-party insurer; and

c. This subsection does not apply if the association previously expressly determined

in writing that it will not exercise the election referred to in subsection 18.

20. Subsections 18 and 19 supersede the provisions of any law of this state or of any

affected reinsurance contract that provides for or requires any payment of reinsurance

proceeds, on account of losses or events that occur in periods after the coverage date,

to the receiver, rehabilitator, or liquidator, of the insolvent member insurer. The

receiver, rehabilitator, or liquidator remains entitled to any amounts payable by the

reinsurer under the reinsurance agreement with respect to losses or events that occur

in periods before the coverage date, subject to applicable setoff provisions.

21. Except as otherwise expressly provided in this section, this section does not alter or

modify the terms and conditions of the indemnity reinsurance agreements of the

insolvent member insurer. This section does not abrogate or limit any rights of any

reinsurer to claim that it is entitled to rescind a reinsurance agreement. This section

does not give a policy owner, contract owner, enrollee, certificate holder, or beneficiary

an independent claim for relief against an indemnity reinsurer which is not otherwise

set forth in the indemnity reinsurance agreement.

22. The board of directors of the association has discretion and may exercise reasonable

business judgment to determine the means by which the association is to provide the

benefits of this chapter in an economical and efficient manner.

23. If the association arranged or offered to provide the benefits of this chapter to a

covered person under a plan or arrangement that fulfills the association's obligations

under this chapter, the person is not entitled to benefits from the association in addition

to or other than those provided under the plan or arrangement.

24. Burleigh County is the venue in a course of action against the association arising

under this chapter. The association is not required to give an appeal bond in an appeal

that relates to a cause of action arising under this chapter.

25. The association, in carrying out association duties in connection with guaranteeing,

assuming, reissuing, or reinsuring policies or contracts under subsections 1 and 2,

may issue substitute coverage for a policy or contract that provides a rate of interest,

crediting of a rate of interest, or similar factor determined by using an index or other

external reference stated in the policy or contract which is employed in calculating

returns or changes in value by issuing an alternative policy or contract if:

a. Instead of the index or other external reference provided for in the original policy

or contract, the alternative policy or contract provides for a fixed interest rate,

payment of dividends with minimum guarantees, or different method for

calculating interest or changes in value;

b. There is no requirement for evidence of insurability, a waiting period, or other

exclusion that would not have applied under the replaced policy or contract; and

c. The alternative policy or contract is substantially similar to the replaced policy or

contract in all other material terms.
N.D. Cent. Code § 26.1-03-19.7 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-19.7
26.1-03-19.7. Immunity from liability
Status: in_force

26.1-03-19.7. Immunity from liability

1. No cause of action arises, nor may any liability be imposed, against the commissioner,

the commissioner's authorized representatives, or any examiner appointed by the

commissioner for any statements made or conduct performed in good faith while

carrying out the provisions of this chapter.

2. No cause of action arises, nor may any liability be imposed, against any person for the

act of communicating or delivering information or data to the commissioner or the

commissioner's authorized representative or examiner pursuant to an examination

made under this chapter, if the act of communication or delivery was performed in

good faith and without fraudulent intent or the intent to deceive.

3. This section does not abrogate or modify in any way any common law or statutory

privilege or immunity heretofore enjoyed by any person identified in subsection 1.

4. A person identified in subsection 1 is entitled to an award of attorney's fees and costs if

that person is the prevailing party in a civil cause of action for libel, slander, or any

other relevant tort arising out of activities in carrying out the provisions of this chapter

and the party bringing the action was not substantially justified in doing so. For

purposes of this section, a proceeding is "substantially justified" if it had a reasonable

basis in law or fact at the time that it was initiated.
N.D. Cent. Code § 26.1-09-02 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-02
26.1-09-02. Domestic corporations have right to exchange contracts
Status: in_force

26.1-09-02. Domestic corporations have right to exchange contracts

Any domestic corporation, in addition to the rights, powers, and franchises specified in its

articles of incorporation, as a subscriber, may exchange insurance contracts of the kind and

character mentioned in this chapter. The right to exchange the contracts is incidental to the

purposes for which the corporation was organized and is granted as fully as the rights and

powers expressly conferred upon the corporation.
N.D. Cent. Code § 26.1-45-13 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-13
26.1-45-13. Qualified service providers
Status: in_force

26.1-45-13. Qualified service providers

Any insurance company providing long-term care coverage for home and community-based

services shall pay a provider meeting qualified service provider standards a daily payment

allowance as defined in the policy or certificate. "Qualified service provider" means a human

service zone or independent contractor that agrees to meet standards for personal attendant

care service as established by the department of health and human services.
N.D. Cent. Code § 26.1-14-12 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-12
26.1-14-12. Terms of coverage - Classifications
Status: in_force

26.1-14-12. Terms of coverage - Classifications

1. The terms and conditions of all policies issued by the company to physicians must be

essentially uniform in terms and coverage.

2. Notwithstanding subsection 1, the company may prescribe reasonable classifications

of physicians' and insureds' activities and exposures based on good-faith

determination of relative exposures and hazards among classifications and may vary

the limits, coverages, exclusions, conditions, and loss-sharing provisions among

classifications. Additionally, the company may describe, in the case of an individual

physician within a class, reasonable variations in the terms of coverage including

deductibles in loss-sharing provisions, based upon the insured's prior loss experience

and current professional training and capability.
N.D. Cent. Code § 26.1-09-06 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-06
26.1-09-06. Consent to service of process - Judgment - Satisfaction
Status: in_force

26.1-09-06. Consent to service of process - Judgment - Satisfaction

Service of process made upon the commissioner is valid and binding upon all subscribers at

any time exchanging reciprocal or interinsurance contracts through the attorney filing the

statement required under section 26.1-09-05. A judgment rendered in any case of the nature

described in section 26.1-09-05 is valid and binding upon all subscribers as their liability may

appear and may be satisfied out of any funds in the possession of the attorney belonging to the

subscribers.
N.D. Cent. Code § 26.1-41-09 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-09
26.1-41-09. Payment of basic and optional excess no-fault benefits
Status: in_force

26.1-41-09. Payment of basic and optional excess no-fault benefits

1. Basic and optional excess no-fault benefits are payable monthly for economic loss

sustained by an injured person or dependent survivors or incurred on the injured

person's behalf by the injured person's spouse, relatives, or guardian. A basic no-fault

insurer may pay basic or optional excess no-fault benefits when due to the above

persons who it believes have sustained or incurred the economic loss or at its option

to the person rendering, for a charge, the services for which the benefits are payable.

If the injured person dies, a basic no-fault insurer may pay the benefits due directly to

those entitled to the benefits without the appointment of a personal representative and

unless a court directs otherwise, may pay all benefits for survivors' income loss or

replacement services loss to the surviving spouse for the use and benefit of all

dependent survivors. A basic no-fault insurer's payments made in good faith in

accordance with this chapter discharges its liability to the extent of the payments

unless the basic no-fault insurer has been notified in writing of the claim of some other

person prior to the making of any of the payments.

2. Basic and optional excess no-fault benefits are overdue if not paid within thirty days

after the basic no-fault insurer receives reasonable proof of the fact and the amount of

loss sustained, except that the basic no-fault insurer may accumulate claims for

periods not exceeding one month, and the benefits are not overdue if paid within

twenty days after the period of accumulation. If reasonable proof is not supplied as to

the entire claim, the amount supported by reasonable proof is overdue if not paid

within thirty days after the proof is received by the basic no-fault insurer. Any part or all

of the remainder of the claim that is later supported by reasonable proof is overdue if

not paid within thirty days after proof is received by the basic no-fault insurer. Payment

is deemed made on the date of mailing. All overdue payments must bear interest at

the judgment rate allowed in section 28-20-34.

3. Neither the injured person nor a basic no-fault insurer is required to pay for services

billed more than one hundred eighty days after the date of treatment.
N.D. Cent. Code § 26.1-36.4-08 — ND Code / Title 26.1 / Chapter 26.1-36.4 / Section 26.1-36.4-08
26.1-36.4-08. Employer payment of employee premium
Status: in_force

26.1-36.4-08. Employer payment of employee premium

An insurer shall accept a personal or business check from an employer as a payment

method for premium payment for an employee's individual accident and health insurance policy.

This section does not apply to groups as defined under chapter 26.1-36.3.
N.D. Cent. Code § 26.1-06.1-26 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-26
26.1-06.1-26. Fraudulent transfer after petition
Status: in_force

26.1-06.1-26. Fraudulent transfer after petition

1. After a petition for rehabilitation or liquidation has been filed, a transfer of any of the

real property of the insurer made to a person acting in good faith is valid against the

receiver if made for a present fair equivalent value. If the transfer is not made for a

present fair equivalent value, then the transfer is valid to the extent of the present

consideration actually paid therefor, for which amount the transferee shall have a lien

on the property so transferred. The commencement of a proceeding in rehabilitation or

liquidation is constructive notice upon the recording of a copy of the petition for or

order of rehabilitation or liquidation with the recorder in the county where any real

property in question is located. The exercise by a court of the United States or any

state or jurisdiction to authorize or effect a judicial sale of real property of the insurer

within any county in any state may not be impaired by the pendency of such a

proceeding unless the copy is recorded in the county prior to the consummation of the

judicial sale.

2. After a petition for rehabilitation or liquidation has been filed and before either the

receiver takes possession of the property of the insurer or an order of rehabilitation or

liquidation is granted:

a. A transfer of any of the property of the insurer, other than real property, made to a

person acting in good faith is valid against the receiver if made for a present fair

equivalent value. If the transfer is not made for a present fair equivalent value,

then the transfer is valid to the extent of the present consideration actually paid

therefor, for which amount the transferee shall have a lien on the property so

transferred.

b. A person indebted to the insurer or holding property of the insurer may, if acting in

good faith, pay the indebtedness or deliver the property, or any part thereof, to

the insurer or upon the insurer's order, with the same effect as if the petition were

not pending.

c. A person having actual knowledge of the pending rehabilitation or liquidation must

be deemed not to act in good faith.

d. A person asserting the validity of a transfer under this section shall have the

burden of proof. Except as elsewhere provided in this section, no transfer by or

on behalf of the insurer after the date of the petition for liquidation by any person

other than the liquidator is valid against the liquidator.

3. Every person receiving any property from the insurer or any benefit thereof which is a

fraudulent transfer under subsection 1 is personally liable therefor and is bound to

account to the liquidator.

4. Nothing in this chapter impairs the negotiability of currency or negotiable instruments.
N.D. Cent. Code § 26.1-12-20 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-20
26.1-12-20. Separate reserves to be maintained for each kind of insurance written by mutual insurance company
Status: in_force

26.1-12-20. Separate reserves to be maintained for each kind of insurance written by

mutual insurance company.

Every mutual insurance company organized under this chapter shall maintain unearned

premium and other reserves separately for each kind of insurance written by it upon the same

basis as is required of a domestic stock insurance company transacting the same kind of

insurance business. Any reserve for losses or claims based upon the premium income,

however, must be computed upon the net premium income after deducting any so-called

dividend or premium returned or credited to the member.
N.D. Cent. Code § 26.1-25-14 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-14
26.1-25-14. False or misleading information
Status: in_force

26.1-25-14. False or misleading information

No person or organization may willfully withhold information from, or knowingly give false or

misleading information to, the commissioner, any statistical agency designated by the

commissioner, any advisory organization, or any insurer, which will affect the rates or premiums

chargeable under this chapter. A violation of this section subjects the offender to the penalties

provided in section 26.1-25-18.
N.D. Cent. Code § 26.1-39.1-02 — ND Code / Title 26.1 / Chapter 26.1-39.1 / Section 26.1-39.1-02
26.1-39.1-02. Limitations on issuance of certificates of insurance
Status: in_force

26.1-39.1-02. Limitations on issuance of certificates of insurance

A person may not prepare, issue, or require the issuance of a certificate of insurance on

property, operations, or risks located in this state unless the certificate of insurance form has

been filed with the commissioner by or on behalf of the insurer and has been approved by the

commissioner. The commissioner may designate as meeting the requirements of this section

and not requiring further approval a standard certificate of insurance form, which may include a

form promulgated and filed by a national insurance advisory organization, such as the

association for cooperative research and development, the American association of insurance

services, and the insurance services office.
N.D. Cent. Code § 26.1-17.1-03 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-03
26.1-17.1-03. Application for certificate of authority
Status: in_force

26.1-17.1-03. Application for certificate of authority

An application for a certificate of authority to operate a prepaid limited health service

organization must be filed with the commissioner on a form prescribed by the commissioner.

Such application must be verified by an officer or authorized representative of the applicant and

must set forth, or be accompanied by, the following:

1. A copy of the applicant's basic organizational document, such as the articles of

incorporation, articles of association, partnership agreement, trust agreement, or other

applicable documents and all amendments to such documents.

2. A copy of all bylaws, rules and regulations, or similar documents, if any, regulating the

conduct of the applicant's internal affairs.

3. A list of the names, addresses, official positions, and biographical information of the

individuals who are responsible for conducting the applicant's affairs, including all

members of the board of directors, board of trustees, executive committee, or other

governing board or committee, the principal officers, and any person or entity owning

or having the right to acquire ten percent or more of the voting securities of the

applicant, and the partners or members in the case of a partnership or association.

4. A statement generally describing the applicant, its facilities, personnel, and the limited

health service or services to be offered.

5. A copy of the form of any contract made or to be made between the applicant and any

providers regarding the provision of limited health services to enrollees.

6. A copy of the form of any contract made or to be made between the applicant and any

person listed in subsection 3.

7. A copy of the form of any contract made or to be made between the applicant and any

person, corporation, partnership, or other entity for the performance on the applicant's

behalf of any functions, including the following:

a. Marketing and enrollment.

b. Administration.

c. Investment management.

d. Subcontracting for the provision of the limited health service to enrollees.

8. A copy of the form of any contract which is to be issued to employers, unions, trustees,

or other organizations or individuals and a copy of any form of evidence of coverage to

be issued to subscribers or enrollees.

9. A copy of the applicant's most recent financial statements audited by independent

certified public accountants. If the financial affairs of the applicant's parent company

are audited by independent certified public accountants but those of the applicant are

not, then a copy of the most recent audited financial statement of the applicant's

parent company, certified by an independent certified public accountant, attached to

which will be consolidating financial statements of the applicant, satisfies this

requirement unless the commissioner determines that additional or more recent

financial information is required for the proper administration of this chapter.

10. A copy of the applicant's financial plan, including a three-year projection of anticipated

operating results, a statement of the sources of working capital, and any other sources

of funding and provisions for contingencies.

11. A schedule of rates and charges.

12. A description of the proposed method of marketing.

13. A statement acknowledging that all lawful process in any legal action or proceeding

against the applicant on a cause of action arising in this state is valid if served upon

the commissioner.

14. A description of the complaint procedures to be established and maintained as

required under section 26.1-17.1-12.

15. A description of the quality assessment and utilization review procedures to be utilized

by the applicant.

16. A description of how the applicant will comply with section 26.1-17.1-17.

17. The fee for issuance of a certificate of authority provided in section 26.1-17.1-23.

18. Such other information as the commissioner may reasonably require to make the

determinations required by this chapter.
N.D. Cent. Code § 26.1-41-14 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-14
26.1-41-14. Stacking of basic no-fault benefits prohibited
Status: in_force

26.1-41-14. Stacking of basic no-fault benefits prohibited

When an injured person is provided basic no-fault benefits by an insurance policy issued in

compliance with this chapter, the injured person is covered only to the extent of the basic

no-fault benefits provided on the secured motor vehicle involved in the accident and the optional

excess no-fault benefits purchased by the injured person, or a relative of the injured person, on

a secured motor vehicle, if any, in excess of the basic no-fault benefits provided on the secured

motor vehicle involved in the accident. If any person is injured while occupying an unsecured

motor vehicle, basic no-fault benefits are only available to the extent of the applicable basic

no-fault benefits provided to the injured person as the owner of a secured motor vehicle or as a

relative of the owner of a secured motor vehicle. In either instance, basic no-fault benefits on

any secured motor vehicle may not be added or stacked upon basic no-fault benefits available

from any other source.
N.D. Cent. Code § 26.1-33-20 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-20
26.1-33-20. Computation of paid-up nonforfeiture benefits
Status: in_force

26.1-33-20. Computation of paid-up nonforfeiture benefits

Any paid-up nonforfeiture benefit available under the policy in the event of default in a

premium payment due on any policy anniversary must be such that its present value as of the

anniversary must be at least equal to the cash surrender value then provided for by the policy

or, if none is provided for, that cash surrender value which would have been required by

sections 26.1-33-18 through 26.1-33-28 in the absence of the condition that premiums must

have been paid for at least a specified period.
N.D. Cent. Code § 26.1-36-06 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-06
26.1-36-06. Group health policy and medical service contract options for drugs and chiropractic care
Status: in_force

26.1-36-06. Group health policy and medical service contract options for drugs and

chiropractic care.

No insurance company or health service corporation may deliver, issue, execute, or renew

any health insurance policy or medical service contract that includes coverage of medical

benefits on a group, blanket, franchise, or association basis unless the insurer makes available,

at the option of the policyholder, the following coverages for which an additional premium may

be charged:

1. All drugs and medicines prescribed by the provider of health services.

2. Services rendered and care administered by chiropractors licensed under chapter

43-06.
N.D. Cent. Code § 26.1-26.3-06 — ND Code / Title 26.1 / Chapter 26.1-26.3 / Section 26.1-26.3-06
26.1-26.3-06. Penalties and liabilities
Status: in_force

26.1-26.3-06. Penalties and liabilities

1. If the commissioner determines that the managing general agent or any other person

has not materially complied with this chapter or any rule or order adopted under this

chapter, after notice and opportunity to be heard, the commissioner may order:

a. For each separate violation, a penalty in an amount not exceeding one thousand

dollars;

b. Revocation or suspension of the insurance producer's license; and

c. If it was found that because of the material noncompliance that the insurer has

suffered any loss or damage, the commissioner may maintain a civil action

brought by or on behalf of the insurer and its policyholders and creditors for

recovery of compensatory damages for the benefit of the insurer and its

policyholders and creditors or other appropriate relief.

2. If an order of rehabilitation or liquidation of the insurer has been entered pursuant to

chapter 26.1-06.1, and the receiver appointed under that order determines that the

managing general agent or any other person has not materially complied with this

chapter, or any rule or order adopted under this chapter, and the insurer suffered any

loss or damage as a result of the material noncompliance, the receiver may maintain a

civil action for recovery of damages or other appropriate sanctions for the benefit of

the insurer.

3. Nothing contained in this section affects the right of the commissioner to impose any

other penalties provided for in the insurance law.

4. Nothing contained in this chapter is intended to or shall in any manner limit or restrict

the rights of policyholders, claimants, and auditors.

5. The decision, determination, or order of the commissioner pursuant to subsection 1 is

subject to judicial review pursuant to chapter 28-32.
N.D. Cent. Code § 26.1-11-06 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-06
26.1-11-06. Reciprocal penalties - Retaliatory charges
Status: in_force

26.1-11-06. Reciprocal penalties - Retaliatory charges

Whenever the laws of any other state, or of any foreign country, or of any province or

territory thereof, or when the rules of the insurance department of that state, country, province,

or territory, require any insurance company, corporation, limited liability company, association, or

society organized under the laws of this state to deposit securities in that state, country,

province, or territory for the protection of policyholders or others, or any payment for taxes,

fines, penalties, certificates of authority, licenses, or fees, or the performance of any duties or

acts other than and exceeding those required by the laws of this state of a like insurance

company, corporation, limited liability company, association, or society organized under the laws

of that state, country, territory, or province, while transacting business in this state, then and in

every such case, an insurance company, corporation, limited liability company, association, or

society organized in that state, country, province, or territory which establishes an agency or

transacts business in this state, is required to make deposits and to pay to the commissioner

charges, licenses, fees, taxes, fines, or penalties in the amounts respectively, and to do all other

acts which that other state, country, province, or territory, by the laws or the rules of the

insurance department thereof, requires of a like insurance company, corporation, limited liability

company, or society organized under the laws of this state when doing business in that other

state, country, province, or territory. This section applies regardless of the plan of assessment or

collection of premiums, contributions, or assessments adopted by the foreign company,

corporation, limited liability company, association, or society.
N.D. Cent. Code § 26.1-17-05 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-05
26.1-17-05. Authority of corporation writing hospital service contracts
Status: in_force

26.1-17-05. Authority of corporation writing hospital service contracts

In addition to any other powers granted by law, a health service corporation writing hospital

service contracts may:

1. Enter into contracts for the rendering of hospital service to any of its subscribers with

hospitals maintained and operated by the state or any of its political subdivisions, or by

any corporation, limited liability company, association, or individual. The hospital

service plan operated by the corporation may provide for hospital service and other

related health services, excluding the practice of medicine, as advancements in health

care and treatment warrant the extension and providing of such services and in case

of emergency or expediency. All hospital and related health services provided are

subject to the approval of the health service corporation.

2. Make and enter into mutual agreements with hospitals or groups of hospitals, nursing

homes, and other vendors and furnishers of health care services and other related

facilities, excluding the practice of medicine.

3. Make and enter into mutual agreements with state, federal, or other governmental

agencies to provide hospital services, nursing home care, and other related health

services, excluding the practice of medicine, including health care services for the

needy and other persons.

4. Make and enter into mutual agreements with any other health care corporation or with

any state or local government or agency thereof to provide health care administrative

services, to act as administrator of any other health care service plan, or to act as a

marketing agency or as a fiscal intermediary of any health care plan or of any other

health care organization or of any state or local government or agency.

5. Enter into contracts with other corporations, including insurance companies but only

with prior approval of the commissioner, or other entities in this state or in other states

or possessions of the United States, or of Canada or other foreign countries so that:

a. Reciprocity of benefits may be provided to subscribers.

b. Transfer of subscribers from one entity to another may be effected to conform to

the subscriber's place of residence.

c. Uniform benefits may be provided for all employees and dependents of such

employees of entities and other organizations transacting business in this state

and elsewhere and a rate representing the composite experience of the areas

involved may be charged for such employees and their dependents.

d. Health services may be provided for subscribers or policyholders of this or other

corporations, including insurers, or entities for the purpose of ceding or accepting

reinsurance or of jointly providing benefits, underwriting, pooling, mutualization,

equalization, and other joint undertakings which the governing board may from

time to time approve.
N.D. Cent. Code § 26.1-25.1-06 — ND Code / Title 26.1 / Chapter 26.1-25.1 / Section 26.1-25.1-06
26.1-25.1-06. Adverse action notification
Status: in_force

26.1-25.1-06. Adverse action notification

If an insurer takes an adverse action based upon credit information, the insurer must meet

the notice requirements of this section. The insurer shall:

1. Provide notification to the consumer that an adverse action has been taken, in

accordance with the requirements of the federal Fair Credit Reporting Act [Pub. L.

90-321; 15 U.S.C. 1681m(a)]; and

2. Provide notification to the consumer explaining the reason for the adverse action. The

reasons must be provided in sufficiently clear and specific language so that a person

can identify the basis for the insurer's decision to take an adverse action. The

notification must include a description of up to four factors that were the primary

influences of the adverse action. The use of generalized terms such as "poor credit

history", "poor credit rating", or "poor insurance score" does not meet the explanation

requirements of this subsection. Standardized credit explanations provided by

consumer reporting agencies or other third-party vendors are deemed to comply with

this section.
N.D. Cent. Code § 26.1-38.1-15 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-15
26.1-38.1-15. Stay of proceedings - Reopening default judgments
Status: in_force

26.1-38.1-15. Stay of proceedings - Reopening default judgments

All proceedings in which the insolvent insurer is a party in any court in this state must be

stayed one hundred eighty days from the date an order of liquidation, rehabilitation, or

conservation is final to permit proper legal action by the association on any matters germane to

its powers or duties. As to judgment under any decision, order, verdict, or finding based on

default, the association may apply to have such judgment set aside by the same court that

made such judgment and must be permitted to defend against such suit on the merits.
N.D. Cent. Code § 26.1-23.1-03 — ND Code / Title 26.1 / Chapter 26.1-23.1 / Section 26.1-23.1-03
26.1-23.1-03. Government self-insurance pool approval from the commissioner
Status: in_force

26.1-23.1-03. Government self-insurance pool approval from the commissioner

Before the insurance commissioner authorizes the operation of a government self-insurance

pool, the pool shall provide the following:

1. A financial plan setting forth:

a. The insurance coverages to be offered by the pool, applicable deductible levels,

and the maximum level of claims to be self-insured against.

b. The amount of cash reserves to be set aside for the payment of claims.

c. The amount of aggregate excess insurance or reinsurance coverage to be

purchased in the event that the pool's resources are exhausted in a given fiscal

period.

2. A plan of management which must provide the following:

a. The means of establishing the governing authority of the pool and, if the

governing authority of the pool is set forth in articles of incorporation, the articles

must be filed in the office of the secretary of state and a certified copy must be

filed with the commissioner. The commissioner may not issue a certificate to the

pool if, in the commissioner's judgment, the company's name too closely

resembles the name of an existing corporation or is liable to mislead the public.

b. The responsibility of the governing authority with regard to fixing contributions to

the pool by participating government political subdivisions, maintaining reserves,

levying and collecting assessments for deficiencies, disposing of surplus, and

administering the pool in the event of termination or insolvency.

c. The basis upon which new members may be admitted to, and existing members

may leave or have membership terminated by, the pool.

d. The identification of funds and reserves by exposure areas.

e. Other provisions necessary or desirable for the operation of the pool.

3. A plan for the election by pool members of a governing authority, which must be a

board of directors for the pool.