N.D. Cent. Code § 26.1-25.2-02 — ND Code / Title 26.1 / Chapter 26.1-25.2 / Section 26.1-25.2-02
26.1-25.2-02. Definitions
Status: in_force

26.1-25.2-02. Definitions

As used in this chapter:

1. "Deceptive practices" means any misstatement or omission of any material fact, or

submission of a false statement, in light of the circumstances under which it was

made, by a person acting with the intent to defraud in filing an insurance claim.

2. "Insurance support organization" means:

a. (1) A person who regularly engages, in whole or in part, in the practice of

assembling or collecting information about an individual for the primary

purpose of providing the information to an insurance institution or insurance

producer for an insurance transaction.

(2) The term includes the furnishing of consumer reports or investigative

consumer reports to an insurance institution or insurance producer for use in

connection with an insurance transaction.

(3) The term also includes the collection of personal information from an

insurance institution, insurance producer, or insurance support organization

for the purpose of detecting or preventing fraud, material misrepresentation,

or material nondisclosure in connection with insurance underwriting or

insurance claim activity.

b. The following persons are not insurance support organizations:

(1) Insurance producers.

(2) Government institutions.

(3) Insurance institutions.

(4) Medical care institutions.

(5) Medical professionals.

3. "Personal insurance" means private passenger automobile, homeowner, motorcycle,

mobile homeowner, and owner-occupied dwelling fire insurance policies.
N.D. Cent. Code § 26.1-23.1-05 — ND Code / Title 26.1 / Chapter 26.1-23.1 / Section 26.1-23.1-05
26.1-23.1-05. Investment of assets - Subsidiary insurance company coverage
Status: in_force

26.1-23.1-05. Investment of assets - Subsidiary insurance company coverage

A government self-insurance pool may only invest its funds and accumulations in those

investments described in sections 26.1-05-19 and 26.1-10-02. If a government self-insurance

pool investment is made under section 26.1-10-02, a resulting subsidiary insurance company

may not write insurance coverage for:

1. North Dakota governmental entities, which competes with coverage offered by the fire

and tornado fund under chapter 26.1-22 as that chapter existed on December 31,

1988;

2. Individuals;

3. For-profit organizations;

4. Nonprofit hospitals, clinics, nursing homes, churches, fraternal organizations, or

organizations not performing quasi-governmental functions; or

5. Agricultural business cooperatives.
N.D. Cent. Code § 26.1-35-10 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-10
26.1-35-10. Reserve calculation - Indeterminate premium plans
Status: in_force

26.1-35-10. Reserve calculation - Indeterminate premium plans

In the case of any plan of life insurance which provides for future premium determination,

the amounts of which are to be determined by the insurer based on then estimates of future

experience, or in the case of any plan of life insurance or annuity which is of such a nature that

the minimum reserves cannot be determined by the methods described in sections 26.1-35-05,

26.1-35-06, and 26.1-35-09, the reserves which are held under the plan must be appropriate in

relation to the benefits and the pattern of premiums for that plan, and must be computed by a

method that is consistent with the principles of this chapter, as determined by rules adopted by

the commissioner.
N.D. Cent. Code § 26.1-02-33 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-33
26.1-02-33. Posting policy on internet
Status: in_force

26.1-02-33. Posting policy on internet

1. An insurance policy and an endorsement that does not contain personally identifiable

information may be mailed, delivered, or posted on the insurer's website. If the insurer

elects to post an insurance policy and an endorsement on the insurer's website in lieu

of mailing or delivering the policy and endorsement to the insured, the insurer shall

comply with the following conditions:

a. The policy and an endorsement must be accessible to the insured and producer

of record and remain that way while the policy is in force;

b. After the expiration of the policy, the insurer shall archive the expired policy and

endorsement for a period of five years or other period required by law, and make

the policy and endorsement available upon request;

c. The policy and endorsement must be posted in a manner that enables the

insured and producer of record to print and save the policy and endorsement

using a program or application that is widely available on the internet and free to

use;

d. The insurer shall provide the following information in, or simultaneous with, each

declaration page provided at the time of issuance of the initial policy and any

renewals of the policy:

(1) A description of the exact policy and endorsement form purchased by the

insured;

(2) A description of the insured's right to receive, upon request and without

charge, a paper copy of the policy and endorsement by mail; and

(3) The internet address at which the policy and endorsement are posted;

e. The insurer, upon an insured's request and without charge, shall mail a paper

copy of the policy and endorsement to the insured; and

f. The insurer shall provide notice, in the format preferred by the insured, of any

change to the forms or endorsement; the insured's right to obtain, upon request

and without charge, a paper copy of the forms or endorsement; and the internet

address at which the forms or endorsement are posted.

2. This section does not affect the timing or content of any disclosure or document

required to be provided or made available to any insured under applicable law.
N.D. Cent. Code § 26.1-31-06 — ND Code / Title 26.1 / Chapter 26.1-31 / Section 26.1-31-06
26.1-31-06. Double insurance of one of several things
Status: in_force

26.1-31-06. Double insurance of one of several things

The procurement of any other insurance contract upon one or more of several distinct

interests insured by one insurance policy does not render void any insurance upon the interests

not covered by such other insurance contract. In case of loss or damage, the value of property

doubly insured must be deducted from the value of all the property covered by the insurance

policy. Any agreement made to waive the provisions of this section is void.
N.D. Cent. Code § 26.1-15.1-29 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-29
26.1-15.1-29. Foreign or alien society - Admission
Status: in_force

26.1-15.1-29. Foreign or alien society - Admission

No foreign society may transact business in this state without a license issued by the

commissioner. Any foreign society desiring admission to this state shall comply with the

requirements and limitations of this chapter applicable to domestic societies. Any foreign society

may be licensed to transact business in this state upon filing with the commissioner:

1. A duly certified copy of its articles of incorporation;

2. A copy of its bylaws, certified by its secretary or corresponding officer;

3. A power of attorney to the commissioner as required under section 26.1-15.1-35;

4. A statement of its business under oath of its president and secretary or corresponding

officers in a form prescribed by the commissioner, duly verified by an examination

made by the supervising insurance official of its home state or other state, territory,

province, or country, satisfactory to the commissioner;

5. Certification from the proper official of its home state, territory, province, or country that

the society is legally incorporated and licensed to transact business therein;

6. Copies of its certificate forms; and

7. Such other information as the commissioner may deem necessary.

The foreign society shall also show that its assets are invested in accordance with this chapter.
N.D. Cent. Code § 26.1-03-04 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-04
26.1-03-04. Assets required of cooperative and assessment life associations
Status: in_force

26.1-03-04. Assets required of cooperative and assessment life associations

Every cooperative or assessment life association authorized to do business in this state

shall accumulate and maintain assets in excess of actual liabilities for death losses sustained

and expenses incurred equal to two percent of all insurance which the association has in force.

The assets must be cash, money on deposit in banks, and securities eligible for investment by

insurance companies under this title.
N.D. Cent. Code § 26.1-26-14 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-14
26.1-26-14. Investigation by commissioner
Status: in_force

26.1-26-14. Investigation by commissioner

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

under this chapter, the commissioner may conduct investigations and propound interrogatories

concerning the applicant's qualifications, residence, business affiliations, and any other matter

which the commissioner believes necessary or advisable to determine compliance with this

chapter or for the protection of the public.
N.D. Cent. Code § 26.1-30-08 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-08
26.1-30-08. Person intended may claim benefit of policy
Status: in_force

26.1-30-08. Person intended may claim benefit of policy

When the description of the insured in an insurance policy is so general that it may

comprehend any person or any class of persons, the benefit of the policy may be claimed only

by a person who can show that it was intended to include that person.
N.D. Cent. Code § 26.1-49-08 — ND Code / Title 26.1 / Chapter 26.1-49 / Section 26.1-49-08
26.1-49-08. Prohibited practices - Penalty
Status: in_force

26.1-49-08. Prohibited practices - Penalty

1. It is unlawful for any person, company, or corporation or any agent, officer, or

employee thereof, to coerce or require any person to agree, either in writing or orally,

not to join or become or remain a member of any health provider cooperative as a

condition of securing or retaining a contract for health care services with the person,

firm, or corporation.

2. It is unlawful for any person, company, or corporation, or any combination of persons,

companies, or corporations, or any agents, officers, or employees thereof, to engage

in acts of coercion, intimidation, or boycott of, or any refusal to deal with, any health

care providing entity arising from that entity's actual or potential participation in a

health provider cooperative.

3. It is unlawful for any health provider cooperative to engage in any acts of coercion,

intimidation, or boycott of, or any concerted refusal to deal with any health plan

company seeking to contract with the cooperative on a competitive, reasonable, and

nonexclusive basis.

4. It is unlawful for any health provider cooperative to refuse membership to any licensed

health care provider or organization that applies for membership and that otherwise

agrees to the membership requirements of the health provider cooperative.

5. Any person violating subsections 1 through 4 is deemed to have committed a violation

of chapter 51-08.1 and is subject to the provisions, procedures, and penalties of that

chapter.
N.D. Cent. Code § 26.1-13-02 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-02
26.1-13-02. Articles of incorporation - Territory of operation - Insurance applications required
Status: in_force

26.1-13-02. Articles of incorporation - Territory of operation - Insurance applications

required.

Persons desiring to form a county mutual insurance company shall submit to the

commissioner a description of the territory of operation and shall submit to the commissioner the

articles of incorporation of the proposed company. The territory of operation is subject to the

review and approval of the commissioner. An existing county mutual insurance company that

desires to expand its territory of operation shall submit a description of the current territory of

operation and proposed territory of operation to the commissioner for review and approval. If

merger of two or more county mutual insurance companies is proposed, the commissioner shall

determine the territory of operation of the merged company. Upon a showing of good cause, the

territory of operations of the merged company may exceed thirty counties. If the articles are

found to comply with this chapter, the commissioner shall approve the articles and the articles

must be filed in the office of the secretary of state and a certified copy must be filed with the

commissioner. The articles must be signed by the number of persons required to incorporate the

company and must be accompanied by sufficient evidence of the execution of bona fide

applications for insurance to the number and in the amount stated in section 26.1-13-01. The

articles of incorporation must set forth:

1. The name of the company.

2. The name of the city in or near which the business office of the company is to be

located.

3. The intended duration of the company, which is perpetual.
N.D. Cent. Code § 26.1-36.8-01 — ND Code / Title 26.1 / Chapter 26.1-36.8 / Section 26.1-36.8-01
26.1-36.8-01. Definitions
Status: in_force

26.1-36.8-01. Definitions

1. "Association" means a group that has a constitution and bylaws, has been organized

and maintained in good faith for the purposes other than that of obtaining insurance,

and insures at least twenty-five members of the association for the benefit of persons

other than the association or officers or trustees of the association.

2. "Association short-term limited-duration plan" means health insurance coverage

provided to an association which has an expiration date specified in the policy which is

no longer than twelve months after the original effective date of the policy and, taking

into account any renewals or extensions, has a duration of no more than thirty-six

months in total.

3. "Essential health benefits" means benefits pursuant to section 1302 of the federal

Patient Protection and Affordable Care Act [42 U.S.C. 18022] and title 45, Code of

Federal Regulations, section 156.110.

4. "Individual short-term limited-duration plan" means health insurance coverage

provided pursuant to an individual insurance policy which has an expiration date

specified in the policy which is no longer than twelve months after the original effective

date of the policy including renewals or extension.
N.D. Cent. Code § 26.1-03.1-11 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-11
26.1-03.1-11. Immunity
Status: in_force

26.1-03.1-11. Immunity

There is no liability on the part of, and no cause of action may arise against, the

commissioner or the insurance department or its employees or agents for any action taken by

them in the performance of their powers and duties under this chapter.
N.D. Cent. Code § 26.1-36.8-04 — ND Code / Title 26.1 / Chapter 26.1-36.8 / Section 26.1-36.8-04
26.1-36.8-04. Marketing and sales of individual and association plans
Status: in_force

26.1-36.8-04. Marketing and sales of individual and association plans

1. All marketing materials related to the offering or sale of an individual or association

short-term limited-duration plan must be filed with and approved by the commissioner

before the plan is offered for sale in this state.

2. Sale of an individual or association short-term limited-duration plan is only allowed

through a licensed and properly appointed insurance producer. An insurance

producer's signature and identification number must be included on the prospective

insured's application.
N.D. Cent. Code § 26.1-37-14 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-14
26.1-37-14. Existing insurance - Choice of insurer
Status: in_force

26.1-37-14. Existing insurance - Choice of insurer

When consumer credit insurance is required as additional security for any debt, the debtor

shall, upon request to the creditor, have the option of furnishing the required amount of

insurance through existing insurance policies owned or controlled by the debtor or of procuring

and furnishing the required coverage through any insurer authorized to transact insurance

business in this state.
N.D. Cent. Code § 26.1-15.1-33 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-33
26.1-15.1-33. Licensing of agents
Status: in_force

26.1-15.1-33. Licensing of agents

Insurance producers of societies must be licensed under chapter 26.1-26.
N.D. Cent. Code § 26.1-36-09.8 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.8
26.1-36-09.8. Health insurance policy and health service contract - Postdelivery coverage for mothers and newborns
Status: in_force

26.1-36-09.8. Health insurance policy and health service contract - Postdelivery

coverage for mothers and newborns.

1. An insurance company, nonprofit health service corporation, or health maintenance

organization may not deliver, issue, execute, or renew any health insurance policy,

health service contract, or evidence of coverage that provides maternity benefits on an

individual, group, blanket, franchise, or association basis unless the policy, contract, or

evidence of coverage provides benefits, of the same type offered under the policy or

contract for illnesses, for health services to any person covered under the policy or

contract for:

a. Inpatient care for at least forty-eight hours for a mother and her newborn child

following a normal vaginal delivery, and inpatient care for at least ninety-six hours

following a caesarean section, without requiring the attending physician or health

care provider to obtain authorization to care for a mother and her newborn child in

the inpatient setting for this period of time.

b. Inpatient care in excess of forty-eight hours following a vaginal delivery and

ninety-six hours following a caesarean section if the stay is determined to be

reasonable and medically necessary.

2. Coverage is not required for postdelivery inpatient care for a covered mother and her

newborn child during the entire minimum time period required under subdivision a of

subsection 1 if:

a. The attending physician or health care provider, in consultation with the mother,

decides to discharge the mother and her newborn child early; and

b. The mother and her newborn child meet the minimum medical criteria for

discharge as recommended in the "Guidelines for Perinatal Care" prepared by

the American college of obstetricians and gynecologists and the American

academy of pediatrics.

3. A person covered under this section is not required to give birth in a hospital or stay in

a hospital for a fixed period of time following the birth of her child or participate in any

postdelivery visit.

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

organization, or provider may not:

a. Provide monetary payments to any insured person to request less than the

minimum coverage required under this section;

b. Penalize or otherwise reduce or limit the reimbursement of an attending physician

or health care provider for recommending or providing care that is covered under

this section;

c. Waive any deductible, coinsurance, or copayment requirement for providing the

minimum coverage required under this section;

d. Deny to the mother or newborn child eligibility or continued eligibility to enroll or to

renew coverage under the terms of the plan solely to avoid the requirements of

this section; or

e. Provide incentives, monetary or otherwise, to an attending physician or health

care provider to induce the physician or provider to provide care to an individual

participant or beneficiary in a manner inconsistent with this section.

5. The coverage required under subsection 1 may not exceed policy aggregate limits for

this coverage.

6. This section does not prevent an insurance company, nonprofit health service

corporation, or health maintenance organization from imposing deductibles,

coinsurance, or other cost sharing in relation to benefits for hospital lengths of stay

relating to childbirth for a mother or newborn child under the plan.
N.D. Cent. Code § 26.1-40-22 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-22
26.1-40-22. Penalty
Status: in_force

26.1-40-22. Penalty

Any person violating section 26.1-40-18 is guilty of a class A misdemeanor.
N.D. Cent. Code § 26.1-03.1-07 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-07
26.1-03.1-07. Hearings
Status: in_force

26.1-03.1-07. Hearings

Upon any of the following, the insurer has the right to a confidential departmental hearing,

on a record, at which the insurer may challenge any determination or action by the

commissioner. The insurer shall notify the commissioner of the request for a hearing within five

days after the notification by the commissioner under subsection 1, 2, 3, or 4. Upon receipt of

the insurer's request for a hearing, the commissioner shall set a date for the hearing, which date

may be no less than ten nor more than thirty days after the date of the insurer's request.

1. Notification to an insurer by the commissioner of an adjusted risk-based capital report;

2. Notification to an insurer by the commissioner that:

a. The insurer's risk-based capital plan or revised risk-based capital plan is

unsatisfactory; and

b. Such notification constitutes a regulatory action level event with respect to the

insurer;

3. Notification to any insurer by the commissioner that the insurer has failed to adhere to

its risk-based capital plan or revised risk-based capital plan and that the failure has a

substantial adverse effect on the ability of the insurer to eliminate the company action

level event with respect to the insurer in accordance with its risk-based capital plan or

revised risk-based capital plan; or

4. Notification to an insurer by the commissioner of a corrective order with respect to the

insurer.
N.D. Cent. Code § 26.1-26-06 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-06
26.1-26-06. Insurance producer - Agent of insurer
Status: in_force

26.1-26-06. Insurance producer - Agent of insurer

An insurance producer who sells, solicits, or negotiates an application for insurance of any

kind is, in any controversy between the insured or the insured's beneficiary and the insurer,

regarded as representing the insurer and not the insured or the insured's beneficiary. An

insurance producer may not act as an agent of an insurer unless the insurance producer

becomes an appointed insurance producer of that insurer. This section does not affect the

apparent authority of an agent.
N.D. Cent. Code § 26.1-39-27 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-27
26.1-39-27. Travel, event, and unmanned aircraft insurance
Status: in_force

26.1-39-27. Travel, event, and unmanned aircraft insurance

1. As used in this section:

a. "Event cancellation coverage" means insurance covering the cancellation of an

organized event, either public or private, described in the policy, which occurs on

a specified date and time.

b. "Unmanned aircraft" means an aircraft operated without the possibility of direct

human intervention from within or on the aircraft.

2. Unless otherwise provided under this title, the following insurance coverages are the

only coverages that may cover an insured for a period of time other than beginning at

12:01 a.m. on the day on which coverage begins and ending at 12:01 a.m. on the day

of expiration of the policy, as required by section 26.1-30-18:

a. Travel insurance;

b. Event cancellation coverage insurance; and

c. Unmanned aircraft liability insurance.

3. Any insurance policy covering insureds for a period of time other than beginning at

12:01 a.m. on the day on which coverage begins and ending at 12:01 a.m. on the day

of expiration of the policy is subject to the provisions of sections 26.1-30-19,

26.1-30-20, and 26.1-30-21.
N.D. Cent. Code § 26.1-29-19 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-19
26.1-29-19. Communication of material facts may be waived
Status: in_force

26.1-29-19. Communication of material facts may be waived

The right to information of material facts may be waived, either by the terms of insurance or

by neglect to make inquiries as to such facts, when they distinctly are implied in other facts of

which information is communicated.
N.D. Cent. Code § 26.1-53.1-09 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-09
26.1-53.1-09. Reporting of actions
Status: in_force

26.1-53.1-09. Reporting of actions

A discount plan organization shall report to the commissioner any administrative action

taken against the organization in another jurisdiction or by another governmental agency in this

state within thirty days of the final disposition of the matter. This report must include a copy of

the order, consent to order, or other relevant legal documents.
N.D. Cent. Code § 26.1-26.8-10 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-10
26.1-26.8-10. License denial, nonrenewal, or revocation - Penalty
Status: in_force

26.1-26.8-10. License denial, nonrenewal, or revocation - Penalty

1. The commissioner may suspend, revoke, or refuse to issue or renew a resident public

adjuster license, nonresident public adjuster license, or business entity public adjuster

license or may levy an administrative fine in accordance with subsection 4, or a

combination of those actions, for the following causes:

a. Providing incorrect, misleading, incomplete, or materially untrue information in the

license application;

b. Violating any provision of this title or violating a rule, regulation, subpoena, or

order of the commissioner or another state's insurance commissioner;

c. Obtaining or attempting to obtain a license through misrepresentation or fraud;

d. Improperly withholding, misappropriating, or converting money or property

received in the course of doing business;

e. Intentionally misrepresenting the terms of an actual or proposed insurance

contract or application for insurance;

f. Having been convicted of a felony or a class A or B misdemeanor;

g. Having admitted or been found to have committed an insurance unfair trade

practice, an unfair claims settlement practice, or fraud;

h. Using fraudulent, coercive, or dishonest practices or demonstrating

incompetence, untrustworthiness, or financial irresponsibility in the conduct of

business in this state or elsewhere or failing to comply with section 26.1-26.8-15;

i. Having an insurance or public adjuster license, or its equivalent, denied,

suspended, placed on probation, or revoked in this state or in another state,

province, district, or territory;

j. Forging another person's name to an application for insurance or to a document

related to an insurance transaction;

k. Improperly using notes or other reference materials to complete an examination

for an insurance license;

l. Knowingly accepting insurance business from a person that is not licensed;

m. Failing to comply with an administrative or court order imposing a child support

obligation;

n. Failing to pay state income tax or comply with an administrative or court order

directing payment of state income tax; or

o. Failing to maintain in good standing a resident license in the public adjuster's

home state.

2. If the commissioner does not renew or denies an application for a public adjuster

license, the commissioner shall notify the applicant or licensee and advise, in writing,

the reason for the denial or nonrenewal of the license. Within thirty days of nonrenewal

or denial, the applicant or licensee may make written demand upon the commissioner

for a hearing before the commissioner to determine the reasonableness of the

commissioner's action. The hearing must be held pursuant to chapter 28-32.

3. A business entity public adjuster license may be suspended, revoked, or denied if the

commissioner finds, after notice and hearing, that a violation committed by an

individual licensee providing services through the business entity was known or should

have been known by one or more of the partners, officers, or managers acting on

behalf of the business entity and the violation neither was reported to the

commissioner nor was corrective action taken in relation to the violation.

4. In addition to or in lieu of an applicable denial, suspension, or revocation of a license,

a person violating this chapter may, after notice and hearing, be subject to an

administrative fine of not more than ten thousand dollars per violation. A fine may be

enforced in the same manner as civil judgments. A person charged with a violation of

this chapter may waive the right to a hearing and consent to the discipline the

commissioner determines is appropriate. Chapter 28-32 governs all hearings held

pursuant to this subsection.

5. The commissioner may enforce this chapter and impose a penalty or remedy

authorized by this chapter against a person under investigation for or charged with a

violation of this chapter even if the person's license has been surrendered or lapsed by

operation of law. A disciplinary proceeding may not be instituted against a person after

three years from the termination of the person's license.
N.D. Cent. Code § 26.1-36-12.1 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-12.1
26.1-36-12.1. Health service corporation contract provision denying insured or subscriber right to employ doctor or enter hospital prohibited
Status: in_force

26.1-36-12.1. Health service corporation contract provision denying insured or

subscriber right to employ doctor or enter hospital prohibited.

Any provision in any health service contract issued by a health service corporation denying

the insured or subscriber, subscriber member, officer, or employee, in case of accident or

sickness, the right to consult or employ any doctor, including doctors of chiropractic, licensed to

practice in this state whom the insured, subscriber, subscriber member, officer, or employee

may choose, or to enter any hospital or sanitarium organized and operating under the laws of

this state which the insured, subscriber, subscriber member, officer, or employee may select, is

void. The health service corporation must recognize any proof of claim duly certified by the

doctor, hospital, or sanitarium notwithstanding any provision contained in the contract.
N.D. Cent. Code § 26.1-33-13 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-13
26.1-33-13. Variable life contracts - Separate accounts
Status: in_force

26.1-33-13. Variable life contracts - Separate accounts

Any domestic life insurance company, including any domestic fraternal benefit society that

operates on a legal reserve basis, may establish one or more separate accounts and may

allocate thereto amounts, including proceeds applied under optional modes of settlement or

under dividend options, to provide for life insurance, and benefits incidental thereto, payable in

fixed or variable amounts or both, subject to the following:

1. The income, gains, and losses, realized or unrealized from assets allocated to a

separate account, must be credited to or charged against the account, without regard

to other income, gains, or losses of the company.

2. Except as may be provided with respect to reserves for guaranteed benefits and funds

referred to in subsection 3:

a. Amounts allocated to any separate account and accumulations thereon may be

invested and reinvested without regard to any requirements or limitations

prescribed by laws of this state governing the investments of life insurance

companies.

b. Investments in a separate account or accounts may not be taken into account in

applying the investment limitations otherwise applicable to the investments of the

company.

3. Except with the approval of the commissioner and under any conditions as to

investments and other matters the commissioner may prescribe, which must recognize

the guaranteed nature of the benefits provided, reserves for benefits guaranteed as to

dollar amount and duration and funds guaranteed as to principal amount or stated rate

of interest may not be maintained in a separate account.

4. Unless otherwise approved by the commissioner, assets allocated to a separate

account must be valued at their market value on the date of valuation, or if there is no

readily available market, then as provided under the terms of the contract or the rules

or other written agreement applicable to the separate account. Unless otherwise

approved by the commissioner, the portion of the assets of the separate account equal

to the company's reserve liability with regard to the guaranteed benefits and funds

referred to in subsection 3 must be valued in accordance with the rules otherwise

applicable to the company's assets.

5. Amounts allocated to a separate account are owned by the company, and the

company may not be, nor hold itself out to be, a trustee with respect to such amounts.

To the extent provided under the applicable contracts, that portion of the assets of any

separate account equal to the reserves and other contract liabilities with respect to the

account is not chargeable with liabilities arising out of any other business the company

may conduct.

6. No sale, exchange, or other transfer of assets may be made by a company between

any of its separate accounts or between any other investment account and its

separate accounts unless, in case of a transfer into a separate account, the transfer is

made solely to establish the account or to support the operation of the contracts with

respect to the separate account to which the transfer is made, and unless the transfer,

whether into or from a separate account, is made by a transfer of cash or by a transfer

of securities having a readily determinable market value, provided that a transfer of

securities is approved by the commissioner. The commissioner may approve other

transfers among such accounts if, in the commissioner's opinion, the transfers would

not be inequitable.

7. To the extent the company determines it is necessary to comply with any applicable

federal or state laws, the company, with respect to any separate account, including any

separate account which is a management investment company or a unit investment

trust, may provide for persons having an interest therein appropriate voting and other

rights and special procedures for the conduct of the business of the account, including

special rights and procedures relating to investment policy, investment advisory

services, selection of independent public accountants, and selection of a committee,

the members of which need not be otherwise affiliated with the company, to manage

the business of the account.
N.D. Cent. Code § 26.1-05-27 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-27
26.1-05-27. Certificate of compliance with security deposit law - Issuance - Renewal - Attachment to policies
Status: in_force

26.1-05-27. Certificate of compliance with security deposit law - Issuance - Renewal -

Attachment to policies.

The commissioner shall issue a certificate to a domestic life insurance company to the effect

that the company does business under the compulsory reserve deposit law of North Dakota and

maintains in the office of the commissioner a deposit of an amount in excess of the net value of

all outstanding policies in stipulated and first-class securities deposited for the protection of the

policyholders of the company when the company has:

1. Filed its annual statement; and

2. Deposited securities with the commissioner or filed a detailed list of securities held by

the company in lieu of the deposit with the commissioner, the deposit and list to be

renewed annually on or before March first.

The certificate expires on March thirty-first of the ensuing year and may be renewed annually

upon the filing of a statement of renewal along with any additional physical deposit or additions

to the statement of securities held by the company in lieu of a deposit and upon compliance with

the other provisions of this section. A copy of the certificate may be attached to any insurance

policy issued by any domestic life insurance company after the certificate has been issued to it.
N.D. Cent. Code § 26.1-42.1-07 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-07
26.1-42.1-07. Duties and powers of the commissioner
Status: in_force

26.1-42.1-07. Duties and powers of the commissioner

1. The commissioner shall:

a. Notify the association of the existence of an insolvent insurer within three days

after the commissioner receives notice of the determination of the insolvency. The

association is entitled to a copy of any complaint seeking an order of liquidation

with a finding of insolvency against a member company at the same time that this

complaint is filed with a court of competent jurisdiction.

b. Upon request of the board of directors, provide the association with a statement

of the net direct written premiums of each member insurer.

2. The commissioner may:

a. Suspend or revoke, after notice and hearing, the certificate of authority to transact

insurance in this state of any member insurer that fails to pay an assessment

when due or fails to comply with the plan of operation. In the alternative, the

commissioner may levy a fine on any member insurer that fails to pay an

assessment when due. A fine under this subdivision may not exceed five percent

of the unpaid assessment per month, except that a fine may not be less than one

hundred dollars per month.

b. Revoke the designation of any servicing facility if the commissioner finds claims

are being handled unsatisfactorily.
N.D. Cent. Code § 26.1-06.1-50 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-50
26.1-06.1-50. Liquidation of property of foreign or alien insurers found in this state
Status: in_force

26.1-06.1-50. Liquidation of property of foreign or alien insurers found in this state

1. If no domiciliary receiver has been appointed, the commissioner may apply to the

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

assets found in this state of a foreign insurer or an alien insurer not domiciled in this

state, on any of the following grounds:

a. Any of the grounds in section 26.1-06.1-11 or 26.1-06.1-16; or

b. Any of the grounds specified in subdivisions b, c, and d of subsection 1 of section

26.1-06.1-49.

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

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

circumstances.

3. If it appears to the court that the best interests of creditors, policyholders, and the

public require, the court may issue an order to liquidate in whatever terms it deems

appropriate. The filing or recording of the order with the recorder, unless the board of

county commissioners designates a different official, of the county in which the

principal business of the company is located or the county in which its principal office

or place of business is located, imparts the same notice as a deed, bill of sale, or other

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

4. If a domiciliary liquidator is appointed in a reciprocal state while a liquidation is

proceeding under this section, the liquidator under this section shall thereafter act as

ancillary receiver under section 26.1-06.1-52. If a domiciliary liquidator is appointed in

a nonreciprocal state while a liquidation is proceeding under this section, the liquidator

under this section may petition the court for permission to act as ancillary receiver

under section 26.1-06.1-52.

5. On the same grounds as are specified in subsection 1, the commissioner may petition

any appropriate federal district court to be appointed receiver to liquidate that portion

of the insurer's assets and business over which the court will exercise jurisdiction, or

any lesser part thereof that the commissioner deems desirable for the protection of the

policyholders and creditors in this state.

6. Once the assets of a foreign or alien insurer have been liquidated by the commissioner

under this section, the court may order the commissioner to pay claims of residents of

this state against the insurer under such rules as to the liquidation of insurers under

this chapter as are otherwise compatible with the provisions of this section.
N.D. Cent. Code § 26.1-01-10 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-10
26.1-01-10. General penalty
Status: in_force

26.1-01-10. General penalty

For a violation of any provision of this title, when no penalty is provided specifically, the

offender is guilty of an infraction.
N.D. Cent. Code § 26.1-17.1-11 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-11
26.1-17.1-11. Nonduplication of coverage
Status: in_force

26.1-17.1-11. Nonduplication of coverage

Notwithstanding any other law of this state, a prepaid limited health service organization,

health maintenance organization, accident and health insurance company, nonprofit health or

hospital or medical service corporation, or fraternal benefit society may exclude, in any contract

or policy issued to a group, any coverage that would duplicate the coverage for limited health

services, whether in the form of services, supplies, or reimbursement, insofar as the coverage

or service is provided in accordance with this chapter under a contract or policy issued to the

same group or to a part of that group by a prepaid limited health service organization, a health

maintenance organization, an accident and health insurance company, a nonprofit health or

hospital or medical service corporation, or a fraternal benefit society.
N.D. Cent. Code § 26.1-30.1-07 — ND Code / Title 26.1 / Chapter 26.1-30.1 / Section 26.1-30.1-07
26.1-30.1-07. Renewal of insurance with altered rates
Status: in_force

26.1-30.1-07. Renewal of insurance with altered rates

1. Subject to subsection 2, if the insurer offers or purports to renew a policy at less

favorable terms as to the dollar amount of coverage or deductibles or increases the

rates in excess of fifteen percent, the new terms and new rates may take effect on the

renewal date if the insurer has sent to the policyholder notice of the new terms and

rates at least ten days prior to the expiration date. If the insurer has not so notified the

policyholder, the policyholder may elect to cancel the renewal policy within the ten-day

period after receipt of the notice. Earned premium for the period of coverage, if any,

must be calculated on a pro rata basis and the rates must be based on the previous

policy term.

2. Subsection 1 does not apply if the change relates to guide "A" rates or excess rates

also known as "consent to rate".
N.D. Cent. Code § 26.1-40-20 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-20
26.1-40-20. Automobile warranties considered insurance - Surety bond
Status: repealed

26.1-40-20. Automobile warranties considered insurance - Surety bond

Repealed by S.L. 2001, ch. 107, § 4.
N.D. Cent. Code § 26.1-06.1-07 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-07
26.1-06.1-07. Continuation of delinquency proceedings
Status: in_force

26.1-06.1-07. Continuation of delinquency proceedings

Every proceeding heretofore commenced under the laws in effect before the enactment of

this chapter must be deemed to have commenced under this chapter for the purpose of

conducting the proceeding henceforth, except that in the discretion of the commissioner the

proceeding may be continued, in whole or in part, as it would have been continued had this

chapter not been enacted.
N.D. Cent. Code § 26.1-30-15 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-15
26.1-30-15. Policy may be rescinded for violation of material warranty
Status: in_force

26.1-30-15. Policy may be rescinded for violation of material warranty

The violation of a material warranty or other material provision of an insurance policy on the

part of either party to the policy entitles the other to rescind.
N.D. Cent. Code § 26.1-25-05 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-05
26.1-25-05. Disapproval of filings
Status: in_force

26.1-25-05. Disapproval of filings

1. If within the waiting period or any extension thereof as provided in subsection 4 of

section 26.1-25-04 the commissioner finds that a filing does not meet the requirements

of this chapter, the commissioner shall send to the insurer or advisory organization

which made the filing written notice of disapproval of the filing specifying therein in

what respects the commissioner finds the filing fails to meet the requirements of this

chapter and stating that the filing will not become effective.

2. If within thirty days after a filing subject to subsection 5 of section 26.1-25-04 has

become effective the commissioner finds that the filing does not meet the requirements

of this chapter, the commissioner shall send to the insurer or advisory organization that

made the filing written notice of disapproval of the filing specifying therein in what

respects the commissioner finds that the filing fails to meet the requirements of this

chapter and stating when, within a reasonable period thereafter, the filing will be

deemed no longer effective. The disapproval may not affect any contract made or

issued prior to the expiration of the period set forth in the notice.

3. If at any time subsequent to the applicable review period provided for in subsection 1

or 2 the commissioner finds that a filing does not meet the requirements of this

chapter, the commissioner shall, after a hearing held upon not less than ten days'

written notice, specifying the matters to be considered at the hearing, to every insurer

and advisory organization which made the filing, issue an order specifying in what

respects the commissioner finds that the filing fails to meet the requirements of this

chapter, and stating when, within a reasonable period thereafter, the filing will be

deemed no longer effective. Copies of the order must be sent to every such insurer

and advisory organization. The order may not affect any contract or policy made or

issued prior to the expiration of the period set forth in the order.

4. Any person or organization aggrieved with respect to any filing which is in effect may

make written application to the commissioner for a hearing thereon. However, the

insurer or advisory organization that made the filing may not proceed under this

subsection. The application must specify the grounds to be relied upon by the

applicant. If the commissioner finds that the application is made in good faith, that the

applicant would be so aggrieved if the grounds are established, and that the grounds

otherwise justify holding such a hearing, the commissioner shall, within thirty days

after receipt of the application, hold a hearing upon not less than ten days' written

notice to the applicant and to every insurer and advisory organization which made the

filing. If, after the hearing, the commissioner finds that the filing does not meet the

requirements of this chapter, the commissioner shall issue an order specifying in what

respects the filing fails to meet the requirements of this chapter, and stating when,

within a reasonable period thereafter, the filing will be deemed no longer effective.

Copies of the order must be sent to the applicant and to every such insurer and

advisory organization. The order may not affect any contract or policy made or issued

prior to the expiration of the period set forth in the order.

5. A manual, minimum class rate, rating schedule, rating plan, or rating rule, or any

modification of any of the foregoing, which has been filed pursuant to the requirements

of section 26.1-25-04, may not be disapproved if the rates thereby produced meet the

requirements of this chapter.
N.D. Cent. Code § 26.1-36-02.1 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-02.1
26.1-36-02.1. Accident and health policies and certificates - Notice of free examination
Status: in_force

26.1-36-02.1. Accident and health policies and certificates - Notice of free

examination.

Accident and health policies and certificates must have a notice prominently printed on or

attached to the first page of the policy or certificate stating in substance that the applicant may

return the policy or certificate within ten days of its delivery and have the premium refunded if,

after examination of the policy or certificate, the applicant is not satisfied for any reason.
N.D. Cent. Code § 26.1-33-02.1 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-02.1
26.1-33-02.1. Life insurance policies and certificates - Right to return
Status: in_force

26.1-33-02.1. Life insurance policies and certificates - Right to return

A person who purchases a life insurance policy or certificate issued or delivered in this state

may return the policy or certificate within twenty days of delivery to the purchaser. If a policy or

certificate is returned, the purchaser is entitled to a refund of the premium. Every life insurance

policy or certificate issued or delivered in this state to any person must have a notice

prominently printed on or attached to the first page of the policy or certificate stating in

substance that the purchaser may return the policy or certificate within twenty days of its

delivery and have the premium refunded if, after examination of the policy, the applicant is not

satisfied for any reason.
N.D. Cent. Code § 26.1-02-05.1 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-05.1
26.1-02-05.1. Group life and health insurance trust filing - Exemption requirements
Status: in_force

26.1-02-05.1. Group life and health insurance trust filing - Exemption requirements

Any insurance company claiming an exemption under subsection 6 of section 26.1-02-05

from a requirement that the company have a certificate of authority to do business in this state

or comply with the insurance laws of this state shall provide the following information to the

insurance commissioner for the commissioner's approval of the exemption:

1. A copy of the trust agreement for the group.

2. A full copy of the master contract.

3. A copy of the certificate of insurance to be issued or sold in this state.

4. A copy of the application for the certificate of insurance.

5. A copy of a disclosure statement used in the solicitation of the insurance indicating that

the protection of North Dakota's insurance laws will not be provided to the holders of

certificates of insurance issued by the group.

6. An assurance that only one type of insurance coverage may be included in each

mailing or mass market solicitation.

7. Such other information as the commissioner deems necessary to assure that the

group is organized for purposes other than the procurement of insurance or otherwise

meets the requirements of subsection 6 of section 26.1-02-05.

No company may issue or deliver a policy of insurance or issue or deliver for issue a certificate

of insurance in this state without a certificate of authority unless it has first been granted

approval in writing to do so by the commissioner under this section.
N.D. Cent. Code § 26.1-02-24 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-24
26.1-02-24. Copy of revocation to be mailed to company - Company to discontinue business - Setting aside of revocation
Status: in_force

26.1-02-24. Copy of revocation to be mailed to company - Company to discontinue

business - Setting aside of revocation.

If the certificate of authority of an insurance, bonding, surety, or indemnity company is

revoked pursuant to section 26.1-02-23, the commissioner shall mail a copy of the revocation to

the company or to the agents thereof in this state. Thereafter, the company and its agents may

not issue any new policy, bond, or surety contract nor renew any policy, bond, or surety contract

previously issued. The revocation may not be set aside, nor may a new certificate of authority

be issued, until satisfactory evidence has been submitted to the commissioner showing that the

company is in the condition set forth in its annual statement or other report, or that the

discrimination alleged has not been practiced, or that the practice of discrimination will cease

immediately, as the case may be, and that this title has been complied with by the company.
N.D. Cent. Code § 26.1-02-08 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-08
26.1-02-08. Liability of unauthorized company
Status: in_force

26.1-02-08. Liability of unauthorized company

If any unauthorized insurance company fails to pay any claim or loss within the provisions of

its insurance contract, any person who assisted or in any manner aided, directly or indirectly, in

the procurement of the insurance contract is liable to the insured for the full amount of the claim

or loss in the manner provided by the contract.
N.D. Cent. Code § 26.1-16-12 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-12
26.1-16-12. Territorial restrictions on society - Voluntary contribution plan benefits regulated by chapter
Status: in_force

26.1-16-12. Territorial restrictions on society - Voluntary contribution plan benefits

regulated by chapter.

Any society organized under this chapter shall confine its activities, insofar as solicitation by

insurance producers is concerned, to this state. No benefits on the voluntary contribution plan

may be provided by any society except as provided in this chapter.
N.D. Cent. Code § 26.1-29-04 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-04
26.1-29-04. Insurable interest defined and classified
Status: in_force

26.1-29-04. Insurable interest defined and classified

An insurable interest is an interest in property, or any relation thereto, or liability in respect

thereof, of such a nature that a contemplated peril might damnify directly the insured, and may

consist in:

1. An existing interest;

2. An inchoate interest founded on an existing interest; or

3. An expectancy coupled with an existing interest in that out of which the expectancy

arises.
N.D. Cent. Code § 26.1-33-08 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-08
26.1-33-08. Exempted companies
Status: in_force

26.1-33-08. Exempted companies

Sections 26.1-33-03 through 26.1-33-07 do not apply to annuity or industrial policies nor to

corporations or associations operating on the assessment or fraternal plan.
N.D. Cent. Code § 26.1-26-33 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-33
26.1-26-33. Notification of address change - Duty of licensee
Status: in_force

26.1-26-33. Notification of address change - Duty of licensee

Every licensee shall notify the commissioner of any change in the licensee's residential or

business address, electronic mail address, or legal name within thirty days of the change.

Notification may occur through the insurance producer database maintained by the national

association of insurance producers, its affiliates, or subsidiaries. Any licensee who ceases to

maintain residency in this state shall notify the commissioner by personal delivery, by mail, or by

electronic mail within thirty days after terminating residency.
N.D. Cent. Code § 26.1-01-07.4 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-07.4
26.1-01-07.4. Group health care coverage - Cooperative agreement allowed
Status: in_force

26.1-01-07.4. Group health care coverage - Cooperative agreement allowed

The insurance commissioner shall adopt rules to enable groups to form a cooperative that

would allow those groups to purchase group health insurance coverage or to self-insure as one

entity.
N.D. Cent. Code § 26.1-11-16 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-16
26.1-11-16. Court may order postponement
Status: in_force

26.1-11-16. Court may order postponement

The court, in any action, suit, or proceeding in which service is made in the manner

provided in section 26.1-01-04 or 26.1-11-12, may order any postponement necessary to afford

the defendant reasonable opportunity to comply with this chapter and to defend the action.
N.D. Cent. Code § 26.1-20-05 — ND Code / Title 26.1 / Chapter 26.1-20 / Section 26.1-20-05
26.1-20-05. Title evidence - Examination
Status: in_force

26.1-20-05. Title evidence - Examination

A domestic corporation organized for the purpose of insuring title to real property in this

state or of insuring against loss by reason of defective titles to real property, or encumbrances

on real property, or a foreign corporation authorized to do business in this state, may not issue

any policy, binder, or certificate unless it has secured from a person, firm, or corporation holding

a certificate of authority under chapter 43-01 the record title evidence of the title to be insured,

and the title evidence has been examined by a person duly admitted to the practice of law as

provided by chapter 27-11. The certificate of authority of any corporation violating this section

must be revoked as provided by chapter 26.1-02 or 26.1-11.
N.D. Cent. Code § 26.1-33-12 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-12
26.1-33-12. Group life policy conversion privileges
Status: in_force

26.1-33-12. Group life policy conversion privileges

If any individual insured under a group life insurance policy delivered in this state after July

1, 1983, becomes entitled under the terms of the policy to have an individual life insurance

policy issued without evidence of insurability, subject to making of application and payment of

the first premium within the period specified in the policy, and if the individual is not given notice

of the existence of the right at least fifteen days prior to the expiration date of the period, then

the individual has an additional period within which to exercise that right. This additional period

expires fifteen days after the individual is given notice. Written notice presented to the individual

or mailed by the policyholder to the last-known address of the individual or mailed by the insurer

to the last-known address of the individual as furnished by the policyholder or notice of the right

of conversion included in a certificate provided to each employee or notice provided by the

attachment of a separate notice to the certificate constitutes notice for the purpose of this

section.
N.D. Cent. Code § 26.1-01-07 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-07
26.1-01-07. Fees chargeable by commissioner
Status: in_force

26.1-01-07. Fees chargeable by commissioner

1. The commissioner shall charge and collect the following fees:

a. For filing articles of incorporation, or copies, or amendments thereof, fifty dollars.

b. For each original certificate of authority issued upon admittance and for each

annual renewal thereof, one hundred fifty dollars and for amendment to certificate

of authority, or certified copy thereof, one hundred dollars. For each annual

renewal for county mutuals, one hundred fifty dollars.

c. For issuing an annual reciprocal exchange license, the same fees as those

applicable to the issuance of a certificate of authority in subsection 2.

d. For filing an annual report of a fraternal benefit society, and issuing a license or

permit to the society, and for each renewal thereof, one hundred dollars.

e. For filing of articles of merger, or copies thereof, fifty dollars.

f. For filing an annual statement for a county mutual, fifty dollars. For filing an

annual statement for a life settlement provider, one hundred dollars. For filing an

annual statement, one hundred dollars.

g. For filing the abstract of the annual statement of any insurance company for

publication, fifty dollars.

h. For an official examination, the expenses of the examination at the rate adopted

by the department. The rates must be reasonably related to the direct and indirect

costs of the examination, including actual travel expenses, including hotel and

other living expenses, compensation of the examiner and other persons making

the examination, and necessary attendant administrative costs of the department

directly related to the examination and must be paid by the examined insurer

together with compensation upon presentation by the department to the insurer of

a detailed account of the charges and expenses after a detailed statement has

been filed by the examiner and approved by the department.

i. For issuing a certificate to a domestic insurance company showing a compliance

with the compulsory reserve provisions of this title and the maintenance of proper

security deposits and for any renewal of the certificate, twenty-five dollars.

j. For a written licensee's examination not administered by the office of the

commissioner under a contract with a testing service, the actual cost of the

examination, subject to approval of the commissioner, which must be paid to the

testing service.

k. For issuing a surplus lines insurance producer's or insurance consultant's license,

one hundred dollars. For each annual renewal of a surplus lines insurance

producer's or insurance consultant's license, twenty-five dollars.

l. For issuing an insurance producer's license, one hundred dollars.

m. For issuing a duplicate of any license or registration issued under this title, ten

dollars.

n. For each insurance company appointment and renewal of an appointment of an

insurance producer, twenty-five dollars.

o. For each company application for admission, five hundred dollars, except

applications for admission for county mutual, fraternal benefit, and surplus lines

companies must be one hundred dollars.

p. For issuing a license and each annual renewal of a license to an insurance

premium finance company, one hundred dollars.

q. For examining or investigating an insurance premium finance company, the

actual expense and per diem incurred; but the per diem charge may not exceed

fifty dollars.

r. For issuing and each annual renewal of a license to an advisory organization, fifty

dollars.

s. For filing an individual insurance producer licensing continuation, twenty-five

dollars.

t. For services provided by the state fire marshal.

u. For an initial application for multiple employer welfare arrangements, five hundred

dollars. For each annual renewal, one hundred dollars.

v. For an initial application for a life settlement provider, one hundred dollars. For

each annual renewal, twenty-five dollars.

w. For a life settlement broker application, an initial broker license fee of

one hundred dollars. For each annual renewal, twenty-five dollars.

x. For issuing an individual resident or nonresident public adjuster license,

one hundred dollars. For each biennial renewal, twenty-five dollars.

y. For issuing a business entity public adjuster license, one hundred dollars. For

each biennial renewal, twenty-five dollars.

z. For issuing a license or certificate for a life or health insurance administrator, two

hundred fifty dollars. For each annual renewal, one hundred dollars.

aa. For the initial application fee for a pharmacy benefit manager, an amount

determined by the commissioner, which may not exceed ten thousand dollars.

For each annual renewal, an amount to be determined by the commissioner,

which may not exceed ten thousand dollars.

2. Nonprofit health service corporations and health maintenance organizations are

subject to the same fees as any other insurance company. County mutual insurance

companies and benevolent societies are liable only for the fees mentioned in

subdivisions b, f, g, h, and n of subsection 1.

3. If an amount of a fee, penalty, or interest has been paid which was not due under this

section, a refund may be issued to the individual who made the erroneous payment.

The refund is allowed as a cash refund, at the discretion of the commissioner. The

individual who made the erroneous payment shall present a claim for refund to the

commissioner not later than two years after the due date of the fee for the period for

which the erroneous payment was made.
N.D. Cent. Code § 26.1-44-10 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-10
26.1-44-10. Independently procured insurance - Duty to report and pay tax
Status: in_force

26.1-44-10. Independently procured insurance - Duty to report and pay tax

If the insured's home state is this state, in accordance with subsection 9 of section

26.1-02-05, each insured in this state who independently procures or continues or renews

insurance with a nonadmitted insurer on properties, risks, or exposures located or to be

performed in whole or in part in this state, other than insurance procured through a surplus lines

producer, is subject to the same requirements under this chapter as apply to a surplus lines

producer.
N.D. Cent. Code § 26.1-50-01 — ND Code / Title 26.1 / Chapter 26.1-50 / Section 26.1-50-01
26.1-50-01. Definitions
Status: in_force

26.1-50-01. Definitions

As used in this chapter:

1. "Fund" means the North Dakota low-risk incentive fund.

2. "Governing board" means the board of directors of the corporation or board of

governors of the limited liability company established under section 26.1-50-02.

3. "Insurer" means any foreign or domestic corporation, association, benefit society,

exchange, partnership, limited liability company, or individual engaged as principal in

the business of insurance in this state.

4. "Primary sector business" has the meaning provided in section 1-01-49.
N.D. Cent. Code § 26.1-15.1-03 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-03
26.1-15.1-03. Lodge system defined
Status: in_force

26.1-15.1-03. Lodge system defined

1. A society operates on the lodge system if it has a supreme governing body and

subordinate lodges into which members are elected, initiated, or admitted under its

laws, rules, and ritual. Subordinate lodges shall hold regular or stated meetings at

least once each month in furtherance of the purposes of the society.

2. A society may organize and operate lodges for children under the minimum age for

adult membership. Membership and initiation in local lodges may not be required of

such children, nor may they have a voice or vote in the management of the society.
N.D. Cent. Code § 26.1-36-47 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-47
26.1-36-47. Internal claims and appeals procedures
Status: repealed

26.1-36-47. Internal claims and appeals procedures

An insurance company, nonprofit health services corporation, or health maintenance

organization may not deliver, issue, execute, or renew any health insurance policy, health

service contract, or evidence of coverage on an individual, group, blanket, franchise, or

association basis unless the policy, contract, or evidence of coverage meets the minimum

requirements of 42 U.S.C. 300gg-19 and complies with 29 U.S.C. 1133, 29 CFR 2560.503-1;

42 U.S.C. 300gg-19, 26 CFR 54.9815-2719T; 29 U.S.C. 1185d, 29 CFR 2590.715-2719; and

26 U.S.C. 9815, 45 CFR 147.136. The insurance commissioner may take steps necessary to

ensure compliance with this section. If federal laws or rules relating to internal claims and

appeals are amended, repealed, or otherwise changed, the insurance commissioner shall adopt

rules to ensure the internal claims and appeals procedure is in compliance with and

substantively equivalent to the federal requirements.
N.D. Cent. Code § 26.1-34.1-05 — ND Code / Title 26.1 / Chapter 26.1-34.1 / Section 26.1-34.1-05
26.1-34.1-05. Continued compliance
Status: in_force

26.1-34.1-05. Continued compliance

The commissioner may require that a corporation possessing a certificate of exemption

submit periodically any report the commissioner determines to be desirable or necessary to

ascertain compliance with requirements of this chapter. The commissioner, whenever the

commissioner determines it to be expedient, may make or cause to be made an examination of

the assets and liabilities and other affairs of the corporation as the same pertains to annuity

agreements entered into pursuant to this chapter. The reasonable expenses incurred for any

such examination must be fixed and paid in accordance with section 26.1-03-19.6.
N.D. Cent. Code § 26.1-33-21 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-21
26.1-33-21. Calculation of adjusted premiums
Status: in_force

26.1-33-21. Calculation of adjusted premiums

1. This section does not apply to policies issued on or after the operative date of section
N.D. Cent. Code § 26.1-02.1-11 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-11
26.1-02.1-11. Rules
Status: in_force

26.1-02.1-11. Rules

The commissioner may adopt rules determined necessary by the commissioner for the

administration of this chapter.
N.D. Cent. Code § 26.1-46-08 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-08
26.1-46-08. Restrictions on insurance purchased by purchasing groups
Status: in_force

26.1-46-08. Restrictions on insurance purchased by purchasing groups

1. A purchasing group may not purchase insurance from a risk retention group that is not

chartered in a state or from an insurer not admitted in the state in which the

purchasing group is located, unless the purchase is effected through a licensed

insurance producer acting pursuant to the surplus lines laws and regulations of such

state.

2. A purchasing group which obtains liability insurance from an insurer not admitted in

this state or a risk retention group shall inform each of the members of the group which

have a risk resident or located in this state that the risk is not protected by an

insurance insolvency guaranty fund in this state, and that the risk retention group or

insurer may not be subject to all insurance laws and rules of this state.

3. A purchasing group may not purchase insurance providing for a deductible or

self-insured retention applicable to the group as a whole unless the purchasing group

uses a policyholder's disclosure statement approved by the commissioner which

clearly explains in simplified language the policy is subject to a group deductible or

self-insured retention and provides a detailed explanation of the process of the

satisfaction of the deductible or self-insured retention among members.

4. A purchasing group may not purchase insurance providing for a shared aggregate limit

applicable to the group as a whole unless the purchasing group uses a policyholder's

disclosure statement approved by the commissioner which clearly explains in

simplified language the policy is subject to a group aggregate limit and coverage for

each individual member could be exhausted by claims from other members. The

insurance must allow for an individual member to purchase additional limits in the

event of exhaustion and this option must be described in the disclosure statement.
N.D. Cent. Code § 26.1-31-07 — ND Code / Title 26.1 / Chapter 26.1-31 / Section 26.1-31-07
26.1-31-07. Contribution of insurers on fire loss doubly insured
Status: repealed

26.1-31-07. Contribution of insurers on fire loss doubly insured

Repealed by S.L. 1985, ch. 330, § 4.
N.D. Cent. Code § 26.1-25.1-01 — ND Code / Title 26.1 / Chapter 26.1-25.1 / Section 26.1-25.1-01
26.1-25.1-01. Scope
Status: in_force

26.1-25.1-01. Scope

This chapter applies to personal insurance and does not apply to commercial insurance.
N.D. Cent. Code § 26.1-35-13 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-13
26.1-35-13. Experience reporting for policies in force on or after the operative date of the valuation manual
Status: in_force

26.1-35-13. Experience reporting for policies in force on or after the operative date of

the valuation manual.

An insurer shall submit mortality, morbidity, policyholder behavior, and expense experience

and other data as prescribed in the valuation manual.
N.D. Cent. Code § 26.1-06-02 — ND Code / Title 26.1 / Chapter 26.1-06 / Section 26.1-06-02
26.1-06-02. Takeover bid - Restrictions
Status: in_force

26.1-06-02. Takeover bid - Restrictions

1. No offeror may make a takeover bid unless at least twenty days prior thereto the

offeror files with the commissioner and the target company copies of all information

required by subsection 2 and either within ten days following the filing no hearing is

ordered by the commissioner or requested by the target company, or a hearing is

requested by the target company within that time but the commissioner finds that no

cause for hearing exists, or a hearing is ordered within that time and upon the hearing

the commissioner adjudicates that the proposed takeover bid and the materials being

or to be distributed are not a violation of this title and that the offeror proposed to make

fair, full, and effective disclosure to offerees of all information material to a decision to

accept or reject the offer. No offeror may make a takeover bid if the offeror owns five

percent or more of the issued and outstanding equity securities of any class of the

target company, any of which were purchased within one year before the proposed

takeover bid, and the offeror, before making any such purchase, or before July 31,

1971, whichever is later, failed to publicly announce the offeror's intention to gain

control of the target company, and failed to make fair, full, and effective disclosure of

the intention to the persons from whom the offeror acquired the securities.

2. The information to be filed with the commissioner and the target company pursuant to

subsection 1 must include:

a. Copies of all prospectuses, brochures, advertisements, circulars, letters, or other

matter by means of which the offeror proposes to disclose to offerees all

information material to a decision to accept or reject the offer.

b. The identity and background of all persons on whose behalf the acquisition of any

equity security of the target company has been or is to be effected.

c. The names of all insurance companies doing business in North Dakota in which

the offeror has ownership or debt interests, setting forth the ownership or debt

interests, or management functions, setting forth the management functions.

d. The source and amount of funds or other consideration used or to be used in

acquiring any equity security, including a statement describing any securities,

other than the existing capital stock or long-term debt of the offeror, which are

being offered in exchange for the equity securities of the target company.

e. If the offeror has ownership or debt interests, or management functions in other

insurance companies doing business in the state of North Dakota, what plans

exist for consolidation of any functions whatsoever of the target company with the

offeror's other companies, including ratemaking, investment policies, or

consolidation of sales functions.

f. A statement of any plans or proposals which the offeror, upon gaining control,

may have to liquidate the target company, sell its assets, effect a merger or

formal consolidation of it, or make any other major change in its business,

corporate structure, management personnel, or policies of employment; or to

assume any portion of the risks of the target company or to have the target

company assume any portion of the risks, or to reinsure any of the risks of the

offeror.

g. The number of shares of any equity security of the target company of which each

offeror is beneficial or record owner or has a right to acquire, directly or indirectly,

together with the name and address of each offeror.

h. Particulars as to any contracts, arrangements, or understandings to which an

offeror is party with respect to any equity security of the target company, including

without limitation transfers of any equity security, joint ventures, loan or option

arrangements, puts and calls, guarantees of loan, guarantees against loss,

guarantees of profits, division of losses or profits, or the giving or withholding of

proxies, naming the parties to the contracts, arrangements, or understandings.

i. Complete information on the organization and operations of the offeror, including

without limitation the year of organization, form of organization, the jurisdiction in

which it is organized, a description of each class of the offeror's capital stock and

of its long-term debt, financial statements for the current period and for the three

most recent annual accounting periods, a brief description of the location and

general character of the principal assets of the offeror and its subsidiaries, a

description of pending legal proceedings other than routine litigation to which the

offeror or any of its subsidiaries is a party or of which any of their property is the

subject, a brief description of the business done and projected by the offeror and

its subsidiaries and the general development of such business over the past five

years, the names of all directors and executive officers together with biographical

summaries of each for the preceding five years to date, and the approximate

amount of any material interest, direct or indirect, of any of the directors or

officers in any material transaction during the past three years, or in any

proposed material transactions, to which the offeror or any of its subsidiaries was

or is to be a party.

j. If the offeror is a member of a horizontal combination or a vertical combination,

then the same information must be furnished and filed for each member

corporation or limited liability company of the horizontal combination or vertical

combination.
N.D. Cent. Code § 26.1-53.1-05 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-05
26.1-53.1-05. Surety bond
Status: in_force

26.1-53.1-05. Surety bond

Each registered discount plan organization shall maintain in force a surety bond in the

organization's own name in an amount not less than thirty-five thousand dollars to be used in

the discretion of the commissioner to protect the financial interest of members. The bond must

be issued by an insurance company licensed to do business in this state. Initially, a copy of the

bond or a statement identifying the depository, trustee, and account number of the surety

account, and for renewal proof of annual renewal of the bond or maintenance of the surety

account, must be filed with the commissioner.
N.D. Cent. Code § 26.1-06.1-22 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-22
26.1-06.1-22. Duties of agents
Status: in_force

26.1-06.1-22. Duties of agents

1. Every agent who receives notice in the form prescribed in section 26.1-06.1-21 that an

insurer represented by that agent is the subject of a liquidation order, within thirty days

of such notice, shall provide to the liquidator, in addition to the information the agent

may be required to provide pursuant to section 26.1-06.1-06, the information in the

agent's records related to any policy issued by the insurer through the agent, and, if

the agent is a general agent, the information in the general agent's records related to

any policy issued by the insurer through a subagent under contract with the agent,

including the name and address of the subagent. A policy must be deemed issued

through an agent if the agent has a property interest in the expiration of the policy, or if

the agent has had possession of a copy of the declarations of the policy at any time

during the life of the policy, except when the ownership of the expiration of the policy

has been transferred to another.

2. Any agent failing to provide information to the liquidator as required in subsection 1,

following a hearing held by the commissioner, may be subject to license suspension

and payment of a penalty of not more than one thousand dollars.
N.D. Cent. Code § 26.1-29-24 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-24
26.1-29-24. False representation - Materiality and effect
Status: in_force

26.1-29-24. False representation - Materiality and effect

A representation is false when the facts fail to correspond with its assertions or stipulations.

If a representation is false in a material point, whether affirmative or promissory, the injured

party is entitled to rescind the contract from the time when the representation becomes false.

The materiality of a representation is determined by the same rule which determines the

materiality of a concealment.
N.D. Cent. Code § 26.1-57-02 — ND Code / Title 26.1 / Chapter 26.1-57 / Section 26.1-57-02
26.1-57-02. Scope
Status: in_force

26.1-57-02. Scope

1. This chapter does not apply to:

a. An insurance policy offered by an insurer under the insurance laws of this state;

b. A debt cancellation or debt suspension contract offered in compliance with

title 12, Code of Federal Regulations, part 37 or title 12, Code of Federal

Regulations, part 721, or other federal law; or

c. A debt cancellation or debt suspension contract offered by a bank or credit union

chartered under the laws of this state.

2. Guaranteed asset protection waivers are not insurance and, except as provided under

this chapter, are exempt from the insurance laws of this state. A person marketing,

selling, or offering to sell guaranteed asset protection waivers to borrowers which

complies with this chapter is exempt from the insurance requirements of this state.
N.D. Cent. Code § 26.1-36.4-03 — ND Code / Title 26.1 / Chapter 26.1-36.4 / Section 26.1-36.4-03
26.1-36.4-03. Limits on pre-existing condition exclusions
Status: in_force

26.1-36.4-03. Limits on pre-existing condition exclusions

An insurer may impose a pre-existing condition exclusion only if:

1. The exclusion relates to a condition, regardless of the cause of the condition, for which

medical diagnosis, care, or treatment was recommended or received within the

six-month period ending on the effective date of the person's coverage.

2. The exclusion extends for a period of not more than twelve months after the effective

date of coverage. A group policy may impose an eighteen-month pre-existing condition

to a late enrollee, as the term late enrollee is defined in section 26.1-36.3-01.
N.D. Cent. Code § 26.1-40.2-01 — ND Code / Title 26.1 / Chapter 26.1-40.2 / Section 26.1-40.2-01
26.1-40.2-01. Definitions
Status: in_force

26.1-40.2-01. Definitions

1. "Delivery available period" means the period when a driver:

a. Has logged on to a digital network and is available to receive requests to provide

delivery services from a delivery network company;

b. Is operating a personal vehicle; and

c. Is not providing delivery services or operating in the delivery service period.

2. "Delivery network company" means a corporation, partnership, sole proprietorship, or

other entity that operates in the state and uses a digital network to connect a delivery

network company customer to a delivery network driver to provide delivery services. A

delivery network company may not be deemed to control, direct, or manage the

personal vehicle or delivery network drivers that connect to the delivery network

company's digital network, unless agreed to by written contract.

3. "Delivery network company customer" means a person that orders the delivery of

goods, where the delivery network driver delivers the goods at the direction of the

delivery network company customer.

4. "Delivery network driver" means an individual who provides delivery services through a

delivery network company's digital network using a personal vehicle.

5. "Delivery service period" means the period:

a. Beginning when a driver starts operating a personal vehicle en route to pick up a

good for a delivery as documented via a digital network controlled by a delivery

network company;

b. Continuing while the driver transports the requested delivery; and

c. Ending upon delivery of the requested good to:

(1) The delivery network company customer or the last delivery network

company customer in a series of deliveries; or

(2) A location designated by the delivery network company, including for

purposes of returning the good.

6. "Delivery services" means the fulfillment of delivery requests made by a delivery

network company customer through a digital network, including the pickup of any good

and the delivery of the good to a delivery network company customer by a delivery

network driver. Delivery services may include a series of deliveries to different

customers.

7. "Digital network" means any online-enabled application, software, website, or system

offered or used by a delivery network company which enables deliveries with delivery

network drivers.

8. "Personal injury protection" means basic no-fault benefits as defined under section

26.1-41-01.

9. "Personal vehicle" means a vehicle that is:

a. Used by a delivery network driver to provide delivery services via a digital

network; or

b. Owned, leased, or otherwise authorized for use by the delivery network driver.
N.D. Cent. Code § 26.1-55-01 — ND Code / Title 26.1 / Chapter 26.1-55 / Section 26.1-55-01
26.1-55-01. Definitions
Status: in_force

26.1-55-01. Definitions

As used in this chapter:

1. "Contract" means an annuity contract issued in this state. The term does not include

an annuity used to fund an employment-based retirement plan or program in which the

insurer is not committed by terms of the annuity contract to pay death benefits to the

beneficiaries of specific plan participants.

2. "Death master file" means the United States social security administration's death

master file or any other database or service the commissioner has determined is at

least as comprehensive as the United States social security administration's death

master file for determining that an individual has reportedly died.

3. "Death master file match" means a search of the death master file or revised death

master file which results in a match of the social security number or of the name and

date of birth of an insured, annuity owner, or retained asset accountholder.

4. "Policy" means any policy or certificate of life insurance issued in this state which

provides a death benefit. The term does not include:

a. A policy or certificate of life insurance which provides a death benefit under an

employee benefit plan subject to the federal Employee Retirement Income

Security Act of 1974 [Pub. L. 93-406; 29 U.S.C. 1002 et seq.];

b. A policy or certificate of life insurance which provides a death benefit under an

employee benefit plan under any federal employee benefit program;

c. A policy or certificate of life insurance which is used to fund a pre-need funeral

contract or prearrangement; or

d. A policy or certificate of credit life or accidental death insurance.

5. "Revised death master file" means the names added to the death master file since the

insurer's most recent semiannual comparison required under this chapter.
N.D. Cent. Code § 26.1-36-12.4 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-12.4
26.1-36-12.4. Confidentiality of medical information
Status: in_force

26.1-36-12.4. Confidentiality of medical information

1. An insurance company, as defined in section 26.1-02-01, health maintenance

organization, or any other entity providing a plan of health insurance subject to state

insurance regulation may not deliver, issue, execute, or renew a health insurance

policy or health service contract unless confidentiality of medical information is

assured pursuant to this section. An insurer shall adopt and maintain procedures to

ensure that all identifiable information maintained by the insurer regarding the health,

diagnosis, and treatment of persons covered under a policy or contract is adequately

protected and remains confidential in compliance with all federal and state laws and

regulations and professional ethical standards. Unless otherwise provided by law, any

data or information pertaining to the health, diagnosis, or treatment of a person

covered under a policy or contract, or a prospective insured, obtained by an insurer

from that person or from a health care provider, regardless of whether the information

is in the form of paper, is preserved on microfilm, or is stored in computer-retrievable

form, is confidential and may not be disclosed to any person except:

a. If the data or information identifies the covered person or prospective insured

upon a written, dated, and signed approval by the covered person or prospective

insured, or by a person authorized to provide consent pursuant to section

23-12-13 for a minor or an incapacitated person;

b. If the data or information identifies the health care provider upon a written, dated,

and signed approval by the provider. However, this subdivision may not be

construed to prohibit an insurer from disclosing data or information pursuant to

chapter 23-01.1 or from disclosing, as part of a contract or agreement in which

the health care provider is a party, data or information that identifies a provider as

part of mutually agreed-upon terms and conditions of the contract or agreement;

c. If the data or information does not identify either the covered person or

prospective insured or the health care provider, the data or information may be

disclosed upon request for use for statistical purposes or research;

d. Pursuant to statute or court order for the production or discovery of evidence; or

e. In the event of a claim or litigation between the covered person or prospective

insured and the insurer in which the data or information is pertinent.

2. An insurer may claim any statutory privileges against disclosure that the health care

provider who furnished the information to the insurer is entitled to claim.

3. This section may not be construed to prevent disclosure necessary for an insurer to

conduct utilization review or management consistent with the standards imposed by

chapter 26.1-26.4, to facilitate payment of a claim, to analyze health plan claims or

health care records data, to conduct disease management programs with health care

providers, or to reconcile or verify claims under a shared risk or capitation

arrangement. This section does not apply to data or information disclosed by an

insurer as part of a biomedical research project approved by an institutional review

board established under federal law. Nor may this section be construed to limit the

insurance commissioner's access to records of the insurer for purposes of

enforcement or other activities related to compliance with state or federal laws;

however, medical records acquired by the commissioner as part of an examination of

an insurer's business practices under section 26.1-03-19.2 or any other regulatory

action or proceeding commenced by the commissioner are confidential.
N.D. Cent. Code § 26.1-26-30.1 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-30.1
26.1-26-30.1. Vendor authority
Status: in_force

26.1-26-30.1. Vendor authority

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

contract with nongovernmental entities, including the national association of insurance

commissioners or any affiliates or subsidiaries that the national association of insurance

commissioners oversees, to perform any ministerial functions, including the collection of fees,

related to insurance producer licensing that the commissioner and the nongovernmental entity

may deem appropriate.
N.D. Cent. Code § 26.1-06-11 — ND Code / Title 26.1 / Chapter 26.1-06 / Section 26.1-06-11
26.1-06-11. Rulemaking
Status: in_force

26.1-06-11. Rulemaking

The commissioner may adopt reasonable rules:

1. Defining fraudulent, evasive, deceptive, or grossly unfair practices in connection with

takeover bids and the terms used in this chapter.

2. Exempting from this chapter takeover bids not made for the purpose of, and not having

the effect of, changing or influencing the control of a target company.

3. Covering such other matters as are necessary to give effect to this chapter.
N.D. Cent. Code § 26.1-13-01 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-01
26.1-13-01. County mutual insurance company - Organization
Status: in_force

26.1-13-01. County mutual insurance company - Organization

A corporation for mutual insurance may be formed in accordance with this chapter by any

number of persons, not less than fifty, residing in not more than forty counties in this state,

which collectively own property of not less than four hundred thousand dollars in value which

the persons desire to insure; or any number of persons, not less than twenty-five, residing in

any one county in this state, which collectively own property of not less than one hundred

thousand dollars in value which the persons desire to insure. A county mutual insurance

company organized under this chapter shall maintain a surplus of at least two hundred thousand

dollars.
N.D. Cent. Code § 26.1-40.1-05 — ND Code / Title 26.1 / Chapter 26.1-40.1 / Section 26.1-40.1-05
26.1-40.1-05. Automobile insurers
Status: in_force

26.1-40.1-05. Automobile insurers

Insurers that write personal automobile insurance may allow no-fault insurance coverage to

be conditional on transportation network company no-fault insurance coverage under sections

26.1-40.1-03 and 26.1-40.1-04.
N.D. Cent. Code § 26.1-26-04 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-04
26.1-26-04. Commissions
Status: in_force

26.1-26-04. Commissions

1. An insurance company or insurance producer may not pay a commission, service fee,

brokerage, or other valuable consideration to a person for selling, soliciting, or

negotiating insurance in this state if that person is required to be licensed under this

chapter and is not licensed.

2. A person may not accept a commission, service fee, brokerage, or other valuable

consideration for selling, soliciting, or negotiating insurance in this state if that person

is required to be licensed under this chapter and is not licensed.

3. Renewal or other deferred compensation may be paid to a person for selling, soliciting,

or negotiating insurance in this state if that person was required to be licensed under

this chapter at the time of the sale, solicitation, or negotiation and was licensed at that

time.

4. An insurer or insurance producer may pay or assign commissions, service fees,

brokerages, or other valuable consideration to an insurance agency or to persons that

do not sell, solicit, or negotiate insurance in this state, unless the payment violates

section 26.1-04-06.
N.D. Cent. Code § 26.1-26-42 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-42
26.1-26-42. License suspension, revocation, or refusal - Grounds
Status: in_force

26.1-26-42. License suspension, revocation, or refusal - Grounds

The commissioner may suspend, revoke, place on probation, or refuse to continue or refuse

to issue any license issued under this chapter if, after notice to the licensee and hearing, the

commissioner finds as to the licensee any of the following conditions:

1. A materially untrue statement in the license application.

2. An acquisition or attempt to acquire a license through misrepresentation or fraud.

3. The applicant has been found to have been cheating on an examination for an

insurance license.

4. Any cause for which issuance of the license could have been refused had it then

existed and been known to the commissioner at the time of issuance.

5. The applicant or licensee has been convicted of a felony or convicted of an offense, as

defined by section 12.1-01-04, determined by the commissioner to have a direct

bearing upon a person's ability to serve the public as an insurance producer, insurance

consultant, or surplus lines insurance producer, or the commissioner finds, after

conviction of an offense, that the person is not sufficiently rehabilitated under section

12.1-33-02.1.

6. In the conduct of affairs under the license, the licensee has used fraudulent, coercive,

or dishonest practices, or has shown oneself to be incompetent, untrustworthy, or

financially irresponsible.

7. A misrepresentation of the terms of any actual or proposed insurance contract.

8. The licensee has been found to have knowingly solicited, procured, or sold

unnecessary or excessive insurance coverage to any person.

9. The licensee has forged another's name to an application for insurance.

10. An improper withholding of, misappropriating of, or converting to one's own use any

moneys belonging to policyholders, insurers, beneficiaries, or others received in the

course of one's insurance business.

11. The licensee has been found guilty of any unfair trade practice defined in this title or

fraud.

12. A violation of or noncompliance with any insurance laws of this state or a violation of or

noncompliance with any lawful rules or orders of the commissioner or of a

commissioner of another state.

13. The licensee's license has been suspended or revoked in any other state, province,

district, or territory for any reason or purpose other than noncompliance with

continuing education programs, or noncompliance with mandatory filing requirements

imposed upon a licensee by the state, province, district, or territory provided the filing

does not directly affect the public interest, safety, or welfare.

14. The applicant or licensee has refused to respond within twenty days to a written

request by the commissioner for information regarding any potential violation of this

section.

15. Without express prior written approval from the commissioner, the licensee

communicates with a person who the licensee knows has contacted the department

regarding an alleged violation committed by the licensee in an attempt to have the

complainant dismiss the complaint.

16. The licensee knowingly accepts insurance business from an individual who is not

licensed.

17. The applicant or licensee knowingly fails to comply with a court order imposing child

support obligation.

18. The applicant or licensee fails to file the required returns or pay the taxes due under

chapter 57-38 or comply with a court order directing payment of any income tax or

employer income tax withholding imposed by chapter 57-38.
N.D. Cent. Code § 26.1-26.9-09 — ND Code / Title 26.1 / Chapter 26.1-26.9 / Section 26.1-26.9-09
26.1-26.9-09. Rulemaking authority
Status: in_force

26.1-26.9-09. Rulemaking authority

The commissioner may adopt reasonable rules for the implementation and administration of

this chapter.
N.D. Cent. Code § 26.1-39-09.2 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-09.2
26.1-39-09.2. Suspension or revocation of certificate or license for noncompliance or for acceptance of a reduced service fee
Status: in_force

26.1-39-09.2. Suspension or revocation of certificate or license for noncompliance or

for acceptance of a reduced service fee.

The commissioner shall suspend or revoke the certificate of authority of any insurer who

intentionally fails to comply with section 26.1-11-07.
N.D. Cent. Code § 26.1-05-28 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-28
26.1-05-28. Securities vest in policyholders on default of domestic life insurance company
Status: in_force

26.1-05-28. Securities vest in policyholders on default of domestic life insurance

company.

The securities of a defaulting or insolvent domestic life insurance company, or of a company

against which proceedings for dissolution are pending, which are on deposit with the

commissioner, vest in the state for the benefit of the policies on account of which the deposit

was made, and the proceeds, by order of the court upon final hearing, must be divided among

the policyholders proportionately to the last annual valuation of the policies, or, at any time, must

be applied to the purchase of reinsurance for their benefit.
N.D. Cent. Code § 26.1-21-03 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-03
26.1-21-03. Commissioner may employ or contract for assistants - Continuing appropriation
Status: repealed

26.1-21-03. Commissioner may employ or contract for assistants - Continuing

appropriation.

Repealed by S.L. 2025, ch. 274, § 19.
N.D. Cent. Code § 26.1-36-09.10 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.10
26.1-36-09.10. Health insurance policy and health service contract - Prehospital emergency medical services
Status: in_force

26.1-36-09.10. Health insurance policy and health service contract - Prehospital

emergency medical services.

1. In this section, unless the context or subject matter otherwise requires:

a. "Emergency medical condition" means a medical condition that manifests itself by

symptoms of sufficient severity which may include severe pain and that a prudent

layperson who possesses an average knowledge of health and medicine could

reasonably expect the absence of medical attention to result in placing the

person's health in jeopardy, serious impairment of a bodily function, or serious

dysfunction of any body part.

b. "Prehospital emergency medical services" means a service or its personnel either

licensed under chapter 23-27 or certified by the department of health and human

services.

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

organization may not deliver, issue, execute, or renew any health insurance policy,

health service contract, or evidence of coverage that provides prehospital emergency

medical services benefits on an individual, group, blanket, franchise, or association

basis unless the policy, contract, or evidence of coverage provides prehospital

emergency medical services benefits in the case of an emergency medical condition.

3. The coverage required under this section does not require coverage in excess of

policy aggregate limits or internal policy limits dealing specifically with prehospital

emergency medical services.

4. This section does not prevent an insurance company, nonprofit health service

corporation, or health maintenance organization from imposing deductibles,

coinsurance, or other cost sharing in relation to benefits for prehospital emergency

medical services.
N.D. Cent. Code § 26.1-36.12-07 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-07
26.1-36.12-07. Prior authorization - Emergency medical condition
Status: in_force

26.1-36.12-07. Prior authorization - Emergency medical condition

1. A prior authorization review organization may not require prior authorization for

prehospital transportation or for the provision of emergency health care services for an

emergency medical condition.

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

health care provider a minimum of two business days following an emergency

admission or provision of emergency health care services for an emergency medical

condition for the enrollee or health care provider to notify the prior authorization review

organization of the admission or provision of health care services.

3. The medical necessity or appropriateness of emergency health care services for an

emergency medical condition may not be based on whether those services were

provided by participating or nonparticipating providers.

4. If an enrollee receives an emergency health care service that requires immediate

postevaluation or poststabilization services, a prior authorization review organization

shall make an authorization determination within two business days of receiving a

request. If the authorization determination is not made within two business days, the

services must be deemed approved.
N.D. Cent. Code § 26.1-17-23 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-23
26.1-17-23. Licensing of sales representatives
Status: in_force

26.1-17-23. Licensing of sales representatives

The sales representatives of any health service corporation are subject to the laws

pertaining to insurance producers as defined in chapter 26.1-26. The license for a sales

representative must be issued on a form prescribed by the commissioner, and the fee for a

license or renewal is prescribed in section 26.1-01-07.
N.D. Cent. Code § 26.1-39.2-01 — ND Code / Title 26.1 / Chapter 26.1-39.2 / Section 26.1-39.2-01
26.1-39.2-01. Definitions
Status: in_force

26.1-39.2-01. Definitions

As used in this chapter:

1. "Residential contractor" means a person in the business of contracting or offering to

contract with an owner or possessor of residential real estate to:

a. Repair or replace a roof system or perform other exterior repair, replacement,

construction, or reconstruction work on residential real estate;

b. Perform interior or exterior cleanup services on residential real estate; or

c. Arrange for, manage, or process the work referred to in subdivision a or b.

2. "Residential real estate" means a new or existing building, including a detached

garage, constructed for habitation by at least one but no more than four families.

3. "Roof system" includes roof coverings, roof sheathing, roof weatherproofing, and

insulation.
N.D. Cent. Code § 26.1-31.1-06 — ND Code / Title 26.1 / Chapter 26.1-31.1 / Section 26.1-31.1-06
26.1-31.1-06. Required contract provisions - Reinsurance intermediary-managers
Status: in_force

26.1-31.1-06. Required contract provisions - Reinsurance intermediary-managers

Transactions between a reinsurance intermediary-manager and the reinsurer it represents

in that capacity may only be entered into pursuant to a written contract, approved by the

reinsurer's board of directors, which specifies the responsibilities of each party. At least thirty

days before the reinsurer assumes or cedes business through the producer, a true copy of the

approved contract must be filed with the commissioner for approval. The contract must, at a

minimum, contain provisions that:

1. The reinsurer may terminate the contract for cause upon written notice to the

reinsurance intermediary-manager. The reinsurer may immediately suspend the

authority of the reinsurance intermediary-manager to assume or cede business during

the pendency of any dispute regarding the cause for termination.

2. The reinsurance intermediary-manager will render accounts to the reinsurer accurately

detailing all material transactions, including information necessary to support all

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

intermediary-manager, and remit all funds due under the contract to the reinsurer on

not less than a monthly basis.

3. All funds collected for the reinsurer's account will be held by the reinsurance

intermediary-manager in a fiduciary capacity in a bank which is a qualified United

States financial institution as defined by this chapter. The reinsurance

intermediary-manager may retain no more than three months' estimated claims

payments and allocated loss adjustment expenses. The reinsurance

intermediary-manager shall maintain a separate bank account for each reinsurer that it

represents.

4. For at least ten years after expiration of each contract of reinsurance transacted by the

reinsurance intermediary-manager, the reinsurance intermediary-manager will keep a

complete record for each transaction showing:

a. The type of contract, limits, underwriting restrictions, classes or risks, and

territory;

b. Period of coverage, including the effective date and the expiration date,

cancellation provisions and notice required of cancellation, and disposition of

outstanding reserves on covered risks;

c. Reporting and settlement requirements of balances;

d. Rate used to compute the reinsurance premium;

e. Names and addresses of reinsurers;

f. Rate of all reinsurance commissions, including the commissions on any

retrocessions handled by the reinsurance intermediary-manager;

g. Related correspondence and memoranda;

h. Proof of placement;

i. Details regarding retrocessions handled by the reinsurance

intermediary-manager, as permitted by subsection 4 of section 26.1-31.1-08,

including the identity of retrocessionaires and percentage of each contract

assumed or ceded;

j. Financial records premium and loss accounts; and

k. When the reinsurance intermediary-manager places a reinsurance contract on

behalf of a ceding insurer:

(1) Directly from any assuming reinsurer, written evidence that the assuming

reinsurer has agreed to assume the risk; or

(2) If placed through a representative of the assuming reinsurer, other than an

employee, written evidence that the reinsurer has delegated binding

authority to the representative.

5. The reinsurer will have access and the right to copy all accounts and records

maintained by the reinsurance intermediary-manager related to its business in a form

usable by the reinsurer.

6. The contract cannot be assigned in whole or in part by the reinsurance

intermediary-manager.

7. The reinsurance intermediary-manager will comply with the written underwriting and

rating standards established by the insurer for the acceptance, rejection, or cession of

all risks.

8. Set forth the rates, terms, and purposes of commissions, charges, and other fees

which the reinsurance intermediary-manager may levy against the reinsurer.

9. If the contract permits the reinsurance intermediary-manager to settle claims on behalf

of the reinsurer:

a. All claims will be reported to the reinsurer in a timely manner.

b. A copy of the claim file will be sent to the reinsurer at its request or as soon as it

becomes known that the claim:

(1) Has the potential to exceed the lesser of an amount determined by the

commissioner or the limit set by the reinsurer;

(2) Involves a coverage dispute;

(3) May exceed the reinsurance intermediary-manager's claims settlement

authority;

(4) Is open for more than six months; or

(5) Is closed by payment of the lesser of an amount set by the commissioner or

an amount set by the reinsurer.

c. All claim files will be the joint property of the reinsurer and reinsurance

intermediary-manager. However, upon an order of liquidation of the reinsurer the

files become the sole property of the reinsurer or its estate. The reinsurance

intermediary-manager shall have reasonable access to and the right to copy the

files on a timely basis.

d. Any settlement authority granted to the reinsurance intermediary-manager may

be terminated for cause upon the reinsurer's written notice to the reinsurance

intermediary-manager or upon the termination of the contract. The reinsurer may

suspend the settlement authority during the pendency of the dispute regarding

the cause of termination.

10. If the contract provides for a sharing of interim profits by the reinsurance

intermediary-manager, the interim profits will not be paid until one year after the end of

each underwriting period for property business and five years after the end of each

underwriting period for casualty business, or a later period set by the commissioner for

specified lines of insurance, and not until the adequacy of reserves on remaining

claims has been verified pursuant to subsection 3 of section 26.1-31.1-08.

11. The reinsurance intermediary-manager will annually provide the reinsurer with a

statement of its financial condition prepared by an independent certified public

accountant.

12. The reinsurer shall periodically and at least semiannually conduct an onsite review of

the underwriting and claims processing operations of the reinsurance

intermediary-manager.

13. The reinsurance intermediary-manager will disclose to the reinsurer any relationship it

has with any insurer prior to ceding or assuming any business with the insurer

pursuant to this contract.

14. The acts of the reinsurance intermediary-manager must be deemed to be the acts of

the reinsurer on whose behalf it is acting.
N.D. Cent. Code § 26.1-03-19.1 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-19.1
26.1-03-19.1. Examination of companies - Definitions
Status: in_force

26.1-03-19.1. Examination of companies - Definitions

In sections 26.1-03-19.1 through 26.1-03-19.8, unless the context otherwise requires:

1. "Company" means any foreign or domestic insurance company as defined in section

26.1-02-01.

2. "Data call" means an inquiry addressed to a company issued before, or in lieu of an

examination under this chapter.

3. "Examiner" means any individual or firm having been authorized by the commissioner

to conduct an examination under this chapter.

4. "Person" means any individual, aggregation of individuals, trust, association,

partnership, or corporation, or any affiliate thereof.
N.D. Cent. Code § 26.1-26-31.8 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-31.8
26.1-26-31.8. License revocation
Status: repealed

26.1-26-31.8. License revocation

Repealed by S.L. 2009, ch. 252, § 7.
N.D. Cent. Code § 26.1-35-12 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-12
26.1-35-12. Requirements of a principle-based valuation
Status: in_force

26.1-35-12. Requirements of a principle-based valuation

1. An insurer shall establish reserves using a principle-based valuation that meets the

following conditions for policies or contracts as specified in the valuation manual:

a. Quantify the benefits and guarantees and the funding associated with the

contracts and their risks at a level of conservatism that reflects conditions that

include unfavorable events that have a reasonable probability of occurring during

the lifetime of the contracts. For polices or contracts with significant tail risk,

reflects conditions appropriately adverse to quantify the tail risk.

b. Incorporate assumptions, risk analysis methods, and financial models and

management techniques that are consistent with, but not necessarily identical to,

those utilized within the insurer's overall risk assessment process, while

recognizing potential differences in financial reporting structures and any

prescribed assumptions or methods.

c. Incorporate assumptions that are derived in one of the following manners:

(1) The assumption is prescribed in the valuation manual.

(2) For assumptions that are not prescribed, the assumptions must:

(a) Be established utilizing the insurer's available experience, to the

extent the experience is relevant and statistically credible; or

(b) To the extent that insurer data is not available, relevant, or statistically

credible, be established utilizing other relevant, statistically credible

experience.

d. Provide margins for uncertainty, including adverse deviation and estimation error,

such that the greater the uncertainty the larger the margin and resulting reserve.

2. An insurer using a principle-based valuation for one or more policies or contracts

subject to this section as specified in the valuation manual shall:

a. Establish procedures for corporate governance and oversight of the actuarial

valuation function consistent with those described in the valuation manual.

b. Provide to the commissioner and the board of directors an annual certification of

the effectiveness of the internal controls with respect to the principle-based

valuation. The controls must be designed to assure that all material risks inherent

in the liabilities and associated assets subject to the valuation are included in the

valuation, and that valuations are made in accordance with the valuation manual.

The certification must be based on the controls in place as of the end of the

preceding calendar year.

c. Develop, and file with the commissioner upon request, a principle-based

valuation report that complies with standards prescribed in the valuation manual.

3. A principle-based valuation may include a prescribed formulaic reserve component.
N.D. Cent. Code § 26.1-53.1-18 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-18
26.1-53.1-18. Advertisements to be truthful and not misleading
Status: in_force

26.1-53.1-18. Advertisements to be truthful and not misleading

Any advertisements, marketing materials, brochures, discount plan cards, and any other

communications of a discount plan organization provided to prospective members and members

must be truthful and not misleading in fact or implication. An advertisement, marketing material,

brochure, discount plan card, or other communication is misleading in fact or in implication if the

communication has a capacity or tendency to mislead or deceive based on the overall

impression the communication is reasonably expected to create within the segment of the public

to which the communication is directed.
N.D. Cent. Code § 26.1-07-06 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-06
26.1-07-06. Commissioner may compel attendance of witnesses - Policyholders and stockholders may appear
Status: in_force

26.1-07-06. Commissioner may compel attendance of witnesses - Policyholders and

stockholders may appear.

The commissioner may summon and compel the attendance and testimony of witnesses

and the production of evidence. Any policyholder or stockholder of a company petitioning for

consolidation or for the right to reinsure may appear before the commissioner and be heard with

reference thereto.
N.D. Cent. Code § 26.1-12-19 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-19
26.1-12-19. Nonpayment of premiums and contingent liabilities - Effect - Continuation of liability on mortgage clause policy
Status: in_force

26.1-12-19. Nonpayment of premiums and contingent liabilities - Effect - Continuation

of liability on mortgage clause policy.

If the premium on a policy issued by a mutual insurance company is not paid in cash or in

an unconditional note within sixty days after the date of issue of the policy, the policy becomes

void and remains void during the period of nonpayment of premium. Upon the payment of the

premium, the policy reattaches if no loss has occurred thereunder while the policy was void. If,

however, the company has issued a policy with a mortgage clause making loss, if any, payable

to the mortgagee to the extent of the mortgagee's interest and not exceeding the amount of the

policy, the company, notwithstanding the nonpayment of premium or contingent mutual liability,

is liable on the policy to the mortgagee until the secretary of the company has notified the

mortgagee in writing that the premium or contingent mutual liability has not been paid and the

mortgagee has twenty days from the date of the notice in which to pay the same, and in default

of the payment, the liability of the company to the mortgagee ceases.
N.D. Cent. Code § 26.1-05-15 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-15
26.1-05-15. Rulemaking authority - Liability
Status: in_force

26.1-05-15. Rulemaking authority - Liability

The commissioner may adopt any rules necessary to administer sections 26.1-05-11

through 26.1-05-14. The commissioner may classify domestic stock insurance companies,

securities, and other persons or matters within the commissioner's jurisdiction and define and

prescribe terms and conditions with respect to securities held in an investment account and

transactions made in the ordinary course of business and incident to the establishment or

maintenance of a primary or secondary market. Sections 26.1-05-11 through 26.1-05-13 do not

impose any liability for any act done or omitted in good faith in conformity with any rule of the

commissioner, notwithstanding that the rule may, after the act or omission, be amended or

rescinded or determined by judicial or other authority to be invalid for any reason.
N.D. Cent. Code § 26.1-19-03 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-03
26.1-19-03. Exceptions
Status: in_force

26.1-19-03. Exceptions

This chapter does not apply to:

1. Commercial insurers licensed or authorized to do business in this state or to any

nonadmitted insurers.

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

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

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

legal matters.

3. Plans providing no benefits other than consultation with and advice by an attorney in

connection or combination with referral services.

4. The furnishing of legal services on an informal basis, involving neither an express

contractual obligation nor reasonable expectations, in the context of an employment,

membership, educational, or similar relationship.

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

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

6. Prepaid legal services plans that pay only an administrative fee to an attorney. Under

this subsection, the payment of only an administrative fee to an attorney is not

considered payment for or reimbursement of the cost of legal services and related

expenses and court costs.
N.D. Cent. Code § 26.1-33-29 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-29
26.1-33-29. Applicability of life policy simplification standards
Status: in_force

26.1-33-29. Applicability of life policy simplification standards

1. Except as provided in subsection 3, sections 26.1-33-29 through 26.1-33-32 apply to

all individual and group life insurance policies, insurance certificates under group life

insurance policies, and death benefit certificates issued by fraternal benefit societies

filed after June 30, 1982. No policy may be delivered or issued for delivery in this state

after June 30, 1986, unless the policy form has been approved by the commissioner or

is permitted to be issued under sections 26.1-33-29 through 26.1-33-32. Any policy

form that has been approved or permitted to be issued prior to July 1, 1986, and that

meets the standards set by sections 26.1-33-29 through 26.1-33-32 need not be

refiled for approval, but may continue to be delivered or issued for delivery in this state

upon the filing with the commissioner of a list of the forms identified by form number

and accompanied by a certificate as to each form in the manner provided in

subsection 6 of section 26.1-33-30.

2. The commissioner may extend the dates in subsection 1.

3. Sections 26.1-33-29 through 26.1-33-32 do not apply to:

a. A policy that is a security subject to federal jurisdiction.

b. A group life insurance policy covering a group of one thousand or more lives at

date of issue. However, this does not except any certificate issued pursuant to a

group policy delivered or issued for delivery in this state.

c. A group annuity contract that serves as a funding vehicle for pension, profit

sharing, or deferred compensation plans.

d. A form used in connection with, as a conversion from, as an addition to, or in

exchange pursuant to a contractual provision for, a policy delivered or issued for

delivery on a form approved or permitted to be issued prior to the dates the form

must be approved under sections 26.1-33-29 through 26.1-33-32.

e. The renewal of a policy delivered or issued for delivery prior to the dates the form

must be approved under sections 26.1-33-29 through 26.1-33-32.

4. No other state law setting language simplification standards applies to a policy form.
N.D. Cent. Code § 26.1-36-19 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-19
26.1-36-19. Age limit in accident and health policy
Status: in_force

26.1-36-19. Age limit in accident and health policy

If an accident and health insurance policy contains a provision establishing, as an age limit

or otherwise, a date after which the coverage provided by the policy will not be effective, and if

the date falls within a period for which premium is accepted by the insurer or if the insurer

accepts a premium after that date, the coverage provided by the policy continues in force

subject to any right of cancellation until the end of the period for which premium has been

accepted. In the event the age of the insured has been misstated and if, according to the correct

age of the insured, the coverage provided by the policy would not have become effective, or

would have ceased prior to the acceptance of the premium or premiums, then the liability of the

insurer is limited to the refund, upon request, of all premiums paid for the period not covered by

the policy.
N.D. Cent. Code § 26.1-31-04 — ND Code / Title 26.1 / Chapter 26.1-31 / Section 26.1-31-04
26.1-31-04. Disclosures required on reinsurance
Status: in_force

26.1-31-04. Disclosures required on reinsurance

When an insurer obtains reinsurance, the insurer shall communicate all the representations

of the original insured and all the knowledge and information the insurer possesses, regardless

of when acquired, which is material to the risk.
N.D. Cent. Code § 26.1-02.2-01 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-01
26.1-02.2-01. Definitions
Status: in_force

26.1-02.2-01. Definitions

As used in this chapter:

1. "Authorized individual" means an individual known to and screened by the licensee

and determined to be necessary and appropriate to have access to the nonpublic

information held by the licensee and the licensee's information systems.

2. "Commissioner" means the insurance commissioner.

3. "Consumer" means an individual, including an applicant, policyholder, insured,

beneficiary, claimant, and certificate holder, who is a resident of this state and whose

nonpublic information is in a licensee's possession, custody, or control.

4. "Cybersecurity event" means an event resulting in unauthorized access to, disruption,

or misuse of, an information system or nonpublic information stored on the information

system. The term does not include the unauthorized acquisition of encrypted nonpublic

information if the encryption, process, or key is not also acquired, released, or used

without authorization.

5. "Department" means the insurance department.

6. "Encrypted" means the transformation of data into a form that results in a low

probability of assigning meaning without the use of a protective process or key.

7. "Information security program" means the administrative, technical, and physical

safeguards a licensee uses to access, collect, distribute, process, protect, store, use,

transmit, dispose of, or otherwise handle nonpublic information.

8. "Information system" means a discrete set of electronic information resources

organized for the collection, processing, maintenance, use, sharing, dissemination, or

disposition of electronic nonpublic information, as well as any specialized system,

including industrial or process controls systems, telephone switching, private branch

exchange systems, and environmental control systems.

9. "Licensee" means any person licensed, authorized to operate, registered, or required

to be licensed, authorized, or registered pursuant to the insurance laws of this state.

The term does not include a purchasing group or a risk retention group chartered and

licensed in another state or a licensee that is acting as an assuming insurer that is

domiciled in another state or jurisdiction.

10. "Multi-factor authentication" means authentication through verification of at least two of

the following types of authentication factors:

a. Knowledge factors, including a password;

b. Possession factors, including a token or text message on a mobile phone; or

c. Inherence factors, including a biometric characteristic.

11. "Nonpublic information" means electronic information that is not publicly available

information and is:

a. Any information concerning a consumer which can be used to identify the

consumer because of name, number, personal mark, or other identifier in

combination with any one or more of the following data elements:

(1) Social security number;

(2) Driver's license number or nondriver identification card number;

(3) Financial account number or credit or debit card number;

(4) Any security code, access code, or password that would permit access to a

consumer's financial account; or

(5) Biometric records.

b. Any information or data, except age or gender, in any form or medium created by

or derived from a health care provider or a consumer which can be used to

identify a particular consumer and relates to:

(1) The past, present, or future physical, mental, or behavioral health or

condition of any consumer or a member of the consumer's family;

(2) The provision of health care to any consumer; or

(3) Payment for the provision of health care to any consumer.

12. "Person" means any individual or any nongovernmental entity, including any

nongovernmental partnership, corporation, branch, agency, or association.

13. "Publicly available information" means any information a licensee has a reasonable

basis to believe is lawfully made available to the general public from federal, state, or

local government records; widely distributed media; or disclosures to the general

public which are required to be made by federal, state, or local law. A licensee has a

reasonable basis to believe that information is lawfully made available to the general

public if the licensee has taken steps to determine:

a. The information is of the type available to the general public; and

b. Whether a consumer can direct the information not be made available to the

general public and, if so, that the consumer has not done so.

14. "Risk assessment" means the risk assessment that each licensee is required to

conduct under section 26.1-02.2-03.

15. "Third-party service provider" means a person, not otherwise defined as a licensee,

that contracts with a licensee to maintain, process, store, or otherwise is permitted

access to nonpublic information through its provision of services to the licensee.
N.D. Cent. Code § 26.1-45-11 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-11
26.1-45-11. Rulemaking authority
Status: in_force

26.1-45-11. Rulemaking authority

The commissioner may adopt reasonable rules to promote premium adequacy, protect the

policyholder in the event of substantial rate increases, and to establish minimum standards for

correcting abusive marketing practices, replacement forms, insurance producer testing,

penalties, and reporting practices for long-term care insurance.
N.D. Cent. Code § 26.1-51-02 — ND Code / Title 26.1 / Chapter 26.1-51 / Section 26.1-51-02
26.1-51-02. Self-critical analysis privilege created - Scope
Status: in_force

26.1-51-02. Self-critical analysis privilege created - Scope

An insurance compliance self-critical analysis privilege is created to protect the

confidentiality of insurance compliance self-critical analysis documents or communications in

regard to their content relating to voluntary internal compliance audits conducted by insurers

and persons in regard to activities regulated under this title, both to conduct voluntary internal

audits of its compliance programs and management systems, and to assess and improve

compliance with state and federal statutes, rules, and orders. The insurance compliance

self-critical analysis privilege applies to all litigation or administrative proceedings pending on

August 1, 1999.
N.D. Cent. Code § 26.1-29-17 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-17
26.1-29-17. Materiality of matters - How determined
Status: in_force

26.1-29-17. Materiality of matters - How determined

Materiality is to be determined not by the event, but solely by the probable and reasonable

influence of the facts upon the party to whom the communication is due in forming the party's

estimate of the disadvantages of the proposed contract or in making the party's inquiries.
N.D. Cent. Code § 26.1-13-22 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-22
26.1-13-22. Insured to give undertaking to pay pro rata share of losses - Cash payment or premium required
Status: repealed

26.1-13-22. Insured to give undertaking to pay pro rata share of losses - Cash

payment or premium required.

Repealed by S.L. 2019, ch. 236, § 16.
N.D. Cent. Code § 26.1-53.1-28 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-28
26.1-53.1-28. Application to existing discount plan organizations
Status: in_force

26.1-53.1-28. Application to existing discount plan organizations

A person doing business in this state as a discount plan organization on or before the

effective date of this chapter has six months following the effective date of this Act to come into

compliance with the requirements of this chapter.
N.D. Cent. Code § 26.1-01-07.1 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-07.1
26.1-01-07.1. Insurance regulatory trust fund established
Status: reserved

26.1-01-07.1. Insurance regulatory trust fund established

1. There is hereby created a trust fund designated "insurance regulatory trust fund". The

following amounts must be deposited in the insurance regulatory trust fund:

a. All sums received under section 18-13-03.

b. All sums received under section 26.1-01-07.

c. All sums received under section 26.1-01-07.2 from the insurance regulatory trust

fund investments.

d. All retaliatory fees imposed upon persons by the insurance department as

authorized by law.

e. All administrative penalties, fines, and fees collected by the commissioner from

any person subject to this title.

f. Any other amounts provided by legislative appropriation.

2. The moneys so received and deposited in the insurance regulatory trust fund are

reserved for use by the insurance department to defray the expenses of the

department in the discharge of its administrative and regulatory powers and duties as

prescribed by law subject to the applicable laws relating to the appropriations of state

funds and to the deposit and expenditure of state moneys. The insurance department

is responsible for the proper expenditure of these moneys as provided by law.

3. Except as otherwise provided by law, after the fiscal year has been closed and all

expenses relating to the fiscal year have been accounted for, the office of

management and budget shall transfer any fund balance remaining in the insurance

regulatory trust fund that exceeds one million dollars to the general fund.
N.D. Cent. Code § 26.1-13-26 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-26
26.1-13-26. Notice of assessment - Extension of time of payment of assessment
Status: repealed

26.1-13-26. Notice of assessment - Extension of time of payment of assessment

Repealed by S.L. 2019, ch. 236, § 16.
N.D. Cent. Code § 26.1-30-22 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-22
26.1-30-22. Mandatory arbitration endorsements for property insurance - Written acceptance - Penalty
Status: in_force

26.1-30-22. Mandatory arbitration endorsements for property insurance - Written

acceptance - Penalty.

1. A property insurance policy may be issued or delivered in this state with mandatory

binding arbitration provisions if the:

a. Mandatory binding arbitration provisions are contained in a separate

endorsement;

b. Named insured accepts the mandatory binding arbitration endorsement in writing

in accordance with subsection 2; and

c. Property insurance policy does not require mandatory binding arbitration upon

request.

2. The written acceptance of the insured required under subsection 1 must:

a. Be on a form separate from the policy application and other policy forms;

b. Clearly state the rights being waived in exchange for the premium discount,

including the right to a trial by jury; and

c. Include the following statement in at least twelve-point bold font:

"By signing this form, I agree to resolve all covered property insurance claims

through mandatory binding arbitration. I understand that by agreeing to

mandatory binding arbitration:

I am giving up my right to have disputes resolved in court.

I am giving up my right to a jury trial.

I am accepting these terms in exchange for a premium discount of [dollar amount

or percentage of premium amount].

This agreement is binding on all insureds under the policy and remains effective

upon policy renewal, replacement, or reinstatement unless I request removal of

the mandatory binding arbitration endorsement in writing".

3. All arbitration proceedings under this section must:

a. Be conducted in this state if involving a resident of this state;

b. Be governed by state law; and

c. Not require arbitration in another state.

4. The acceptance or rejection of mandatory binding arbitration is valid and binding on all

insureds under the policy and remains effective upon policy renewal, replacement, or

reinstatement unless the named insured requests a change in writing.

5. This section applies to all property and casualty insurance policies issued or renewed

after August 1, 2025.

6. This section does not apply to a:

a. Voluntary arbitration agreement entered after a dispute has arisen;

b. Large commercial risk as defined in section 26.1-25-02.1; or

c. Commercial surplus line insurance policy placed in accordance with section

26.1-44-03.

7. The commissioner shall enforce this section.

8. The commissioner may assess a penalty on an insurer in violation of this section, as

determined by the commissioner.
N.D. Cent. Code § 26.1-02-12 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-12
26.1-02-12. Pleading by unauthorized insurance company - When permitted
Status: in_force

26.1-02-12. Pleading by unauthorized insurance company - When permitted

Before any unauthorized insurance company files or causes to be filed any pleading in any

court proceeding instituted against the company by service made as provided in section

26.1-02-11, the company shall either:

1. File with the clerk of the court in which the proceeding is pending a cash or other bond

with good and sufficient sureties, to be approved by the clerk, in an amount fixed by

the court sufficient to secure payment of any final judgment which may be rendered in

the action; or

2. Procure a certificate of authority to transact the business of insurance in this state. In

considering the application for a certificate of authority, for the purposes of this

subsection, the commissioner need not assert section 26.1-11-06 against the company

with respect to its application if the commissioner determines that the company would

otherwise comply with the requirements for the certificate of authority.
N.D. Cent. Code § 26.1-36.12-13 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-13
26.1-36.12-13. Failure to comply - Services deemed authorized
Status: in_force

26.1-36.12-13. Failure to comply - Services deemed authorized

If a prior authorization review organization fails to comply with the deadlines and other

requirements in this chapter, any health care services subject to review automatically are

deemed authorized by the prior authorization review organization.
N.D. Cent. Code § 26.1-36.7-09 — ND Code / Title 26.1 / Chapter 26.1-36.7 / Section 26.1-36.7-09
26.1-36.7-09. Reimbursement of member insurer
Status: in_force

26.1-36.7-09. Reimbursement of member insurer

For nongrandfathered individual health benefit plans issued or renewed after the November

second preceding to the date the association begins operation, a member insurer may seek

reimbursement from the association and the association shall reimburse the member insurer

pursuant to the provisions of section 26.1-36.7-08 to the extent the claims incurred by the

insured and submitted by the member insurer to the association are eligible for coverage and

reimbursement according to the terms of insured's individual health benefit plan.
N.D. Cent. Code § 26.1-26.3-01 — ND Code / Title 26.1 / Chapter 26.1-26.3 / Section 26.1-26.3-01
26.1-26.3-01. Definitions
Status: in_force

26.1-26.3-01. Definitions

As used in this chapter:

1. "Actuary" means a person who is a member in good standing of the American

academy of actuaries.

2. "Insurer" means any person, firm, association, or corporation duly licensed in this state

as an insurance company pursuant to this title.

3. "Managing general agent" means any individual, partnership, corporation, or limited

liability company which:

a. Manages all or part of the insurance business of an insurer, including the

management of a separate division, department, or underwriting office.

b. Acts as an insurance producer for the insurer whether known as a managing

general agent, manager, or other similar term, who, with or without the authority,

either separately or together with affiliates, produces, directly or indirectly, and

underwrites an amount of gross direct written premium equal to or more than five

percent of the policyholder surplus as reported in the last annual statement of the

insurer in any one quarter or year together with one or more of the following

activities related to the business produced:

(1) Adjusts or pays claims in excess of an amount determined by the

commissioner; or

(2) Negotiates reinsurance on behalf of the insurer.

c. Notwithstanding the above, the following persons will not be considered as

managing general agents for the purposes of this chapter:

(1) An employee of the insurer.

(2) A United States manager of the United States branch of an alien insurer.

(3) An underwriting manager which, pursuant to contract, manages all or part of

the insurance operations of the insurer, is under common control with the

insurer, subject to chapter 26.1-10, and whose compensation is not based

on the volume of premiums written.

(4) The attorney in fact authorized by and acting for the subscribers of a

reciprocal insurer or interinsurance exchange under powers of attorney.

4. "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
N.D. Cent. Code § 26.1-34-05 — ND Code / Title 26.1 / Chapter 26.1-34 / Section 26.1-34-05
26.1-34-05. Minimum value of paid-up annuity on cessation of payment of considerations - Cash surrender benefits not provided
Status: in_force

26.1-34-05. Minimum value of paid-up annuity on cessation of payment of

considerations - Cash surrender benefits not provided.

For annuity contracts that do not provide cash surrender benefits, the present value of any

paid-up annuity benefit available as a nonforfeiture option at any time prior to maturity may not

be less than the present value of the portion of the maturity value of the paid-up annuity benefit

provided under the contract arising from considerations paid prior to the time the contract is

surrendered in exchange for, or changed to, a deferred paid-up annuity. The present value must

be calculated for the period prior to the maturity date on the basis of the interest rate specified in

the contract for accumulating the net considerations to determine the maturity value, and

increased by any existing additional amounts credited by the company to the contract. For

contracts that do not provide any death benefits prior to the commencement of any annuity

payments, the present values must be calculated on the basis of the interest rate and the

mortality table specified in the contract for determining the maturity value of the paid-up annuity

benefit. The present value of a paid-up annuity benefit may not be less than the minimum

nonforfeiture amount at that time.
N.D. Cent. Code § 26.1-31.1-02 — ND Code / Title 26.1 / Chapter 26.1-31.1 / Section 26.1-31.1-02
26.1-31.1-02. Licensure
Status: in_force

26.1-31.1-02. Licensure

1. No person, firm, association, or corporation may act as a reinsurance

intermediary-broker in this state if the reinsurance intermediary-broker maintains an

office either directly or as a member or employee of a firm or association, or an officer,

director, or employee of a corporation:

a. In this state, unless the reinsurance intermediary-broker is a licensed producer in

this state; or

b. In another state, unless the reinsurance intermediary-broker is a licensed

producer in this state or another state having a law substantially similar to this law

or such reinsurance intermediary-broker is licensed in this state as a nonresident

reinsurance intermediary.

2. No person, firm, association, or corporation may act as a reinsurance

intermediary-manager:

a. For a reinsurer domiciled in this state, unless the reinsurance

intermediary-manager is a licensed producer in this state.

b. In this state, if the reinsurance intermediary-manager maintains an office either

directly or as a member or employee of a firm or association, or as an officer,

director, or employee of a corporation in this state, unless the reinsurance

intermediary-manager is a licensed producer in this state.

c. In another state for a nondomestic insurer, unless the reinsurance

intermediary-manager is a licensed producer in this state or another state having

a law substantially similar to this law or the person is licensed in this state as a

nonresident reinsurance intermediary.

3. The commissioner may require a reinsurance intermediary-manager subject to

subsection 2 to:

a. File a bond in an amount from an insurer acceptable to the commissioner for the

protection of the reinsurer; and

b. Maintain an errors and omissions policy in an amount acceptable to the

commissioner.

4. a. The commissioner may issue a reinsurance intermediary license to any person,

firm, association, corporation, or limited liability company who has complied with

the requirements of this chapter. Any such license issued to a firm or association

will authorize all the members of the firm or association and any designated

employees to act as reinsurance intermediaries under the license, and all such

persons must be named in the application and any supplements thereto. Any

such license issued to a corporation must authorize all of the officers and any

designated employees and directors thereof to act as reinsurance intermediaries

on behalf of the corporation, and all such persons must be named in the

application and any supplements thereto. Any such license issued to a limited

liability company must authorize all of the managers and any designated

employees and governors thereof to act as reinsurance intermediaries on behalf

of the limited liability company, and all such persons must be named in the

application and any supplements thereto.

b. If the applicant for a reinsurance intermediary license is a nonresident, the

applicant, as a condition precedent to receiving or holding a license, shall

designate the commissioner as agent for service of process in the manner, and

with the same legal effect, provided for by this title for designation of service of

process upon unauthorized insurers. The applicant shall also furnish the

commissioner with the name and address of a resident of this state upon whom

notices or orders of the commissioner or process affecting the nonresident

reinsurance intermediary may be served. The licensee shall promptly notify the

commissioner in writing of every change in its designated agent for service of

process, and the changes do not become effective until acknowledged by the

commissioner.

5. The commissioner may refuse to issue a reinsurance intermediary license if, in the

commissioner's judgment, the applicant, anyone named on the application, or any

member, principal, officer, or director of the applicant, is not trustworthy, or that any

controlling person of the applicant is not trustworthy to act as a reinsurance

intermediary, or that any of the foregoing has given cause for revocation or suspension

of the license, or has failed to comply with any prerequisite for the issuance of such

license. Upon written request therefor, the commissioner will furnish a summary of the

basis for refusal to issue a license.

6. Licensed attorneys at law of this state when acting in their professional capacity as

such are exempt from this section.
N.D. Cent. Code § 26.1-01-06 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-06
26.1-01-06. Reporting of statistical data regarding legal malpractice claims, settlements, and judgments
Status: repealed

26.1-01-06. Reporting of statistical data regarding legal malpractice claims,

settlements, and judgments.

Repealed by S.L. 2003, ch. 245, § 4.
N.D. Cent. Code § 26.1-10.3-04 — ND Code / Title 26.1 / Chapter 26.1-10.3 / Section 26.1-10.3-04
26.1-10.3-04. Contents of corporate governance annual disclosure
Status: in_force

26.1-10.3-04. Contents of corporate governance annual disclosure

1. The insurer or insurance group has discretion over the responses to the corporate

governance annual disclosure inquiries, if the corporate governance annual disclosure

contains the material information necessary to permit the commissioner to gain an

understanding of the insurer's or group's corporate governance structure, policies, and

practices. The commissioner may request additional information the commissioner

deems material and necessary to provide the commissioner with a clear understanding

of the corporate governance policies, the reporting or information system or controls

implementing those policies.

2. Notwithstanding subsection 1, the corporate governance annual disclosure must be

prepared according to rules adopted by the commissioner. Documentation and

supporting information must be maintained and made available upon examination or

upon request of the commissioner.
N.D. Cent. Code § 26.1-39-09 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-09
26.1-39-09. Nonstandard fire policy
Status: in_force

26.1-39-09. Nonstandard fire policy

The commissioner may approve for use in this state a form of policy which does not

correspond to the standard policy as provided by section 26.1-39-06; provided, that the

coverage of the approved policy form with respect to the peril of fire may not be less than that

contained in the standard policy.
N.D. Cent. Code § 26.1-52-06 — ND Code / Title 26.1 / Chapter 26.1-52 / Section 26.1-52-06
26.1-52-06. Rates
Status: in_force

26.1-52-06. Rates

The facility shall establish rates and may include data from an advisory or statistical

organization in the development of its rates. Rates must be submitted to the commissioner for

approval prior to use. Rates must be actuarially sound under chapter 26.1-25 and may not

actively compete with rates in the voluntary market.
N.D. Cent. Code § 26.1-36-21 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-21
26.1-36-21. Prisoner's accident and health coverage to continue - Conditions
Status: in_force

26.1-36-21. Prisoner's accident and health coverage to continue - Conditions

Insurance companies and nonprofit health service corporations licensed in this state shall

continue coverage of a prisoner insured under an accident and health insurance policy or a

health service contract while the prisoner is incarcerated and under state supervision to the

same extent as the general public is covered as long as the prisoner meets all the other usual

qualifications for insurability and continues to pay the policy or contract premiums. A prisoner's

incarceration may not be a basis for cancellation of the prisoner's accident and health insurance

policy or health service contract.
N.D. Cent. Code § 26.1-06.1-44 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-44
26.1-06.1-44. Unclaimed and withheld funds
Status: in_force

26.1-06.1-44. Unclaimed and withheld funds

1. All unclaimed funds subject to distribution remaining under the liquidator's control

when the liquidator is ready to apply to the court for discharge, including the amount

distributable to any creditor, shareholder, member, or other person who is unknown or

cannot be found, must be deposited with the state treasurer, and must be paid without

interest except in accordance with section 26.1-06.1-41 to the person entitled thereto

or the person's legal representative upon proof satisfactory to the state treasurer of the

person's right thereto. Any amount on deposit not claimed within six years from the

discharge of the liquidator must be deemed to have been abandoned and must be

escheated without formal escheat proceedings and be deposited with the general

fund.

2. All funds withheld under section 26.1-06.1-36 and not distributed must, upon discharge

of the liquidator, be deposited with the state treasurer and paid out in accordance with

section 26.1-06.1-41. Any sums remaining which under section 26.1-06.1-41 would

revert to the undistributed assets of the insurer must be transferred to the state

treasurer and become the property of the state under subsection 1, unless the

commissioner petitions the court to reopen the liquidation under section 26.1-06.1-46.
N.D. Cent. Code § 26.1-40-24 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-24
26.1-40-24. Notice requirements following total loss
Status: in_force

26.1-40-24. Notice requirements following total loss

If an insurer determines an automobile with physical damage coverage has incurred a total

loss or constructive total loss and that insurer continues to write comprehensive or collision

coverage on that automobile, the insurer shall provide notice to the insured that:

1. The insurer determined the automobile is a total loss;

2. The insured's current coverage on that automobile includes comprehensive or collision

coverage;

3. If the insured does not repair the automobile, the insurer will reduce the amount of any

future physical damage claim for that automobile by the amount paid for the total loss;

and

4. If the insured does not repair that automobile, the insured should contact the agent to

request that the comprehensive or collision coverage on that automobile be

discontinued.
N.D. Cent. Code § 26.1-06.1-35 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-35
26.1-06.1-35. Proof of claim
Status: in_force

26.1-06.1-35. Proof of claim

1. Proof of claim must consist of a statement signed by the claimant that includes all of

the following that are applicable:

a. The particulars of the claim including the consideration given for it;

b. The identity and amount of the security on the claim;

c. The payments made on the debt, if any;

d. That the sum claimed is justly owing and that there is no setoff, counterclaim, or

defense to the claim;

e. Any right of priority of payment or other specific right asserted by the claimants;

f. A copy of the written instrument which is the foundation of the claim; and

g. The name and address of the claimant and the attorney who represents the

claimant, if any.

2. No claim need be considered or allowed if it does not contain all the information in

subsection 1 which may be applicable. The liquidator may require that a prescribed

form be used, and may require that other information and documents be included.

3. At any time the liquidator may request the claimant to present information or evidence

supplementary to that required under subsection 1 and may take testimony under

oath, require production of affidavits or depositions, or otherwise obtain additional

information or evidence.

4. No judgment or order against an insured or the insurer entered after the date of filing

of a successful petition for liquidation, and no judgment or order against an insured or

the insurer entered at any time by default or by collusion need be considered as

evidence of liability or of the amount of damages. No judgment or order against an

insured or the insurer entered within four months before the filing of the petition need

be considered as evidence of liability or of the amount of damages.

5. All claims of a guaranty association or foreign guaranty association must be in such

form and contain such substantiation as may be agreed to by the association and the

liquidator.
N.D. Cent. Code § 26.1-47-07 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-07
26.1-47-07. Penalty
Status: in_force

26.1-47-07. Penalty

The commissioner may levy an administrative penalty not to exceed ten thousand dollars

for a violation of this chapter.
N.D. Cent. Code § 26.1-02-17 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-17
26.1-02-17. Enforcement of foreign decrees - Time limit
Status: in_force

26.1-02-17. Enforcement of foreign decrees - Time limit

No execution or other process for enforcement of a foreign decree may issue until thirty

days after the date the decree is filed.
N.D. Cent. Code § 26.1-01-07.3 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-07.3
26.1-01-07.3. Cash flow financing
Status: in_force

26.1-01-07.3. Cash flow financing

In order to effectively meet the cyclical cash flow needs of the insurance regulatory trust

fund, the office of management and budget upon approval of the emergency commission is

hereby authorized to issue certificates in anticipation of revenue, notes, or bonds, to funds on

deposit in the state treasury. Any issue of such certificates, notes, or bonds must be approved

by the emergency commission and are to be used for cash flow financing only and not to offset

projected deficits in the insurance regulatory trust fund. The terms of any specific issue of such

certificates, notes, or bonds may not exceed one hundred eighty days from the date of issuance

whereupon the principal and interest on the certificates, notes, or bonds must be paid in full

from the insurance regulatory trust fund or from another issue of a similar nature. All principal

and interest on such issues made during a biennial period must be repaid in full at the close of

the biennial period from the insurance regulatory trust fund. When certificates, notes, or bonds

are issued for cash flow purposes to funds which otherwise would be invested, with the

investment income accruing to the fund, the certificate shall bear an investment rate of return

which must be agreed upon by the state investment board and must be at a level

commensurate with the yield to be reasonably expected by such fund if invested in alternate

securities.
N.D. Cent. Code § 26.1-19-12 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-12
26.1-19-12. Complaint system
Status: in_force

26.1-19-12. Complaint system

1. A prepaid legal services organization shall establish and maintain a complaint system

which has been approved by the commissioner to provide reasonable procedures for

the resolution of complaints initiated by participants concerning any aspect of the

prepaid legal services plans operated by the organization.

2. A prepaid legal services organization shall submit to the commissioner an annual

report in a form prescribed by the commissioner which must include:

a. A description of the procedure used under the complaint system.

b. The total number of complaints by type handled through the complaint system.

c. The disposition of all complaints filed under the system.

3. A prepaid legal services organization shall maintain records of complaints, shall retain

those records for a period of three years, and shall make those records available for

inspection by the commissioner; provided, however, that no information regarding a

participant or an attorney considered protected by the confidential nature of the

attorney-client relationship may be divulged without written consent of the participant

or upon appropriate court order.

4. Complaints alleging misfeasance, malfeasance, or nonfeasance on the part of the

attorneys or complaints alleging violations of the code of professional responsibility

must be submitted to the disciplinary board of the supreme court for disposition.
N.D. Cent. Code § 26.1-45-07.1 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-07.1
26.1-45-07.1. Defined term requirements - Claim payments
Status: in_force

26.1-45-07.1. Defined term requirements - Claim payments

1. A long-term care insurance policy delivered or issued for delivery in this state may not

include the following terms, unless the terms are defined in the policy and consistent

with the following requirements:

a. "Activities of daily living" means bathing, continence, dressing, eating, toileting,

and transferring.

b. "Bathing" includes washing oneself by sponge bath, or in a tub or shower, and the

process of getting into and out of the tub or shower.

c. "Cognitive impairment" includes a deficiency in an individual's:

(1) Short-term or long-term memory;

(2) Orientation as to an individual, place, or time;

(3) Deductive or abstract reasoning; or

(4) Judgment as it relates to safety awareness.

d. "Continence" includes the ability to maintain control of bowel and bladder

function, or when unable to maintain control of bowel or bladder function, the

ability to perform associated personal hygiene, including caring for a catheter or

colostomy bag.

e. "Dressing" includes putting on and taking off any item of clothing and any

necessary brace, fastener, or artificial limb.

f. "Eating" includes feeding oneself from a receptacle, including a plate, cup, or

table, or being fed through a feeding tube or intravenously.

g. "Toileting" includes getting to and from the toilet and on and off the toilet, and

performing associated personal hygiene.

h. "Transferring" includes moving into or out of a bed, chair, or wheelchair.

2. A policy defined under this chapter may not prohibit or delay payment of policy benefits

to a basic care facility as defined under section 23-09.3-01 if the insured:

a. Meets the criteria for eligibility for benefits under the policy for care or services

that are medically necessary;

b. Is unable to perform two or more activities of daily living without supervision or

direct assistance; or

c. Has cognitive impairment requiring continual supervision.

3. An insurer shall provide a copy of the long-term care insurance policy to the insured or

a representative of the insured within thirty days of a request for a copy of the policy.
N.D. Cent. Code § 26.1-10.2-01 — ND Code / Title 26.1 / Chapter 26.1-10.2 / Section 26.1-10.2-01
26.1-10.2-01. Definitions
Status: in_force

26.1-10.2-01. Definitions

1. "Insurance group" means those insurers and affiliates included within an insurance

holding company system as defined in chapter 26.1-10.

2. "Insurer" has the same meaning as set forth in section 26.1-29-02, except the term

does not include agencies, authorities, or instrumentalities of the United States, its

possessions and territories, the Commonwealth of Puerto Rico, the District of

Columbia, or a state or political subdivision of a state.

3. "Own risk and solvency assessment" means a confidential internal assessment,

appropriate to the nature, scale, and complexity of an insurer or insurance group,

conducted by that insurer or insurance group of the material and relevant risks

associated with the insurer or insurance group's current business plan, and the

sufficiency of capital resources to support those risks.

4. "Own risk and solvency assessment guidance manual" means the current version of

the own risk and solvency assessment guidance manual developed and adopted by

the national association of insurance commissioners and adopted by the

commissioner and as amended from time to time. A change in the own risk and

solvency assessment guidance manual is effective on the January first following the

calendar year in which the changes have been adopted by the national association of

insurance commissioners and the commissioner.

5. "Own risk and solvency assessment summary report" means a confidential high-level

summary of an insurer or insurance group's own risk and solvency assessment.
N.D. Cent. Code § 26.1-10-06 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-06
26.1-10-06. Examination
Status: in_force

26.1-10-06. Examination

1. Subject to the limitations contained in this section and in addition to the powers which

the commissioner has relating to the examination of insurers, the commissioner may

examine any insurer registered under section 26.1-10-04 and the insurer's affiliates to

ascertain the financial condition of the insurer, including the enterprise risk to the

insurer by the ultimate controlling party, or by any entity or combination of entities

within the insurance holding company system, or by the insurance holding company

system on a consolidated basis.

2. The commissioner may order any insurer registered under section 26.1-10-04 to

produce any record, book, or other information paper in the possession of the insurer

or its affiliates necessary to determine compliance with this chapter.

3. To determine compliance with this chapter, the commissioner may order any insurer

registered under section 26.1-10-04 to produce information not in the possession of

the insurer if the insurer can obtain access to such information pursuant to a

contractual relationship, statutory obligation, or other method. If the insurer cannot

obtain the information requested by the commissioner, the insurer shall provide the

commissioner a detailed explanation of the reason the insurer cannot obtain the

information and the identity of the holder of the information. If the commissioner

determines the detailed explanation is without merit, the commissioner may require,

after notice and hearing, the insurer to pay a penalty of one thousand dollars for each

day's delay, or may suspend or revoke the insurer's license.

4. The commissioner may retain at the registered insurer's expense any attorneys,

actuaries, accountants, and other experts, not otherwise a part of the commissioner's

staff, as are reasonably necessary to assist in the conduct of the examination under

subsection 1. Any persons so retained are under the direction and control of the

commissioner and shall act in a purely advisory capacity.

5. Each registered insurer producing any record, book, or other information paper for

examination pursuant to subsection 1 is liable for and shall pay the expense of the

examination.

6. If the insurer fails to comply with an order, the commissioner may examine the affiliates

to obtain the information. The commissioner may issue a subpoena, administer oaths,

and examine under oath any person for purposes of determining compliance with this

section. Upon the failure or refusal of any person to obey a subpoena, the

commissioner may petition a court of competent jurisdiction, and upon proper showing,

the court may enter an order compelling the witness to appear and testify or produce

documentary evidence. Failure to obey the court order is punishable as contempt of

court. When subpoenaed, a person shall attend as a witness at the place specified in

the subpoena, anywhere within the state. The witness is entitled to receive the same

fees and mileage as a witness in an administrative hearing or in district court, which

fees, mileage, and actual expense, if any, necessarily incurred in securing the

attendance of witnesses, and their testimony, must be itemized and charged against,

and be paid by, the insurer being examined.
N.D. Cent. Code § 26.1-35-01.1 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-01.1
26.1-35-01.1. Actuarial opinion of reserves
Status: in_force

26.1-35-01.1. Actuarial opinion of reserves

1. The following apply to the actuarial opinions issued before the operative date of the

valuation manual:

a. Every life insurer doing business in this state shall annually submit the opinion of

a qualified actuary as to whether the reserves and related actuarial items held in

support of the policies and contracts specified by the commissioner by rule are

computed appropriately, are based on assumptions which satisfy contractual

provisions, are consistent with prior reported amounts, and comply with

applicable laws of this state. The commissioner by rule shall define the specifics

of this opinion and add any other items deemed to be necessary to its scope.

b. Actuarial analysis of reserves and assets supporting such reserves.

(1) Every life insurer, except as exempted by or pursuant to rule, shall also

annually include in the opinion required by subsection 1, an opinion of the

same qualified actuary as to whether the reserves and related actuarial

items held in support of the policies and contracts specified by the

commissioner by rule, when considered in light of the assets held by the

insurer with respect to the reserves and related actuarial items, including the

investment earnings on the assets and the considerations anticipated to be

received and retained under the policies and contracts, make adequate

provision for the insurer's obligations under the policies and contracts,

including the benefits under and expenses associated with the policies and

contracts.

(2) The commissioner may provide by rule for a transition period for

establishing any higher reserves which the qualified actuary may deem

necessary in order to render the opinion required by this section.

c. Requirement for opinion under subdivision b. Each opinion required by

subdivision b must be governed by the following provisions:

(1) A memorandum, in form and substance acceptable to the commissioner as

specified by rule, must be prepared to support each actuarial opinion.

(2) If the insurer fails to provide a supporting memorandum at the request of the

commissioner within a period specified by rule or the commissioner

determines that the supporting memorandum provided by the insurer fails to

meet the standards prescribed by rule or is otherwise unacceptable to the

commissioner, the commissioner may engage a qualified actuary at the

expense of the insurer to review the opinion and the basis for the opinion

and prepare the supporting memorandum required by the commissioner.

d. Requirement for all opinions subject to subsection 1. Every opinion subject to

subsection 1 must be governed by the following provisions:

(1) The opinion must be submitted with the annual statement reflecting the

valuation of such reserve liabilities for each year ending on or after

December 31, 1994.

(2) The opinion must apply to all business in force, including individual and

group health insurance plans, in form and substance acceptable to the

commissioner as specified by rule.

(3) The opinion must be based on standards adopted from time to time by the

actuarial standards board and on such additional standards as the

commissioner may by rule prescribe.

(4) In the case of an opinion required to be submitted by a foreign or alien

insurer, the commissioner may accept the opinion filed by that insurer with

the insurance supervisory official of another state if the commissioner

determines that the opinion reasonably meets the requirements applicable

to an insurer domiciled in this state.

(5) For the purposes of this section, "qualified actuary" means a member in

good standing of the American academy of actuaries who meets the

requirements set forth in the rule.

(6) Except in cases of fraud or willful misconduct, the qualified actuary is not

liable for damages to any person, other than the insurer and the

commissioner, for any act, error, omission, decision, or conduct with respect

to the actuary's opinion.

(7) Disciplinary action by the commissioner against the insurer or the qualified

actuary must be defined in rules by the commissioner.

(8) Except as provided in paragraphs 12, 13, and 14, documents, materials, or

other information in the possession or control of the insurance department

that are a memorandum in support of the opinion, and any other material

provided by the insurer to the commissioner in connection with the

memorandum, are confidential records not subject to section 44-04-18 and

are privileged, are not subject to subpoena, and are not subject to discovery

or admissible in evidence in any private civil action. However, the

commissioner may use the documents, materials, or other information in the

furtherance of any regulatory or legal action brought as a part of the

commissioner's official duties.

(9) Neither the commissioner nor any person who received documents,

materials, or other information while acting under the authority of the

commissioner is permitted or required to testify in any private civil action

concerning any confidential documents, materials, or information subject to

paragraph 8.

(10) In order to assist in the performance of the commissioner's duties, the

commissioner:

(a) May share documents, materials, or other information including the

confidential and privileged documents, materials, or information

subject to paragraph 8 with other state, federal, and international

regulatory agencies; with the national association of insurance

commissioners and its affiliates and subsidiaries; and with state,

federal, and international law enforcement authorities, if the recipient

agrees to maintain the confidentiality and privileged status of the

document, material, or other information;

(b) May receive documents, materials, or information, including otherwise

confidential and privileged documents, materials, or information, from

the national association of insurance commissioners and its affiliates

and subsidiaries, and from regulatory and law enforcement officials of

other foreign or domestic jurisdictions, and shall maintain as

confidential or privileged any document, material, or information

received with notice or the understanding that it is confidential or

privileged under the laws of the jurisdiction that is the source of the

document, material, or information; and

(c) May enter agreements governing sharing and use of information

consistent with paragraphs 8, 9, and 10.

(11) A waiver of any applicable privilege or claim of confidentiality in the

documents, materials, or information may not occur as a result of disclosure

to the commissioner under this section or as a result of sharing as

authorized in paragraph 10.

(12) A memorandum in support of the opinion, and any other material provided

by the insurer to the commissioner in connection with the memorandum,

may be subject to subpoena for the purpose of defending an action seeking

damages from the actuary submitting the memorandum by reason of an

action required by this section or by rules adopted under this section.

(13) The memorandum or other material may otherwise be released by the

commissioner with the written consent of the insurer or to the American

academy of actuaries upon request stating that the memorandum or other

material is required for the purpose of professional disciplinary proceedings

and setting forth procedures satisfactory to the commissioner for preserving

the confidentiality of the memorandum or other material.

(14) Once any portion of the confidential memorandum is cited by the insurer in

its marketing or is cited before any governmental agency other than a state

insurance department or is released by the insurer to the news media, all

portions of the confidential memorandum are no longer confidential.

2. The following apply to actuarial opinions of reserves issued after the operative date of

the valuation manual:

a. Every insurer with outstanding life insurance contracts, accident and health

insurance contracts, or deposit-type contracts in this state and subject to

regulation by the commissioner annually shall submit the opinion of the appointed

actuary as to whether the reserves and related actuarial items held in support of

the policies and contracts are computed appropriately, are based on assumptions

that satisfy contractual provisions, are consistent with prior reported amounts,

and comply with applicable laws of this state. The valuation manual prescribes

the specifics of this opinion, including any items deemed to be necessary to its

scope.

b. Every insurer with outstanding life insurance contracts, accident and health

insurance contracts, or deposit-type contracts in this state and subject to

regulation by the commissioner, except as exempted in the valuation manual,

also annually shall include in the opinion required by subdivision a an opinion of

the same appointed actuary as to whether the reserves and related actuarial

items held in support of the policies and contracts specified in the valuation

manual, when considered in light of the assets held by the insurer with respect to

the reserves and related actuarial items, including the investment earnings on the

assets and the considerations anticipated to be received and retained under the

policies and contracts, make adequate provision for the insurer's obligations

under the policies and contracts, including the benefits under and expenses

associated with the policies and contracts.

c. Each opinion required by this subsection is governed by the following provisions:

(1) A memorandum, in form and substance as specified in the valuation

manual, and acceptable to the commissioner, must be prepared to support

each actuarial opinion.

(2) If the insurer fails to provide a supporting memorandum at the request of the

commissioner within a period specified in the valuation manual or the

commissioner determines that the supporting memorandum provided by the

insurer fails to meet the standards prescribed by the valuation manual or is

otherwise unacceptable to the commissioner, the commissioner may

engage a qualified actuary at the expense of the insurer to review the

opinion and the basis for the opinion and prepare the supporting

memorandum required by the commissioner.

d. Under this subsection, every opinion is governed by the following provisions:

(1) The opinion must be in a form and substance as specified in the valuation

manual and acceptable to the commissioner.

(2) The opinion must be submitted with the annual statement reflecting the

valuation of such reserve liabilities for each year ending on or after the

operative date of the valuation manual.

(3) The opinion must apply to all policies and contracts subject to subdivision b,

plus other actuarial liabilities as may be specified in the valuation manual.

(4) The opinion must be based on standards adopted by the actuarial standards

board or its successor and approved by the commissioner and on such

additional standards as may be prescribed in the valuation manual.

(5) In the case of an opinion required to be submitted by a foreign or alien

insurer, the commissioner may accept the opinion filed by that insurer with

the insurance supervisory official of another state if the commissioner

determines that the opinion reasonably meets the requirements applicable

to an insurer domiciled in this state.

(6) Except in cases of fraud or willful misconduct, the appointed actuary is not

liable for damages to any person, other than the insurer and the

commissioner, for any act, error, omission, decision, or conduct with respect

to the appointed actuary's opinion.

(7) Disciplinary action by the commissioner against the insurer or the appointed

actuary must be defined in rules adopted by the commissioner.
N.D. Cent. Code § 26.1-20.1-07 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-07
26.1-20.1-07. Maximum finance charge
Status: in_force

26.1-20.1-07. Maximum finance charge

1. No insurance premium finance company may charge, contract for, receive, or collect a

finance charge plus a flat service fee with respect to a premium finance agreement

other than as permitted by this section.

2. The finance charge must be computed on the premiums due after subtracting the

downpayment made by the insured in accordance with the premium finance

agreement, from the effective date of the insurance coverage for which the premiums

are being advanced, to and including the date when the final installment under the

premium finance agreement is payable.

3. The annual percentage rate charged under a premium finance agreement made to

finance an insurance policy for agricultural, personal, family, or household use may not

exceed the annual percentage rate permitted under section 47-14-09. In addition, an

insurance premium finance company may contract for a flat rate service or application

fee not exceeding the greater of one percent of the amount financed or twenty dollars

per premium finance agreement for expenses incurred in servicing the loan. The

finance rate and flat rate service or application fee charged under a premium finance

agreement made to finance an insurance policy for business, corporate, or other

purposes may be agreed to by the parties to the agreement.

4. The finance charge must be computed in advance on the principal balance of a

premium finance agreement according to the actuarial method on terms payable in

substantially equal successive monthly installments.

5. Notwithstanding the provisions of any premium finance agreement, any insured may

prepay the obligation in full at any time. If the insured prepays the obligation, the

insured must receive a refund credit if the amount of the refund is one dollar or more.

The amount of the refund credit must represent at least as great a proportion of the

finance charge as the sum of the periodic balances after the month in which

prepayment is made bears to the sum of all periodic balances under the schedule of

installments in the agreement. If, in addition to the finance charge, an additional flat

service fee was imposed, the flat service fee need not be refunded nor taken into

consideration in computing the refund credit.
N.D. Cent. Code § 26.1-26.4-02 — ND Code / Title 26.1 / Chapter 26.1-26.4 / Section 26.1-26.4-02
26.1-26.4-02. Definitions
Status: in_force

26.1-26.4-02. Definitions

For purposes of this chapter, unless the context requires otherwise:

1. "Commissioner" means the insurance commissioner.

2. "Emergency medical condition" means a medical condition of recent onset and

severity, including severe pain, that would lead a prudent layperson acting reasonably

and possessing an average knowledge of health and medicine to believe that the

absence of immediate medical attention could reasonably be expected to result in

serious impairment to bodily function, serious dysfunction of any bodily organ or part,

or would place the person's health, or with respect to a pregnant woman the health of

the woman or her unborn child, in serious jeopardy.

3. "Emergency services" means health care services, supplies, or treatments furnished

or required to screen, evaluate, and treat an emergency medical condition.

4. "Enrollee" means an individual who has contracted for or who participates in coverage

under an insurance policy, a health maintenance organization contract, a health

service corporation contract, an employee welfare benefit plan, a hospital or medical

services plan, or any other benefit program providing payment, reimbursement, or

indemnification for health care costs for the individual or the individual's eligible

dependents.

5. "Health care insurer" includes an insurance company as defined in section 26.1-02-01,

a health service corporation as defined in section 26.1-17-01, a health maintenance

organization as defined in section 26.1-18.1-01, and a fraternal benefit society as

defined in section 26.1-15.1-02.

6. "Provider of record" means the physician or other licensed practitioner identified to the

utilization review agent as having primary responsibility for the care, treatment, and

services rendered to an individual.

7. "Retrospective" means utilization review of medical necessity which is conducted after

services have been provided to a patient, but does not include the review of a claim

that is limited to an evaluation of reimbursement levels, veracity of documentation,

accuracy of coding, or adjudication for payment.

8. "Utilization review" means a system for prospective, retrospective, and concurrent

review of the necessity and appropriateness in the allocation of health care resources

and services that are subject to state insurance regulation and which are given or

proposed to be given to an individual within this state. Utilization review does not

include elective requests for clarification of coverage.

9. "Utilization review agent" means any person or entity performing utilization review,

except:

a. An agency of the federal government; or

b. An agent acting on behalf of the federal government or the department of health

and human services, but only to the extent that the agent is providing services to

the federal government or the department of health and human services.
N.D. Cent. Code § 26.1-40-15.3 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-15.3
26.1-40-15.3. Underinsured motorist coverage
Status: in_force

26.1-40-15.3. Underinsured motorist coverage

1. The insurer shall also provide underinsured motorist coverage at limits equal to the

limits of uninsured motorist coverage. Underinsured motorist coverage must pay

compensatory damages which an insured is legally entitled to collect for bodily injury,

sickness, disease, including death resulting therefrom, of such insured, from the owner

or operator of an underinsured motor vehicle arising out of the ownership,

maintenance, or use of such underinsured motor vehicle.

2. The maximum liability of the underinsured motorist coverage is the lower of:

a. The amount of compensatory damages established but not recovered by any

agreement, settlement, or judgment with or for the person or organization legally

liable for the bodily injury, sickness, disease, or death resulting therefrom; or

b. The limits of liability of the underinsured motorist coverage.

3. In any claim for underinsured motorist benefits, the insured and the insurer each bear

responsibility for one's own attorney's fees incurred unless the insurance contract

specifically provides otherwise or the insurance company is found to have acted in bad

faith. It is neither a conflict of interest nor bad faith for an insurer to contest and press

all defenses that the underinsured motorist could press.
N.D. Cent. Code § 26.1-20.1-04 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-04
26.1-20.1-04. Interrogatories
Status: in_force

26.1-20.1-04. Interrogatories

A person who applies for a license or the renewal of a license shall file sworn answers to

interrogatories if requested by the commissioner. The commissioner may, at any time, require

the applicant to fully disclose the identity of all stockholders, partners, officers, and employees.
N.D. Cent. Code § 26.1-25-09 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-09
26.1-25-09. Information to be furnished insureds - Hearings and appeals of insureds
Status: in_force

26.1-25-09. Information to be furnished insureds - Hearings and appeals of insureds

Every insurer which files rates shall, within a reasonable time after receiving written request

therefor and upon payment of such reasonable charge as it may make, furnish to any insured

affected by a rate made by it, or to the authorized representative of such insured, all pertinent

information as to the rate. Every insurer which files rates shall provide within this state

reasonable means whereby any person aggrieved by the application of its rating system may be

heard, in person or by an authorized representative, on the person's written request to review

the manner in which the rating system has been applied in connection with the insurance

afforded the person. If the insurer fails to grant or reject the request within thirty days after it is

made, the applicant may proceed in the same manner as if the application had been rejected.

Any party affected by the action of the insurer on the request may, within thirty days after written

notice of the action, appeal to the commissioner, who, after a hearing held upon not less than

ten days' written notice to the appellant and to the insurer, may affirm or reverse the action.
N.D. Cent. Code § 26.1-12-01 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-01
26.1-12-01. Organization of mutual insurance company - Minimum number of members
Status: in_force

26.1-12-01. Organization of mutual insurance company - Minimum number of

members.

Any number of persons, not less than twenty, a majority of whom must be bona fide

residents of this state, may become, together with others who thereafter may be associated with

them or their successors, a body corporate for the purpose of carrying on the business of

mutual insurance as provided in this chapter by complying with this chapter. Any number of

persons, not less than seven, may form a mutual life insurance company and, with others who

may become associated with them or their successors, may become a body corporate for the

purpose of carrying on the business of a mutual life insurance company. A mutual life insurance

company organized under this chapter may carry insurance upon the lives of persons, including

every kind of insurance pertaining thereto.
N.D. Cent. Code § 26.1-33.4-08 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-08
26.1-33.4-08. Disclosures to owners
Status: in_force

26.1-33.4-08. Disclosures to owners

1. The provider shall provide in writing, in a separate document that is signed by the

owner and provider, the following information to the owner no later than the date the

life settlement contract is signed by all parties:

a. The fact that possible alternatives to life settlement contracts exist, including

accelerated benefits offered by the issuer of the life insurance policy.

b. The fact that some or all of the proceeds of a life settlement contract may be

taxable and that assistance should be sought from a professional tax adviser.

c. The fact that the proceeds from a life settlement contract could be subject to the

claims of creditors.

d. The fact that receipt of proceeds from a life settlement contract may adversely

affect the recipient's eligibility for public assistance or other government benefits

or entitlements and that advice should be obtained from the appropriate

agencies.

e. The fact the owner has the right to rescind a life settlement contract before the

earlier of sixty calendar days after the date upon which the life settlement contract

is executed by all parties or thirty calendar days after the life settlement proceeds

have been delivered to the escrow agent by or on behalf of the provider as

provided in subsection 11 of section 26.1-33.4-10. Rescission, if exercised by the

owner, is effective only if both notice of the rescission is given and the owner

repays all proceeds and any premiums, loans, and loan interest paid on account

of the provider within the rescission period. If the insured dies during the

rescission period, the contract is deemed to have been rescinded subject to

repayment by the owner or the owner's estate of all proceeds and any premiums,

loans, and loan interest to the provider.

f. The fact that proceeds will be sent to the owner within three business days after

the provider has received the insurer's or group administrator's acknowledgement

that ownership of the policy or interest in the certificate has been transferred and

the beneficiary has been designated in accordance with the terms of the life

settlement contract.

g. The fact that entering into a life settlement contract may cause other rights or

benefits, including conversion rights and waiver of premium benefits, that may

exist under the policy or certificate of a group policy to be forfeited by the owner

and that assistance should be sought from a professional financial adviser.

h. The amount and method of calculating the compensation paid or to be paid to the

broker, or any other person acting for the owner in connection with the

transaction, wherein the term compensation includes anything of value paid or

given.

i. The date by which the funds will be available to the owner and the transmitter of

the funds.

j. The fact that the commissioner shall require delivery of a buyer's guide or a

similar consumer advisory package in the form prescribed by the commissioner to

owners during the solicitation process.

k. The disclosure document must contain the following language:

All medical, financial, or personal information solicited or obtained by a

provider or broker about an insured, including the insured's identity or the

identity of family members, a spouse, or a significant other may be disclosed

as necessary to effect the life settlement contract between the owner and

provider. If you are asked to provide this information, you will be asked to

consent to the disclosure. The information may be provided to someone who

buys the policy or provides funds for the purchase. You may be asked to

renew your permission to share information every two years.

l. The fact that the commissioner shall require providers and brokers to print

separate signed fraud warnings on their applications and on their life settlement

contracts the following statement:

Any person that knowingly presents false information in an application for

insurance or life settlement contract is guilty of a crime and may be subject

to fines and confinement in prison.

m. The fact that the insured may be contacted by either the provider or broker or its

authorized representative for the purpose of determining the insured's health

status or to verify the insured's address. This contact is limited to once every

three months if the insured has a life expectancy of more than one year, and no

more than once per month if the insured has a life expectancy of one year or less.

This contact may be made only by a provider or broker licensed in the state in

which the owner resided at the time of the settlement or by the authorized

representative of such a provider or broker.

n. The affiliation, if any, between the provider and the issuer of the insurance policy

to be settled.

o. That a broker represents exclusively the owner, and not the insurer or the

provider or any other person, and owes a fiduciary duty to the owner, including a

duty to act according to the owner's instructions and in the best interest of the

owner.

p. The document must include the name, address, and telephone number of the

provider.

q. The name, business address, and telephone number of the independent

third-party escrow agent, and the fact that the owner may inspect or receive

copies of the relevant escrow or trust agreements or documents.

r. The fact that a change of ownership could in the future limit the insured's ability to

purchase future insurance on the insured's life because there is a limit to how

much coverage insurers will issue on one life.

s. If an insurance policy to be settled has been issued as a joint policy or involves

family riders or any coverage of a life other than the insured under the policy to

be settled, that the owner must be informed of the possible loss of coverage on

the other lives under the policy and must be advised to consult with the owner's

insurance producer or the insurer issuing the policy for advice on the proposed

settlement.

t. The dollar amount of the current death benefit payable to the provider under the

policy or certificate. If known, the provider also shall disclose the availability of

any additional guaranteed insurance benefits, the dollar amount of any accidental

death and dismemberment benefits under the policy or certificate, and the extent

to which the owner's interest in those benefits will be transferred as a result of the

viatical settlement contract.

u. Any affiliations or contractual arrangements between the provider and the

purchaser.

2. The written disclosures must be conspicuously displayed in any life settlement contract

furnished to the owner by a provider, including any affiliations or contractual

arrangements between the provider and the broker.

3. A broker shall provide the owner and the provider with at least the following

disclosures no later than the date the life settlement contract is signed by all parties.

The disclosures must be conspicuously displayed in the life settlement contract or in a

separate document signed by the owner and provide the following information:

a. The name, business address, and telephone number of the broker.

b. A full, complete, and accurate description of all the offers, counteroffers,

acceptances, and rejections relating to the proposed life settlement contract.

c. A written disclosure of any affiliations or contractual arrangements between the

broker and any person making an offer in connection with the proposed life

settlement contracts.

d. The name of each broker who receives compensation and the amount of

compensation received by that broker, which compensation includes anything of

value paid or given to the broker in connection with the life settlement contract.

e. A complete reconciliation of the gross offer or bid by the provider to the net

amount of proceeds or value to be received by the owner. For the purpose of this

section, gross offer or bid means the total amount or value offered by the provider

for the purchase of one or more life insurance policies, inclusive of commissions

and fees.

f. The failure to provide the disclosures or rights described in this section is deemed

an unfair trade practice pursuant to section 26.1-33.4-16.
N.D. Cent. Code § 26.1-52-08 — ND Code / Title 26.1 / Chapter 26.1-52 / Section 26.1-52-08
26.1-52-08. Agents
Status: in_force

26.1-52-08. Agents

A licensed property and casualty agent may submit an application on behalf of an applicant

to the facility. The agent is entitled to receive a commission for the service. The agent is not a

representative of the facility.
N.D. Cent. Code § 26.1-01-11 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-11
26.1-01-11. Prescription drug assistance
Status: in_force

26.1-01-11. Prescription drug assistance

The insurance commissioner shall create and implement a program to assist individuals of

low income to gain access to prescription medications through prescription drug assistance

programs offered by pharmaceutical manufacturers, including free discount and coverage

programs. The commissioner shall use available computer software programs that link an

eligible individual with the appropriate pharmaceutical company patient assistance program

relating to the individual's medically necessary drugs. The commissioner shall provide education

to individuals and providers to promote the program and to expand enrollment and access to

necessary medications for low-income individuals qualifying for the programs.